A U.S. district judge today sentenced former attorney James M. "Tres" Bernhard III to 27 months in federal prison for committing wire fraud and diverting nearly $500,000 in funds from his former law firm to his own personal use. Judge Brian Jackson issued the sentence after about 20 minutes of arguments in Baton Rouge today, mostly from Bernhard's attorney, Michael Villa, who argued the 36-year-old should receive a sentence of probation, community service and, possibly, home incarceration so that he could continue to receive intensive mental health treatments for a variety of mental and cognitive illnesses. "These are not diagnoses of convenience," Villa said, citing two physicians' reports detailing Bernhard's lifelong history of mental illness. "There is a long history of mental instability … that we are only now seeking treatment for … that should have been sought long ago." Bernhard, son of the Shaw Group founder Jim Bernhard, was present for the sentencing and...
Former attorney James M. "Tres" Bernhard III is in U.S. District Court this morning, where he is expected to be sentenced on a single count of wire fraud. Earlier this year, Bernhard pleaded guilty to wire fraud and for diverting funds from his former law firm for his personal use. Bernhard, son of The Shaw Group founder Jim Bernhard, was charged by the feds last fall, after settling a civil law suit that was filed against him by his former law firm, Crawford Lewis, and some of its clients. That civil suit alleged that Bernhard, who had billed himself as an expert in the state's movie tax credit program, sold invalid tax credits to third parties, then misappropriated the proceeds from the sale, using them for his personal gain. Last May, Bernhard was permanently disbarred. Wire fraud carries a possible penalty of 20 years in prison and a possible fine of $250,000. The sentencing was scheduled for 9:30 a.m. in U.S. District Judge Brian Jackson's courtroom. —Stephanie...
An attempt to ban posting to Facebook, Twitter and other social media sites while driving is nearing final passage in the Louisiana Legislature. The proposal, approved today by the House transportation committee, is designed to close what lawmakers call a loophole in the state law that prohibits texting while driving. The Senate-approved bill would add accessing, reading and posting to social media sites to the prohibition. It heads next to the full House. Livingston Sen. Dale Erdey, the Republican sponsor of the bill, says he's trying to cut down on distracted driving and improve public safety. If passed into law, violators would face a fine up to $175 for the first offense and up to $500 for second and subsequent violations.
Murphy Painter's plea to dismiss all the federal charges against him has been rejected, and his trial has once again been rescheduled. U.S. District Judge James Brady recently denied a motion to throw out all 42 counts of computer fraud, making false statements, and aggravated identity theft resulting from his alleged misuse of computerized criminal history and motor vehicle databases while Painter was commissioner of the Louisiana Office of Alcohol and Tobacco Control. Painter's attorney, Tim Meche of New Orleans, had argued in an October motion that the government was "overreaching" in its charges. In a memo to the judge, the attorney implies that Painter is merely the victim of political retribution from the governor's office for failing to issue an alcohol and beverage permit for Champions Square, being built outside the Superdome after the New Orleans Saints won Super Bowl XLIV. Meche adds that background checks are "exercised at astounding rates," noting that Louisiana law...
The most common organizational structures are sole proprietorships, general and limited partnerships, C and S corporations, and limited liability companies. Below are characteristics of the most common structures, provided by the Small Business Administration. It's a good idea to discuss these options with a business counselor or attorney to determine which is best for you.
Imagine you've been doing business for 11 years or more. Your brand has been so successful that you've opened two additional locations elsewhere in the state and are contemplating two more. Plus, you're about to go international with an online store.
When the Louisiana Legislature gave a thumbs-up in 1992 to a new business structure called a “limited liability company,” businesspeople around the state hailed it as the greatest invention since sliced bread. Freeing small and medium-size businesses from many burdens of operating as traditional corporations or partnerships, the LLC introduced new simplicity and flexibility to business formation. At the same time, the structure offered individual owners protection from potential liability down the road.
In lieu of making closing arguments in front of 19th Judicial District Court Judge Janice Clark, lawyers for the city-parish and Stephen Myers filed post trial memorandums Tuesday in the city's lawsuit against the landlord regarding the tenants of one of his Baton Rouge rental properties. At issue is the tenants' relationship to one another, or more accurately, the lack thereof. Judge Clark is expected to issue a ruling on the matter within 30 days of Tuesday's filings. The case centers on the definition of "family" as it relates to residences in the city-parish zoned A1 single family. Section 2.8 of the Unified Development Code defines family as "two or more persons who are related by blood, marriage or legal adoption." Myers—who was ordered by the city last year to stop renting a home on Cherrydale Avenue to four unrelated tenants or face the lawsuit he's currently fighting—contends that definition of family is unconstitutional and in violation of the Federal Fair...
Politics makes strange bedfellows, as the adage goes. On occasion, so do lawsuits. In a recent motion to dismiss a whistleblower lawsuit filed last summer in Baton Rouge federal court against Alvin Fairburn & Associates and others involved in the Hurricane Gustav debris cleanup in Livingston Parish, AFA takes the unusual stand of siding philosophically with the parish council—and against the engineering firm's own former office manager, Parish President Layton Ricks. At issue is the fact that just days after taking office, Ricks stopped payment on a $379,517 check to Corey Delahoussaye's firm, C-Del. That was also around the same time that Ricks issued a $453,000 check to AFA. Neither of those actions was approved by the council. In a curious twist, AFA argues in its motion that Ricks exceeded his authority in stopping the payment to C-Del, although no mention is made of the subsequent check issued to AFA. —Penny Font
BP is preparing for an emotional hearing Tuesday in a New Orleans courtroom, where company officials will face victims of the 2010 Gulf of Mexico rig explosion and oil spill in front of a judge who will decide whether to accept a criminal plea deal, The Houston Chronicle reports. U.S. District Judge Sarah Vance plans to announce her decision after hearing from lawyers for BP and the Justice Department, spill victims, and relatives of some of the 11 men who were killed when the Deepwater Horizon drilling rig exploded and sank. If Vance accepts BP's agreement to plead guilty to 14 criminal charges, including manslaughter and obstruction of Congress, she will impose the sentence the company negotiated with the U.S. government: a $4 billion criminal penalty, five years' probation and independent monitoring. If she rejects the deal, Vance will allow BP to withdraw its guilty plea and go to trial. The prospect of a trial, which could result in tougher penalties, would create more...
Former employees of Shaw Canada have filed a $39.2 million lawsuit against Baton Rouge-based The Shaw Group, alleging wrongful termination and the abandonment of an "underfunded" pension plan. The announcement, released Thursday, says the lawsuit arises out of the mass termination of all employees of Shaw Canada, according to a news release by the plaintiffs' law firm. The lawsuit alleges that Shaw Group acted in a manner that was "oppressive to the Canadian employees and retirees," and that the defendants, rather than winding down the company in an orderly manner and providing prior notice to the employees, conspired to orchestrate the bankruptcy of Shaw Canada to evade paying severance pay and amounts owing to the Shaw Canada pension plan.
As Vice President Joe Biden leads a White House effort to develop gun control and other measures designed to prevent more deadly mass shootings at U.S. schools, The Times-Picayune reports it appears the Louisiana delegation will be a tough sell. Rep. Steve Scalise, R-Jefferson and outgoing Rep. Jeff Landry, R-New Iberia, have pretty much ruled out support for any new gun control legislation. Some other strong gun control proponents in the delegation, including Sen. David Vitter, R-La., and John Fleming, R-Minden, are declining to speak out so soon after last week's killing of 20 first grade students and six adults at a Connecticut elementary school. Sen. Mary Landrieu, D-La., and Rep. Rodney Alexander, R-Quitman, are willing to consider new measures, but continue to advocate for the rights of gun owners. Only Rep. Cedric Richmond, D-New Orleans, among Louisiana members, offers a firm endorsement for limits on assault weapons and high-capacity magazines. "Gun control won't stop...
Judge William Morvant had harsh words earlier this week for BancorpSouth and its attorneys over the way they handled a discovery request from Windy Gladney and his attorney for emails that are believed to be relevant in a case between the local developer and the bank. In a transcript from Monday's hearing in the 19th Judicial District Court, Morvant tells attorneys for the bank he needed to choose his words carefully after learning that the bank has a disk containing some 500,000 electronic documents, which it had previously said did not exist. Earlier this year, the bank's attorneys told Morvant emails between Bancorp South President Larry Denison and others had long since been deleted. "To have the court told these emails are deleted, they're permanently gone, and now in 2012 I'm getting '06 and '07 Denison emails referencing these loans after I'm assured that they don't exist, it causes me some real concern," Morvant says. The judge is giving the bank 10 days to completely respond...
BancorpSouth is facing tough sanctions from the 19th Judicial District Court for failing to turn over during the discovery process a computer disk containing some 500,000 pages of documents sought by the attorney for Windy Gladney in the developer's long-running lawsuit against the bank. In a hearing late Monday, Judge William Morvant granted Gladney's motion for sanctions against the bank for withholding the documents, which include emails that may contain information about the loans that are at issue in the case. Details of the ruling have not yet been entered into the court record. Attorneys for BancorpSouth did not return calls for comment in time for publication, and Gladney's lawyer declined to comment until after the ruling has been made public. However, Morvant's decision is clearly a victory for Gladney and his partnership, Kleinpeter Trace. Gladney and development firm Kleinpeter Trace are being sued by the bank for defaulting on some $2 million in construction loans. He...
With his lawsuit challenging new CATS taxes at a temporary standstill, the Baton Rouge man who filed the suit in July is now asking those who support his position to formally protest the taxes by sending letters to Sheriff Sid Gautreaux's office. Milton Graugnard, a Cajun Industries executive, says the protest letters effectively request the sheriff's office to hold their taxes in an escrow account and not turn them over to the transit system until his case is resolved in court. "It's a secondary means for anyone who has paid the tax already or is going to pay the tax" to challenge it, Graugnard says of the letters. In a recent letter sent out to his supporters that provides an update on the case, Graugnard even includes a sample letter, which you can see here. Graugnard is asking people to send the letters before Dec. 31, when the taxes officially come due. While...
A Baton Rouge judge has tossed out on constitutional grounds part of an education revamp pushed by Gov. Bobby Jindal, but has upheld the centerpiece provisions that changed teacher tenure and salary laws. Judge Michael Caldwell ruled this afternoon that the section of the legislation dealing with the authority of local school boards violates the state constitution because it doesn't fit into the stated objective of the law. Caldwell's ruling does away with changes that lessened the power of local school boards over hiring and firing, as well as those that required the state education superintendent's review of local school superintendent contracts. However, Caldwell ruled provisions of the law eliminating statewide teacher pay scales and making it tougher for teachers to reach the job protection status of tenure are constitutional. Jindal released a statement shortly after the ruling, calling it a "victory" for students and teachers. "This ruling upholds the core purpose of the...
Environmentalists set to file a lawsuit today challenging the Obama administration's plans to sell offshore drilling leases over the next five years are using a novel argument: that the government overlooked the value of waiting to harvest oil and gas from coastal waters. The Houston Chronicle reports the economic-driven approach is a new one for offshore drilling critics, who have separately accused the government of moving too swiftly to approve new oil and natural gas exploration after the Deepwater Horizon disaster and ignoring the environmental effects of the work. Lawyers with New York University's Institute for Policy Integrity are filing the lawsuit in the United States Circuit Court for the District of Columbia on behalf of the Santa Fe, N.M.-based Center for Sustainable Economy. The lawsuit will ask the court to kick out the current program and require the Interior Department to revise it. The legal challenge takes direct aim at the Interior Department's plan to hold...
Louisiana's civil justice system is on the verge of becoming one of the nation's most unfair and out-of-balance, according to the 11th annual Judicial Hellholes Report, released today by the American Tort Reform Association. In the 2012-2013 report, which ranks California's system as No. 1, Louisiana is included on the group's "watch list" for the third straight year. The ATRA's "watch list" is designed to call attention to jurisdictions that "bear watching due to troubling developments or their histories of abusive litigation." The report says of Louisiana: "Despite determined reform efforts by certain lawmakers in Baton Rouge, Louisiana's civil litigation environment, especially in Orleans and St. Landry parishes, remains a concern thanks to laws that still permit excessive liability, plaintiff-friendly judges, and close relationships between the plaintiffs' bar and some state government officials." Louisiana Lawsuit Abuse Watch
Two men who worked for BP during the 2010 Gulf oil spill disaster have been charged with manslaughter, and a third with lying to federal investigators, according to indictments made public today, hours after BP announced it was paying $4.5 billion in a settlement with the U.S. government over the disaster. A federal indictment unsealed in New Orleans claims BP well site leaders Robert Kaluza and Donald Vidrine acted negligently in their supervision of key safety tests performed on the Deepwater Horizon drilling rig before the explosion killed 11 workers in April 2010. The indictment says Kaluza and Vidrine failed to phone engineers onshore to alert them to problems in the drilling operation. The two were charged with a total of 23 counts of criminal wrongdoing. Another indictment charges David Rainey, who was BP's vice president of exploration for the Gulf of Mexico, on counts of obstruction of Congress and false statements. The indictment claims the former executive lied to federal...
Back in early September, John Schmidt pulled into the State Parking Garage on Third Street a little after 8 p.m. on a Saturday and parked his vehicle. When he returned, he discovered it had been hauled away by Riverside Towing. He made his way to the company's towing yard—a dark, isolated lot surrounded by chain-link fence under the downtown bridge near the levee. Transactions here are strictly cash. It was 8:45 p.m., but the lot didn't open until midnight. That meant he would be charged for an extra day of storage, not to mention a $45 "gate fee." Total cost of parking that night in downtown Baton Rouge: more than $200. There's a war going on in certain flourishing areas of Baton Rouge, and it's driven by simple supply and demand: too many vehicles, not enough parking. Game day at Tiger Stadium. Saturday night in the Perkins Road overpass district. Major events in downtown Baton Rouge. LSU area apartment complexes on the weekends. They are all battlegrounds. Merchants...
A protracted criminal investigation of the deadly 2010 Gulf of Mexico rig explosion and oil spill may be holding up civil settlements that could result in multibillion-dollar fines against BP and other companies linked to the disaster, The Houston Chronicle reports. Well owner BP and rig owner Transocean both face criminal and civil liability and would not be inclined to settle civil claims unless they knew their fate with prosecutors, legal experts say. But the status of the criminal investigation is unclear. "We do need clarity of the criminal prosecution before there will be any civil settlement," says University of Michigan law professor David Uhlmann, a former federal prosecutor who is following the spill litigation closely but isn't directly involved. Lawyers for several possible individual defendants say they've had no recent contact from government investigators. BP continues to have discussions with the Justice Department about settling expected fines and penalties,...
Some Baton Rouge bars made their first Sunday of operation as much about the food they offered as the drinks they poured. The Radio Bar on Government Street moved its typical Monday barbecue to Sunday—it opened at 2 p.m.—and had quit serving food by 7 p.m., as a steady bar crowd made the first open Sunday busier than a typical Monday or Tuesday. "But it's the first night," notes co-owner Dave Remmetter. The Radio Bar will likely operate on Sundays from now on, 4 p.m. to midnight, eschewing an earlier opening for the football crowd and sticking to its no-TVs ethos, he says. This past Sunday was the first that East Baton Rouge Parish bars were able to open under an ordinance that got Metro Council approval two weeks ago and Mayor Kip Holden's signature last week. Tom Ange, owner of The Cove on Corporate Boulevard and Port Royal on College Boulevard, says he has "modest goals" for Sunday sales. Nonetheless, Ange says he'll open both establishments at noon on...
In a year during which the city-parish government has already awarded nearly $500 million in construction contracts, the bidding process to install streetlights on Brightside Lane was no more extraordinary than any other project. The city-parish estimated the project would cost about $895,000. Four companies, accordingly, submitted their bids electronically. Diamond Electrical Co. was the lowest bidder. But due to a computer glitch in the bidding software, Diamond's final bid—which was an amendment to its first bid—wasn't acknowledged and the streetlight project went to Jack B. Harper Contractor Inc. Diamond brought their final bid of $649,000 to the city-parish's attention after Harper was awarded the project for $719,000. Diamond eventually was recognized as the lowest bidder. But it took the software developer 56 days to admit its system's error. "And now we're stuck with litigation," says Councilman Chandler Loupe. The Parish Attorney's Office says the software...
One of several attorneys pursuing a class action on behalf of The Shaw Group's shareholders against the pending sale to CB&I suspects some "backroom dealing" led up to the agreement. "We have significant concerns that company insiders are using the merger transaction to benefit themselves in ways that the rest of the shareholders are not benefiting from," says David Wissbroecker of San Diego-based law firm Robbins Geller Rudman & Dowd. Plaintiffs argue Shaw's top executives are looking to cash out quickly, and that the stated price of $46 per share in cash and stock doesn't fully account for the company's higher revenue projections over the next few years. Wissbroecker says litigation affords the opportunity to gather the needed information for a more accurate valuation. It generally isn't a good idea for a company to completely open its books, he notes. "[But] in the context of this transaction, that's when the kimono needs to open, and it's not," he says. East Baton Rouge District...
Gov. Bobby Jindal's administration is facing court challenges over attempts to keep records from the public. At issue is the use of a public records exemption successfully pushed by Jindal and added to state law during his first term. One lawsuit appears to be headed for resolution, but another is still pending over the "deliberative process" exemption cited by administration officials in refusing to release a variety of documents. Shreveport-based Willis-Knighton Health System sued the Department of Transportation and Development over its refusal to provide information about a highway extension project. The department claimed an exemption tied to the "deliberative process." That lawsuit may be near settlement; a Tuesday hearing was postponed after officials said they would release the documents. "All the information requested will be provided. No legal proceedings are anticipated," Jodi Conachen, a transportation department spokeswoman, says in an email. However, a separate lawsuit...
A national survey of business attorneys and leaders ranks Louisiana as having the nation's second-worst lawsuit climate in 2010, Gannett Louisiana reports. The ranking comes despite numerous changes in Louisiana tort law limiting awards and lawsuits. The compilation was done prior to the state's adoption of changes in laws dealing with "legacy" lawsuits over oil and gas exploration and production cleanup. It's the second time in the last three assessments that the state has ranked 49th; and it has never ranked higher than 47th, as it did from 2002 to 2005, since the survey began a decade ago. The U.S. Chamber of Commerce's Institute for Legal Reform surveyed 1,482 in-house counsel, senior counsel or litigators, and business executives about their perceptions of state and local courts. The survey notes that Louisiana doesn't allow punitive damages except in rare cases, but that didn't elevate the state's score. Neither did other changes adopted since 1996, when the Louisiana...
A Delhi Charter School policy preventing pregnant students from attending school—and permitting the school to require a student to take a pregnancy test to continue attending school if administrators suspect she's expecting—is drawing the attention of the American Civil Liberties Union. The (Monroe) News-Star reports the ACLU sent a letter Monday requesting the school revise its policy or the group will consider further legal action. Caroline Roemer Shirley, executive director of the Louisiana Association of Charter Schools, agrees the policy could be problematic. Pregnant students wishing to continue attending Delhi Charter—located in the small northeastern Louisiana town of Delhi, which has a population of roughly 3,000—will be required to enroll in a home study course while pregnant. The letter from the ACLU contends that the policy violates Title IX of the Education Amendments of 1972 because it excludes students from educational programs. "They're...
Despite an announcement from the U.S. Equal Employment Opportunity Commission late Wednesday that it will not pursue a federal discrimination lawsuit against Gerry Lane Enterprises, an attorney for plaintiffs in the case says his clients intend to move forward with lawsuits accusing Gerald R. Lane and his company of sexual harassment and racial discrimination. Joseph Long, who represents current and former Gerry Lane employees, says his clients declined to participate in the investigation that led to the commission's decision Wednesday. While he did not elaborate on why they declined to participate, Long says in a prepared statement, "We are pleased the EEOC has completed its investigation so that we can get on with litigation." His statement conveys a desire to move forward expeditiously: "The government has finally granted us the right to sue in Federal Court regarding our first six plaintiffs. The law gives us 90 days to file our federal complaint. We will be filing shortly. We...
An Iberville Parish jury today returned an $117 million verdict against Acadian Ambulance, according to Tony Clayton, one of the plaintiff's attorneys. According to reports published at the time, Whitley Lacey of Plaquemine, who was 21 years old and pregnant, was severely injured in 2010 when the ambulance in which she was riding rear-ended a sugar-cane truck. Calls to Acadian Ambulance for comment were not immediately returned.
After an investigation, the U.S. Equal Employment Opportunity Commission has decided not to pursue a federal discrimination lawsuit against Gerry Lane Enterprises, according to the Vice President Eric Lane. Several employees had alleged harassment and racial discrimination. The EEOC's decision does not necessarily mean the nine plaintiffs will not pursue their suits against Gerry Lane, only that they would do so without EEOC support. Joseph Long, an attorney who represents current and former employees in a state suit against Gerry Lane, could not immediately be reached for comment.
While issues like health care reform, federal spending and economic stimulus may be dominating the national political debate, local firearm dealers say if their sales this year are any indication, many Capital Region gun owners are concerned about the future of their Second Amendment rights and how those might be affected if President Barack Obama is re-elected.
The Crawford Lewis law firm is dropping its lawsuit against former attorney James M. "Tres" Bernhard, after Bernhard reached a $2.2 million settlement with two investors involved in the suit. Crawford Lewis attorney Mary Olive Pierson confirms the firm is dismissing the suit it filed in May against Bernhard, who worked for Crawford Lewis as a tax credit expert from 2008 until March. The suit accuses him of pocketing funds from the transfer of movie industry tax credits that either didn't belong to him or didn't exist, and of failing to deliver tax credits he was retained to collect on behalf of investors. Pierson could not discuss the settlement, citing a confidentiality agreement. But in an interview several weeks ago she suggested the terms of such a settlement would include a $2.2 million payment by Bernhard to two investors, who had retained him to collect tax credits they had purchased from Nerjyzed Entertainment and DMG Holdings but never received. Crawford Lewis was...
A New Orleans City Councilman says he will plead guilty to a federal criminal charge involving the misuse of federal money intended to help a nonprofit organization after Hurricane Katrina. In a statement released by his attorney today, Jon Johnson says he made the decision after meeting with federal officials. He also says he will resign from the council. Johnson's statement came moments after a court filing emerged showing that he would be charged with conspiracy to commit theft of government funds and to submit false documents. The 63-year-old Johnson is accused of diverting money intended for the Ninth Ward Housing Development Corp. for personal use, including expenses for his failed 2007 campaign for a seat in the Louisiana Senate. The documents say Johnson controlled the finances of the housing development group, which obtained Federal Emergency Management Agency grants for house gutting and mold remediation after the August 2005 storm and resulting flood. Prosecutors say...
The date set for arguments to be heard in a lawsuit filed by teachers unions and local school boards challenging the constitutionality of Gov. Bobby Jindal's statewide voucher program is Oct. 15. Baton Rouge Judge Tim Kelley chose the hearing date Tuesday in a meeting with lawyers for both sides in the case. Attorneys for two statewide teachers unions and dozens of local school boards say the voucher program, which will use tax dollars to send children to private schools, and other new education funding plans are unconstitutional. They argue it's improper to pay for the programs through the public school funding formula, and they claim lawmakers didn't follow the process for passing laws. Jindal and state Superintendent of Education John White defend the constitutionality of the programs and the process for passing them into law. In an action regarding a separate suit by teachers unions that attempted to block the August start of the voucher program, Kelley last week ruled that he...
A Livingston Parish grand jury today indicted the mayor and police chief of Springfield—a town of roughly 400 people located about 40 miles east of Baton Rouge—on charges they conspired to hide a woman's 2011 drunken driving citation. Louisiana Attorney General Buddy Caldwell's office says the four-count indictment charges Mayor Charles Martin and Police Chief James Jones with obstruction of justice, criminal conspiracy to obstruct justice, injuring public records, and criminal conspiracy to injure public records. Martin and Jones were booked on related charges last year. Caldwell's office says the 62-year-old mayor and 48-year-old police chief plotted to conceal evidence and obstruct the prosecution of a suspect arrested in April 2011 on suspicion of drunken driving. Martin and Jones didn't immediately respond to a message for comment left at the town's administrative office by The Associated Press.
A three-year-old wrongful termination lawsuit against the Southern University Board of Supervisors, former SU System Interim President Kassie Freeman and board member Tony Clayton has been dismissed. The plaintiff, Joseph Cedric Shelton, was fired by the university in September 2009. The university cited budget cuts as the reason. Shelton's attorney claimed it was retaliatory. District Judge James Brady dismissed the case Wednesday; it had been under way since Monday. Defense attorneys argued that after three days of testimony from several witnesses, the plaintiff and his lawyer failed to prove their claim of retaliation by wrongful termination, and Brady agreed. SU Board of Supervisors Chairman Darren Mire says in a news release that, "While we are very happy with [the] ruling, we remain focused on rebuilding Southern University and making it stronger and viable for the future."
The Supreme Court this morning reaffirmed its two-year-old decision allowing corporations to spend freely to influence elections. The justices struck down a Montana law limiting corporate campaign spending. By a 5-4 vote, the court's conservative justices say the decision in the Citizens United case in 2010 applies to state campaign finance laws and guarantees corporate and labor union interests the right to spend freely to advocate for or against candidates for state and local offices. The majority turned away pleas from the court's liberal justices to give a full hearing to the case because massive campaign spending since the January 2010 ruling has called into question some of its underpinnings. The same five justices ruled in 2010 that corporations have a constitutional right to be heard in election campaigns. The decision paved the way for unlimited spending by corporations and labor unions in elections for Congress and the president, as long as the dollars are independent of...
An inventor claims his design was the basis for the cap used to choke off the flow of oil to the Gulf of Mexico nearly three months after BP's undersea well blew in 2010—and he says it was stolen. Charles Adams of Radford, Va., has filed a federal lawsuit that names as defendants several players who were involved in resolving the disaster. They include Helix Energy Solutions Group, which supplied a rig that helped with the capping mission, and Cameron International, which made the blowout preventer that failed to stop oil from reaching the sea in the first place. BP isn't named in the suit; it owned the well and was leasing the rig that exploded off Louisiana and touched off the leak. Helix and Cameron officials declined to comment Wednesday on Adams' suit. Adams says that in May 2010 he designed and captured in conceptual drawings a capping device employing an effective seal. He says he later applied for a patent and began preparing to market the design. He says an engineering...
Patrick Martin, director of the Louisiana Mineral Law Institute, says he's hopeful that this year's compromise on legislation addressing "legacy lawsuits" will effectively protect the rights of landowners and oil and gas companies. "We'll see how it's implemented," he says. "I think it's a good step forward. … I think it deserves respect by the courts, to give the [Department of Natural Resources and oil and gas companies] the opportunity to implement it on a reasonable basis." Legacy lawsuits are so nicknamed because the alleged environmental damage often happened years or decades before the suits are filed. The new legislation says DNR should have a chance to create a cleanup plan before a trial for possible damages; the industry hopes having a plan detailing cleanup costs available to a jury will make them less likely to call for a huge award. Martin cautions that it can be hard to predict how the courts will interpret the language of a statute. He says there's often...
'Tres' Bernhard sentenced to 27 months in prison
A U.S. district judge today sentenced former attorney James M. "Tres" Bernhard III to 27 months in federal prison for committing wire fraud and diverting nearly $500,000 in funds from his former law firm to his own personal use. Judge Brian Jackson issued the sentence after about 20 minutes of arguments in Baton Rouge today, mostly from Bernhard's attorney, Michael Villa, who argued the 36-year-old should receive a sentence of probation, community service and, possibly, home incarceration so that he could continue to receive intensive mental health treatments for a variety of mental and cognitive illnesses. "These are not diagnoses of convenience," Villa said, citing two physicians' reports detailing Bernhard's lifelong history of mental illness. "There is a long history of mental instability … that we are only now seeking treatment for … that should have been sought long ago." Bernhard, son of the Shaw Group founder Jim Bernhard, was present for the sentencing and...
'Tres' Bernhard in court for sentencing today
Former attorney James M. "Tres" Bernhard III is in U.S. District Court this morning, where he is expected to be sentenced on a single count of wire fraud. Earlier this year, Bernhard pleaded guilty to wire fraud and for diverting funds from his former law firm for his personal use. Bernhard, son of The Shaw Group founder Jim Bernhard, was charged by the feds last fall, after settling a civil law suit that was filed against him by his former law firm, Crawford Lewis, and some of its clients. That civil suit alleged that Bernhard, who had billed himself as an expert in the state's movie tax credit program, sold invalid tax credits to third parties, then misappropriated the proceeds from the sale, using them for his personal gain. Last May, Bernhard was permanently disbarred. Wire fraud carries a possible penalty of 20 years in prison and a possible fine of $250,000. The sentencing was scheduled for 9:30 a.m. in U.S. District Judge Brian Jackson's courtroom. —Stephanie...
Ban on using social media while driving moves closer to law
An attempt to ban posting to Facebook, Twitter and other social media sites while driving is nearing final passage in the Louisiana Legislature. The proposal, approved today by the House transportation committee, is designed to close what lawmakers call a loophole in the state law that prohibits texting while driving. The Senate-approved bill would add accessing, reading and posting to social media sites to the prohibition. It heads next to the full House. Livingston Sen. Dale Erdey, the Republican sponsor of the bill, says he's trying to cut down on distracted driving and improve public safety. If passed into law, violators would face a fine up to $175 for the first offense and up to $500 for second and subsequent violations.
Judge rejects Painter's plea for dismissal of federal charges
Murphy Painter's plea to dismiss all the federal charges against him has been rejected, and his trial has once again been rescheduled. U.S. District Judge James Brady recently denied a motion to throw out all 42 counts of computer fraud, making false statements, and aggravated identity theft resulting from his alleged misuse of computerized criminal history and motor vehicle databases while Painter was commissioner of the Louisiana Office of Alcohol and Tobacco Control. Painter's attorney, Tim Meche of New Orleans, had argued in an October motion that the government was "overreaching" in its charges. In a memo to the judge, the attorney implies that Painter is merely the victim of political retribution from the governor's office for failing to issue an alcohol and beverage permit for Champions Square, being built outside the Superdome after the New Orleans Saints won Super Bowl XLIV. Meche adds that background checks are "exercised at astounding rates," noting that Louisiana law...
Choosing the structure
The most common organizational structures are sole proprietorships, general and limited partnerships, C and S corporations, and limited liability companies. Below are characteristics of the most common structures, provided by the Small Business Administration. It's a good idea to discuss these options with a business counselor or attorney to determine which is best for you.
Faux pas
Imagine you've been doing business for 11 years or more. Your brand has been so successful that you've opened two additional locations elsewhere in the state and are contemplating two more. Plus, you're about to go international with an online store.
Check the box
When the Louisiana Legislature gave a thumbs-up in 1992 to a new business structure called a “limited liability company,” businesspeople around the state hailed it as the greatest invention since sliced bread. Freeing small and medium-size businesses from many burdens of operating as traditional corporations or partnerships, the LLC introduced new simplicity and flexibility to business formation. At the same time, the structure offered individual owners protection from potential liability down the road.
Judge's ruling on 'family' definition in UDC expected within 30 days
In lieu of making closing arguments in front of 19th Judicial District Court Judge Janice Clark, lawyers for the city-parish and Stephen Myers filed post trial memorandums Tuesday in the city's lawsuit against the landlord regarding the tenants of one of his Baton Rouge rental properties. At issue is the tenants' relationship to one another, or more accurately, the lack thereof. Judge Clark is expected to issue a ruling on the matter within 30 days of Tuesday's filings. The case centers on the definition of "family" as it relates to residences in the city-parish zoned A1 single family. Section 2.8 of the Unified Development Code defines family as "two or more persons who are related by blood, marriage or legal adoption." Myers—who was ordered by the city last year to stop renting a home on Cherrydale Avenue to four unrelated tenants or face the lawsuit he's currently fighting—contends that definition of family is unconstitutional and in violation of the Federal Fair...
Parish president's former employer sides against him on Gustav debris dispute
Politics makes strange bedfellows, as the adage goes. On occasion, so do lawsuits. In a recent motion to dismiss a whistleblower lawsuit filed last summer in Baton Rouge federal court against Alvin Fairburn & Associates and others involved in the Hurricane Gustav debris cleanup in Livingston Parish, AFA takes the unusual stand of siding philosophically with the parish council—and against the engineering firm's own former office manager, Parish President Layton Ricks. At issue is the fact that just days after taking office, Ricks stopped payment on a $379,517 check to Corey Delahoussaye's firm, C-Del. That was also around the same time that Ricks issued a $453,000 check to AFA. Neither of those actions was approved by the council. In a curious twist, AFA argues in its motion that Ricks exceeded his authority in stopping the payment to C-Del, although no mention is made of the subsequent check issued to AFA. —Penny Font
BP will face spill victims in guilty plea hearing
BP is preparing for an emotional hearing Tuesday in a New Orleans courtroom, where company officials will face victims of the 2010 Gulf of Mexico rig explosion and oil spill in front of a judge who will decide whether to accept a criminal plea deal, The Houston Chronicle reports. U.S. District Judge Sarah Vance plans to announce her decision after hearing from lawyers for BP and the Justice Department, spill victims, and relatives of some of the 11 men who were killed when the Deepwater Horizon drilling rig exploded and sank. If Vance accepts BP's agreement to plead guilty to 14 criminal charges, including manslaughter and obstruction of Congress, she will impose the sentence the company negotiated with the U.S. government: a $4 billion criminal penalty, five years' probation and independent monitoring. If she rejects the deal, Vance will allow BP to withdraw its guilty plea and go to trial. The prospect of a trial, which could result in tougher penalties, would create more...
Shaw Canada employees file $39 million suit
Former employees of Shaw Canada have filed a $39.2 million lawsuit against Baton Rouge-based The Shaw Group, alleging wrongful termination and the abandonment of an "underfunded" pension plan. The announcement, released Thursday, says the lawsuit arises out of the mass termination of all employees of Shaw Canada, according to a news release by the plaintiffs' law firm. The lawsuit alleges that Shaw Group acted in a manner that was "oppressive to the Canadian employees and retirees," and that the defendants, rather than winding down the company in an orderly manner and providing prior notice to the employees, conspired to orchestrate the bankruptcy of Shaw Canada to evade paying severance pay and amounts owing to the Shaw Canada pension plan.
New gun control measures will be tough sell in Louisiana
As Vice President Joe Biden leads a White House effort to develop gun control and other measures designed to prevent more deadly mass shootings at U.S. schools, The Times-Picayune reports it appears the Louisiana delegation will be a tough sell. Rep. Steve Scalise, R-Jefferson and outgoing Rep. Jeff Landry, R-New Iberia, have pretty much ruled out support for any new gun control legislation. Some other strong gun control proponents in the delegation, including Sen. David Vitter, R-La., and John Fleming, R-Minden, are declining to speak out so soon after last week's killing of 20 first grade students and six adults at a Connecticut elementary school. Sen. Mary Landrieu, D-La., and Rep. Rodney Alexander, R-Quitman, are willing to consider new measures, but continue to advocate for the rights of gun owners. Only Rep. Cedric Richmond, D-New Orleans, among Louisiana members, offers a firm endorsement for limits on assault weapons and high-capacity magazines. "Gun control won't stop...
BancorpSouth given 10 days to complete discovery request in Gladney case
Judge William Morvant had harsh words earlier this week for BancorpSouth and its attorneys over the way they handled a discovery request from Windy Gladney and his attorney for emails that are believed to be relevant in a case between the local developer and the bank. In a transcript from Monday's hearing in the 19th Judicial District Court, Morvant tells attorneys for the bank he needed to choose his words carefully after learning that the bank has a disk containing some 500,000 electronic documents, which it had previously said did not exist. Earlier this year, the bank's attorneys told Morvant emails between Bancorp South President Larry Denison and others had long since been deleted. "To have the court told these emails are deleted, they're permanently gone, and now in 2012 I'm getting '06 and '07 Denison emails referencing these loans after I'm assured that they don't exist, it causes me some real concern," Morvant says. The judge is giving the bank 10 days to completely respond...
Judge sanctions BancorpSouth for withholding documents in Gladney case
BancorpSouth is facing tough sanctions from the 19th Judicial District Court for failing to turn over during the discovery process a computer disk containing some 500,000 pages of documents sought by the attorney for Windy Gladney in the developer's long-running lawsuit against the bank. In a hearing late Monday, Judge William Morvant granted Gladney's motion for sanctions against the bank for withholding the documents, which include emails that may contain information about the loans that are at issue in the case. Details of the ruling have not yet been entered into the court record. Attorneys for BancorpSouth did not return calls for comment in time for publication, and Gladney's lawyer declined to comment until after the ruling has been made public. However, Morvant's decision is clearly a victory for Gladney and his partnership, Kleinpeter Trace. Gladney and development firm Kleinpeter Trace are being sued by the bank for defaulting on some $2 million in construction loans. He...
Plaintiff challenging CATS tax asks supporters to send protest letters to sheriff
With his lawsuit challenging new CATS taxes at a temporary standstill, the Baton Rouge man who filed the suit in July is now asking those who support his position to formally protest the taxes by sending letters to Sheriff Sid Gautreaux's office. Milton Graugnard, a Cajun Industries executive, says the protest letters effectively request the sheriff's office to hold their taxes in an escrow account and not turn them over to the transit system until his case is resolved in court. "It's a secondary means for anyone who has paid the tax already or is going to pay the tax" to challenge it, Graugnard says of the letters. In a recent letter sent out to his supporters that provides an update on the case, Graugnard even includes a sample letter, which you can see here. Graugnard is asking people to send the letters before Dec. 31, when the taxes officially come due. While...
Split ruling issued in teacher tenure lawsuit
A Baton Rouge judge has tossed out on constitutional grounds part of an education revamp pushed by Gov. Bobby Jindal, but has upheld the centerpiece provisions that changed teacher tenure and salary laws. Judge Michael Caldwell ruled this afternoon that the section of the legislation dealing with the authority of local school boards violates the state constitution because it doesn't fit into the stated objective of the law. Caldwell's ruling does away with changes that lessened the power of local school boards over hiring and firing, as well as those that required the state education superintendent's review of local school superintendent contracts. However, Caldwell ruled provisions of the law eliminating statewide teacher pay scales and making it tougher for teachers to reach the job protection status of tenure are constitutional. Jindal released a statement shortly after the ruling, calling it a "victory" for students and teachers. "This ruling upholds the core purpose of the...
Suit challenges U.S. plans for selling offshore leases
Environmentalists set to file a lawsuit today challenging the Obama administration's plans to sell offshore drilling leases over the next five years are using a novel argument: that the government overlooked the value of waiting to harvest oil and gas from coastal waters. The Houston Chronicle reports the economic-driven approach is a new one for offshore drilling critics, who have separately accused the government of moving too swiftly to approve new oil and natural gas exploration after the Deepwater Horizon disaster and ignoring the environmental effects of the work. Lawyers with New York University's Institute for Policy Integrity are filing the lawsuit in the United States Circuit Court for the District of Columbia on behalf of the Santa Fe, N.M.-based Center for Sustainable Economy. The lawsuit will ask the court to kick out the current program and require the Interior Department to revise it. The legal challenge takes direct aim at the Interior Department's plan to hold...
Louisiana lands on Judicial Hellholes watch list
Louisiana's civil justice system is on the verge of becoming one of the nation's most unfair and out-of-balance, according to the 11th annual Judicial Hellholes Report, released today by the American Tort Reform Association. In the 2012-2013 report, which ranks California's system as No. 1, Louisiana is included on the group's "watch list" for the third straight year. The ATRA's "watch list" is designed to call attention to jurisdictions that "bear watching due to troubling developments or their histories of abusive litigation." The report says of Louisiana: "Despite determined reform efforts by certain lawmakers in Baton Rouge, Louisiana's civil litigation environment, especially in Orleans and St. Landry parishes, remains a concern thanks to laws that still permit excessive liability, plaintiff-friendly judges, and close relationships between the plaintiffs' bar and some state government officials." Louisiana Lawsuit Abuse Watch
AG Holder: Investigation of BP spill to continue
Two men who worked for BP during the 2010 Gulf oil spill disaster have been charged with manslaughter, and a third with lying to federal investigators, according to indictments made public today, hours after BP announced it was paying $4.5 billion in a settlement with the U.S. government over the disaster. A federal indictment unsealed in New Orleans claims BP well site leaders Robert Kaluza and Donald Vidrine acted negligently in their supervision of key safety tests performed on the Deepwater Horizon drilling rig before the explosion killed 11 workers in April 2010. The indictment says Kaluza and Vidrine failed to phone engineers onshore to alert them to problems in the drilling operation. The two were charged with a total of 23 counts of criminal wrongdoing. Another indictment charges David Rainey, who was BP's vice president of exploration for the Gulf of Mexico, on counts of obstruction of Congress and false statements. The indictment claims the former executive lied to federal...
Conflict spills onto B.R. streets with too many vehicles, too few spaces
Back in early September, John Schmidt pulled into the State Parking Garage on Third Street a little after 8 p.m. on a Saturday and parked his vehicle. When he returned, he discovered it had been hauled away by Riverside Towing. He made his way to the company's towing yard—a dark, isolated lot surrounded by chain-link fence under the downtown bridge near the levee. Transactions here are strictly cash. It was 8:45 p.m., but the lot didn't open until midnight. That meant he would be charged for an extra day of storage, not to mention a $45 "gate fee." Total cost of parking that night in downtown Baton Rouge: more than $200. There's a war going on in certain flourishing areas of Baton Rouge, and it's driven by simple supply and demand: too many vehicles, not enough parking. Game day at Tiger Stadium. Saturday night in the Perkins Road overpass district. Major events in downtown Baton Rouge. LSU area apartment complexes on the weekends. They are all battlegrounds. Merchants...
Criminal probe of Gulf spill could be key to civil claims' resolution
A protracted criminal investigation of the deadly 2010 Gulf of Mexico rig explosion and oil spill may be holding up civil settlements that could result in multibillion-dollar fines against BP and other companies linked to the disaster, The Houston Chronicle reports. Well owner BP and rig owner Transocean both face criminal and civil liability and would not be inclined to settle civil claims unless they knew their fate with prosecutors, legal experts say. But the status of the criminal investigation is unclear. "We do need clarity of the criminal prosecution before there will be any civil settlement," says University of Michigan law professor David Uhlmann, a former federal prosecutor who is following the spill litigation closely but isn't directly involved. Lawyers for several possible individual defendants say they've had no recent contact from government investigators. BP continues to have discussions with the Justice Department about settling expected fines and penalties,...
Parking wars
Back in early September, John Schmidt pulled into the State Parking Garage on Third Street a little after 8 p.m. on a Saturday and parked his vehicle.
B.R. bars enjoy first Sunday in business
Some Baton Rouge bars made their first Sunday of operation as much about the food they offered as the drinks they poured. The Radio Bar on Government Street moved its typical Monday barbecue to Sunday—it opened at 2 p.m.—and had quit serving food by 7 p.m., as a steady bar crowd made the first open Sunday busier than a typical Monday or Tuesday. "But it's the first night," notes co-owner Dave Remmetter. The Radio Bar will likely operate on Sundays from now on, 4 p.m. to midnight, eschewing an earlier opening for the football crowd and sticking to its no-TVs ethos, he says. This past Sunday was the first that East Baton Rouge Parish bars were able to open under an ordinance that got Metro Council approval two weeks ago and Mayor Kip Holden's signature last week. Tom Ange, owner of The Cove on Corporate Boulevard and Port Royal on College Boulevard, says he has "modest goals" for Sunday sales. Nonetheless, Ange says he'll open both establishments at noon on...
Project bids tied up in software glitch
In a year during which the city-parish government has already awarded nearly $500 million in construction contracts, the bidding process to install streetlights on Brightside Lane was no more extraordinary than any other project. The city-parish estimated the project would cost about $895,000. Four companies, accordingly, submitted their bids electronically. Diamond Electrical Co. was the lowest bidder. But due to a computer glitch in the bidding software, Diamond's final bid—which was an amendment to its first bid—wasn't acknowledged and the streetlight project went to Jack B. Harper Contractor Inc. Diamond brought their final bid of $649,000 to the city-parish's attention after Harper was awarded the project for $719,000. Diamond eventually was recognized as the lowest bidder. But it took the software developer 56 days to admit its system's error. "And now we're stuck with litigation," says Councilman Chandler Loupe. The Parish Attorney's Office says the software...
Attorney: Time to open up on Shaw deal
One of several attorneys pursuing a class action on behalf of The Shaw Group's shareholders against the pending sale to CB&I suspects some "backroom dealing" led up to the agreement. "We have significant concerns that company insiders are using the merger transaction to benefit themselves in ways that the rest of the shareholders are not benefiting from," says David Wissbroecker of San Diego-based law firm Robbins Geller Rudman & Dowd. Plaintiffs argue Shaw's top executives are looking to cash out quickly, and that the stated price of $46 per share in cash and stock doesn't fully account for the company's higher revenue projections over the next few years. Wissbroecker says litigation affords the opportunity to gather the needed information for a more accurate valuation. It generally isn't a good idea for a company to completely open its books, he notes. "[But] in the context of this transaction, that's when the kimono needs to open, and it's not," he says. East Baton Rouge District...
Lawsuits challenge shielding of Louisiana records
Gov. Bobby Jindal's administration is facing court challenges over attempts to keep records from the public. At issue is the use of a public records exemption successfully pushed by Jindal and added to state law during his first term. One lawsuit appears to be headed for resolution, but another is still pending over the "deliberative process" exemption cited by administration officials in refusing to release a variety of documents. Shreveport-based Willis-Knighton Health System sued the Department of Transportation and Development over its refusal to provide information about a highway extension project. The department claimed an exemption tied to the "deliberative process." That lawsuit may be near settlement; a Tuesday hearing was postponed after officials said they would release the documents. "All the information requested will be provided. No legal proceedings are anticipated," Jodi Conachen, a transportation department spokeswoman, says in an email. However, a separate lawsuit...
Study blasts Louisiana lawsuit awards
A national survey of business attorneys and leaders ranks Louisiana as having the nation's second-worst lawsuit climate in 2010, Gannett Louisiana reports. The ranking comes despite numerous changes in Louisiana tort law limiting awards and lawsuits. The compilation was done prior to the state's adoption of changes in laws dealing with "legacy" lawsuits over oil and gas exploration and production cleanup. It's the second time in the last three assessments that the state has ranked 49th; and it has never ranked higher than 47th, as it did from 2002 to 2005, since the survey began a decade ago. The U.S. Chamber of Commerce's Institute for Legal Reform surveyed 1,482 in-house counsel, senior counsel or litigators, and business executives about their perceptions of state and local courts. The survey notes that Louisiana doesn't allow punitive damages except in rare cases, but that didn't elevate the state's score. Neither did other changes adopted since 1996, when the Louisiana...
ACLU piqued by Delhi Charter pregnancy policy
A Delhi Charter School policy preventing pregnant students from attending school—and permitting the school to require a student to take a pregnancy test to continue attending school if administrators suspect she's expecting—is drawing the attention of the American Civil Liberties Union. The (Monroe) News-Star reports the ACLU sent a letter Monday requesting the school revise its policy or the group will consider further legal action. Caroline Roemer Shirley, executive director of the Louisiana Association of Charter Schools, agrees the policy could be problematic. Pregnant students wishing to continue attending Delhi Charter—located in the small northeastern Louisiana town of Delhi, which has a population of roughly 3,000—will be required to enroll in a home study course while pregnant. The letter from the ACLU contends that the policy violates Title IX of the Education Amendments of 1972 because it excludes students from educational programs. "They're...
Plaintiffs say they're moving forward with suits against Gerry Lane
Despite an announcement from the U.S. Equal Employment Opportunity Commission late Wednesday that it will not pursue a federal discrimination lawsuit against Gerry Lane Enterprises, an attorney for plaintiffs in the case says his clients intend to move forward with lawsuits accusing Gerald R. Lane and his company of sexual harassment and racial discrimination. Joseph Long, who represents current and former Gerry Lane employees, says his clients declined to participate in the investigation that led to the commission's decision Wednesday. While he did not elaborate on why they declined to participate, Long says in a prepared statement, "We are pleased the EEOC has completed its investigation so that we can get on with litigation." His statement conveys a desire to move forward expeditiously: "The government has finally granted us the right to sue in Federal Court regarding our first six plaintiffs. The law gives us 90 days to file our federal complaint. We will be filing shortly. We...
News Alert: Attorney: $117 million verdict reached against Acadian Ambulance
An Iberville Parish jury today returned an $117 million verdict against Acadian Ambulance, according to Tony Clayton, one of the plaintiff's attorneys. According to reports published at the time, Whitley Lacey of Plaquemine, who was 21 years old and pregnant, was severely injured in 2010 when the ambulance in which she was riding rear-ended a sugar-cane truck. Calls to Acadian Ambulance for comment were not immediately returned.
News Alert: EEOC will not pursue claims against Gerry Lane
After an investigation, the U.S. Equal Employment Opportunity Commission has decided not to pursue a federal discrimination lawsuit against Gerry Lane Enterprises, according to the Vice President Eric Lane. Several employees had alleged harassment and racial discrimination. The EEOC's decision does not necessarily mean the nine plaintiffs will not pursue their suits against Gerry Lane, only that they would do so without EEOC support. Joseph Long, an attorney who represents current and former employees in a state suit against Gerry Lane, could not immediately be reached for comment.
Keeping secrets
Wen Chyu Liu, also known as David Liou, worked as a research scientist for Dow Chemical Co. for nearly three decades.
Armed and ready
While issues like health care reform, federal spending and economic stimulus may be dominating the national political debate, local firearm dealers say if their sales this year are any indication, many Capital Region gun owners are concerned about the future of their Second Amendment rights and how those might be affected if President Barack Obama is re-elected.
Father's rights
As a young attorney, Norma Beedle knew she wanted to have an impact in family law. That aim has shaped her path for more than 20 years.
Crawford Lewis dropping suit against Bernhard
The Crawford Lewis law firm is dropping its lawsuit against former attorney James M. "Tres" Bernhard, after Bernhard reached a $2.2 million settlement with two investors involved in the suit. Crawford Lewis attorney Mary Olive Pierson confirms the firm is dismissing the suit it filed in May against Bernhard, who worked for Crawford Lewis as a tax credit expert from 2008 until March. The suit accuses him of pocketing funds from the transfer of movie industry tax credits that either didn't belong to him or didn't exist, and of failing to deliver tax credits he was retained to collect on behalf of investors. Pierson could not discuss the settlement, citing a confidentiality agreement. But in an interview several weeks ago she suggested the terms of such a settlement would include a $2.2 million payment by Bernhard to two investors, who had retained him to collect tax credits they had purchased from Nerjyzed Entertainment and DMG Holdings but never received. Crawford Lewis was...
N.O. councilman to plead guilty in post-Katrina fraud
A New Orleans City Councilman says he will plead guilty to a federal criminal charge involving the misuse of federal money intended to help a nonprofit organization after Hurricane Katrina. In a statement released by his attorney today, Jon Johnson says he made the decision after meeting with federal officials. He also says he will resign from the council. Johnson's statement came moments after a court filing emerged showing that he would be charged with conspiracy to commit theft of government funds and to submit false documents. The 63-year-old Johnson is accused of diverting money intended for the Ninth Ward Housing Development Corp. for personal use, including expenses for his failed 2007 campaign for a seat in the Louisiana Senate. The documents say Johnson controlled the finances of the housing development group, which obtained Federal Emergency Management Agency grants for house gutting and mold remediation after the August 2005 storm and resulting flood. Prosecutors say...
Hearing date set for voucher lawsuit
The date set for arguments to be heard in a lawsuit filed by teachers unions and local school boards challenging the constitutionality of Gov. Bobby Jindal's statewide voucher program is Oct. 15. Baton Rouge Judge Tim Kelley chose the hearing date Tuesday in a meeting with lawyers for both sides in the case. Attorneys for two statewide teachers unions and dozens of local school boards say the voucher program, which will use tax dollars to send children to private schools, and other new education funding plans are unconstitutional. They argue it's improper to pay for the programs through the public school funding formula, and they claim lawmakers didn't follow the process for passing laws. Jindal and state Superintendent of Education John White defend the constitutionality of the programs and the process for passing them into law. In an action regarding a separate suit by teachers unions that attempted to block the August start of the voucher program, Kelley last week ruled that he...
Springfield mayor, police chief indicted on conspiracy charges
A Livingston Parish grand jury today indicted the mayor and police chief of Springfield—a town of roughly 400 people located about 40 miles east of Baton Rouge—on charges they conspired to hide a woman's 2011 drunken driving citation. Louisiana Attorney General Buddy Caldwell's office says the four-count indictment charges Mayor Charles Martin and Police Chief James Jones with obstruction of justice, criminal conspiracy to obstruct justice, injuring public records, and criminal conspiracy to injure public records. Martin and Jones were booked on related charges last year. Caldwell's office says the 62-year-old mayor and 48-year-old police chief plotted to conceal evidence and obstruct the prosecution of a suspect arrested in April 2011 on suspicion of drunken driving. Martin and Jones didn't immediately respond to a message for comment left at the town's administrative office by The Associated Press.
Judge dismisses federal case against SU supervisors
A three-year-old wrongful termination lawsuit against the Southern University Board of Supervisors, former SU System Interim President Kassie Freeman and board member Tony Clayton has been dismissed. The plaintiff, Joseph Cedric Shelton, was fired by the university in September 2009. The university cited budget cuts as the reason. Shelton's attorney claimed it was retaliatory. District Judge James Brady dismissed the case Wednesday; it had been under way since Monday. Defense attorneys argued that after three days of testimony from several witnesses, the plaintiff and his lawyer failed to prove their claim of retaliation by wrongful termination, and Brady agreed. SU Board of Supervisors Chairman Darren Mire says in a news release that, "While we are very happy with [the] ruling, we remain focused on rebuilding Southern University and making it stronger and viable for the future."
Supreme Court rejects corporate campaign spending limits
The Supreme Court this morning reaffirmed its two-year-old decision allowing corporations to spend freely to influence elections. The justices struck down a Montana law limiting corporate campaign spending. By a 5-4 vote, the court's conservative justices say the decision in the Citizens United case in 2010 applies to state campaign finance laws and guarantees corporate and labor union interests the right to spend freely to advocate for or against candidates for state and local offices. The majority turned away pleas from the court's liberal justices to give a full hearing to the case because massive campaign spending since the January 2010 ruling has called into question some of its underpinnings. The same five justices ruled in 2010 that corporations have a constitutional right to be heard in election campaigns. The decision paved the way for unlimited spending by corporations and labor unions in elections for Congress and the president, as long as the dollars are independent of...
Va. inventor claims design for BP well cap stolen
An inventor claims his design was the basis for the cap used to choke off the flow of oil to the Gulf of Mexico nearly three months after BP's undersea well blew in 2010—and he says it was stolen. Charles Adams of Radford, Va., has filed a federal lawsuit that names as defendants several players who were involved in resolving the disaster. They include Helix Energy Solutions Group, which supplied a rig that helped with the capping mission, and Cameron International, which made the blowout preventer that failed to stop oil from reaching the sea in the first place. BP isn't named in the suit; it owned the well and was leasing the rig that exploded off Louisiana and touched off the leak. Helix and Cameron officials declined to comment Wednesday on Adams' suit. Adams says that in May 2010 he designed and captured in conceptual drawings a capping device employing an effective seal. He says he later applied for a patent and began preparing to market the design. He says an engineering...
Mineral law expert hopeful about legacy lawsuit legislation
Patrick Martin, director of the Louisiana Mineral Law Institute, says he's hopeful that this year's compromise on legislation addressing "legacy lawsuits" will effectively protect the rights of landowners and oil and gas companies. "We'll see how it's implemented," he says. "I think it's a good step forward. … I think it deserves respect by the courts, to give the [Department of Natural Resources and oil and gas companies] the opportunity to implement it on a reasonable basis." Legacy lawsuits are so nicknamed because the alleged environmental damage often happened years or decades before the suits are filed. The new legislation says DNR should have a chance to create a cleanup plan before a trial for possible damages; the industry hopes having a plan detailing cleanup costs available to a jury will make them less likely to call for a huge award. Martin cautions that it can be hard to predict how the courts will interpret the language of a statute. He says there's often...