Hearing: Which court should hear coastal lawsuit?

A legal tug-of-war continues in a state levee board's lawsuit against 97 oil, gas and pipeline companies over the erosion of wetlands.

The Southeast Louisiana Flood Protection Authority-East wants U.S. District Judge Nannette Jolivette Brown to send the case back to Orleans Parish Civil District Court, where the board filed it in July.

Attorneys for Chevron USA Inc. got the lawsuit moved to federal court in August, arguing that federal laws govern many of its claims.

Since then, lawyers have filed hundreds of pages of arguments and exhibits just on the question of which court should hear the case.

Brown scheduled arguments Wednesday.

The lawsuit says oil and gas canal and pipeline work has contributed to the erosion of wetlands that protect New Orleans when hurricanes move ashore. Corrosive saltwater from a network of oil and gas access and pipeline canals has killed plants that anchored the wetlands, letting waves sweep away hundreds of thousands of coastal land, it says.

Gov. Bobby Jindal has blasted the lawsuit as a windfall for trial lawyers and his coastal protection chief, Garret Graves, said the suit would undermine Louisiana's work with the industry to rebuild wetlands. An association of state levee districts voted to oppose the suit.

Since then, however, two coastal parishes heavily dependent on the industry have filed lawsuits of their own raising similar issues.

Earlier this month, the Louisiana Oil and Gas Association sued the state's attorney general, accusing him of illegally approving the Southeast Louisiana board's contract with lawyers who filed its lawsuit.

The association contends that Buddy Caldwell had no authority to approve the contract and that the suit will have "a chilling effect on the exploration, production, development and transportation" of Louisiana's oil and gas.

Anti-whaling activist to testify in US court

A fugitive anti-whaling activist known for confronting Japanese whaling vessels off Antarctica is due to testify about his actions in a U.S. court Wednesday.

Paul Watson, founder of the Oregon-based Sea Shepherd Conservation Society, is expected to take the witness stand in a contempt of court hearing in Seattle.

The Japanese whalers argue that the organization 10 times violated an order barring its vessels from attacking or coming within 500 yards of the whaling ships. They've asked the 9th U.S. Circuit Court of Appeals to impose fines of $100,000 for each violation, though they suggested the court waive those fines as long as the protesters stop confronting their ships.

The case is part of a long-running fight between the protesters and Japan's whaling fleet, which kills up to 1,000 whales a year, as allowed by the International Whaling Commission.

Japan is permitted to hunt the animals as long as they are killed for research and not commercial purposes, but whale meat not used for study is sold as food in Japan. Critics say that's the real reason for the hunts.

For several years, Sea Shepherd operated anti-whaling campaigns in the Southern Ocean. Activists aboard its vessels would hurl acid and smoke bombs at the whalers and drag ropes in the water to damage their propellers.

NC court dumps speedway's suit over $80M deal

A North Carolina court says it will not revive a lawsuit from one of the country's largest auto racing track operators which says local officials reneged on millions of dollars in tax breaks for a new drag strip.

A three-judge state Court of Appeals panel ruled Tuesday against Speedway Motorsports Inc. and Charlotte Motor Speedway, which sued Cabarrus County.

The companies had threatened to move the 135,000-seat speedway and build a new drag strip somewhere other than the Charlotte region unless they got the tax breaks. They say they decided to build the drag strip and upgrade the speedway after an oral agreement for $80 million in tax breaks.

Committee OKs school spending report for WA court

A committee overseeing progress on paying the full cost of basic education for kids in public school voted unanimously Tuesday to approve a draft of its latest progress report to the state Supreme Court.

In its decision on a lawsuit brought by a coalition of school districts, parents and education groups _ known as the McCleary case for the family named in the suit _ the high court ruled in January 2012 that the state is not meeting its constitutional obligation concerning education funding. In the ruling, the Supreme Court ordered the Legislature to make yearly progress reports on its efforts. Those reports are then critiqued by the group that brought the lawsuit, and by the Supreme Court.

This year, the Legislature allocated about $1 billion more for basic education for the current two-year budget cycle. Lawmakers estimate they need to find a total of between $3.5 billion to $4.5 billion more over the coming years to fully pay for basic education.

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Judge OKs class-action settlement over Skechers

A federal judge approved a $40 million class-action settlement Monday between Skechers USA Inc. and consumers who bought toning shoes after ads made unfounded claims that the footwear would help people lose weight and strengthen muscles.
U.S. District Judge Thomas B. Russell in Louisville approved the deal, which covers more than 520,000 claims. About 1,000 people eligible for coverage by the settlement opted not to take part.
Those with approved claims will be able to get a maximum repayment for their purchase _ up to $80 per pair of Shape-Ups; $84 per pair of Resistance Runner shoes; up to $54 per pair of Podded Sole Shoes; and $40 per pair of Tone-Ups.
Russell also awarded $5 million for the attorneys in the case to split. Russell ordered that the money cannot come from the $40 million settlement fund set aside for consumers.
Two people that served as the lead plaintiffs in the case will receive payments of $2,500 each.
Russell considered multiple factors in deciding to approve the settlement and found it provides just compensation to the plaintiffs.

Ex-Goldman trader pleads guilty in NY fraud probe

A former Goldman Sachs trader pleaded guilty to wire fraud Wednesday, admitting that he caused his company to lose $118 million in 2007 when he put $8 billion at risk.
Matthew Marshall Taylor, 34, said he took the position on a futures contract traded electronically through the Chicago Mercantile Exchange in December 2007 to enhance his reputation and boost his earnings in a year when he made $150,000 in salary and $1.6 million in bonuses. At the time, he was working at Goldman Sachs in lower Manhattan.
According to court papers filed in Manhattan, Taylor entered fictitious information in trading account records and lied to company representatives to cover up the fact that he had put 10 times more money at risk in the trade than he was allowed. He claimed that the $8 billion at risk was actually only $65 million, the papers said.
U.S. District Judge William H. Pauley III said he was miffed that the government in a plea deal was holding Taylor responsible for no more than $2.5 million in losses. The amount of money lost in financial crimes usually plays a significant role in the length of any prison sentence.
The judge also said he could not understand why the government was not making a legal finding that Taylor had used "sophisticated means" to carry out the crime. Such a designation would again likely increase the length of any prison sentence. Pauley also noted that the government could have claimed that the crime endangered the financial health of Goldman Sachs, a designation that also could increase a prison sentence. A prosecutor said he did not believe either enhancement was appropriate because Taylor carried out the fraud in a manner similar to his usual work patterns and the company's financial stability was not threatened.

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Colo. theater shooting lawyers head back to court

Prosecutors and defense lawyers in the Colorado theater shooting will head back to court Wednesday in advance of a crucial hearing in the case.

State District Judge William B. Sylvester has told both sides to appear before him to make sure everything is ready for next week's preliminary hearing, when prosecutors will outline their case against the defendant, James Holmes.

At the conclusion of the preliminary hearing, Sylvester will decide if the evidence is sufficient to put Holmes on trial.

Holmes is charged with killing 12 people and wounding 70 on July 20 in a movie theater in the Denver suburb of Aurora. Prosecutors say he opened fire during a midnight showing of the Batman movie "The Dark Night Rises."

Holmes faces multiple counts of first-degree murder and attempted murder and hasn't yet entered a plea. His lawyers have said he suffers from mental illness.

The preliminary hearing, which starts Monday, will give the public its first officially sanctioned look at much of the evidence against Holmes.

Sylvester imposed a gag order shortly after Holmes' arrest barring attorneys and investigators from speaking publicly about the case, and many documents have been sealed.

The University of Colorado, where Holmes was a graduate student, has also been tight-lipped about the case.