Legal Research

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JUDGE DISCIPLINED FOR AUCTION-STYLE CONTEMPT SENTENCE
"The state Supreme Court on Monday announced a reprimand for a judge who imposed a 180-day jail penalty for contempt without a hearing when a defendant gave him the finger, a raspberry and backtalk. The Court affirmed the Advisory Committee on Judicial Conduct's finding that South River Municipal Court Judge Emery Toth, besides breaking the rules for contempt findings, made undignified and sarcastic comments to a motor vehicle defendant during a video-link arraignment. The ACJC said the sentencing 'more closely resembled an auction than a judicial proceeding that is supposed to be marked by dignity and decorum.' Toth, who also sits in Keyport, Perth Amboy and Woodbridge, accepted responsibility and promised not to repeat such conduct, according to a stipulation and a presentment made public on Monday."

LAUTENBERG FOUNDATION'S SUIT AGAINST MADOFF'S BROTHER CAN GO FORWARD
"U.S. Sen. Frank Lautenberg's family foundation can proceed with a securities fraud suit against Peter Madoff, brother of convicted Ponzi schemer Bernard Madoff, a federal judge says. U.S. District Judge Stanley Chesler declined to dismiss a claim that Peter Madoff violated Securities Exchange Act §10(b) by failing to disclose to investors that his brother's company was engaged in a fraud and a claim based on his status as a controlling person under §20(a). The suit, The Lautenberg Foundation v. Madoff, 09-Civ.-816, was filed by two of Lautenberg's children and by the Lautenberg Foundation of Cliffside Park. The plaintiffs claim they had $8.922 million invested with Bernard L. Madoff Investment Securities. Bernard Madoff, who is serving a 150-year prison term after pleading guilty to criminal securities fraud earlier this year, is not a defendant in the case."

CORPORATE LIST OF PREAPPROVED LAWYERS FOR EMPLOYEES IN PROBE DRAWS SCRUTINY
"The state Supreme Court heard arguments Monday on whether an unwaivable conflict of interest is created when a corporation that is under criminal investigation selects, hires, and pays attorneys to represent employees who are potential targets or witnesses against the corporation. When Laidlaw International Inc. learned it in early 2007 that it was being investigated by a state grand jury, it's in-house counsel told employees who were potential witnesses and targets that they would be provided with counsel on the company's dime ? provided they selected lawyers from a preapproved list. If they chose anyone else, it would be at their own expense. But the state Division of Criminal Justice is asking the Court to void retainers of the listed lawyers on the ground that they create an unavoidable and unwaivable conflict of interest."

CASE TESTS WHETHER AUTHORITY TO SETTLE CAN BE IMPUTED FROM CIRCUMSTANCES
"A state appeals court on Monday ordered a hearing into whether a lawyer can ratify the settlement of a forfeiture action on behalf of his client, even if she has not given her OK. The panel, in State v. Real Property Commonly Known as 48 South New York Road, A-0494-08, reversed a consent judgment in which a defendant claimed that her lawyer agreed to forfeiture of her home and business properties without obtaining her approval. The ruling requires a trial judge to hold a new hearing to determine whether Dawn Puchalsky gave her attorney authority to approve an agreement settling civil and criminal claims on her behalf and, even if she did not, whether through her voluntary actions she placed her attorney in a situation wherein a person of ordinary prudence would be justified in presuming that the attorney had authority to enter into a settlement."

AG DECLINES TO PROSECUTE FORMER DOJ OFFICIAL CONNECTED TO U.S. ATTORNEY FIRINGS PROBE
"Attorney General Eric Holder Jr. has decided not to file criminal charges against Bradley Schlozman, a former Justice Department official who Senate leaders have said lied to Congress while under oath. In a letter to Sen. Charles Schumer, D-N.Y., who had called on Holder to re-examine the case, Ronald Weich, assistant attorney general in the Office of Legislative Affairs, said Holder will not pursue criminal charges. Schlozman, a top official in Justice's Civil Rights Division under President George W. Bush, has been accused of lying to members of the Senate Judiciary Committee in 2007 while testifying as part of the investigation into the U.S. Attorney firings of 2006. According to a report issued by the Office of the Inspector General and the Office of Professional Responsibility, Schlozman falsely testified that he did not factor politics into his hiring decisions. Last January, the U.S. Attorney's Office for the District of Columbia declined to prosecute Schlozman."