Monday, April 24, 2017

Justices turn away GM appeal over ignition switches

The Supreme Court on Monday turned away an appeal from General Motors Co. seeking to block dozens of lawsuits over faulty ignition switches that could expose the company to billions of dollars in additional claims.

The justices without comment left in place a lower court ruling that said the automaker's 2009 bankruptcy did not shield it from liability in the cases.

A federal appeals court ruled last year that GM remains responsible for ignition-switch injuries and deaths that occurred pre-bankruptcy because the company knew about the problem for more than a decade but kept it secret from the bankruptcy court.

The company had argued that well-established bankruptcy law allowed the newly reorganized GM to obtain the old company's assets "free and clear" of liabilities.

GM recalled 2.6 million small cars worldwide in 2014 to replace defective switches that played a role in at least 124 deaths and 275 injuries, according to a victims' fund set up by GM and administered by attorney Kenneth Feinberg.

The automaker has paid nearly $875 million to settle death and injury claims related to the switches. That includes $600 million from Feinberg's fund and $275 million to settle 1,385 separate claims. It also has paid $300 million to settle shareholder lawsuits. But many others are pursuing their claims in court.

After it emerged from the government-funded bankruptcy, the company referred to as New GM was indemnified against most claims made against the pre-bankruptcy company, known as Old GM. A bankruptcy court sided with the company in 2015, ruling that most claims against Old GM could not be pursued.

But the appeals court in Manhattan overturned most of that decision and said hundreds of pre-bankruptcy claims could go forward.

Indiana Supreme Court set to be all-white, all-GOP appointed

Indiana's next state Supreme Court justice will complete the remaking of the bench, as all five justices will be white and will have been appointed since 2010 by Republican governors.

The state's Judicial Nominating Commission on Wednesday chose three finalists to succeed Justice Robert Rucker, who is retiring May 12. Once the names of the finalists — Judges Vicki Carmichael, Christopher Goff and Matthew Kincaid — are sent to Gov. Eric Holcomb, he'll have 60 days in which to choose one to succeed Rucker.

Here is some background on the finalists, Rucker and the court.

VICKI CARMICHAEL:

Carmichael, 54, has been a Clark Circuit Court judge in the Ohio River county just north of Louisville, Kentucky, since 2007. She would be the high court's third female justice ever, including its current chief justice, Loretta Rush. Carmichael, who's married and has an adult daughter in college, was a city court judge in Jeffersonville for six years before becoming a county judge. Unlike the other two finalists, who are Republicans, Carmichael is a Democrat. She previously was in private practice and served as a public defender. She's a graduate of the Louis D. Brandeis School of Law at the University of Louisville.

CHRISTOPHER GOFF:

Goff, who turns 45 on Tuesday, has served as a Wabash Superior Court judge since 2005. In his application for the high court seat, he wrote that the courts in Wabash County, located in northeastern Indiana, are among the state's busiest based on the number of cases assigned to each judge. Goff, who is married and has two daughters, previously worked in private practice. He's a graduate of the Indiana University Maurer School of Law.

MATTHEW KINCAID:

Kincaid, 46, has been a Boone Superior Court judge in the county just northwest of Indianapolis since 2003. Like the other finalists, before becoming a judge he was a lawyer in a private practice. This is Kincaid's second time as a finalist for the state Supreme Court. The Judicial Nominating Commission also selected him last year as one of three finalists to succeed Justice Brent Dickson. Then-Gov. Mike Pence chose Indianapolis attorney Geoffrey Slaughter for that vacancy. Kincaid, who is married with three children, is a graduate of the Loyola University of Chicago School of Law.

DEPARTING JUSTICE:

Rucker, 70, announced in January that he would retire this spring, five years before reaching the court's mandatory retirement age. His last day on the bench is May 12. Rucker was named to the bench in 1999 by Democratic Gov. Frank O'Bannon, becoming only its second black justice ever. His departure will leave the court with only white justices, and all three finalists for his vacancy are white. Rucker is the court's only remaining Democratic appointee.

INDIANA'S REVAMPED COURT:

When Rucker's replacement is named, all five members of the state's highest court will have been appointed by Republican governors. Indiana University law professor Joel Schumm said that's the first time that's happened since Indiana voters approved a constitutional amendment in 1970 creating a commission to pick finalists for the governor to choose from. He said he doesn't think the change will be particularly significant because Indiana justices have a long tradition of not being politically ideological in their rulings. The governor's pick will join Rush, Justice Steven David, Justice Mark Massa and Justice Geoffrey Slaughter on the court. Given the ages of the justices, Schumm says they could be together on the court for about 15 years.

Justices turn away GM appeal over ignition switches

The Supreme Court on Monday turned away an appeal from General Motors Co. seeking to block dozens of lawsuits over faulty ignition switches that could expose the company to billions of dollars in additional claims.

The justices without comment left in place a lower court ruling that said the automaker's 2009 bankruptcy did not shield it from liability in the cases.

A federal appeals court ruled last year that GM remains responsible for ignition-switch injuries and deaths that occurred pre-bankruptcy because the company knew about the problem for more than a decade but kept it secret from the bankruptcy court.

The company had argued that well-established bankruptcy law allowed the newly reorganized GM to obtain the old company's assets "free and clear" of liabilities.

GM recalled 2.6 million small cars worldwide in 2014 to replace defective switches that played a role in at least 124 deaths and 275 injuries, according to a victims' fund set up by GM and administered by attorney Kenneth Feinberg.

The automaker has paid nearly $875 million to settle death and injury claims related to the switches. That includes $600 million from Feinberg's fund and $275 million to settle 1,385 separate claims. It also has paid $300 million to settle shareholder lawsuits. But many others are pursuing their claims in court.

After it emerged from the government-funded bankruptcy, the company referred to as New GM was indemnified against most claims made against the pre-bankruptcy company, known as Old GM. A bankruptcy court sided with the company in 2015, ruling that most claims against Old GM could not be pursued.

But the appeals court in Manhattan overturned most of that decision and said hundreds of pre-bankruptcy claims could go forward.

Sunday, April 2, 2017

High Court Struggles Over Hospital Pension Dispute

The Supreme Court seemed to struggle on Monday over whether some of the nation's largest hospitals should be allowed to sidestep federal laws protecting pension benefits for workers.

Justices considered the cases of three church-affiliated nonprofit hospital systems being sued for underfunding pension plans covering about 100,000 employees. But the outcome ultimately could affect the retirement benefits of roughly a million employees around the country.

The hospitals — Advocate Health Care Network, Dignity Health and Saint Peter's Healthcare System — say their pensions are "church plans" exempt from the law and have been treated as such for decades by the government agencies in charge. They want to overturn three lower court rulings against them.

Workers suing the health systems argue that Congress never meant to exempt them and say the hospitals are shirking legal safeguards that could jeopardize retirement benefits.

"I'm torn," Justices Sonia Sotomayor said at one point during the hour-long argument. "This could be read either way in my mind."

Justice Anthony Kennedy said the Internal Revenue Service issued hundreds of letters over more than 30 years approving the hospitals' actions. That shows they were "proceeding in good faith with the assurance of the IRS that what they were doing was lawful," he said.

The case could affect dozens of similar lawsuits over pension plans filed across the country.

Much of the argument focused on how to read a federal law that generally requires pension plans to be fully funded and insured. Congress amended that law in 1980 to carve out a narrow exemption for churches and other religious organizations.

Arkansas asks court to block order on execution drugs

Arkansas prison officials asked the state's highest court Friday to stay a judge's order that they must disclose more information about one of the drugs they plan to use in the executions of eight men over a 10-day period in April.

The attorney general's office asked the state Supreme Court to issue a stay of Pulaski County Circuit Judge Wendell Griffen's order requiring Arkansas to release copies of the package insert and labels for its supply of potassium chloride, one of the three drugs used in its lethal injection protocol.

The state said it had released the documents, but had redacted information on the labels that it says could lead to identification of the drug's supplier. Steven Shults, the attorney who sued the state for the information, declined to comment on the case Friday.

Shults' attorneys asked the court to deny the state's motion, saying there was no evidence that the information withheld would identify the drug's supplier.

The filing said releasing all of the information would give Shults "an unreviewable victory that will completely undermine and obviate the confidentiality provisions" of the state's lethal injection law.

Arkansas hasn't executed an inmate since 2005 because of legal challenges and difficulty obtaining drugs. The state's 2015 lethal injection law keeps secret the source of the state's execution drugs.

The prison officials, who plan to execute eight inmates in a 10-day period next month before another one of the state's lethal drugs expires April 30, had refused to release packing slips that detail how the drugs are to be used. The Associated Press has previously used the labels to identify drugmakers whose products would be used in executions against their will. The AP renewed its request after the state acquired its potassium chloride in March, but was also rejected.