Thoughts on the “pay for a better jail” option

clooney.jpgAs a result of this article about the option that some California prisoners have of paying for better prison conditions, there has been quite a bit of comment around the blogosphere about the fairness of providing such a perk. Heck, even the judge in Paris Hilton’s revocation of probation hearing felt compelled to deny Paris the “pay for a better prison” option in sentencing her to 45 days of jail time.
However, given the abysmal condition of most jails in the U.S. and the intractable political problems that prevent those conditions from being improved, I found Rick Garnett’s comment on the issue particularly insightful:

What should we think about these “upgrades”? Certainly, one could hardly blame one convicted of a “relatively minor” crime for wanting to take advantage of this option. And, these upgrades might well provide a useful source of revenue. I wonder, though: Why stop at $82.00 per day? I would think that corrections agencies could fill their “upgrade” cells while charging substantially more. What if it turned out that many of those convicted of “relatively minor” offenses were willing to pay, say, $1000 per day — or $10,000 per day — not to avoid the loss of physical freedom associated with punishment, but to avoid the non-trivial risks of being harmed by other inmates? What would this willingness tell us about the extent to which we are failing in (what I take to be) our obligation to protect those we incarcerate?
I assume we don’t want to say that these risks are “part of” the punishment that is justly imposed upon those convicted of crimes. So, if someone buys their way out of those risks, it is not — is it? — that they are buying their way out of duly imposed “punishment.” But, once we acknowledge that there are non-essential, unpleasant incidents of punishment that we *are* willing to allow people to pay to avoid, then how do we justify imposing those incidents on those who cannot (or simply do not) pay to avoid them?

Bainbridge on Sarbanes-Oxley

Bainbridge%20book.jpgGiven how much this blog addresses issues relating to the Sarbanes-Oxley Act, the following announcement is timely:

[Stephen Bainbridge’s] Complete Guide to Sarbanes-Oxley is now shipping from Amazon.

Amazon’s Product Description:
Congress passed the Sarbanes-Oxley Act in response to major corporate and accounting scandals–and many consider the act to be the most significant change in corporate governance and securities regulations in the past seventy years. SOX requirements have brought about far-reaching changes for public corporations, private corporations, and nonprofits. Every manager and director should be aware of how the business landscape will be affected.
The Complete Guide to Sarbanes-Oxley answers in nontechnical language such questions as: What does SOX mean to me now? Do I have to worry about it? How much legal and accounting help do I need? What information technology requirements will I face? If you’re a business owner, you need The Complete Guide to Sarbanes-Oxley!

As SOX turns 5, this up-to-date guide gives you a complete picture of how the statute has been implemented and continues to evolve.

Given Professor Bainbridge’s insight on SOX, any attorney or auditor providing advice to public companies on corporate governance or accounting issues would be well-advised to read this book and have it handy as a reference resource.

Chesnoff strikes again

David%20Chesnoff.jpgPeter Lattman reports that my old friend, former Houstonian and current Las Vegas criminal defense lawyer extraordinaire David Chesnoff had an interesting morning this past Sunday after the De La Hoya-Mayweather fight Saturday night in Las Vegas:

Las Vegas police arrested HBO Chairman Chris Albrecht early Sunday morning for allegedly assaulting a female companion. He was taken into custody at about 3 a.m. Sunday after police reportedly saw him engaged in a physical altercation with his girlfriend outside the MGM Grand Garden Arena, where they had attended the Mayweather-De La Hoya fight, carried by HBO. Hereís the story from the WSJ.
Itís surely not the first time a powerful business executive or celebrity has found himself in Las Vegas and in need of a good lawyer. And it appears that Albrecht found one in David Chesnoff, a Sin City criminal defense attorney.
ìLike anything else, there shouldnít be a rush to judgment,î Chesnoff told the WSJ, adding that he was still ìgathering facts.î
And weíve gathered some facts on you, Mr. Chesnoff. The 51-year-old Suffolk Law grad has a roster of celebrity clients, according to a 2005 story in the Review-Journal (link unavailable). Chesnoff has reportedly developed a something of a sub-specialty in shotgun Las Vegas weddings, helping Britney Spears annul her 55-hour marriage back in 2004 and representing Nicky Hilton in her attempt to maintain control of her wedding photos. He was also part of a team of lawyers that unsuccessfully argued Martha Stewartís appeal, and described the domestic doyenne as an old friend. Finally, befitting a Las Vegas lawyer, Chesnoff plays professional poker.

As you might expect, just listening to David’s stories during our periodic golf games is quite entertaining. ;^)

Never underestimate a potential lawsuit

donimus4.jpgLooks as if I was wrong that CBS doesn’t have at least a colorable argument that it had grounds to terminate Don Imus’ contract for cause. This NY Times article reports that CBS has refused Imus’ demand to pay him the balance of the compensation under the contract and that Imus is preparing to sue CBS for terminating Imus’ contract for cause. Apparently, CBS is relying on a provision of the contract that appears to shift some termination risk to Imus if he made a controversial statement on the air that placed the network at risk of regulatory sanction.
Although different jurisdictions have varying standards for deciding such cases, CBS would have a tough case to make if Texas law controlled the dispute. CBS encouraged Imus’ offensive statements for years before his insult of the Rutgers women’s basketball team blew up in Imus and CBS’ collective faces. My bet is that the case is settled before too long with Imus taking a small discount for what he is owed under the contract in the settlement. But not before the lawyers on both sides take their cut. ;^)

The Hurwitz conviction

Hurwitz050207.jpgYou probably have already heard by now that Dr. William Hurwitz (previous posts here) was convicted this past Friday afternoon on 16 counts of drug trafficking for prescribing opioid prescriptions to his chronic-pain patients. The New York Times’ John Tierney — who deserves an award for his coverage of the trial and the sad case of Dr. Hurwitz — interviewed three of the jurors after the trial and his findings are disturbing:

[The jurors] said that the jury considered Dr. William Hurwitz to be a doctor dedicated to treating pain who didnít intentionally prescribe drugs to be resold or abused. They said he didnít appear to benefit financially from his patientsí drug dealing and that he wasnít what they considered a conventional drug trafficker.
So why did find him guilty of ìknowingly and intentionallyî distributing drugs ìoutside the bounds of medical practiceî and engaging in drug trafficking ìas conventionally understoodî? After attending the trial and talking to the jurors, I can suggest two possible answers:
1. The jurors were confused by the law.
2. The law is a ass (to quote Mr. Bumble from ìOliver Twistî).
I canít blame the jurors for being confused, because thatís the norm in trials of pain-management doctors. The standard prosecution strategy is to charge the doctor on so many counts and introduce so much evidence that the jurors assume something criminal must have happened. Their natural impulse, after listening to weeks of arguments, is to look for a compromise by digging into the mountain of medical minutiae ñ and getting in so deep that they lose sight of the big picture.

According to Tierney’s inteview, the Hurwitz jury essentially convicted Hurwitz of not examining his patients adequately. Remarkably, the jurors were candid with Tierney that they did not understand the legal standard of “outside the bounds of medical practice.” Rather, they just decided “to go with our gut.”
Sound familiar?
Dr. Hurwitz’s conviction is troubling for medical professionals on several levels, not the least of which is described by a doctor in the following comment to Tierney’s post:

The Hurwitz persecution scares the bejabbers out of me. If I refuse to treat pain adequately that is a criminal offense. If I over treat pain that is a criminal offense. If I cannot tell a smooth, practiced, professional liar from real pain that is a criminal offense. I am expected to be all things to all people, omnipotent and infallible – and if I fail I will be stripped of my license or sent to prison.
Just recently I received a phone call that one of my patients was selling my narcotic prescription on the street. Was this real, a crank call, or a sting operation by the prosecutor? My only avenue of survival was to immediately file a complaint against the patient with BAYONET (a narcotics strike force). Welcome to 1984, Hurwitz jurors. So now that you have forced me to survive by turning people in to the secret police, how do you feel about coming to me and discussing your personal issues?

The message is clear. Pain specialists better be careful who they treat — and undertreat those patients who they elect to take on — or risk going to jail as a result of America’s draconian drug prohibition policy. The doctor-patient relationship has just become much more complicated. And not for the better.

What was Dr. Hurwitz’s motive?

Hurwitz042707.jpgThe NY Times’ John Tierney, who has done an outstanding job of covering the sad case of Dr. William Hurwitz, provides this insightful post on the utter lack of a motive for Dr. Hurwitz to commit the crime for which he is being prosecuted — i.e., violating America’s drug prohibition policy:

Prosecutors charged that Dr. William Hurwitz was in a conspiracy with some of his patients to illegally distribute drugs, but there was no evidence that the patients had shared the profits when they resold the painkillers he prescribed. The only money he got was from the medical fees he charged. The prosecutors tried to portray his practice as a lucrative operation, and him as a doctor motivated by greed. This is a bit hard to square with what the jury heard about his background. which included stints in the Peace Corps and the Veterans Administration. And itís really hard to square with his bank account.
In 2003, before the charges in this case had even been brought against him, authorities seized Dr. Hurwitzís assets. (Thatís standard procedure in drug cases like this, and one more reason why doctors have such a hard time mounting a defense.) There wasnít much to seize. They took all his retirement savings ó which amounted to less than $250,000. He was at that point 58 years old and had been practicing medicine for decades. . . .
ìItís so ridiculous to hear the prosecutor talk about this rich doctor,î Mrs. [Nilse] Quercia [Dr. Hurwitz’s former wife] told me. ìExcept for that Keough account they seized, he had nothing but debts and a 1990 Subaru.î His subsequent legal expenses, she said, were paid by friends and relatives and by the law firms now representing him pro bono.

In my experience, when a prosecutor must fabricate a motive for the white collar criminal act that is being prosecuted, it’s a pretty darn good indication that a lack of prosecutorial discretion is behind the decision to pursue the charges in the first place.

Applying the Apple Rule

My, what a flurry of activity with regard to Apple.

First, the San Jose Mercury News reports last weekend that Apple CEO Steve Jobs appeared to be in the clear of the risk of criminal charges in regard to the investigation into backdating of stock options at Apple.

Next, on Tuesday, Dealbreaker’s John Carney noted that two former Apple executives in the crosshairs of the SEC’s parallel investigation — general counsel Nancy Heinen and CFO Fred Anderson — are taking very different approaches to dealing with the investigation.

On one hand, Heinen is fighting the SEC charges, while Anderson has settled up with the SEC.

But then, in a somewhat unusual development in such matters, Anderson proceeded to issue a public statement that appears to contradict Jobs’ story that he didn’t really understand the implications of this whole backdating thing.

Finally, after all this, Apple’s stock price went through the roof on Wednesday on the heels of strong second quarter earnings.

So, leave it to the originator of the Apple Rule to size up the possible implications of these events:

Indeed, it may be that all this backdating stuff really is all about stock price. When the alleged backdating was going on at Apple, the stock was hovering at around 20. Under several more years of Jobs leadership, it’s up over 90. Backdating could bring it back to 20.

No free speech in Beaumont?

brentcoon.gif
In this WSJ Law Blog post, Paul Davies of the WSJ Law Blog passes along this Chronicle article about Beaumont plaintiff’s attorney Brent Coon issuing a subpoena to the editor and a reporter of a new weekly paper called the Southeast Texas Record, which is bankrolled by the U.S. Chamber of Commerce Institute for Legal Reform in Washington to promote an tort reform agenda (the Chronicle’s Mary Flood has more). Coon’s purpose in issuing the subpoena is that he believes that the editor and the reporter of the newspaper were attempting to taint jurors in one of his pending asbestos cases with regard to the newspaper’s April 2 inaugural issue. “This shameful propaganda machine is deceptive and demonstrates a willingness to misrepresent fact,” Coon complained as he was charging that the editor and reporter might have committed a “criminal act.”
Sounds as if Mr. Coon is better at pursuing plaintiff’s cases than Constitutional Law. The editor and the reporter’s writings are clearly protected free speech under the First Amendment. Not even a close call. Even in Beaumont.

Protecting the Metroplex from the evils of poker

poker.jpgThis post from late last year reported on the dubious policy of the Dallas Police Department to deploy SWAT teams to bust peaceful poker games. To update that precarious state of affairs, Radley Balko passes along this long email from a fellow who was arrested during one of the raids, even though he was simply chopping veggies for the gamblers to eat. The following is a glimpse of what occurred during the raid:

The raid occurred around 7:40 p.m. I was in the kitchen area which was just inside the front door when suddenly there was loud banging from the door. Within seconds, the room was full of Dallas SWAT officers yelling for everyone to put their hands in the air. Behind the Dallas SWAT team came many more law enforcement officers and several camera crews for the A&E reality show, Dallas SWAT. The camera crewís chests were clearly marked as ìA&E Film Crew.î
Bear in mind that, prior to police entering, the place was virtually quiet. There was the sound of poker chips in the air, but not much else. The players were essentially professionals and working stiffs having funÖthere were doctors, lawyers, accountants, and other professionals. There was hardly anything ìdangerousî about the place at all. In fact, the cops found no weapons in the facility or on anyone there. The show of force and weaponry brought by the cops was simply outrageous and unjustified, given the circumstances, but, then again, are they enforcing the law or making a TV show?

Read the entire post. Feel safer?

The targetor becomes the target

O%27Quinn%20041907.gifFamed Houston plaintiffs’ lawyer John O’Quinn is used to doing the targeting in the lawsuits in which he is involved. But in the bizarre world of litigation swirling around the estate of the late Anna Nicole Smith, O’Quinn has become the target.
Howard K. Stern, a former attorney and companion of Smith, filed the defamation suit on April 13 against O’Quinn in federal district court in the Southern District of Florida. Stern bases his lawsuit on allegedly defamatory statements that O’Quinn made to the media while representing Smith’s mother in connection with litigation in Florida and the Bahamas that erupted after Smith’s death from a drug overdose earlier this year. Stern is alleging defamation and false light/invasion of privacy causes of action against O’Quinn, taking dead aim at O’Quinn’s multi-hundred million dollar net worth. This press release was issued by Stern’s lawyer, L. Lin Wood, a lawyer out of of Atlanta.
In the event this one makes it to trial (highly doubtful, in my view), it sounds ready made for Court TV.