Author: Jaclyn Belczyk

  • California judge combines state court claims against Toyota

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    [JURIST] A California judge on Wednesday consolidated more than 40 pending state court claims against Toyota [corporate website; JURIST news archive] relating to an alleged safety defect that caused cars to accelerate out of control. The claims include consumer-fraud class action and personal injury lawsuits. Judge Carl West of the Los Angeles County Superior Court [official website] recommended [Reuters report] that the state court lawsuits be heard by a judge in Orange County. The final decision on whether to consolidate the claims will be made by state Supreme Court [official website] Chief Justice Ronald George, who is expected to announce his decision in two to three weeks. Toyota is also facing more than 100 federal lawsuits, which were consolidated [JURIST report] last month. The state and federal claims will remain separate.

    Last month, Toyota accepted a record civil penalty of $16.375 million [JURIST report] imposed by the National Highway Traffic Safety Administration (NHTSA) [official website] for a four-month delay in notifying the agency about a problem with “sticky” and “slow to return pedal” gas pedals in various car models. The fine, the largest ever assessed against a car maker, was based on a preliminary review of extensive corporate documents attained through an investigation [press release] launched by the NHTSA in February. Toyota has been under federal scrutiny since December 2009, and has recalled more than 8.5 million vehicles.

  • Supreme Court rules NFL teams not single entity for antitrust purposes

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    [JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] unanimously in American Needle v. NFL [Cornell LII backgrounder; JURIST report] that the National Football League (NFL) [league website] and its member teams are not a single entity that is exempt from rule of reason claims under Section 1 of the Sherman Antitrust Act [text]. The US Court of Appeals for the Seventh Circuit ruled [opinion, PDF] that the NFL and its member teams are a single entity under the Sherman Act. Reversing the decision below, Justice John Paul Stevens wrote:

    Football teams that need to cooperate are not trapped by antitrust law. “[T]he special characteristics of this industry may provide a justification” for many kinds of agreements. The fact that NFL teams share an interest in making the entire league successful and profitable, and that they must cooperate in the production and scheduling of games, provides a perfectly sensible justification for making a host of collective decisions. But the conduct at issue in this case is still concerted activity under the Sherman Act that is subject to s. 1 analysis.

    The case was remanded to the district court for further proceedings.

    The NFL and its 32 member teams teams reached an agreement with Reebok [corporate website] to license and sell consumer headwear and clothing with the respective teams’ logos and not to grant licenses to Reebok’s competitors for 10 years. The antitrust suit was brought by American Needle [corporate website], which argued that the contract violated the Sherman Act.

  • Supreme Court rules on time limits for employment discrimination suits

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    [JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] unanimously in Lewis v. City of Chicago [Cornell LII backgrounder; JURIST report] that a plaintiff who fails to file a timely challenge against the adoption of a discriminatory employment practice can later file a disparate impact claim challenging the application of the practice. The question was whether a plaintiff seeking to bring a disparate impact employment discrimination suit must file a charge with the Equal Employment Opportunity Commission (EEOC) [official website] within 300 days after test results were released or 300 days after hiring decisions were announced. The US Court of Appeals for the Seventh Circuit ruled [opinion, PDF] that the statute of limitations began running when the allegedly disparate results were announced, not when hiring decisions were made. Writing for a unanimous court, Justice Antonin Scalia reversed the decision below, distinguishing disparate impact claims from disparate treatment claims:

    For disparate-treatment claims – and others for which discriminatory intent is required – that means the plaintiff must demonstrate deliberate discrimination within the limitations period. But for claims that do not require discriminatory intent, no such demonstration is needed. Our opinions, it is true, described the harms of which the unsuccessful plaintiffs in those cases complained as “present effect[s]” of past discrimination. But the reason they could not be the present effects of present discrimination was that the charged discrimination required proof of discriminatory intent, which had not even been alleged. That reasoning has no application when, as here, the charge is disparate impact, which does not require discriminatory intent.

    The case involved minority firefighters in Chicago who alleged that the city’s eligibility test had a discriminatory impact on African Americans.

    Last year, US President Barack Obama signed into law [JURIST report] the Lilly Ledbetter Fair Pay Act of 2009 [S 181 materials], extending the deadline for employees to sue their employers for unequal pay discrimination under a disparate treatment theory. The law’s “clarification” of equal pay protections effectively overturned the 2007 Supreme Court decision in Ledbetter v. Goodyear Tire & Rubber Co [opinion, PDF; JURIST report], which held that “a pay-setting decision is a discrete act that occurs at a particular point in time” and that the statutory period for filing a discrimination claim with the EEOC begins when that discrete act occurs. The new law altered Title VII of the Civil Rights Act of 1964 [text] to clarify that the six-month statute of limitations controlling racial, gender, or national origin employment discrimination suits is applicable to each instance of a discriminatory practice, including the receipt of each paycheck, not only to the initial discriminatory act. The initial lawsuit was brought by Lilly Ledbetter, a 19-year Goodyear employee, who alleged that she received less pay than male counterparts because of gender discrimination. The Supreme Court upheld the US Court of Appeals for the Eleventh Circuit’s reversal [opinion, PDF] of a district court decision awarding Ledbetter $360,000 in damages.

  • UN rights chief urges peaceful resolution to Thailand conflict

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    [JURIST] UN High Commissioner for Human Rights [official website] Navi Pillay [official profile] on Monday urged both the Thai government and anti-government protesters to seek a peaceful resolution [press release] to the current conflict [JURIST news archive]. Expressing deep concern at the escalating violence that has left dozens dead and many more injured, Pillay called on both sides to avoid further clashes and seek a diplomatic solution. Pillay called on the government to use force only in accordance with international human rights standards, warning that the situation could easily get out of hand:

    To prevent further loss of life, I appeal to the protestors to step back from the brink, and the security forces to exercise maximum restraint in line with the instructions given by the Government. Ultimately, this situation can only be resolved by negotiation. I urge leaders to set aside pride and politics for the sake of the people of Thailand.

    Pillay also noted that Thai Prime Minister Abhisit Vejjajiva [official website; BBC profile] has agreed to set up an independent fact-finding mission to inquire into the recent violence, stressing that the investigation should be impartial and thorough.

    Last week, a Thai court sentenced 27 protesters [JURIST report] to six months in prison. The accused are members of the United Front for Democracy Against Dictatorship [party website, in Thai], also known as red shirts [BBC backgrounder], who support ousted [JURIST report] prime minister Thaksin Shinawatra [BBC profile; JURIST news archive]. Last month, Thailand’s pro-government People’s Alliance for Democracy Network [party website, in Thai; BBC backgrounder], known as yellow shirts, called for a declaration of martial law [JURIST report] to quell the anti-government movement spearheaded by the red shirts. Earlier in April, Vejjajiva announced that he was prepared to negotiate [JURIST report] with red shirt protesters once they cease their illegal conduct. Because of the mounting violence, Abhisit has imposed a state of emergency [JURIST report] in Bangkok and neighboring provinces.