The BLT: The Blog of Legal Times

Huffington Post Facing $3M Libel Lawsuit from Panama Lawyer

Updated 11:40 a.m.

On August 2, an article called "The Primacy of the Rule of Law" was posted on The Huffington Post. The problem, according to a defamation lawsuit (PDF) filed Friday in U.S. District Court for the District of Columbia, is that the author listed, Juan Carlos Noriega, claims he had nothing to do with the piece.

Noriega, a lawyer based in Panama, is suing the media company for $3 million in damages, a full retraction, and an investigation into who created an account on The Huffington Post's website under his name.

A representative of The Huffington Post also could not immediately be reached for comment. Noriega's lawyer, Patton Boggs partner Benjamin Chew, said that the company never made any effort to contact Noriega before publishing the article along with his photo and a biographical description.

This Week in The National Law Journal

Justice, delayed: In light of the Justice Department's recent blockbuster deals with British banks, Mike Scarcella reports on the debate over whether deferred-prosecution agreements — rather than criminal indictments — are sufficient to punish corporate wrongdoing and to serve as a deterrent against future malfeasance.

Living on hold: Todd Ruger takes a look at what life has been like over the past year for federal court nominees, many of whom have been caught up in political gridlock. The short version: they've gotten good at waiting.

Billing survey: The National Law Journal's annual survey of billing rates nationwide explores the continuing tug-of-war between law firms and their corporate clients over hourly billing rates, and how the slow economic recovery plays a role.

The Morning Wrap

Connecticut Shootings: After a gunman killed 20 children and six adults at a Newtown, Conn., elementary school on Friday, President Barack Obama on Sunday said the United States has failed "to keep our children, all of them," safe from harm, The Washington Post reports.

Concussion: Secretary of State Hillary Rodham Clinton sustained a concussion after fainting, NPR reported on Saturday. She has been suffering from a stomach virus.

HP: Lawyers at Hewlett-Packard are tired and frustrated following the highly public pratfalls of the company, The Recorder reports. "What's getting lost in all the bad press is that you've got a lot of people that are working their asses off to try to make HP successful," a source at the company said. "It hurts our morale, and it hurts our ability to focus on what we're trying to do."

EPA Finalizes New, Tougher Soot Pollution Standards

The U.S. Environmental Protection Agency today finalized new standards limiting harmful soot pollution, a move that came after a federal judge earlier this year ordered the agency to act by December 14.

EPA Administrator Lisa Jackson in a conference call with reporters trumpeted the stricter standards, which she said will prevent tens of thousands of premature deaths and save as much as $9 billion in health care costs each year.

"There will be fewer expensive trips to the emergency room and hospital,” she said. “More children will be able to go outside and play with their friends….Our children and our children’s children will have cleaner air to breath for decades to come.”

DOJ: Capitol Hill Staffer's Conviction Should Stand Under Charges Never Brought

Russell Caso Jr. pleaded guilty to a crime that's no longer a crime. Now, prosecutors are fighting his effort to erase his conviction, saying he has failed to prove his innocence to a charge the government didn't bring.

A judge in Washington this year refused to vacate Caso's conviction for conspiracy to commit honest services fraud, and he's now challenging that ruling in a federal appellate court.

Caso, according to the government, couldn’t simply walk away unscathed. He had to show he's innocent on a false statements charge—a crime the government left behind in exchange for Caso's guilty plea as part of a deal with the government.

The U.S. Court of Appeals for the D.C. Circuit yesterday grappled with where to draw boundaries in the pre-indictment arena. The corruption case against Caso raises questions about uncharged conduct—the stuff prosecutors could have filed but didn't.

Senate Confirms More Judges During Lame Duck Session

The Senate continued its run of district court confirmations during the lame duck session, approving two federal judges in New York and planning votes for two more on Monday.

The Senate voted 91-0 on Thursday to confirm Lorna Schofield, currently of counsel to Debevoise & Plimpton, to be U.S. District Judge for the Southern District of New York. Schofield, who was a litigation partner from 1991 to 2011, will be the first Filipino American to serve as an Article III federal judge, the firm said in a statement.

"Lorna is an extraordinarily accomplished lawyer who has been an invaluable member of the Debevoise team for more than two decades, " said Michael Blair, presiding partner at Debevoise. "And while we will certainly miss her, we are incredibly proud of what she has accomplished and have no doubt she will be an outstanding federal judge."

The Morning Wrap

Withdrawn: U.N. Ambassador Susan Rice yesterday withdrew her name from consideration for Secretary of State amid fierce opposition from Republican leaders on Capitol Hill, The Wall Street Journal reports. Rice penned this piece in The Washington Post about her decision to step aside. From The New York Times today: "Rice's Blunt Style Endeared Her to President, but Not All."

Close to the finish line: The New York Times reports UBS is in final negotiation with American, British and Swiss authorities to resolve interest rate manipulation allegations. The bank's Japanese unit is expected to plead guilty to a criminal charge. The Wall Street Journal has coverage here.

Unprotected: Prosecutors were allowed to use email communication between a former Virginia politician and his wife in a bribery case, the U.S. Court of Appeals for the Fourth Circuit ruled. The appeals court said Phillip Hamilton took no steps to keep the communication confidential, The National Law Journal reports.

Higher salaries, lower bonuses: From Corporate Counsel today: "General counsel at major corporations saw their base salaries climb, even as cash bonus awards fell in the last year, according to the latest compensation benchmarking figures from the Association of Corporate Counsel."

Approved by the House, D.C. Courts Bill Heads to the White House

The U.S. House of Representatives today approved legislation that would shorten the term of judges in the District of Columbia's Family Court and give the local court system more scheduling flexibility during natural disasters or other emergencies.

The D.C. Courts and Public Defender Service Act, which the U.S. Senate passed in July, will go to the White House, where President Barack Obama is expected to sign it into law. Unlike state courts, the city's local court system is funded and overseen by Congress.

Under the proposed legislation, terms for D.C. Superior Court judges serving in Family Court would change from five years to three years. In supporting shorter terms, court officials cited long-standing concerns that the five-year requirement made it tougher to recruit judges for the rotation and increased the risk of judicial burnout.

Davis Polk Partner Named Fellow in SEC's Investment Management Division

Davis Polk & Wardwell corporate partner Danforth Townley has been appointed an attorney fellow in the U.S. Securities and Exchange Commission's Division of Investment Management.

Beginning in January 2013, he'll provide counsel on rulemaking issues and other policy initiatives for the division, which oversees the nation’s multitrillion-dollar investment management industry.

Attorney fellow positions allow experienced lawyers to work at the SEC for a set period of time – often one or two years.

D.C. Appeals Court Splits on When 'Furtive Gestures' Justify Car Searches

After pulling over a car on March 17, 2010, for tinted windows, U.S. Park Police Officer Lando Norris noticed something amiss as he approached on foot. According to an opinion (PDF) released today by the District of Columbia Court of Appeals, Norris saw that the driver and passenger had switched seats and the man now behind the wheel was making unusual movements with his hands around the dashboard.

The man in the driver's seat, Tyrone Jackson, was charged with possession of cocaine with intent to distribute after a search of the car yielded bags of the drug hidden inside the cover of the steering wheel. In a split decision, however, the appeals court ruled today that Norris lacked reasonable suspicion to do the search in the first place.

The court reversed a trial judge's denial of Jackson's motion to suppress the drug evidence, finding that the circumstances surrounding the arrest weren't enough for Norris to reasonably believe that Jackson was dangerous and might have easy access to a weapon. In a dissenting opinion, Senior Judge James Belson said the majority gave "too little weight to the safety and life of the investigating officer."