A divided 9th Circuit ruled that a federal law prohibiting political commercials on public airwaves violates broadcasters' free speech.
INSURANCE – Axis Surplus Ins. Co. v. Glencoe Ins. Ltd.
OPINION – Axis and Glencoe each provided insurance to a construction company for the same project. When the company was sued, Axis provided a defense while Glencoe stood aside. Axis settled the case, then sued Glencoe for contribution. Judgment that Glencoe owed 60 percent of the settlement was not an abuse of discretion. (Cal.Ct. App., 4th Dist.)
ATTORNEY-CLIENT PRIVILEGE – In re Oracle Securities Litigation
ORDER – Oracle’s board formed a special litigation committee to investigate the merits of a derivative action against some of Oracle’s officers. Outside counsel interviewed witnesses and compiled a report. The committee waived attorney-client privilege regarding the report and the interview memoranda, but not regarding the original interview notes. (N.D. Cal.)
BALLOT INITIATIVES – McDonogh v. Superior Court
OPINION – A ballot initiative to reduce San Jose city employee pension benefits had an improper title (“Pension Reform”) and a ballot question (“To protect essential services, including neighborhood police patrols, fire stations, libraries, community centers, streets and parks, shall the Charter be amended…”), which improperly favored the initiative. The ballot title and question are ordered to be amended. (Cal.Ct. App., 6th Dist.)
California employers and labor lawyers have waited for three years for clarification of its wage laws, which require extra pay for meal and rest break violations.
Dewey & LeBoeuf loses four more attorneys; William Stuckwisch leaves the Justice Department for Kirkland & Ellis in D.C.
The court withdrew a controversial ruling that had struck down a requirement for arbitration, saying it would now wait for the California Supreme Court to decide on a similar issue.
The court rejected the government's broad reading of a law aimed at employees who steal from company computers, saying it could cause prosecutions for harmless activities at work.
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