“The parents of a Peninsula high school sophomore are suing the school district for kicking the teenager out of an honors class because he cheated.” Jack Berghouse and his wife do not dispute that their son committed plagiarism, but their lawsuit claims “the school’s policies regarding punishment for cheating are vague and contradictory and shouldn’t be enforced.” [KCBS, KGO, San Jose Mercury News]
Reminder: “like” Overlawyered on Facebook
You can do that here (and if you’re on Twitter, follow the site as well as @walterolson)
“Diversity Training Doesn’t Work”
The popular management technique, adopted in countless workplaces in response to legal and regulatory pressure, may inadvertently intensify rather than extinguish prejudice, argues Peter Bregman in Psychology Today. Earlier here, here, and, on sexual harassment prevention/sensitivity training, here, here, here, etc.
More: From Hans Bader, why it persists despite failure — in education, accreditation rules are one important driver — and why trainers have been known to encourage employers in mistaken beliefs (such as that public employees can and should be disciplined for criticizing affirmative action policies) that are at variance with court holdings.
Instant regulatory-agency celebrity of the week
EPA regional administrator Al “crucify them” Armendariz [Heritage “Foundry,” Christopher Helman/Forbes]
More re: FCPA, Wal-Mart and Mexico
- Notwithstanding the tone of much coverage, companies are not legally required to disclose past FCPA violations to the government when they emerge: “It’s my understanding from in-house counsel that those who [voluntarily] disclose are in the distinct minority,” says one observer. Also, Prof. Koehler notes that even if Wal-Mart successfully defends the Mexican outlays as lawful “facilitating payments,” the company could still be accused of violating FCPA’s “books and records” and internal control provisions as well as Sarbanes-Oxley. [Sue Reisinger, Corporate Counsel]
- Coyote recalls the eyes-averted maneuvers with which his former employer put itself in a posture of formal FCPA compliance when operating in corrupt countries;
- Must-read Scott Greenfield post: “The Foreign Corrupt Practices Act is the corporate version of blue laws, a reflection of American idealism born of our Puritanical origins, our Pollyanna-ish denial of how the sausage of business is made, our jingoistic belief that we are so integral to the economic functioning of the world that we can dictate a cultural and moral code for everyone, and they can either comply with our great American will or suck eggs. It’s a fantasy of self-righteousness, and even Wal-Mart got caught in the reality that the business of business is business, and not puffy-chested Americans can bully Mexicans into succumbing to our moralistic ways.” Also suggests what Wal-Mart might say in response (at least if Wal-Mart were a character in an Ayn Rand novel) and notes “efforts to take this mutt of a law and attempt to reform it, at least to the extent that it not make American multinational corporations chose between being criminals or uncompetitive.”
- Speaking of which, some reforms sought by business: “Bringing Transparency to the Foreign Corrupt Practices Act” [Michael Mukasey and James Dunlop, Federalist Society “Engage”]
- Jeffrey Miron: prosecute Wal-Mart but repeal FCPA [CNN/Cato]
- While agreeing that the FCPA we have at present is pretty bad, Prof. Bainbridge thinks a case can be made for such a law in principle;
- Something to get Capitol Hill Democrats on board for reform? FCPA might menace Hollywood on China dealings [WSJ “Corruption Currents”]
Bank sues itself; nothing new there
A story about Bank of America suing itself in a foreclosure action got a bit of publicity recently, from sources like Credit Slips blogger and lawprof Alan White, but the snark was misplaced, says Kevin Funnell. Banks serve in various capacities in the real estate context and that makes such situations inevitable: “The bank is agent for the owner of the first lien loan and is also the owner, in its individual capacity, of the second lien loan. It has to name itself. This is ‘Foreclosure 101.'”
For instances of “auto-litigation” with a bit more to them, see this one from Illinois a few years back, as well as the ones collected at Lowering the Bar.
“Vague and bumptious legal threats”
From Ken at Popehat, a righteous response to a bumptious cease and desist letter [Regretsy]
Labor and employment law roundup
- Arbitrator: felonious Montgomery County, Maryland cops should keep disability pay [Examiner] “Cop who took naked photos of rape victim can keep pension” [NY Post] Cop who pepper-sprayed UC Davis protesters is still on job, and maybe that’s how they’d have it [Radley Balko]
- “Billions in retroactive liability” in pharma detailer wage/hour action before SCOTUS [Marcia Coyle, NLJ] And USA Today chose a faulty “worker discontent” theme on wage/hour case, since as class actions these suits are lawyer-driven;
- Australia: “Worker injured during sex gets compensation payout” [News.com.au]
- “Courts are finally starting to apply ADAAA—and it ain’t pretty” [Jon Hyman] ADA: “Judge Rules In Favor of Fired Employee With Bipolar Disorder” [ABC]
- NLRB goes after Hyatt on employee handbook language [Gary Shapiro, Examiner] Union claims Indiana right-to-work law violates Thirteenth Amendment ban on slavery [James Sherk, NRO]
- EEOC: sex discrimination law bars bias against transgender employees [AP, Hyman] “EEOC Obtains Substantial Settlement in Obesity Discrimination Suit” [Disabilities Law]
- Law journal prediction: adherents of racism will claim Title VII protection [Lawrence D. Rosenthal, Temple L. Rev. via Workplace Prof]
Punitive moralism and Wal-Mart’s Mexico mess
I’ve got a new opinion piece up at the Daily Caller on some relevant angles of the unfolding Wal-Mart FCPA story, including the feds’ growing crackdown on low-level “facilitating payments” that had previously been considered lawful, the potentially confiscatory effects of something called the Alternative Fines Act, and the question of why FCPA fines and settlements should be going to the U.S. Treasury, “which was surely not the victim of the Mexican bribe-paying, if victims there were.” Earlier here, here and (at Cato) here; and link thanks to Scott Greenfield (a must-read), Point of Law, Chris Fountain, Steve Bainbridge, and Coyote.
Plus: Scoop! Must credit Washington Post! Wal-Mart (like much of the rest of American business) has backed FCPA reform! In above-the-fold coverage with no fewer than three reporters’ bylines — though it does little more than recycle a meme that bounced around left-wing websites all day Tuesday — the Washington Post darkly warns that the giant retailer has been a member of broad business coalitions pressing various FCPA reforms “that, some advocacy groups argue, would eviscerate the Watergate-era anti-corruption statute.” “There is no evidence,” the paper is constrained to concede to the disappointment of Some Advocacy Groups, “that suggests Wal-Mart participated in the Chamber’s efforts because of its problems in Mexico.”
The Post notes that the campaign is led by what it bizarrely describes as the U.S. Chamber’s “little-known” Institute for Legal Reform. Yet the Post’s own index indicates that the “little-known” Institute has gotten seven mentions in the paper within the past 12 months, mostly for its advocacy on FCPA reform. Indeed, the Post itself has covered the FCPA debate in some depth over the past year, and its editorialists have ardently defended the law (perhaps “Watergate-era” should serve as some kind of tipoff phrasing.)
It would be one thing if Wal-Mart’s Washington reps had shown some sort of special dislike of FCPA not shared by other American firms that do business in developing countries. But the real story here is how broad and pervasive the discontent with the law is among American businesses with international operations. They consider it unrealistic, incapable of reliable compliance, punitive and constantly changing in its interpretations. Wouldn’t the Post do better to begin listening to them, rather than demonize their efforts to petition Washington for redress?
NHTSA to mandate accelerator overrides
We now know that the panicky tales of electronics-driven sudden acceleration in Toyotas, as urged on the nation by trial lawyer allies like Clarence Ditlow and Joan Claybrook, were sheerest fantasy. That’s no real surprise, since earlier reports of mechanically arising sudden acceleration in Audis and other brands of automobile (also urged on the nation by Ditlow et al.) proved equally imaginary.
But the media never learns, and if they don’t, why should the government? So the National Highway Traffic Safety Administration is proposing a rule that would require all auto designs to include “override” systems which shut off the accelerator if the brake is pressed. This will have no effect at all on typical “sudden acceleration” accidents, which arise from drivers’ hitting the wrong pedal, since those drivers already imagine themselves to be hitting the brake. They will have little if any effect on the extremely rare floor mat entrapment cases in which an accelerator gets trapped in the depressed position, because drivers can already overcome such acceleration by pressing the brake pedal if it is available, while if it is not available because of mats or other obstructions, the efficacy of the override may fall short of what is hoped.
But at least the government will be able to say that it did something.
I did find it interesting in the Washington Post account that Ditlow seems for the moment to have joined the rest of us in agreeing that pedal misapplication is the big cause of these accidents, the better to afford him a vantage point to criticize NHTSA for Not Doing Enough on that front. That’s quite a change from what you hear from him at the height of these panics, when he tends to talk up every possible cause of unwanted acceleration other than driver error. When the next sudden-acceleration panic breaks out, I fully expect CAS to be back pitching the electronics theories again.
P.S. Plaintiff’s lawyer and longtime Overlawyered favorite Steve Berman asserts that there have been “thousands of crashes, hundreds of deaths,” a claim the National Law Journal’s Amanda Bronstad relays without skeptical comment.