Quote of the Day - If you can afford a vacation home in Florida, you should be able to pay the taxes.
When Is A 10¢ Charge Imposed by the Government Not A Tax?
You'll be happy to know that the 10¢ charge that Los Angelinos are required to pay to grocery stores for using a paper bag isn't a tax, even though the charge was imposed by the Los Angles County Board of Supervisors. That's right, even though you get to pay more, it's really not a tax.
Let's think about this one for a minute. Ok. I'm done. How about you? Convinced yet? If not, then think about the argument that the County used to convince the state court (wonder why this case wasn't tried in federal court?): the County argued that it wasn't a tax because the money wasn't paid to the County.
Actually, the ordinance allows the grocery stores to keep the 10¢ charge to offset the "cost of compliance." What? How much could it possibly cost to comply with this ordinance? There's some bagger at the end of the check out counter saying, "Hey there, customer, you have to pay 10¢ to use that paper bag."
Right. That statement alone must cost the grocery store a whopping 10¢.
Don't get me wrong here, I'm all for the purpose of the ordinance - eliminate the use of plastic bags, cut down on the use of paper bags and encourage grocery shoppers to bring reusable canvas bags. You knew, didn't you, that deep down, us Angelinos are all just grown-up hippies, tree huggers, earth-shoe wearing liberals who want to save the environment?
Well, some of us actually rail at taxes. This case, Schmeer v. County of Los Angeles, had plenty of environmental star power at the helm (Surfrider Foundation and the Environment California Research and Policy Center), but this tax case went down in flames anyway.
Judge Chalfant, an excellent judge, saw it the other way and looked past the wording of the ordinance and ruled that because the 10¢ charge didn't go to the County it wasn't a tax, reasoning that in order to be a tax, the money has to go to the County. Where the 10¢ charge stayed with the grocery store, neither Judge Chalfant nor Justice Croskey, writing for the Court of Appeal, thought we all expect taxes to go to the government, and when the money doesn't, it's not a tax.
Sounds reasonable, until you read the wording of the definition of a tax. Nowhere in that definition do you see the reasoning that the money has to go to the government:
"As used in this section, ‘tax' means any levy, charge, or exaction of any kind imposed by the State [County], except the following [five exceptions, none of which require that the money be paid to the State [County]]"
I don't know about you, but that 10¢ charge sounds an awful lot like a tax to me, even if the money doesn't end up in the State's hands (which some of it will anyway, because the grocery store has to pay tax on its income, but that's a different story, they say).
Maybe one of the parties will get the California Supreme Court's attention, and perhaps they will see it differently.
The Endless Summer...Keep SurfAid Working Year 'Round
My friend Paul Riehle is an avid surfer; he's one of those guys who's up at the crack of dawn and out on his surfboard enjoying what we Californians know as the endless summer. You can surf all year 'round here - of course you've got to wear something thicker than a 3/2 wetsuit in the winter, but as Jimmy Buffet says, "The weather is here. Wish you were beautiful."
While Jimmy has a way with words, Paul's got a way with surfing. In fact, he's competing in the Malibu Cup, and is asking for your help to raise money.
Here's Paul's plea: "I write because I am participating in the SurfAid Malibu Cup this Saturday, September 8. The Cup is a surfing competition to raise funds for SurfAid, a non-profit humanitarian organization with malaria eradication, emergency preparedness and response, and community health programs in Indonesia. I have been on the SurfAid Board since its inception. I am competing on the Beck Riehle Good Surf Team. Our goal is to raise the most money of any team before the event starts, thereby helping SurfAid."
While you might not know Paul, you can get to know the good work that they do. In SurfAid's own words, "SurfAid is a non-profit humanitarian organization whose aim is to improve the health, well-being and self-reliance of people living in isolated regions connected to us through surfing."
If you can't jum on your board this weekend to help raise money, you can donate by clicking on this link.
Jury Awards $4.5 Million Punitive Damages Against Company With Negative Net Worth
A Jury Run Amuck Or A Well-reasoned Punishment? Don't Jump To A Conclusion Until You Read Further...
How could a jury be so insensitive? Certainly this jury is from one of those Judicial Hellholes! This is exactly why we need tort reform ... runaway juries ... just like that McDonald's spilled coffee cup case.
You would expect to hear those comments after reading the first headline. But there's a clue in the subheadline that may cause you to pause for a moment and think that there just might be more than the first headline communicates.
You'd be right. And you'd be one of those critical thinkers who realizes that the sound bite does a disservice to "the rest of the story," as Paul Harvey would have said.
So here's the set up of Bankhead v. ArvinMeritor. Now I could spin these facts for you to put you in the mood for the ultimate outcome, but rather than do that, let's let the Court of Appeal tell you what the facts were as they saw it (omitting footnotes):
So there you have it. In the 1960's the company knew that it was exposing its workers to asbestos fibers, but did not warn its employees of the danger until 1987. The jury found ArvinMeritor liable for Gordon Bankhead's exposure to asbestos as the cause of his mesothelioma. After the liability and damages portion of the trial was completed, the Court asked the jury about punitive damages.
Here's where it gets tricky. ArvinMeritor submitted financial statements that showed the company had a negative net worth. Despite that "upside down" financial statement, however, the jury awarded Gordon Bankhead $4.5 million in punitive damages.
How could that possibly be, you ask?
Well, before you get your knickers in a twist, read on and then decide (the following directly quotes the Court of Appeals):
Now that you've read why the jury awarded what it did, does the headline accurately tell the rest of the story?
Guess you'll have to keep a cynical eye on those headllines.
Legal Crackdown on Human Trafficking
Lawyer2Lawyer Internet Radio Podcast
Human trafficking is "modern-day slavery." And if you think it isn't happening near you, think again. The United Nations estimates nearly 2.4 million people may be the victims of this crime. Please join me and my fellow Lawyer2Lawyer co-host and attorney, Bob Ambrogi, as we take a legal look at this troubling issue with Professor Bridgette Carr from the University of Michigan Law School, Attorney Ann Johnson from Houston, Texas and Mary C. Ellison, Director of Policy for Polaris Project.
Click on the link below and give a listen!
How Congress Takes A Congressional Junket Without Letting Anyone Know
Members of Congress and their staffers who travel at the expense of private organizations must follow a long list of legal restrictions and requirements. However, there is a little known exemption that allows the same federal employees to travel with virtually no accountability and very little transparency. Please join me and my fellow Lawyer2Lawyer co-host and attorney, Bob Ambrogi, as we welome ProPublica.org reporter Justin Elliott and Washington University Law Professor Kathleen Clark to examine the ethics, legalities and secrecy of these Congressional trips abroad.
Women's Rights: Who Gets To Decide What Happens To Women's Bodies? Your Favorite Government?
From the Obama Administration's decision on female contraception coverage, to the Congressional hearing on women's health featuring an all-male panel of witnesses, to the Rush Limbaugh/Sandra Fluke firestorm, legislation targeting women's health is causing quite the political controversy across the country. Please join me as I welcome Attorney Shari Rendall, Director of Legislation and Public Policy for Concerned Women for America and Attorney Gretchen Borchelt, Senior Counsel for Health and Reproductive Rights for the National Women's Law Center, to discuss current legislation aimed at women's issues, reaction from women's groups and the present state of women's rights.
What Would You Do?
Driving back from LA on Friday, traffic was stopped: dead stopped. You know, the kind of stopped you just know will turn you and several thousand of your nearest friends into a 30-second segment on the 6:00 evening news, while the rest of us watching groan with an at-too-well understanding of your plight.
Traffic started to move slowly on both sides of the freeway, but not in the middle. Fortunately, I was on one of the the sides that was moving, not too far from the start of the traffic jam. Within a car length or two, I saw what was going on.
One 6x6x8 piece of lumber lay askance in the middle lane, blocking traffic. It looked like it had already been run over; a couple of chunks of lumber (the size of 2x4's) were scattered nearby.
Perhaps realizing the futility of his position, the guy driving - ok, well parked - in the middle lane immediately behind the offending tree trunk, was getting out of his car.
On the 405 freeway.
In Los Angeles.
One of the busiest freeway in the world.
As he got out of his car, his intent became clear. That tree trunk was going into the back seat so he could go forward. Into the back seat it went, but it didn't fit completely in, so part of it ended up sticking out the back window a bit, but not so far that it would interfere with anyone driving alongside him.
But the most amazing part about the whole situation on the freeway was what wasn't happening. No one passed him. It was as if we all realized that if our cars in the front allowed the cars in the backed up lanes behind us to speed by, someone would hit this guy and likely injure him, if not kill him.
The guy who was doing all of those cars behind him a favor. Saving their cars from getting hit with that piece of lumber otherwise known as a tree trunk, saving those lives who surely would have been changed if hit by a large flying piece or pieces of wood.
So we stopped and waited for him to finish. Sure, there were a few doors that opened in an attempt to offer help, but he waved us off, thinking I'm sure that it was safer if we all stayed put and let him get the lumber off the road and get it done quickly so we could all go forward again.
I have no idea who this good Samaratin was, but I sure want to thank him. For those you who were stuck behind the six cars that stopped all traffic so this guy could do his good deed for the day, you never knew how close you may have come to changing your life for the worse, even though you were sitting in your car complaining about the traffic back-up.
But know this. One man and a few onlookers saved you. It didn't take a CHP traffic break. It didn't take an accident. It took one person who did a good deed.
Remember that the next time you see an opportunity to do your part.
Using Endangered Species Laws To Save The Earth's Inhabitants
Lawyer2Lawyer Internet Radio
The world's tiger population has declined by 97%. The African elephant population has been cut in half. 33% of open-ocean sharks are now threatened with extinction. These and other alarming statistics have created worldwide legal action to save the Earth's endangered species. Please join me as I explore laws and initiatives designed to save threatened species with attorney and WildAid board member, David Kracke of Nichols and Associates in Portland, Oregon.