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Schiavo death turns up heat on judges House majority leader Tom DeLay last week blamed Terri Schiavo’s death on what he contended was a failed legal system, and he raised the possibility of trying to impeach some of the federal judges in the case. “The time will come for the men responsible for this to answer for their behavior,” said DeLay, R-Texas. But a leading Democratic senator said DeLay’s comments were “irresponsible and reprehensible.” Senator Edward Kennedy, D-Mass., said DeLay should make sure that people know he is not advocating violence against judges. Schiavo died on March 31, nearly two weeks after the removal of her feeding tube. Latham partner to lead DOJ Criminal Division The white house has tapped Latham & Watkins partner Alice Fisher to run the Justice Department’s Criminal Division. Fisher, a prot�g� of Secretary of Homeland Security Michael Chertoff, will replace outgoing chief Christopher Wray. From 2001 until 2003, Fisher, 38, served as Chertoff’s deputy in the Criminal Division, overseeing major fraud and terrorism cases. However, unlike Chertoff and Wray, Fisher has never served as a federal prosecutor. Instead, Fisher has spent the bulk of her career as a white-collar defense lawyer at Latham. Rudy Giuliani teams up with Texas’ Bracewell Starting in may, former New York City Mayor Rudolph W. Giuliani will run the new Manhattan office of Bracewell & Patterson, a 400-lawyer firm with some prominent clients, including Bank of America and Shell Oil Co., as well as a wealth of Republican political connections. What the 60-year-old Houston-based firm does not have is a presence in New York. Patrick C. Oxford, Bracewell’s managing partner, said last week that Giuliani is the answer to that problem, and the former mayor has been given wide latitude to prove it. Oxford said he hoped Giuliani could recruit 25 to 30 lawyers by the end of the year and more than 50 in the next two years. Joining Giuliani will be two of his associates at Giuliani Partners: Michael D. Hess, former New York City corporation counsel, and Daniel S. Connolly. JPMorgan wins dismissal of Enron-related claims One week after agreeing to pay out $2 billion to settle claims arising from its role as an underwriter for WorldCom, JPMorgan Chase & Co. won an important victory in a securities fraud case arising from its dealings with Enron Corp. In an opinion dated March 28, Southern District of New York Judge Sidney Stein granted JPMorgan’s motion to dismiss a securities class action brought by the bank’s shareholders. The plaintiffs claimed JPMorgan misstated its financial exposure arising from transactions it had entered into with Enron, which, plaintiffs say, were intended to help perpetuate Enron’s fraud. In re JPMorgan Securities Litigation, No. 02 Civ. 1282. Insurers may recover funds from illegal clinics In a huge victory for the insurance industry, the New York Court of Appeals yesterday cleared the way for insurers to recover tens of millions of dollars in no-fault benefits paid to illegally structured medical practices. The state high court unanimously held that a fraudulently incorporated medical practice-such as one that is not owned and controlled by licensed physicians as required under state law-is not entitled to reimbursement under a no-fault policy assigned by the patient. Last week’s ruling in State Farm Mut. Ins. Co. v. Mallela, No. 29, could affect several lawsuits seeking roughly $75 million in damages. “The true beneficiaries are the members of the public whose premiums unfairly bear the cost of insurance fraud,” said Evan H. Krinick of Rivkin Radler in Uniondale, N.Y., counsel for State Farm. “No-fault fraud is a multimillion-dollar industry and medical clinics are at the epicenter. [The decision] will have a significant impact.”

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