Va. court: Hookah lounge exempt from smoking ban

A divided Virginia Court of Appeals has ruled that a Blacksburg hookah lounge is exempt from the state's restaurant smoking ban.

In a 6-3 ruling Tuesday, the court said the She-Sha Cafe and Hookah Lounge is not subject to the ban because it's a retail tobacco store as well as a restaurant. She-Sha says most of its revenue comes from customers' use of hookahs - tall water pipes that are used to smoke flavored tobacco.

The state law regulating indoor public smoking covers restaurants but specifically exempts tobacco retailers. The court's majority cited that exemption in ruling in She-Sha's favor.

The decision reverses a three-judge panel's ruling that She-Sha is covered by the ban because it also serves food.

Anti-whaling activist to testify in US court

A fugitive anti-whaling activist known for confronting Japanese whaling vessels off Antarctica is due to testify about his actions in a U.S. court Wednesday.

Paul Watson, founder of the Oregon-based Sea Shepherd Conservation Society, is expected to take the witness stand in a contempt of court hearing in Seattle.

The Japanese whalers argue that the organization 10 times violated an order barring its vessels from attacking or coming within 500 yards of the whaling ships. They've asked the 9th U.S. Circuit Court of Appeals to impose fines of $100,000 for each violation, though they suggested the court waive those fines as long as the protesters stop confronting their ships.

The case is part of a long-running fight between the protesters and Japan's whaling fleet, which kills up to 1,000 whales a year, as allowed by the International Whaling Commission.

Japan is permitted to hunt the animals as long as they are killed for research and not commercial purposes, but whale meat not used for study is sold as food in Japan. Critics say that's the real reason for the hunts.

For several years, Sea Shepherd operated anti-whaling campaigns in the Southern Ocean. Activists aboard its vessels would hurl acid and smoke bombs at the whalers and drag ropes in the water to damage their propellers.

Appeals court moves BP forward in settlement dispute

The April 2010 blowout of BP's Macondo well off the Louisiana coast triggered an explosion that killed 11 workers on the Deepwater Horizon drilling rig and led to millions of gallons of oil spilling into the Gulf. Shortly after the disaster, BP agreed to create a $20 billion compensation fund that was administered at first by the Gulf Coast Claims Facility, led by attorney Kenneth Feinberg.

BP argued that Barbier and court-appointed claims administrator Patrick Juneau misinterpreted terms of the settlement. Plaintiffs' lawyers countered that BP undervalued the settlement and underestimated how many claimants would qualify for payments.

In the panel's majority opinion, Judge Edith Brown Clement said BP has consistently argued that the settlement's complex formula for compensating businesses was intended to cover "real economic losses, not artificial losses that appear only from the timing of cash flows."

"The interests of individuals who may be reaping windfall recoveries because of an inappropriate interpretation of the Settlement Agreement and those who could never have recovered in individual suits for failure to show causation are not outweighed by the potential loss to a company and its public shareholders of hundreds of millions of dollars of unrecoverable awards," Clement wrote.

Judge Leslie Southwick wrote a concurring opinion. Judge James Dennis wrote a partial dissent, largely disagreeing with the other two.

"Because BP has not satisfied its heavy burden of showing that a change in circumstances or law warranted the modifications it sought, the district court correctly affirmed the Administrator's decision rejecting BP's argument and actions to modify the agreement," Dennis wrote.

Judge says Episcopal issues belong in state court

U.S. District Judge C. Weston Houck has ruled for the second time in recent months that legal issues arising from the Episcopal schism in eastern South Carolina belong in state court, not federal court. Houck dismissed a federal lawsuit late Friday brought by Bishop Charles vonRosenberg, the bishop of parishes remaining with the national Episcopal Church. The bishop had asked Houck to block Bishop Mark Lawrence, the spiritual head of churches that left the national church, from using the name and symbols of the Episcopal Diocese of South Carolina. But Houck ruled the issues "are more appropriately before, and will more comprehensively be resolved, in South Carolina state court." Lawrence and churches in the conservative diocese separated from the more liberal national church last year. Those parishes later sued in state court to protect their use of the diocesan name and symbols and title to a half billion dollars in church property. In a consent order agreed to by both sides and signed by a state judge earlier this year, Lawrence and those parishes were given the right to use the name and symbols. Parishes remaining with the national church later tried to move that case to federal court, but Houck ruled in June that doing so would disrupt the balance between state and federal courts.

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Court: US can keep bin Laden photos under wraps

A federal appeals court is backing the U.S. government’s decision not to release photos and video taken of Osama bin Laden during and after a raid in which the terrorist leader was killed by U.S. commandos.
The three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia turned down an appeal Tuesday from Judicial Watch, a conservative watchdog group, which had filed a Freedom of Information Act request for the images.
The court said that the CIA properly withheld publication of the images. The court concluded that the photos used to conduct facial recognition analysis of bin Laden could reveal classified intelligence methods — and that images of bin Laden’s burial at sea could trigger violence against American citizens.

Lawyer: Murtha-linked Pa. brothers to plead guilty

Two brothers who owned defense contracting businesses that benefited from earmarks obtained by the late U.S. Rep. John Murtha will plead guilty to charging the military $650,000 for parts that were never delivered and paying a kickback to another contractor, a defense attorney said.
Ronald and William Kuchera will waive their right to be indicted and plead guilty to charges filed late last week by federal prosecutors, said Ronald Kuchera's lawyer, Stanton Levenson. They're waiting only for U.S. Judge Kim Gibson in Johnstown to set a court date, Levenson said.
Murtha, the powerful Democrat who chaired the House Defense appropriations subcommittee, isn't mentioned in the twin four-page criminal informations charging the Kucheras with major fraud against the federal government and conspiracy via two companies they owned, Kuchera Defense Systems Inc. and Kuchera Industries Inc., of Windber.
But another businessman and his company previously linked to the late congressman in a lobbying-for-earmarks scheme are mentioned: Richard Ianieri and Coherent Systems International Inc.

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Cliff avoided: Congress staves off tax hikes

Past its own New Year's deadline, a weary Congress sent President Barack Obama legislation to avoid a national "fiscal cliff" of middle class tax increases and spending cuts late Tuesday night in the culmination of a struggle that strained America's divided government to the limit.

The bill's passage on a bipartisan 257-167 vote in the House sealed a hard-won political triumph for the president less than two months after he secured re-election while calling for higher taxes on the wealthy.

Moments later, Obama strode into the White House briefing room and declared, "Thanks to the votes of Republicans and Democrats in Congress I will sign a law that raises taxes on the wealthiest 2 percent of Americans while preventing tax hikes that could have sent the economy back into recession."

He spoke with Vice President Joe Biden at his side, a recognition of the former senator's role as the lead Democratic negotiator in final compromise talks with Senate Republican Leader Mitch McConnell of Kentucky.

In addition to neutralizing middle class tax increases and spending cuts taking effect with the new year, the legislation will raise tax rates on incomes over $400,000 for individuals and $450,000 for couples. That was higher than the thresholds of $200,000 and $250,000 that Obama campaigned for. But remarkably, in a party that swore off tax increases two decades ago, dozens of Republicans supported the bill at both ends of the Capitol.