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As Enron board members Pug Winokur and Frank Savage are both board members and shareholders of companies (DynCorp and Lockheed) that have substantial contracts and power running both HUD and the War on Drugs, I thought this article describing some of the HUD WOD standards regarding recent negligence standards decisions might be of interest.
 
If Pug Winokur was held to the Perlie Rucker standard of negligence for his role as Chair of the finance committee of Enron, what would that look like?
 
If Lockheed, DynCorp, and AMS were held to the Perlie Rucker standard of negligence for all the missing money at HUD, what would that look like?
 
I wonder what Perlie and her collegues in Oakland think of Pug and Frank's performance..... 
 
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http://slate.msn.com/?id=2062274&device=


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supreme court dispatches
Too Old To Narc
The justices toss their bingo buddies into the street.
By Dahlia Lithwick
Posted Tuesday, February 19, 2002, at 3:30 PM PT

In case you missed Alex Kotlowitz's There Are No Children Here, the
best account of life in government housing projects, the facts of HUD
v. Rucker provide a pretty good summary of what a senior citizen must
endure there. Poverty, fear, drug deals and drive-bys, kids and
grandkids who come and go, nurses who use your apartment in lieu of a
crack den.

And that's before the federal government evicts you because some
grandkid fired up a doobie in the parking lot. So out go Pearlie
Rucker (the 63-year-old great-grandmother whose mentally retarded
daughter was caught with a crack pipe three blocks from the project);
Willie Lees (a 71-year-old grandma whose grandson smoked pot in the
parking lot); Barbara Hill (a 63-year-old grandma whose grandson
smoked pot in the parking lot); and Herman Walker (a 75-year-old
semi-paralyzed former preacher whose caretaker was stashing crack
paraphernalia at his apartment). Maybe the court thinks Rucker can
move into the Plaza Hotel. A useful reality check for all of us
renters, for whom the most onerous requirement in our lease agreement
is that we refrain from driving nails into the walls S

At issue today is 42 U.S.C. Section 1437d(1)(6), a 1988 law allowing
public housing agencies to evict any tenant for any drug-related
activity (with or without a criminal conviction) "engaged in by a
public housing tenant, any member of the tenant's household, or any
guest or other person under the tenant's control."

It's unclear what a tenant-particularly an elderly tenant with a
shifting roster of house guests-can purport to "control." But
according to the Department of Housing and Urban Development and the
various public housing authorities in question, the rules mean that
whether or not the tenants in question knew about the drug use, once
it happens, they're out. Raising the question: Does Florida Gov. Jeb
Bush live in government-subsidized housing?

The four tenants evicted from their homes by the Oakland Housing
Authority all claim to have known nothing about the drug use of their
various children/grandchildren/caregivers. They each claim to have
warned their families about the consequences of drug use on the
premises. And in three of the four cases, the drug use happened out
of the apartment-either blocks away from the project or in the
parking lot. And you may want to stop and consider whether your own
grandma ever knew more than about 3 percent of what you were doing in
your spare time.

Still, the government theory seems to be one of strict liability for
old poor people. Strict liability means the courts don't care what
the accused knew or didn't know. You are guilty regardless of fault
or intention. A good example of a strict liability crime is statutory
rape. The courts don't care if she looked 16, said she was 16, or was
too drunk to remember. The burden is on the squire to sort it out. So
making the drug use of your grandchildren subject to strict liability
evictions assumes that public housing tenants are the best source of
"control" over their families and guests. Of course, HUD could go
further and demand that residents of public housing projects actually
make citizens' arrests for any drug use on the premises, on penalty
of eviction. Or maybe the police should just do their jobs.

In any event, the district court in Oakland prevented the Oakland
Housing Authority from evicting the seniors, a three-judge panel of
the 9th Circuit Court of Appeals reversed this, and then the whole
9th Circuit, sitting en banc, reversed the reversal, stating that the
law didn't authorize evictions of innocent tenants. Meanwhile, a
panel of the 11th Circuit Court of Appeals went the other way, and
the Supreme Court agreed to hear the case.

With facts this sympathetic, you might think that it would be hard to
lose the votes of the entire Supreme Court at oral argument, but
you'd be wrong. Paul Renne, arguing on behalf of the evicted tenants,
manages to do just that. Which leads to the list of "The 10 Best Ways
To Lose the Most Sympathetic Case in History":

1) Argue That Acts of Congress Don't Mean What They Say: Renne and
the 9th Circuit must prove that Congress didn't mean to impose strict
liability on public housing tenants in Section 1437d(1)(6). The 9th
Circuit did that by suggesting that Congress was confused, and the
results would be absurd (i.e., your nephew in Boston's drug use could
get you kicked out of an Oakland public housing project). Renne tries
to argue the same point and promptly loses the right-tilting five
justices, who always hold that laws mean what they say, unless a Bush
presidency is on the line.

2) Argue That Regulatory Agencies Don't Mean What They Say: The law
of the land is that courts give federal agencies deference to
interpret their own regulations. Once HUD agrees that it wants a
zero-tolerance policy for drug abuse, no court in the world (except
the 9th Circuit) would try to mess with that.

3) Argue That the Tenants Have No Recourse in Eviction Court Without
Having Ever Filed an Action in Eviction Court: Renne argues that his
clients should have had their day in court. But they never tried to
appeal the eviction in state court; they sought a big fancy
injunction in federal court instead. Here's where Renne loses Justice
O'Connor and forces Chief Justice Rehnquist to sigh, "We're just
going in circles."

4) Argue That Eviction >From Public Housing Is Analogous to Forfeiture
of Personal Property: Renne bangs on this drum for most of the
morning, even after it's clear that Justices Kennedy, Rehnquist, and
Scalia all reject the analogy. Says Rehnquist, "Forfeiture suggests
the government coming in and taking. Here the government is the
landlord."

5) Argue for a Better Result Than You Achieved in the Court of
Appeals: Although Renne won his case in the 9th Circuit, he asks the
Supreme Court to create an even higher standard for drug-related
evictions. This loses even Justice Ginsberg, who gasps, "You seem to
be asking us to reverse the district court because it didn't go far
enough."

6) Try To Convince the High Court That Anything Coming Out of the 9th
Circuit Makes Sense: Talk about one strike and you're out. The court
barely attempts to hide its disdain for the 9th Circuit's reasoning.
"This isn't in the federal rules!" sputters O'Connor. "This is
manufactured by the 9th Circuit! It isn't there!" Later Rehnquist
dismisses the 9th Circuit opinion as "extremely weak."

7) Argue There's a Silent "Innocent Tenant Defense" Implied in Every
Statute: Renne keeps insisting that the statute's silence about a
possible innocent tenant defense somehow means that the defense
exists. This drives Scalia to insist that the statute "says nothing
about it because it doesn't exist."

8) Insist the Contract Signed by the Tenants Meant Nothing: Fairly or
not, each tenant agreed to HUD's drug policy in writing. And fairly
or not, this court has never met a contract it didn't like.
Dismissing these agreements as having been signed under duress just
makes the justices-particularly Kennedy and Rehnquist-mad.

9) Argue That There's a Constitutional Violation: Even Souter seems
to reject the argument that making someone sign on as a guarantor of
their visitors' behavior is unconstitutional.

10) Try To Make This About Age: Sure, the court is about to toss four
senior citizens out onto the streets. But why should they feel any
compassion? The average age of the four tenants is 68. The average
age of the nine justices is 68, too. Do they have any idea what their
grandkids are doing tonight?

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