Judge rejects bid to shut Oakland pot dispensary

OAKLAND — The nation's largest medical marijuana dispensary won a round in federal court this week, with a judge rejecting efforts by Harborside Health Center's landlords in Oakland and San Jose to immediately shut down operations.

The property owners have been under pressure since federal prosecutors last summer threatened to seize the buildings, arguing that pot sales were in violation of federal law. But in her ruling, Chief Magistrate Judge Maria-Elena James said that "any argument about the urgency of stopping Harborside's activity rings hollow" — since the landlords had known for years that it was a medical cannabis dispensary.

Allowing Harborside to stay open while a fuller legal airing of the issues took place, James continued, would not cause the landlords irreparable harm.

In her ruling in U.S. District Court in San Francisco, James also found that the property owners had no legal standing to seek an immediate end to sales at the dispensary by contending they violated the federal Controlled Substances Act.

Harborside — which serves more than 108,000 patients — now will have the opportunity to battle the federal civil forfeiture actions in court.

"We look forward to proving our case in front of a jury, and continue to believe we will prevail," Harborside's executive director, Steve DeAngelo, said in a statement.

The city of Oakland also has sued to prevent the property forfeiture, contending that federal prosecutors had missed a five-year statute of limitations and misled city officials with promises that they would not go after dispensaries complying with state and local laws.

In her ruling, James ordered Oakland's case be coordinated with the forfeiture cases.

Monday's ruling sets the stage for what could be a precedent-setting battle over clashing federal and state marijuana laws.

Cedric Chao, an attorney for Oakland, has argued that closure of the dispensaries would deprive the city of tax revenue and force Harborside's patients into the underground market, driving up crime.

"The city of Oakland could not be more pleased" by James' ruling, Chao said. "The patients can continue to get the medicine. They won't be thrown in the streets. There won't be an immediate public health crisis. There won't be a public safety crisis."

The U.S. attorney's office repeatedly has declined to comment on the ongoing litigation. Prosecutors have filed a motion to toss Oakland's suit, contending the city has no legal standing to weigh in. That issue will be heard at a hearing on Jan. 31.

lee.romney@latimes.com

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A Google-a-Day Puzzle for Jan. 9

Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.

SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!

Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.

And now, without further ado, we give you…

TODAY’S PUZZLE:

Note: Ad-blocking software may prevent display of the puzzle widget.

Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

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Founder of Montreux jazz fest in coma after ski fall

GENEVA (Reuters) – Claude Nobs, founder of the Montreux Jazz Festival, one of Europe’s most prestigious summer music festivals, is in a coma after a cross-country skiing accident during the holidays, festival organizers revealed on Monday.

The 76-year-old Swiss, who has lured some of the world’s greatest artists to Montreux – including Miles Davis, Ray Charles and Prince – was operated on in a Swiss hospital after his fall, it said.

“He has remained to date in a state of unconsciousness. His condition requires further additional tests,” the festival board said in a brief statement.

The accident occurred on Christmas Eve while skiing near his home in the village of Caux overlooking Montreux and Lake Geneva, festival secretary-general Mathieu Jaton told Reuters.

Nobs launched the festival in 1967 while working at the resort’s tourism office. He became known as “Funky Claude”, from a line in the song “Smoke on the Water” by Deep Purple, about a fire which burned down Montreux casino during a Frank Zappa concert in 1971.

Despite heart surgery some six years ago, he remains festival director, a position he shared during the 1990s with American producer Quincy Jones who returns each year from Los Angeles to introduce new talent.

Nobs often joined musicians on stage, playing harmonica, sometimes accompanied by his dogs.

Sold-out highlights last July included concerts by Bob Dylan, American chanteuse Lana Del Rey and British actor and musician Hugh Laurie.

Jaton is assuming Nob’s responsibilities and will ensure smooth management of the 47th edition of the festival set for July 5-20, the statement said.

(Reporting by Stephanie Nebehay, editing by Paul Casciato)

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Recipes for Health: Cauliflower and Tuna Salad — Recipes for Health

Andrew Scrivani for The New York Times

I have added tuna to a classic Italian antipasto of cauliflower and capers dressed with vinegar and olive oil. For the best results give the cauliflower lots of time to marinate.

1 large or 2 small or medium cauliflowers, broken into small florets

1 5-ounce can water-packed light (not albacore) tuna, drained

1 plump garlic clove, minced or pureéd

1/3 cup chopped flat-leaf parsley

3 tablespoons capers, drained and rinsed

1 tablespoon fresh lemon juice

3 tablespoons sherry vinegar or champagne vinegar

6 tablespoons extra virgin olive oil

Salt and freshly ground pepper

1. Place the cauliflower in a steaming basket over 1 inch of boiling water, cover and steam 1 minute. Lift the lid for 15 seconds, then cover again and steam for 5 to 8 minutes, until tender. Refresh with cold water, then drain on paper towels.

2. In a large bowl, break up the tuna fish and add the cauliflower.

3. In a small bowl or measuring cup, mix together the garlic, parsley, capers, lemon juice, vinegar, and olive oil. Season generously with salt and pepper. Add the cauliflower and toss together. Marinate, stirring from time to time, for 30 minutes if possible before serving. Serve warm, cold, or at room temperature.

Yield: Serves 6 as a starter or side dish

Advance preparation: You can make this up to a day ahead, but omit the parsley until shortly before serving so that it doesn’t fade. It keeps well in the refrigerator for up to 5 days.

Nutritional information per serving: 188 calories; 15 grams fat; 2 grams saturated fat; 2 grams polyunsaturated fat; 10 grams monounsaturated fat; 10 milligrams cholesterol; 8 grams carbohydrates; 3 grams dietary fiber; 261 milligrams sodium (does not include salt to taste); 9 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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Alcoa Reports Income of $242 Million Despite Weak Global Demand

Alcoa said on Tuesday that its fourth-quarter earnings met Wall Street’s expectations and that it expected slightly higher demand for aluminum this year.

Net income was $242 million, or 21 cents a share, including one-time gains like income from selling a hydroelectric project.

Without those gains, the company would have made 6 cents a share on revenue of $5.9 billion, meeting analysts’ expectations, according to FactSet. Sales were higher than the $5.58 billion that analysts had predicted.

A year ago, the company posted a fourth-quarter loss of $193 million, or 18 cents a share, on revenue of $6 billion, and a loss after special items of 3 cents a share.

The weak global economy has hurt industrial demand for aluminum. But Alcoa expects demand to grow 7 percent in 2013, up from a 6 percent gain in 2012. It said the best prospects were in aerospace and forecast slower improvement in the auto, packaging, and building and construction markets.

The company said it had made record profits in its aluminum-rolling and product-making businesses while cutting costs in its mining and refining, or “upstream,” segments.

Alcoa’s chief executive, Klaus Kleinfeld, said the company had overcome volatile aluminum prices and global economic weakness and was in a “strong position to maximize profitable growth” in 2013.

Alcoa is the first company in the Dow Jones industrial average to report fourth-quarter earnings. Because it makes aluminum for many major industries, investors study its results for clues about the health and direction of the overall economy.

Stock in the company, which is based in New York, closed unchanged in regular trading at $9.10 a share. In late-session trading after the earnings report was released, the stock gained 12 cents to $9.22 a share.

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Banks, regulators reach mortgage settlements

In two of the biggest civil settlements since the financial crisis, the nation's biggest banks agreed Monday to cough up nearly $19 billion to resolve federal allegations of mortgage misdeeds.

Bankers saw the settlements as a major step in providing more certainty for their balance sheets and possibly foreshadowing an end to the era of billion-dollar mea culpas and open-ended regulatory probes.

In one case, 10 banks settled with regulators for $8.5 billion. In the second, Bank of America Corp. agreed to pay almost $10.4 billion to Fannie Mae, the giant loan buyer that the U.S. seized and propped up with tens of billions of taxpayer dollars.

The deals come three years after prosecutors dropped criminal investigations against such subprime-mortgage kingpins as Countrywide Financial Corp.'s Angelo Mozilo in favor of pursuing civil fines.

"I'd have to say we're at least 75% of the way through with this process," said SNL Financial analyst Nancy Bush, arguing that it's time to concentrate on rebuilding the dysfunctional U.S. mortgage system. "The bankers are going to have to stop complaining about the government, and we'll have to stop this endless calling for someone to go to jail."

Housing advocates welcomed payouts for homeowners but asserted that the banks and bankers have gotten off easy, given the enormity of the economic damage to Main Street.

"When you think about $8.5 billion, and you know trillions of dollars in wealth have been lost by communities, it's not enough at all," said Sasha Werblin of the Greenlining Institute. "But some money is better than nothing."

The Bank of America settlement ends a bitter standoff between BofA, once the largest seller of home loans, and Fannie Mae, the nation's largest mortgage buyer.

The deal ends Fannie's demands that BofA buy back a mountain of soured loans issued by Countrywide, the high-risk Calabasas lender BofA acquired in 2008. BofA Chief Executive Brian Moynihan characterized the deal as "a significant step in resolving our remaining legacy mortgage issues."

BofA agreed to buy back $6.75 billion in residential mortgage loans sold to Fannie Mae and pay it an additional $3.6 billion in cash.

Moynihan had agreed previously to tens of billions of dollars in Countrywide-related claims. Those include shouldering the lion's share of last year's $25-billion settlement that five banks reached with the Obama administration and state attorneys general over so-called robo-signing of foreclosure paperwork and other abuses.

BofA still faces billions of dollars in claims from plaintiffs, including major insurers, the U.S. attorney's office in New York and the federal regulator overseeing Fannie Mae and fellow mortgage finance giant Freddie Mac.

But the bank has reached a tentative $8.5-billion settlement with holders of certain Countrywide mortgage bonds and another pending settlement for $2.4 million over its acquisition of Merrill Lynch & Co., also in 2008.

Because Countrywide left Bank of America with so many mortgage-related headaches, many view BofA's tangles with regulators as a barometer for the whole mortgage industry, SNL's Bush said. And as bank stock prices recovered over the last year, BofA led the way with a 109% gain for 2012.

The $8.5-million settlement with 10 banks Monday represented an acknowledgment by bank regulators that a previous attempt to review millions of foreclosures for bank wrongdoing had failed. Instead, they took a streamlined approach — the lump sum — in getting relief for troubled borrowers. Four other banks opted out of the settlement.

The settlement replaces a failed process that started in April 2011. In that arrangement, the Office of the Comptroller of the Currency and the Federal Reserve required the 14 big providers of mortgage customer service to hire consultants to review foreclosures from 2009 or 2010, potentially affecting 4.4 million borrowers. Nearly half a million borrowers signed up for the free reviews, which were supposed to lead to compensation in cases of bank misconduct.

But the consultants' tab totaled $1.5 billion as last year ended — without a single penny of relief going to borrowers. So the regulators and 10 of the banks, including mortgage giants Bank of America, Wells Fargo & Co. and JPMorgan Chase & Co., agreed to a plan for more direct aid.

The 10 banks will pay $3.3 billion to 3.8 million borrowers, who could receive amounts ranging from a few hundred dollars to $125,000 depending on evidence of wrongdoing. Reviews continue at the four banks that opted out of the new approach.

In addition, the 10 banks agreed to provide $5.2 billion in foreclosure prevention assistance to borrowers at risk of losing homes, including mortgage modifications or forgiveness of judgments against them.

Comptroller Tom Curry, the nation's top bank regulator, said the switch was a "significant change in direction." But he said it met the original objectives "by ensuring that consumers are the ones who will benefit and that they will benefit more quickly and in a more direct manner."

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Live at CES: Day 3

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Matt Dallas comes out as gay

LOS ANGELES (TheWrap.com) – Matt Dallas appeared to come out of the closet on Sunday night. The star of the former ABC Family series “Kyle XY” (2006-2009) said on his Twitteraccount that he was engaged to marry his boyfriend musician Blue Hamilton.

In addition to a picture of Hamilton lounging on a couch with a dog, Dallas tweeted the following: “Starting off the year with a new fiancé, @bluehamilton. A great way to kick off 2013!”

Dallas’ publicist did not immediately respond to TheWrap’s requests for comment.

The actor does not appear to have commented publicly on his sexuality before, but the gay news blog “After Elton” reports that Dallas was the target of Perez Hilton, who openly speculated about his sexual orientation. Hilton reportedly dubbed the star “Kyle KY,” in reference to the lubricant.

Hilton did not immediately respond to an email requesting comment on Dallas’ announcement.

Dallas’ tweet follows a string of similar low-key announcements by the likes of Frank Ocean, Zachary Quinto and Jim Parsons, who said they were gay or had relationships with men in personal blogs or as a casual aside in interviews. This trend is a sign of shifting attitudes towards homosexuality. It is in marked contrast to the media-blitz that greeted Ellen DeGeneres more than a decade ago when she announced on the cover of Time that she was a lesbian.

In addition to the supernatural show “Kyle XY,” Dallas appeared on the 2009 TV series “Eastwick” and recently joined the cast of ABC Family’s “Baby Daddy.”

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Health Spending Growth Stays Low for 3rd Straight Year

WASHINGTON — National health spending climbed to $2.7 trillion in 2011, or an average of $8,700 for every person in the country, but as a share of the economy, it remained stable for the third consecutive year, the Obama administration said Monday.

The rate of increase in health spending, 3.9 percent in 2011, was the same as in 2009 and 2010 — the lowest annual rates recorded in the 52 years the government has been collecting such data.

Federal officials could not say for sure whether the low growth in health spending represented the start of a trend or reflected the continuing effects of the recession, which crimped the economy from December 2007 to June 2009.

Kathleen Sebelius, the secretary of health and human services, said that “the statistics show how the Affordable Care Act is already making a difference,” saving money for consumers. But a report issued by the Centers for Medicare and Medicaid Services, in her department, said that the law had so far had “no discernible impact” on overall health spending.

Although some provisions of the law have taken effect, the report said, “their influence on overall health spending through 2011 was minimal.”

The recession increased unemployment, reduced the number of people with private health insurance, lowered household income and assets and therefore tended to slow health spending, said Micah B. Hartman, a statistician at the Centers for Medicare and Medicaid Services.

In the report, federal officials said that total national spending on prescription drugs and doctors’ services grew faster in 2011 than in the year before, but that spending on hospital care grew more slowly.

Medicaid spending likewise grew less quickly in 2011 than in the prior year, as states struggled with budget problems. But Medicare spending grew more rapidly, because of an increase in “the volume and intensity” of doctors’ services and a one-time increase in Medicare payments to skilled nursing homes, said the report, published in the journal Health Affairs.

National health spending grew at roughly the same pace as the overall economy, without adjusting for inflation, so its share of the economy stayed the same, at 17.9 percent in 2011, where it has been since 2009. By contrast, health spending accounted for just 13.8 percent of the economy in 2000.

Health spending grew more than 5 percent each year from 1961 to 2007. It rose at double-digit rates in some years, including every year from 1966 to 1984 and from 1988 to 1990.

The report did not forecast the effects of the new health care law on future spending. Some provisions of the law, including subsidized insurance for millions of Americans, could increase spending, officials said. But the law also trims Medicare payments to many health care providers and authorizes experiments to slow the growth of health spending.

“The jury is still out whether all the innovations we’re testing will have much impact,” said Richard S. Foster, who supervised the preparation of the report as chief actuary of the Medicare agency. “I am optimistic. There’s a lot of potential. More and more health care providers understand that the future cannot be like the past, in which health spending almost always grew faster than the gross domestic product.”

Evidence of the new emphasis can be seen in a series of articles published in The Archives of Internal Medicine, now known as JAMA Internal Medicine, under the title “Less Is More.” The series highlights cases in which “the overuse of medical care may result in harm and in which less care is likely to result in better health.”

Total spending for doctors’ services rose 3.6 percent in 2011, to $436 billion, while spending for hospital care increased 4.3 percent, to $850.6 billion.

Spending on prescription drugs at retail stores reached $263 billion in 2011, up 2.9 percent from 2010, when growth was just four-tenths of 1 percent. The latest increase was still well below the average increase of 7.8 percent a year from 2000 to 2010.

Federal officials said the increase in 2011 resulted partly from rapid growth in prices for brand-name drugs.

Prices for specialty drugs, typically prescribed by medical specialists for chronic conditions, have increased at double-digit rates in recent years, the government said. In addition, spending on new brand-name drugs — those brought to market in the previous two years — more than doubled from 2010 to 2011, driven by an increase in the number of new medicines.

“In 2011,” the report said, “spending for private health insurance premiums increased 3.8 percent, as did spending for benefits. Out-of-pocket spending by consumers increased 2.8 percent in 2011, accelerating from 2.1 percent in 2010 but still slower than the average annual growth rate of 4.7 percent” from 2002 to 2008.

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Japan’s Cleanup After a Nuclear Accident Is Denounced

Ko Sasaki for The New York Times

Bags of contaminated soil outside the Naraha-Minami school near the Fukushima Daiichi nuclear power plant.

NARAHA, Japan — The decontamination crews at a deserted elementary school here are at the forefront of what Japan says is the most ambitious radiological cleanup the world has seen, one that promised to draw on cutting-edge technology from across the globe.

Ko Sasaki for The New York Times

Workers reflected in the glass of the Naraha-Minami Elementary School

But much of the work at the Naraha-Minami Elementary School, about 12 miles away from the ravaged Fukushima Daiichi nuclear power plant, tells another story. For eight hours a day, construction workers blast buildings with water, cut grass and shovel dirt and foliage into big black plastic bags — which, with nowhere to go, dot Naraha’s landscape like funeral mounds.

More than a year and a half since the nuclear crisis, much of Japan’s post-Fukushima cleanup remains primitive, slapdash and bereft of the cleanup methods lauded by government scientists as effective in removing harmful radioactive cesium from the environment.

Local businesses that responded to a government call to research and develop decontamination methods have found themselves largely left out. American and other foreign companies with proven expertise in environmental remediation, invited to Japan in June to show off their technologies, have similarly found little scope to participate.

Recent reports in the local media of cleanup crews dumping contaminated soil and leaves into rivers has focused attention on the sloppiness of the cleanup.

“What’s happening on the ground is a disgrace,” said Masafumi Shiga, president of Shiga Toso, a refurbishing company based in Iwaki, Fukushima. The company developed a more effective and safer way to remove cesium from concrete without using water, which could repollute the environment. “We’ve been ready to help for ages, but they say they’ve got their own way of cleaning up,” he said.

Shiga Toso’s technology was tested and identified by government scientists as “fit to deploy immediately,” but it has been used only at two small locations, including a concrete drain at the Naraha-Minami school.

Instead, both the central and local governments have handed over much of the 1 trillion yen decontamination effort to Japan’s largest construction companies. The politically connected companies have little radiological cleanup expertise and critics say they have cut corners to employ primitive — even potentially hazardous — techniques.

The construction companies have the great advantage of available manpower. Here in Naraha, about 1,500 cleanup workers are deployed every day to power-spray buildings, scrape soil off fields, and remove fallen leaves and undergrowth from forests and mountains, according to an official at the Maeda Corporation, which is in charge of the cleanup.

That number, the official said, will soon rise to 2,000, a large deployment rarely seen on even large-sale projects like dams and bridges.

The construction companies suggest new technologies may work, but are not necessarily cost-effective.

“In such a big undertaking, cost-effectiveness becomes very important,” said Takeshi Nishikawa, an executive based in Fukushima for the Kajima Corporation, Japan’s largest construction company. The company is in charge of the cleanup in the city of Tamura, a part of which lies within the 12-mile exclusion zone. “We bring skills and expertise to the project,” Mr. Nishikawa said.

Kajima also built the reactor buildings for all six reactors at the Fukushima Daiichi plant, leading some critics to question why control of the cleanup effort has been left to companies with deep ties to the nuclear industry.

Also worrying, industry experts say, are cleanup methods used by the construction companies that create loose contamination that can become airborne or enter the water.

At many sites, contaminated runoff from cleanup projects is not fully recovered and is being released into the environment, multiple people involved in the decontamination work said.

Makiko Inoue contributed reporting from Tokyo.

This article has been revised to reflect the following correction:

Correction: January 8, 2013

Earlier versions of this article misspelled the name of the construction company in charge of the cleanup of the city of Tamura. It is the Kajima Corporation, not Kashima.

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