vault backup: 2026-10-14 14:52:51

20 - ORGANIZATIONS/PRIVATE/INSLAW.md

@@ -1,7 +1,7 @@
 ---
 category: "Private Organization"
 created: 2024-04-25
-updated: 2026-10-09
+updated: 2026-10-14
 start: 1981
 location: "Washington, D.C., USA"
 tags:
@@ -42,9 +42,9 @@ INSLAW's lead litigation counsel, Leigh Ratiner of the Washington firm Dickstein
 
 ### Bankruptcy and Litigation History
 
-Bankruptcy Judge [[George Francis Bason, Jr.]] presided over two landmark proceedings in the INSLAW case. In June 1987, he found that DOJ had "unlawfully, intentionally and willfully" attempted to convert INSLAW's Chapter 11 reorganization into a Chapter 7 liquidation "without justification and by improper means," based in part on testimony from DOJ official Anthony Pasciuto, who stated that DOJ director Thomas Stanton had pressured U.S. Trustee Edward White to force the company into liquidation. In September 1987, after a two-week liability trial, Bason ruled that DOJ had "taken, converted, stole, INSLAW's enhanced PROMIS by trickery, fraud, and deceit," with damages later computed at about 6.8 million dollars and attorneys' fees.[^1]
+Bankruptcy Judge [[George Francis Bason, Jr.]] presided over two landmark proceedings in the INSLAW case. In June 1987, he found that DOJ had "unlawfully, intentionally and willfully" attempted to convert INSLAW's Chapter 11 reorganization into a Chapter 7 liquidation "without justification and by improper means," based in part on testimony from DOJ official Anthony Pasciuto, who stated that DOJ director Thomas Stanton had pressured U.S. Trustee Edward White to force the company into liquidation. In September 1987, after a two-week liability trial, Bason ruled that the Department of Justice "took, converted, stole, Inslaw's enhanced PROMIS by trickery, fraud, and deceit," with damages later computed at about 6.8 million dollars and attorneys' fees.[^1]
 
-Senior District Judge [[William Bryant, Jr.|William Bryant]] of the district court affirmed Bason's ruling on November 22, 1989, finding "convincing, perhaps compelling support" for the bankruptcy court's conclusions and reducing the damages by 655,200 dollars. The D.C. Circuit reversed on May 7, 1991, on jurisdictional grounds, finding the bankruptcy court lacked jurisdiction because DOJ held PROMIS under a claim of right at the time of the bankruptcy filing. The Supreme Court declined review.[^2]
+Senior District Judge [[William Bryant, Jr.|William Bryant]] of the district court affirmed Bason's ruling on November 22, 1989, finding "convincing, perhaps compelling support" for the bankruptcy court's conclusions and reducing the damages by 655,200 dollars. The D.C. Circuit reversed on May 7, 1991, on jurisdictional grounds, finding the bankruptcy court lacked jurisdiction because DOJ held PROMIS under a claim of right at the time of the bankruptcy filing. The Supreme Court declined review.[^2] The reported decisions are *In re INSLAW, Inc.*, 83 B.R. 89 (Bankr. D.D.C. Jan. 25, 1988) (written findings), *United States v. INSLAW, Inc.*, 113 B.R. 802 (D.D.C. Nov. 22, 1989) (affirmance), and *United States v. INSLAW, Inc. (In re INSLAW, Inc.)*, 932 F.2d 1467 (D.C. Cir. May 7, 1991).[^8] The D.C. Circuit held that the automatic stay under 11 U.S.C. 362(a) did not reach the Department's use of property in its possession under a claim of right at the time of the bankruptcy filing, and that the bankruptcy court therefore had no jurisdiction to hear the claims asserted under that section.[^9] The panel was Judges [[James L. Buckley]], [[Wesley Williams Jr.]] and [[Raymond Randolph]], and rehearing and rehearing en banc were denied on July 12, 1991.[^9] The Supreme Court's refusal to hear INSLAW's appeal is recorded in House Report 102-857, conclusion 11.[^10]
 
 The Senate Permanent Subcommittee on Investigations (PSI) issued a report in September 1989 finding "no proof" that [[Lowell Jensen]] and [[Edwin Meese]] had conspired to ruin INSLAW or steal its software. The Senate report nonetheless found that DOJ official Thomas Stanton had improperly sought special handling for INSLAW's bankruptcy and criticized the Department for placing Brewer in charge of the implementation contract given his prior employment by INSLAW.[^3]
 
@@ -69,3 +69,6 @@ INSLAW, Inc. continued to operate as a going concern after the conclusion of all
 [^5]: Office of Justice Programs, National Criminal Justice Reference Service. Abstract: "PROMIS (Prosecutor's Management Information System) Research Project Highlights." NCJ-40229. OJP/NCJRS Virtual Library.
 [^6]: U.S. Department of Justice, Office of Public Affairs. Press Release, August 4, 1997: Court of Federal Claims Rules Against INSLAW.
 [^7]: U.S. Congress, Office of Technology Assessment. *An Assessment of Alternatives for a National Computerized Criminal History System.* OTA-CIS-161. Washington, D.C.: U.S. Government Printing Office, October 1982.
+[^8]: *In re INSLAW, Inc.*, 83 B.R. 89 (Bankr. D.D.C. Jan. 25, 1988), https://cite.case.law/br/83/89/; *United States v. INSLAW, Inc.*, 113 B.R. 802 (D.D.C. Nov. 22, 1989), https://cite.case.law/br/113/802/; *United States v. INSLAW, Inc. (In re INSLAW, Inc.)*, 932 F.2d 1467 (D.C. Cir. May 7, 1991), https://cite.case.law/f2d/932/1467/.
+[^9]: *United States v. INSLAW, Inc. (In re INSLAW, Inc.)*, 932 F.2d 1467 (D.C. Cir. 1991) ("the automatic stay does not reach the Department's use of property in its possession under a claim of right at the time of the bankruptcy filing"; "the bankruptcy court had no jurisdiction to hear the claims asserted under § 362(a)"; caption showing panel and denial of rehearing). https://cite.case.law/f2d/932/1467/
+[^10]: U.S. House of Representatives, Committee on the Judiciary, *The INSLAW Affair: Investigative Report*, H. Rept. 102-857 (Sept. 10, 1992), p. 112 (conclusion 11). https://archive.org/stream/InslawAffairInvestigativeReport/TheInslawAffair_djvu.txt