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Context of '1986: Preliminary Report by Justice Department Oversight Unit Concludes No Bias in Inslaw Affair'

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Inslaw files a complaint for a declaratory judgment, the enforcement of automatic stay bankruptcy protection provisions, and damages against the Justice Department in the dispute over the department’s alleged theft of enhanced PROMIS software. The automatic stay is one of the fundamental debtor protections provided by bankruptcy laws. It stops all collection efforts, harassments, and foreclosure actions, giving the debtor temporary relief from creditors. It is important because it allows a bankruptcy court to centralize all disputes concerning property of the debtor’s estate so that reorganization can proceed orderly and efficiently. [US Congress, 9/10/1992] Inslaw’s attorney for the case, Leigh Ratiner of the Washington firm Dickstein, Shapiro & Morin, chooses the bankruptcy court for the filing based on the premise that the Justice Department, as the creditor, has control of enhanced PROMIS. He will later say: “It was forbidden by the Bankruptcy Act for the creditor to exercise control over the debtor property. And that theory—that the Justice Department was exercising control—was the basis that the bankruptcy court had jurisdiction. As far as I know, this was the first time this theory had been used. This was ground-breaking.” [Wired News, 3/1993] Inslaw claims that Justice Department manager C. Madison Brewer, who was responsible for implementing PROMIS in the department, was instrumental in propelling Inslaw into bankruptcy (see April 1982, April 14, 1982, and April 19, 1982), and that he then hindered Inslaw in its development of a reorganization plan. Inslaw also alleges that its concerns were made known to the highest levels of Justice Department’s management, without any response. [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Leigh Ratiner, C. Madison “Brick” Brewer, Inslaw, Inc., Bankruptcy Court for the District of Columbia

Timeline Tags: Inslaw and PROMIS

The Office of Professional Responsibility (OPR), a Justice Department oversight component, receives a letter from Laurie A. Westly, chief counsel to Senator Paul Simon (D-IL), asking for its view of allegations made by the software company Inslaw against the Justice Department. The letter mentions claims of misconduct by department official Lowell Jensen. Westly also refers to litigation recently initiated by Inslaw (see June 9, 1986), specifically the claim that Jensen contributed to the bankruptcy of Inslaw and had a negative bias toward its software. She also asks whether Jensen has breached any ethical or legal responsibility as a department employee. [US Congress, 9/10/1992] It is unclear what action the OPR takes in response to this matter. However, it conducts a preliminary investigation into whether Jensen was biased against Inslaw this year, and this may be in response to this letter (see 1986). It will also begin a fuller investigation the next year (see October 14, 1987).

Entity Tags: Lowell Jensen, Laurie A. Westly, Office of Professional Responsibility, Paul Martin Simon, Inslaw, Inc., US Department of Justice

Timeline Tags: Inslaw and PROMIS

The Office of Professional Responsibility (OPR), an oversight unit at the Justice Department, conducts an initial review of bias allegations against departmental officials in the Inslaw affair. The exact timing of the review is uncertain, although it may come after a query about the case from Senator Paul Simon in June (see June 16, 1986). The review finds that there is no misconduct by Justice Department manager Lowell Jensen. According to statements made by acting OPR counsel Robert Lyon and assistant counsel David Bobzein to the House Judiciary Committee in 1990, the OPR does not perform a full review at this time because the allegations of bias are not an issue OPR would normally review. Therefore, it plans to rely on the findings of a bankruptcy court hearing the Inslaw case (see June 9, 1986). However, after the bankruptcy court finds in favour of Inslaw (see September 28, 1987), partly because it thinks the bias allegations are well founded, OPR begins a full investigation (see October 14, 1987) and concludes there was no bias (see March 31, 1989). [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Office of Professional Responsibility, David Bobzein, Inslaw, Inc., Lowell Jensen, Robert Lyon

Timeline Tags: Inslaw and PROMIS

Judge George Bason of the Bankruptcy Court for the District of Columbia issues an oral finding that the Justice Department “took, converted, and stole” the enhanced version of Inslaw’s PROMIS software by “trickery, fraud, and deceit.” The ruling is issued at the end of a trial that lasts over two weeks and involves sworn statements from over 40 witnesses and thousands of pages of documentary evidence. Bason finds that a key departmental official, project manager C. Madison Brewer, was biased against Inslaw (see April 1982, April 14, 1982, and April 19, 1982). In addition, Brewer’s boss Lowell Jensen (see December 29, 1983 and February 1984) is said to have “a previously developed negative attitude about PROMIS and Inslaw,” because he had been associated with the development of a rival case management system while he was a district attorney in California, and this affected his judgment throughout his oversight of the contract. Further, the department violated bankruptcy protection legislation that applied to Inslaw by using and exercising control over Inslaw’s property—the enhanced PROMIS software—without negotiating a license fee. This oral finding is confirmed in a written opinion issued on January 25, 1988. In the written finding, Bason adds, “[T]his court finds and concludes that the department never intended to meet its commitment and that once the department had received enhanced PROMIS pursuant to Modification 12 (see April 11, 1983), the department thereafter refused to bargain in good faith with Inslaw and instead engaged in an outrageous, deceitful, fraudulent game of ‘cat and mouse,’ demonstrating contempt for both the law and any principle of fair dealing.” [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Lowell Jensen, George Bason, C. Madison “Brick” Brewer, Bankruptcy Court for the District of Columbia, Inslaw, Inc.

Timeline Tags: Inslaw and PROMIS

The Office of Professional Responsibility (OPR), an oversight component at the Justice Department, begins an investigation into allegations made by the software company Inslaw against some Justice Department staff. The OPR had conducted a preliminary investigation the previous year (see 1986), concluding the officials were not biased against the company. However, after a bankruptcy court finds serious wrongdoing by departmental officials (see September 28, 1987), Deputy Attorney General Arnold Burns asks for “a complete and thorough investigation into the allegation of bias and misconduct by various Justice Department officials against Inslaw.” The full investigation will again conclude that the officials were not biased against Inslaw (see March 31, 1989). [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Arnold Burns, Office of Professional Responsibility, Inslaw, Inc.

Timeline Tags: Inslaw and PROMIS

The Office of Professional Responsibility (OPR), an oversight unit at the Justice Department, issues a report on the Inslaw affair over the department’s alleged theft of enhanced PROMIS software. The report finds that allegations of bias made by Inslaw and seconded by a bankruptcy court (see September 28, 1987) against departmental officials are unsupported. Inslaw had questioned the performance of former Attorney General Edwin Meese, former Deputy Attorney General Lowell Jensen, former Deputy Attorney General Arnold Burns, and others. The OPR says that the court’s findings on misconduct by department officials are “clearly erroneous.” In addition, the report says: “There is no credible evidence that the department took or stole Inslaw’s enhanced PROMIS by trickery, fraud, and deceit. Additionally, we have found no credible evidence that there existed in the department a plot to move to convert Inslaw’s Chapter 11 bankruptcy to one under Chapter 7 of the bankruptcy code.” The House Judiciary Committee will be extremely critical of this investigation, commenting, “During its investigation OPR chose to ignore the court’s findings and conclusions that there was bias against Inslaw at the department.” In addition, the committee will say that the OPR looked at the bias allegations in isolation and “incredibly” did not examine the merits of the contract dispute, meaning its conclusions on the taking of PROMIS and the type of bankruptcy were “gratuitous,” especially as Burns had told it the department agreed Inslaw owned the enhancements it made to PROMIS (see August 11, 1982). The committee will also point out that the OPR’s deputy counsel, Richard M. Rogers, said he was recused from the investigation because of his association with Burns, although he was present when Meese provided a sworn statement. In this context, the committee will highlight problems found by the Government Accountability Office with OPR around this time (see February 7, 1992). [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Office of Professional Responsibility, Richard M. Rogers, Inslaw, Inc., Arnold Burns, Edwin Meese, Lowell Jensen, House Judiciary Committee

Timeline Tags: Inslaw and PROMIS

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