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Anti-Muslim Protests Spread; NATO Base Comes Under Attack; Anti-Islam Filmmaker Surfaces in Public; Teachers Strike In Chicago Nears End; Wisconsin Law Ruled Unconstitutional; FAMU Seeks to Dismiss Hazing Lawsuit; The Hard and Soft Side of Romney; Starbucks Tipping Lawsuits; Man Sues Hooters Over Racial Slur

Aired September 15, 2012 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN ANCHOR: All right, meantime, there continues to be a lot of outrage over an anti-Muslim internet movie and that outrage is spreading across the globe.

This was the scene today in Australia. Hundreds of people demonstrated outside the U.S. Consulate in Sydney. The protest turned violent when police pushed back protesters from the consulate building.

Authorities used tear gas and police dogs to disperse the demonstrators who threw bottles. Four people were hurt. The unrest has hit more than a dozen countries this week. All of the protests are over an online movie made here in the U.S. that insulted the Islam region.

And Taliban militants say their attack today on a NATO base in Afghanistan is in retaliation for that movie. Two American troops were killed in the attack in Helmand Province. Our Anna Coren is live in Kabul. So Anna, tell us exactly how all this unfolded.

ANNA COREN, CNN CORRESPONDENT: Well, Fredricka, it happened late last night. Twenty insurgents stormed the perimeter of the camp, which is in Helmand Province in the south of the country.

And they used small weapons, rocket-propelled grenades as well as suicide EID vests to infiltrate the perimeter. Now, you need to remember, this is a heavily fortified compound. Some 20,000 NATO troops are stationed down there.

It is a big British base where Prince Harry is also stationed. But you know, they shouldn't be able to penetrate this. It is in the middle of the desert. We do know that, obviously, a lot of vehicles enter and leave the compound.

But at the end of the day, the fact that they didn't see these 20 insurgents coming is rather frightening. So we know that they were able to infiltrate, that they attacked aircraft, that they attacked structures on the airfield. And, obviously, two Marines and several others were wounded -- Fredricka.

WHITFIELD: All right, Anna Coren, thanks so much for that update from Afghanistan. All right, now to the man who made that controversial movie, the filmmaker is in California, and overnight, he spent some time talking to authorities in Los Angeles.

CNN's Miguel Marquez is joining us now from Los Angeles. So Miguel, what was this meeting about?

MIGUEL MARQUEZ, CNN CORRESPONDENT: This was about probation. The federal authorities had previously said that his case was under review. He was convicted in 2010 of fraud and identity theft.

He has supervised probation until 2015. So L.A. County detectives, sheriff's detectives came in, picked him up yesterday at the request of federal officials, and at midnight last night, he voluntarily went to talk to probation officer or officers it sounds like.

Federal officials trying to figure out what the next steps are here. But given this guy's past, given his probation, given the case against him, he does have a lot to worry about.

(BEGIN VIDEOTAPE)

MARQUEZ (voice-over): The spotlight on the mysterious filmmaker, growing stronger. Federal officials say the court is reviewing Nakoula Basseley Nakoula's case to see if he broke terms of his probation.

Nakoula faced 26 conditions for five years of supervised probation after his 2010 conviction for credit card fraud and identity theft.

Most glaring, the now-infamous filmmaker was barred from using any devices that could access the internet, except those approved by his probation officer. He was also ordered to pay nearly $800,000.

(on camera): What kind of man do you think Nakoula is?

UNIDENTIFIED MALE (via telephone): Nakoula is very smart man and will do anything money or for fame.

MARQUEZ (voice-over): The man I'm speaking to says he was a victim of Nakoula's fraud. He would only talk to us on the phone, like many Coptic Christians, he now lives in fear.

(on camera): How afraid is the Coptic community right now?

UNIDENTIFIED MALE: The Coptic community is very afraid because of what Muslims do when somebody tries to demean their prophet.

MARQUEZ (voice-over): Nakoula made his film with well known anti- Islamic individuals. Joseph Nassralla, the president of Media for Christ, which also runs a satellite TV station in L.A. obtained the permit for the film and allowed part of it to be shot in his studio.

UNIDENTIFIED MALE: Islam come with a sword and he kill my people.

MARQUEZ: Nassralla also has ties to Steve Klein, the anti-Islamic consultant of the film. He also speaks at events organized by anti- Islam activists, Robert Spencer and Pamela Geller.

UNIDENTIFIED MALE: Islam conquer my country. My country is conquered by Islam right now.

MARQUEZ: The irony now, a film targeting the danger of one faith is targeting the people of another.

(END VIDEOTAPE)

MARQUEZ: So now the next step for Mr. Nakoula is the question. And it sounds like he may be facing in the next days or weeks to come a probation hearing. And that's when federal authorities would decide whether they can revoke his probation or change the terms of it somehow -- Fred.

WHITFIELD: And so, Miguel, you talked about, and you asked the question about the fear, within the Coptic Christian community, but what about the impact since?

MARQUEZ: Well, this is what people are really concerned about. I've spoken to a lot of people who know Mr. Nakoula out here. They are mostly Coptic Christians and they're scared to death, not only for their own lives and that of family's lives here.

But certainly for their families back in Egypt and across the Middle East. They fear what started off literally as Mr. Nakoula trying to demean one culture or one religion may come back to haunt them and may hurt Mr. Nakoula's own religion. So they are really, really hunkering down and fearful today -- Fred.

WHITFIELD: Miguel Marquez, thanks so of much, from Los Angeles.

MARQUEZ: You got it.

WHITFIELD: A solemn homecoming. The remains of four Americans killed this week in the attacks on the U.S. Consulate in Libya were returned to American soil Friday.

U.S. Marines carried the caskets of Ambassador Chris Steven, Tyrone Woods, Glen Doherty, and Sean Smith. The four were honored in a ceremony attended by President Barack Obama and U.S. Secretary of State, Hillary Clinton.

And we've learned much about U.S. Ambassador To Libya Chris Stevens. Now we're learning more about the three other Americans who is died in that consulate attack in Benghazi this week.

Ambassador Stevens, former Navy SEALS Tyrone Woods and Glen Doherty, and Information Management Officer Sean Smith were all united in their affection for the Middle East and the people there.

Chris Stevens fell in love with the Middle East when he served as a volunteer Peace Corps -- as a volunteer in the Peace Corps. He has been praised as a great friend of Libya and served as liaison to the rebel who is overthrew dictator Moammar Gadhafi. Tyrone Woods became a Navy SEAL after his mom suggested he join the military. He was also a paramedic and a registered nurse. His third child, Kai, was born just a few months ago.

And Glen Doherty was a ski instructor and raft guide in Utah before becoming a Navy SEAL. He planned to leave the military after knee surgery in 2001, but that changed when the 9/11 attacks occurred.

Doherty also served on the advisory board of the Military Religious Freedom Foundation. In his 10-year career in the Foreign Service, Sean Smith was a computer expert, but he also had an alter ego in the virtual universe of computer game eve online. Smith was online Tuesday night, reporting gunfire. He disconnected and never returned.

Back here at home now, in the nation's third largest city, both sides say they have a framework for a deal. A five-day-old Chicago teacher strike winds down.

(COMMERCIAL BREAK)

WHITFIELD: The Chicago teacher's strike may soon enter a second week, unless there is indeed a breakthrough. We're told the framework for a deal has been reached. Joining me now from Chicago is Kyung Lah. Kyung, how close are the sides?

KYUNG LAH, CNN CORRESPONDENT: Very close. What we understand, Fredricka, is that all of the big stumbling blocks have basically -- the logjams, they've all been worked through.

They have a framework. I'm going to go back to that word, that's the one we keep hearing again and again. They basically have the outline of an agreement. The lawyers on both sides are hammering out the contract.

So they can get that to the teacher's union and the delegates will vote on it and kids, if there are no impediments, can be back in school on Monday. But until then, the strike is very much on.

I'm standing in a park where they're going to fill this whole area. And over here there's going to be speakers on the stage, trying to rally this membership and also, to remind the city that the heat is on.

This strike is going to keep happening, until they have a deal. So until this deal is voted on, until the union delegates say that it's over, this strike is still happening -- Fredricka.

WHITFIELD: OK, so, while there may be a framework, is there kind of a timeline that they're working with or that any officials are revealing to you?

LAH: What we're hearing is that this could be voted on, if this contract is hammered out, the lawyers, point by point, work on this contract, that by tomorrow, this delegation of union members.

These teachers, about 800 of them, would vote on it, and then they would say the strike is over, then the students would be back in the classroom as soon as Monday.

WHITFIELD: All right, Kyung Lah, keep us posted on what may potentially be some hopeful news. Thanks so much.

Unconstitutional, that's the ruling of a Wisconsin judge on the state's law restricting the collective bargaining rights of public employees. The bill was signed into law in March of last year. According to yesterday's ruling, it violates union membership and free speech writers. Governor Scott Walker says he will appeal the ruling.

All right, before O.J. Simpson and Casey Anthony, there was Jeffrey Macdonald. He was convicted more than three decades ago of killing his wife and kids, but he's hoping to get another chance to prove his innocence. Our legal guys will be examining this case.

And if you have to go out today, just a reminder, you can continue watching CNN from your mobile phone. You can also watch CNN live from your laptop, just go to cnn.com/tv.

(COMMERCIAL BREAK)

WHITFIELD: All right, in Tallahassee, there will be something missing today during Florida A&M University's football game, FAMU's band. The marching 100 will not perform. It was suspended after the hazing death of Drum Major Robert Champion last year.

His parents are suing and attorneys for the university have asked a judge to drop the suit, suggesting Champion was responsible for his own death. But then not long after, university attorneys backed off that language in court documents.

Let's bring in our legal guys, Avery Friedman, a civil rights attorney and law professor joining us from Cleveland. Good to see you.

AVERY FRIEDMAN, CIVIL RIGHTS ATTORNEY: Hi, Fredricka.

WHITFIELD: And Richard Herman, a New York criminal defense attorney and law professor joining us from Las Vegas. Good to see you as well.

RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: Hi, Fred.

WHITFIELD: Gentlemen, this is an incredible case that's taking lots of twists and turns. Avery, you first, you know, the university attorney saying it was Champion responsible for his own death, because he knew about the history of hazing, involving the band.

And he actually had a conversation with a fellow band member about concerns, about how far hazing would go. But then, the university's attorneys decided to change the language. What's really at issue here?

FRIEDMAN: Well, I think what Florida A&M did in their motion to dismiss, when they filed it this week, was they really set it unreasonably harshly, Fredricka. There was no reason to place direct blame on this 26-year-old young man.

The fact is that there is a policy, and the point that the modified motion to dismiss, they're still trying to get the case thrown out was that because of the existing policy and because of the failure to use the policy, that's why the case should be dismissed.

I think it's a terrible thing, if it happens, because those are issues, fact issues that juries should decide. What the university is trying to do, Fredricka, is get rid of this case before it ever sees the inside of a courtroom.

WHITFIELD: So I wonder, Richard, how potentially damaging is this for the university? Is it not kind of sending mixed messages, this these latest motions, that kind of dialogue, and then suspending the university's marching band as a result of the death that came from the hazing. So, you know, can the university have it both ways?

HERMAN: Yes, Fred. The university suspended the ban. That was the message, the clear message, and that will be received by the public. These are the lawyers for the insurance company representing the university, who are -- and the university is being sued for millions of dollars.

So they're throwing anything and everything they can up on the wall to try to get this case dismissed. It's done all the time, Fred, motions to dismiss. So here the university is saying, listen, why should we be liable when this individual knew about the hazing.

He witnessed people being hazed. There were risks involved. He knowingly ventured into this, and more so, on top of everything else, hazing is a violation of Florida law. He's 26 years old.

He should have known that or he knew that and he participated. That's what the university is saying. They're not going to be granted a dismissal here.

There is a culture of hazing going on at the university. The university turned a blind eye to it. So they're going to be responsible.

WHITFIELD: OK and you know, in an e-mail to the "Orlando Sentinel" just Thursday night, Rick Mitchell of Gray Robinson, the university lead trial said this. I'm quoting now, "FAMU is not blaming anyone for this tragic loss.

Rather, the university has asked the court to decide the legal question of whether Florida's taxpayers can be held financially liable to Mr. Champion's estate, according to the facts of the case, including him knowingly and voluntarily participating in a felony hazing."

Avery, does that in any way kind of clarify what the mission is for the university?

FRIEDMAN: No. I mean, they just soft pedaled the same thing that they filed to try to say he's not responsible, but he is responsible. Actually, Richard and I agree. We think this case, you know, should move forward. There are fact questions. Let's see what happens here. WHITFIELD: OK, let's move on to the case that many people referred to or remembered as fatal vision, because it all dates back to a movie that depicted a crime, a real crime that took place, Fort Bragg, involving a doctor, Jeffrey Macdonald, accused and later convicted of killing his pregnant wife, two young daughters.

This is four decades ago, but then 10 years after the crime, he was convicted. So now he is hoping to present new evidence or at least those who are supporting the notion of his innocence want to present new evidence.

There's a new book out all of this coinciding with all of them appearing in court on Monday. So, Avery, what do they have? Is this a matter of a lot of hearsay or is there substantial, physical evidence here?

FRIEDMAN: Well, Arrow Morris writes in a 500-plus-page book, and you're right, it coincides exactly with the time that a federal judge decides whether or not it should be reopened. Let me cut to the chase.

The legal standard, not that I agree with it, is that Macdonald has to show clear and convincing evidence of actual innocence. That's the legal strategy. Even the three-judge panel earlier this year that sent it back said the burden on Macdonald is, quote, "daunting."

So I think, yes, he should have his day in court. People are debating whether or not the evidence was sufficient. That's what Morris' book is about. But that isn't the legal standard.

I think it is daunting and I think it's very unlikely that Macdonald will ever get another hearing beyond Monday. I think it ends on Monday.

WHITFIELD: Really? Richard, how do you see it unfolding?

HERMAN: Avery's right, although it's twofold, he also has to prove a constitutional violation, which makes it more difficult. But here's something to ponder in this particular case and it will be discuss during these ten days.

Number one, the prosecutor is a disbarred attorney right now for fraud. The prosecutor threatened the direct witness prior to testimony, saying if they testify, that they were present at the crime scene, they would be indicted for the murders. That's one.

The prosecutor withheld DNA and other blood sampling evidence and other exculpatory evidence, evidence which tend to prove innocence from the defense. And the judge just happened to be the father-in-law of one of the prosecutors in the case, who withheld and precluded the testimony that was done by detectives, of individuals who admitted to being at the crime scene

The judge precluded them from being testify at that trial and for allowing that to come.

WHITFIELD: All right, wow.

FRIEDMAN: That's been heard in four appeals. That's already been heard in four appeals. So, while Richard and I agree, what the standard is, I bet we also agree that it's unlikely a federal district judge is going to reopen the case.

WHITFIELD: Interesting. So among those who might be testifying, not only, you know, the author of that wilderness of error, the new book, but also the author of the book, which led to the 1983 movie, "Fatal Vision," all being called to testify.

FRIEDMAN: Not a chance, Fredricka. Neither of these guys will be able to be permitted to testify neither of them.

WHITFIELD: OK, very good.

HERMAN: Fred, Fred, real quick. Real quick, Fred. Real quick, he has not been granted parole because he's always maintained his innocence. If he had said, OK, I did it.

He'd have a shot at parole here. He has never admitted that. He's a Princeton graduate, a doctor, a captain in the military. It's an interesting case, a tragic case, but legally, very interesting.

WHITFIELD: I'm sure we'll be talking about it again later on in the week after the week unfolds. All right, gentleman. We're going to see you again in about 20 minutes to talk about another case.

This time involving the restaurant hooters in New York, in Queens, being sued over what one worker allegedly put on a receipt, hand- written on a receipt. We'll talk about that case, coming up.

And they're back home, the four Americans who were tragically killed in the attack in Libya.

(COMMERCIAL BREAK)

WHITFIELD: Go to any running event, and you're likely to notice at least one skilled athlete overcoming a physical challenge. Well, it wasn't always that way.

This week's "CNN HERO" Dick Traum broke barriers to make it happen. He was the first amputee to run the New York City marathon and now he's helping others discover their own potential.

(BEGIN VIDEOTAPE)

DICK TRAUM, COMMUNITY CRUSADER: Working out in Central Park is the best time of the day for me. It's an opportunity to test myself. You feel like you can do anything. Back in 1965, I got hit by a car, and I ended up losing my leg. I didn't see it as holding me back. It just wasn't a big issue.

In 1976, I became the first amputee to run the New York City marathon. It was probably the best day of my life. And I just felt this joy can be shared with others. I'm Dick Traum and I help people with disabilities achieve their potential through sports. How many people here are doing the New York City marathon? Virtually everybody who is a member of Achilles has a vulnerability. People come to Achilles and we match them with guides.

UNIDENTIFIED FEMALE: He just did 16 miles.

UNIDENTIFIED MALE: Did 16 miles!

TRAUM: The atmosphere is social and there's jokes and there's laughter.

UNIDENTIFIED MALE: Are you going to beat me still?

TRAUM: It truly is a family.

UNIDENTIFIED FEMALE: I had a stroke in 1980. When I started with Achilles, I could only walk. And now I just did 20 New York City marathons. Dick helped me and made me realize I can do anything in my life.

TRAUM: You see the glow and there's nothing in the world I have more fun doing.

(END VIDEOTAPE)

WHITFIELD: And next Thursday at 12:00 p.m. Eastern Time, we'll be announcing the top ten heroes on cnn.com. You'll get to help decide which one will be the "CNN Hero" of the year, starting next week, vote online and on your mobile device for the hero who inspires you the most.

(COMMERCIAL BREAK)

WHITFIELD: They're being called patriots and unsung heroes. Yesterday, four Americans killed in the consulate attacks in Libya returned home. And their memories are being honored. Lisa Sylvester has more.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): We talk about the best and the brightest, and they really were.

HILLARY CLINTON, SECRETARY OF STATE: Today we bring home four Americans who gave their lives for our country and our values.

SYLVESTER: The 41-year-old Tyrone Woods grew up in Oregon. His friends called him Roan. He was a father to two teenage boys, Tyrone Jr. and Hunter.

Three months ago, he became a new dad again to a baby boy named Kai. Woods was a former SEAL who died helping to protect the ambassador and other.

Cheryl Croft Bennet now prepares to do what no mother should ever have to do, receive the remains of her child. UNIDENTIFIED FEMALE (via telephone): I'm sure he went down fighting. I just hope his last moments weren't painful.

SYLVESTER: Woods was also a registered nurse and a certified paramedic. In the words of Secretary Clinton, he had the hands of a healer as well as the arm of a warrior.

Like Woods, Glen Doherty was a former SEAL who loved adventures. He recently worked on an NBC reality show about hunting terrorists called "The Wanted."

His friends called him Bub. Miles from home, Woods and Doherty died along with Ambassador Chris Stevens and State Department 10-year veteran, Sean Smith. This is Chris Stevens' stepbrother.

DAVID COMMANDAY, AMBASSADOR'S STEP-BROTHER: It's tragic and so deeply saddening, but it also making us aware of the kind of role that people like Chris and over the years, are playing unsung, but the critical role that they play.

SYLVESTER: That includes computer expert Sean Smith, who was online when the attack on the consulate in Benghazi began.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: They loved this country and they chose to serve it and served it well. They had a mission, and they believed in it. They knew the danger and they accepted it. They didn't simply embrace the American ideal, they lived it.

SYLVESTER: All four died while on duty for their country, on patriot day, 9/11, 2012. Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: And Mitt Romney on the post-convention campaign trail and his messages to voters.

(COMMERCIAL BREAK)

WHITFIELD: Mitt Romney's campaign continues to hammer the president on the economy. His running mate, Congressman Paul Ryan spoke in the last hour in Florida.

(BEGIN VIDEO CLIP)

REPRESENTATIVE PAUL RYAN (R), VICE PRESIDENTIAL CANDIDATE: Do we want to go down the path of doubt, debt, and decline that President Obama has placed us on?

(END VIDEO CLIP)

WHITFIELD: As Ryan plays hardball, his potential boss showed a softer side to voters after an appearance on a daytime talk show. CNN's Jim Acosta is on the Romney campaign trail.

JIM ACOSTA, CNN NATIONAL POLITICAL CORRESPONDENT: Aides to Mitt Romney say he watched the bodies of those slain diplomats arrived at Andrews Air Force base on television here in Ohio before going out to pay tribute to them at a rally.

It was a moment that stood out in a day marked by both tough and light-hearted talk.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): At a rally in Ohio, Mitt Romney set aside his attacks on President Obama's foreign policy to remember the U.S. ambassador and three Americans who lost their lives in Libya.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: And I'd ask that you might each place your hand over your heart in recognition of the bloodshed for freedom by them and our other sons and daughters who have lost their lives in the cause of America and the cause of liberty, and if we'll take a moment of silence together.

ACOSTA: The moment of silence was only a brief pause in his campaign sharpened rhetoric. Earlier in the day, running mate, Paul Ryan suggested the president was showing a weakness on the world stage that invited the diplomatic attacks.

RYAN: They are extremists who operate by violence and intimidation. And the least equivocation or mixed signal only makes them bolder.

ACOSTA: On CNN, a senior campaign advisor claimed the violence would have been prevented under a President Romney saying he would have been more engaged in the Arab spring.

RICHARD WILLIAMSON, ROMNEY FOREIGN POLICY ADVISER: So we would be partners in this evolution, not running behind and not seen as part of that. I think that changes the dynamic and so, yes, there would be a difference.

ACOSTA: At a New York fundraiser, Romney slammed the president for not planning to meet with Israeli Prime Minister Benjamin Netanyahu at the start of the United Nations General Assembly next week.

Romney said it sends a message not just to Israel, but throughout the Middle East and in some respects it's a confusing message. The rhetorical jabs came as the president paid tribute to the slain diplomats as their bodies arrived at Andrews Air Force base.

Despite his campaign, serious posture, Romney and his wife took time to make some light hearted comments to daytime talk show host Kelly Rippa in a taped interview slated to air next week.

Romney weighed in on MTV's reality show "Jersey Shore" saying --

ROMNEY: I'm kind of a Snooki fan. Look tiny she's gotten. She's lost weight. She's energetic. Just spark-plug personality is kind of fun.

ACOSTA: Ann Romney talked about how she one walked in on former President George W. Bush getting a massage in the White House. And when asked what he wears to bed, the GOP nominee disclosed as little as possible.

(END VIDEOTAPE)

ACOSTA: The Romney campaign is signalling their criticism of President Obama on foreign policy is only the beginning, and it comes as several polls show Romney falling behind in key swing states, like here in Ohio.

As one Romney adviser put it to me earlier this week, it's a good thing they don't hold elections right after the conventions.

WHITFIELD: All right, Jim Acosta, thanks so much. By the way, Romney is off the campaign trail today, spending some time at his home in Massachusetts.

All right, legal battles are brewing for some Starbucks baristas in two different states over sharing tips. But do these cases have enough steam? Our legal guys will weigh in. They'll give us a jolt or two on the case.

(COMMERCIAL BREAK)

WHITFIELD: All right, whether it's a triple shot mocha or a non-fat latte, baristas at Starbucks are banking on those tips that you leave, but should they be required to share those tips with supervisors?

We have two legal cases involving this issue in New York and Massachusetts. Our legal guys are back, Avery Friedman in Cleveland, Richard Herman in Las Vegas.

All right, gentleman, so two different cases, two different states, Massachusetts and New York, both handling them rather differently.

So in Massachusetts, a federal court ruled in favor of the baristas and Starbucks is now appealing. Then in the case of New York, a federal court dismissed the case, finding that shift supervisors can participate in a tip pool under New York law.

So, Richard, we're really talking about what the law is -- what -- what law is already established in varying states as to how they're going to handle this plea that all share their tips.

HERMAN: Exactly. Who knew, Fred, when you bought that $10 latte, that that little plastic tip box generates such great wealth that everyone cease going to fight and want a piece of that. But apparently, the managerial staff at Starbucks wants to share with the baristas.

The New York court reasoned, listen, these are managers. They're on full-time salaries. They get benefits. They get health care. They get sick pay, sick leave. I mean, it's not like a typical employee working part-time who's supposed to share in the tip.

That's how the New York court reasoned it. I don't know if it's that big of a deal, but there's a class action certification in Massachusetts, a New York case now is on appeal. They're spending a lot of money, a lot of legal fees on this for that little plastic tip box.

WHITFIELD: Well, you know, it sounds like it's kind of a big deal because we're talking about a lot of people and a lot of money, 11,000 baristas. We're talking Massachusetts now, $14 million at stake in this class action suit.

FRIEDMAN: It's 14 million bucks, yes!

WHITFIELD: So if it all goes through, then everyone will get a little piece of that $14 million.

FRIEDMAN: Well, you know, I keep thinking, in the millions, and everybody knows waitresses and waiters who are struggling to survive. They count on their tips.

And here the employer is saying, no, we have a right to split it. In other words, the customer pays, the manager splits it. And in the case of Massachusetts, the federal judge granted $14 million.

Why? Because the supervisors opened the store, they closed the store, they handled the money, they supervised three to six employees. I think it's appalling that they're taking the money of hard-working baristas, waiters, waitresses, whatever.

But the interesting legal issue here is the federal court of appeals in Massachusetts in Boston has come up with something, they have to consider a very different reasoning compared to the federal court of appeals in New York City.

And think about this. If we have two different rulings, is it possible that the U.S. Supreme Court will have to consider the question of tips, my goodness, gracious. It's unbelievable.

WHITFIELD: That would be something if these cases were to brew all the way up there.

FRIEDMAN: Brew!

WHITFIELD: OK, so here's a statement coming from Starbucks saying, we believe our tipping policy ensures the Starbucks partners, employees, who directly serve customers both baristas and shift leads share equally in the tips they receive.

We believe our customers should have the option to reward our partners for providing great service. But I guess, gentleman, most people, when they're putting in the tip jar, are most people thinking that they are tipping the baristas, those who they're in direct contact with at that moment or does it even matter?

HERMAN: Not the managers. I don't think they're thinking at all, Fred. They're just throwing it in the can there.

FRIEDMAN: Well, I'm thinking about it. I want to take care of the people who are serving, not the managers, not the big shots, believe me.

HERMAN: A lot of the managers also serve it too. They share responsibilities. Company policy is going to dictate.

WHITFIELD: Interesting. Let's move on to another case involving a very popular chain, this being a restaurant chain, Hooters, now in Queens, apparently a couple, Korean-American couple, was at this hooters and they received their receipt and an employee had scrawled on the receipt an ethnic slur.

They read it and now at least one of those customers is actually suing Hooters, saying, A, they were insulted and this is discrimination, and how could this be. That worker, a gentleman, has since left Hooters.

So she apparently is no longer working there. But the question is, is an employer responsible for the actions of its employees, whether they're still there or whether they have left, Richard?

HERMAN: Well, an employee -- an employer is always responsible for the actions of its employees, Fred. However, this case, really, if you want to open up the garbage can and throw it in there, this is the case to throw in that right now.

FRIEDMAN: My gosh, no, no!

HERMAN: This gentleman, this individual says he was humiliated, humiliated, and unable now to go into any non-Asian restaurant, because some 20-year-old hostess made a derogatory comment on a receipt that since she has apologized for, she's quit her employment.

You bring this case to trial in Brooklyn, New York, with a Brooklyn jury. They're going to be on the floor in tears laughing and screaming for oxygen.

FRIEDMAN: No, they won't.

HERMAN: This case is going nowhere. This is ridiculous, this case.

WHITFIELD: So in other words, you think it's gone too far. Avery?

FRIEDMAN: I -- I'm stunned with that analysis. Look, the fact is that you have the right to go to a place of public accommodations and be free from any kind of religious or ethnic bias. That's the law that the federal --

HERMAN: Please.

FRIEDMAN: Now, where I might agree, that a jury might not award substantial damages. I don't think it's a federal case, but under civil right laws, if this case proceeds and if Mr. Cha, the plaintiff, prevails, not only does Hooters pay -- well, the franchise of Hooters.

Not the corporate, has to pay the defense fees also, the plaintiffs' fees, and damages. This case should resolve. I think it's a legitimate case. I don't think it's substantial damages, but I think it's a principled one. Good for Mr. Cha for pushing the envelope.

WHITFIELD: So you see it as potentially very impactful. This is what Hooters had to say, particularly in reference to the 20-year-old employee who's no longer working there, but allegedly scrawled that epithet. So, "it's not something that reflects our employees. We have a no-tolerance policy and we've had no similar circumstances like this."

FRIEDMAN: Still going to trial.

HERMAN: A box of wings would settle it. That's it. Settle the case.

FRIEDMAN: No, it will not.

WHITFIELD: We shall see. And I know y'all will weigh in when we find out where it goes.

FRIEDMAN: That's for sure. Fred, I've got e-mails from our viewers in Costa Rica. It's independence day there, they're celebrating and they wanted to be sure that we celebrate with them. And I would like to wish everybody a happy, healthy, peaceful new year.

WHITFIELD: Well, happy independence to Costa Rica.

FRIEDMAN: That's right.

WHITFIELD: All right, Richard, Avery, thanks so much. Always good to see you every Saturday, any Saturday, any day of the week, but you can always catch them every Saturday at this time.

HERMAN: There you go.

WHITFIELD: They give us their take on the most interesting and intriguing legal cases of the day.

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(BEGIN VIDEOTAPE)

ROB MARCIANO, AMS METEOROLOGIST: For your next picturesque vacation, leave that bulky, expensive camera behind. Nowadays, all you need is a smartphone.

UNIDENTIFIED FEMALE: More and more people are using their smartphones to take important pictures when they're traveling with their friends and family. There are so many apps you can take along with you that will really improve the quality of your photos.

MARCIANO: Let's say you have this incredible view and you want to soak it all in. Well, 360 panorama will let you take a picture of your entire surroundings.

UNIDENTIFIED FEMALE: It will automatically stitch together all of those images and give you this great panorama view.

MARCIANO: Here's a popular app. Instagram lets you actually take a picture -- and you can add a variety of filters and send them out to your friends.

AMBER MAC, APP CENTRAL: You have to try snap seed, to change the contrast, the brightness, and the saturation and many other features.

MARCIANO: And once you have that picture perfect, you can choose it old school snail mail. Postcards on the run does it with a few clicks.

MAC: You can make it scratch and sniff. So when someone receives the postcard, they can scratch and sniff the postcard. That makes it really interesting.

MARCIANO: Great ways to capture your vacation next time you're on the go.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WHITFIELD: All right, an Italian magazine says it plans a 26-page spread publishing more topless photos of the Duchess of Cambridge. In the meantime, its sister publication in France is now in legal hot water for its photos of Katherine.

Palace officials say they have launched proceedings citing invasion of privacy against "Closer" magazine. They posted grainy pictures of the duchess while vacationing in the south of France. "Closer's" editor defended the actions.

(BEGIN VIDEO CLIP)

MAX FOSTER, CNN ROYAL CORRESPONDENT: What they're arguing is they're just doing their job and this is just a young, romantic couple and the images, they don't really understand all the fuss. That's what the editor said. They also say they took a picture from a road, which is a public place, and you can do that.

(END VIDEO CLIP)

WHITFIELD: The royal couple is in Southeast Asia, this weekend, on an official tour.

And two of Asia's economic powerhouses are at odds. Hear why demonstrators in China are rallying against Japan.

(COMMERCIAL BREAK)

WHITFIELD: A rare sight in China. A public protest, not against the government of China, but Japan. Demonstrators gathered outside the Japanese embassy in Beijing because of some uninhabited islands in the East China Sea, which both countries claim they own. Tensions have been brewing for some time, but Friday a Chinese vessel approached the islands, triggering a warning from Japan.

All right, later on today, coming up in the 2:00 Eastern hour, Katherine Middleton's topless photos and a discussion about the Duchess of Cambridge's right to privacy.

Also, the pope's visit to Lebanon. It's only the third time a pontiff has been there. Live pictures right now. You see the pope mobile arriving there in Beirut. I'll talk to Vatican expert about the pope managing the fine line between Christians and Muslims amid a backdrop of violence spreading the globe. That's at 3:00 Eastern Time.

I'm Fredricka Whitfield. "YOUR MONEY" starts right now.