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Up And Running?; Climbers Rescued; Insiders On Iraq; Supreme Court Decision; Who's Next?

Aired February 20, 2007 - 10:00   ET

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

TONY HARRIS, CNN ANCHOR: A second hour in the NEWSROOM this morning and stay informed. Here's what's on the rundown.
JetBlue vowing 100 percent operations today. The budget airline trying to right its reputation with a passenger bill of rights.

BETTY NGUYEN, CNN ANCHOR: Three climbers safe and warm this morning. They spent a cold night trapped on Mt. Hood in a snowstorm there. We're going to talk live with a man who helped bring the climbers down from that mountain.

HARRIS: Get your party on. Despite bad times, New Orleans lets the good times roll on fat Tuesday, February 20th. It is Mardi Gras in the NEWSROOM.

NGUYEN: Get you to our top story this hour. Winning back passengers. JetBlue taking steps today to rebuild its reputation. Its image stained after last week's storm paralyzed the budget airline. Well, hundreds of passengers, they were stranded for hours and hours on planes. And today, JetBlue says it will be 100 percent up and running. CNN's Allan Chernoff joins us from JFK in New York.

The question is, though, Allan, what is JetBlue's CEO saying about the situation this morning?

ALLAN CHERNOFF, CNN CORRESPONDENT: Well, Betty, the airline is back to normal operations for the first time in an entire week. But in terms of the chief executive officer, he's still very much in crisis management mode. Major mea culpas once again coming from the chief executive officer. He's posted on YouTube, on the company's website, and earlier today he appeared on AMERICAN MORNING.

(BEGIN VIDEO CLIP)

DAVID NEELEMAN, CEO, JETBLUE AIRWAYS: That was a defining moment in our company and things are going to be different. I mean it was a very, very difficult weekend for our customers and for our crew members and, you know, we failed them and we're going to fix it and we're going to be better than ever.

(END VIDEO CLIP)

CHERNOFF: To back up that pledge, the company is saying it will retrain management, get a lot of people who work in the offices able to work here at the airport. And they're also backing it up with a financial pledge. For delays, they are going to pay customers. If you're arriving on a flight and you're delayed on the tarmac for 30 minutes, $25 towards another ticket. And if you're departing, if you have to wait three hours, you'll get $100 towards a ticket. If you have to wait five hours, you'll get a new round trip ticket entirely free. So the financial back really to try to get customers to remain loyal to JetBlue. It remains to see whether or not that's actually going to work.

Betty.

NGUYEN: So it's called a customers bill of rights. Let me ask you this though, what are passengers saying once they're hearing about this? Do they think it's going to change their feeling of JetBlue?

CHERNOFF: Well, Betty, here's the situation. The people who are here today, they are booked and they are flying. And today, at least, things are running just fine. The real issue is whether the people who had a horrible experience, or the people who decided not to go on JetBlue, will actually come back to the airline. But let's take a listen at least to one passenger we spoke to earlier today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: They were very cooperative. JetBlue's been very cooperative. I called them several times and there wasn't any problems. And we had a problem getting the boarding pass online. And the lady was very helpful and I got the boarding pass online. So we're good to go.

(END VIDEO CLIP)

CHERNOFF: And most of the people here are going. Only a couple of delays. Nothing major at all at the terminal today. But again, the key issue for JetBlue is whether this disastrous publicity is going to prevent a lot of customers from booking in the future on the airline. The people leaving today, they generally made their reservations a long time ago.

NGUYEN: Yes, so they're good to go.

All right, Allan, thank you.

HARRIS: Down the mountain. Three climbers safe and sound. Warm this morning after being stranded in the snow on Mt. Hood. CNN's Chris Lawrence has the story.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT, (voice over): They fell off a ledge and slid hundreds of feet from the rest of the team. But rescue crews saved three climbers and their dog, after a day and night in the bitter cold and biting wind. Attached by a rope, Trevor Liston says the lead climber's fall almost took out the whole team.

TREVOR LISTON, RESCUED CLIMBER: He went off first and then, you know, as I was trying to stop him, you know, the momentum just kind of gets picked up with each person that gets pulled over right behind him. So it's kind of one, two, three, and then a climber behind me saw what was happening, caught up to me and tackled me and stopped me and that's when the rope got pulled off.

LAWRENCE: The mixed lab, Velvet, went over the side with them.

LISTON: She's got the whole husky kind of coat and she's a trooper.

LAWRENCE: The climbers had an electronic locator, which allowed rescuers to quickly pin point their signal.

LT. NICK WATT, CLACKAMAS COUNTY SHERIFF'S OFFICE: And that's why it's a rescue instead of a recovery.

LAWRENCE: Three climbers disappeared on this same mountain in December. One died of hypothermia, the other two bodies were never found. They didn't have an electronic locator and no state requires them. But some Oregon legislators are threatening to make them mandatory and climbers are promising to fight it.

MIKE OCHSNER, ASSISTED IN RESCUE: One of the reasons that people climb is to -- for the freedom that it allows and we don't think there should be that many rules about it.

LAWRENCE: But isn't just taking a mountain locator a very small inconvenience when you weigh it against the cost and the risk of trying to rescue people on the mountain, not knowing where they are?

OCHSNER: It is and I would recommend that people use them, but I don't think it should be required.

LAWRENCE: Climbers argue that in a typical year, only about 4 percent of the search and rescue operations on Mt. Hood are for missing climbers. And many of the rescuers are volunteers. But sheriffs admit, these kind of rescues can end up costing millions and they have to foot bill.

Chris Lawrence, CNN, Timberline, Oregon.

(END VIDEOTAPE)

HARRIS: Man. Those three climbers rescued from Mt. Hood. We will talk with a man who helped bring the climbers down from the mountain. That is straight ahead in the NEWSROOM.

NGUYEN: Iran appears to be making some new moves to raise its military presence in the Persian Gulf. That assessment from U.S. military officials. Those officials tell CNN that on at least two days last week, Iranian patrol boats crossed into Iraqi waters at the northern end of the gulf. They stayed for several minutes before they were told to leave by Iraqi security forces. The officials say the Iranian boats did not approach oil terminals in the area and, they say, so far, the United States does not considered the Iranian moves aggressive or provocative. An explosion, then poisonous fumes filled the streets of an Iraqi city. That deadly attack, one of several today across Iraq. A government official says a bomb on board a tank carrying chlorine gas caused the tanker to explode. The incident outside a restaurant in Taji, just north of Baghdad. The official says at least six people were killed. And more than 100 others were injured by the blast or sickened by those fumes.

We'll take you to Baghdad, where there is more bloodshed. Two car bombings have killed around a dozen people. And at a funeral service, at least five other people were killed by a suicide bomber wearing a vest packed with explosives.

Also, police say they have found at least 20 bodies across the Iraqi capital today.

HARRIS: A change of tune for John McCain. When Defense Secretary Donald Rumsfeld resigned last November, Senator McCain said Rumsfeld deserved respect and gratitude for his service. On the campaign trail now, McCain's opinion -- a bit deflated.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) ARIZONA: I think that Donald Rumsfeld will go down in history as one of the worst secretaries of defense in history.

(END VIDEO CLIP)

HARRIS: McCain said Rumsfeld failed by not putting enough troops on the ground in Iraq. McCain told an audience of South Carolina seniors, the U.S. can still succeed in Iraq. He says it will take more troops and a new strategy.

Well, they're on opposite sides of the campaign trail with different views on Iraq, but both share a tough sell with voters. Here's CNN's Bill Schneider, part of the best political team on television.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN CORRESPONDENT, (voice over): Hillary Clinton and John McCain are senators and Washington insiders. They're both pacing voters who are angry and apprehensive about the war in Iraq and suspicious of Washington politicians who sound calculated and cautious.

UNIDENTIFIED FEMALE: I remain troubled, though, about your position on Iraq and your unwillingness to apologize to the American people for your vote to authorize the war. Could you explain?

SEN. HILLARY CLINTON, (D) NEW YORK: If the most important thing to any of you is choosing someone who did not cast that vote or who has said his vote was a mistake, then there are others to choose from. But to me, the most important thing now is trying to end this war.

SCHNEIDER: Senator Clinton's response is not to be defensive.

CLINTON: If the president won't end this war before he leaves office, then I will and I have a very good idea about how that can and should be done.

SCHNEIDER: McCain has the opposite problem. Republican audiences like his support for President Bush.

SEN. JOHN MCCAIN, (R) ARIZONA: I believe we can succeed. I can't guarantee success, but I guarantee failure will result in chaos.

SCHNEIDER: But they worry that his close identification with the war will make it difficult for him to get elected. Especially if President Bush's troop buildup does not go well.

MCCAIN: This is a terribly difficult time and Americans and people of Chicago are angry and frustrated and sad.

SCHNEIDER: McCain ran as a maverick in 2000. This time, his close ties to President Bush and his embrace of the Iraq cause are making him look more and more like the establishment candidate, at a time when both he and Senator Clinton are discovering the voters are in an anti-establishment mood.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

HARRIS: Three climbers rescued from Mt. Hood. That worked out really well, didn't it?

NGUYEN: It really did. Finally they got them off that mountain.

HARRIS: Well, we had real concerns yesterday about weather conditions, small window of opportunity to make the rescue happen. Whiteout conditions. Possible avalanche. And it worked out great. We will talk with a man who helped bring the climbers down from the mountain straight ahead in the NEWSROOM.

NGUYEN: Also, new names, new faces. Who's the next generation of black political leaders? That's coming up in our series "Uncovering America" in the NEWSROOM, only on CNN.

HARRIS: Australia's bright idea -- ban Thomas Edison's incandescent bulb. Replace it with those twisty energy savers.

NGUYEN: I have a few of those. Love them.

HARRIS: Not everyone's seeing the light here.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: If you want to put a larger wattage in this particular fitting, like so, it will not fit into the fitting.

(END VIDEO CLIP) NGUYEN: Yes, you have a problem there.

HARRIS: Yes. The Aussies lighting and leading the way. Who's going to follow? In the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And some breaking news into CNN from the Supreme Court in Washington, D.C. T.J. Holmes is following these developments for us.

T.J., good to see you. Good morning.

T.J. HOLMES, CNN CORRESPONDENT: Hey, good morning to you there, Tony.

And this is a big one. This was a big, big case that everybody had an eye on. But the Supreme Court now has thrown out a $79.5 million punitive damage award against Philip Morris, the cigarette maker.

Now what happened here -- a lot of people will remember this case. This was a man who died. Jesse Williams was his name. Sixty- seven-years old. Died in '97 after smoking for 40 years.

Well, his widow and children sued Philip Morris saying that they made a defective product and they misrepresented just how dangerous these things were. It was tied up in court for some years, but there in Oregon, at the end of the day, the family was awarded $79.5 million in punitive damages. However, Philip Morris appealed, made it all the way to the Supreme Court.

The Supreme Court now says that is excessive -- that $79.5 million -- and has thrown out that decision that the lower court made in Oregon. The courts in Oregon have gone back and forth. A trial jury actually had cut it in half initially. Then the Oregon Supreme Court actually reinstated it.

So there was some back and forth in Oregon. The U.S. Supreme Court now is giving the final word and throwing it out and saying that this is an excessive award against Philip Morris. That $79.5 million.

And, Tony, a lot of people had an eye on this. Of course we've seen huge judgments over the years. And, like we were saying, this is one that businesses will be looking at and happy to see that an award like this, some of these excessive ones, that some are saying excessive, are being thrown out. And the Supreme Court is now making the ultimate call on it.

HARRIS: Yes. And, you know what, T.J., perhaps later in the day we'll be talking about this as being an important test case for this new conservative majority on the court. A split decision here, 5-4 decision, in favor of throwing out this award.

T.J. Holmes following this story for us in the NEWSROOM.

T.J., appreciate it. Thank you.

HOLMES: All right, Tony.

NGUYEN: CNN is "Uncovering America," taking a look at the people and issues affecting minority groups that are changing our country. Yesterday we asked a provocative question -- do Al Sharpton and Jesse Jackson speak for all African-Americans? Well today, a new question -- who is the new generation of black political leaders? CNN's Soledad O'Brien of "American Morning" reports.

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA, (R) ILLINOIS: The audacity of hope.

SOLEDAD O'BRIEN, CNN CORRESPONDENT, (voice over): He is audacious. After just two years in the Senate, Barack Obama is setting his sights on a higher office. That has many in America asking whether he could be the nation's first black president.

MICHAEL ERIC DYSON, SYNDICATED RADIO HOST: Barack Obama knows he's a black person in America. He's clear about that. But he knows how to use the language in such a fashion to not make people feel whiter or more guilty.

O'BRIEN: Others black, political up-and-comers you may not have heard of, Congressman Artur Davis of Alabama, Congressman Yvette Clark in New York, Mayors Cory Booker in Newark, New Jersey, Adrian Fenty in Washington, D.C., Byron Brown in Buffalo, New York, and Kwame Kilpatrick in Detroit. They're taking advantage of the gains made by the civil rights movement. In addition to marching, leading sit-ins or coming to power via the pulpit, they're graduating from ivy league schools, using those law degrees and MBAs to make a difference.

You went to Stanford, right, and then Yale Law School. You are a Rhodes scholar. Am I right about that?

MAYOR CORY BOOKER, NEWARK, NEW JERSEY: Yes.

O'BRIEN: So people would say, why are you not running some hedge fund making goo-gobs of money?

BOOKER: Well, two answers to that. One is, it's not my passion. The other reason is, is because I think we need people everywhere. We do -- it's great. I'm very happy. A lot of my friends are on Wall Street and . . .

O'BRIEN: Because they can write checks to your campaign.

BOOKER: They can make campaign contributions. It comes in very handy, frankly. But the reality is, is that's just not where I believe the most important fight is for me.

O'BRIEN: Ironically, some of the people these black candidates have the hardest time reaching are black voters. A recent "Washington Post"/ABC News poll showed that three times as many black voters support Hillary Clinton as Barack Obama. Recent headlines question whether Obama can appeal to African-Americans. Some who think his experience is too far removed from their own.

Cory Booker faced the same problem when he ran against long-time Newark mayor Sharp James. His opponents said he was elitist, out of touch with the city's black residents. In the end, Sharp James dropped out and Booker won with 72 percent of the vote.

BOOKER: I've seen black jerk politician who have done bad things to their black community. And I've seen white communities that represent blacks nobly and their interest more so than blacks have themselves.

O'BRIEN: What about black women in leadership? Their numbers in political ranks are few but growing. Congresswoman Carolyn Kilpatrick of Michigan is the head of one of the largest contingents of black lawmakers in the history of Congress.

REP. CAROLYN KILPATRICK, (D) MICHIGAN: We're there. You don't have to look so far. We're here in the Congress. There's state legislators, as well as city councils and local government who have leaders of color -- African-Americans, Asian-Americans, Latino Americans.

O'BRIEN: Reverent Al Sharpton says he's excited about the next generation of activists and leaders and politicians. But even this veteran of numerous political campaigns won't say who he thinks will be the next big name in black political leadership.

REV. AL SHARPTON, PRESIDENT, NATIONAL ACTION NETWORK: One thing I learned is that none of the so-called leaders can pick who replaces them. The times and the talent and the commitment determines that.

(END VIDEOTAPE)

NGUYEN: And tomorrow, new ideas for old problems in America's cities. Hear from the woman leading the charge for real growth and true wealth in all neighborhoods.

HARRIS: President Bush is taking part in the swearing-in ceremony in Washington, D.C., of the new director of National Intelligence, Admiral John Mike McConnell. The ceremony this morning at Bowling Air Force Base in Washington. McConnell taking over for Ambassador John Negroponte, who has been installed as deputy secretary of state. Let's listen to the president.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The respect of the intelligence community and a reputation in Washington for personal integrity and effective leadership. In short, you're going to like working with him. And so am I.

Mike's long experience gives him a unique understanding of the threats we face in this new century. He knows that the terrorists who struck America on September 11, 2001, are determined to strike our nation again.

He understands that the enemy uses the tools of our modern economy, from rapid transportation, to instant communications, to global finance, to spread their extremist ideology and facilitate new attacks. He knows that his task as the director of National Intelligence is to make certain that America stays ahead of this enemy and learns their intentions before they strike. He knows that we must stop them from harming our citizens. That the most important task of this government of ours is to protect the American people.

In his new position, Mike builds on the work of an outstanding leader of our intelligence community -- Ambassador John Negroponte. The creation of the director of National Intelligence was one of the most important reforms enacted in response to the attacks of September the 11th.

John Negroponte was the first person to fill this new and essential position. He did so with talent and distinction. During his time in office, John established the DNI as a core member of my national security team. He increased the unity of our intelligence community. He helped strengthen our national counterterrorism capabilities and improved information sharing between our intelligence and law enforcement communities.

John's vision and vigilance helped keep the American people safe from harm. I appreciate his leadership as America's first director of national intelligence. And I thank him for agreeing to continue to serve our country as deputy secretary of state.

Mike McConnell will expand on the vital reforms that John Negroponte set in motion. I've asked Mike to focus on several key areas. I've asked him to better integrate the intelligence community, making our different intelligence agencies and offices stronger, more collaborative and better focused on the needs of their customers.

I've asked him to improve information sharing within the intelligence community and with officials at all levels of our government, so everyone responsible for the security of our communities has the intelligence they need to do their jobs. I've asked him to ensure that our intelligence agency focus on bringing in more Americans with language skills and cultural awareness necessary to meet the threats of this new century.

I've asked him to restore agility and excellence to our acquisition community, and ensure that our nation invest in the right intelligence technologies. I've asked him to ensure that America has the dynamic intelligence collection and high-quality analysis that we need to protect our country and to win this war against these extremists and radicals.

As he carried out his new duties, Mike McConnell will be relying on the thousands of dedicated intelligence professionals who work day and night to keep us safe. They're America's first line of defense against the terrorists. And while many of their accomplishments must remain secret to our fellow citizens, those accomplishments are known to me. And they're doing good work.

You're doing good work. And the American people owe you a strong debt of gratitude. I appreciate your willingness to take on the difficult and dangerous assignments. And you just need to know, you've got the full support of this government and the American people.

Our intelligence community is going to have an able leader in Mike McConnell. I want to thank Congress for swiftly confirming Mike to this vital position. I look forward to working with him as a key member of my national security team.

I'm anxious to have him in that Oval Office every morning. I hope he's anxious to show up. He'll find that I value the intelligence products that you create. He's going to find that the intelligence product is an important part of my strategic thought, an important part of helping me get this government to respond to do our most important duty, which is to protect you.

I look forward to working with Mike. I'm comfortable in knowing this is a good man who cares about one thing only, and that's his country. And I thank his family for supporting him as he returns to government service.

And now I ask my chief of staff, Josh Bolton, to administer the oath of office.

JOSH BOLTON, WHITE HOUSE CHIEF OF STAFF: I, John Michael McConnell.

JOHN MCCONNELL: I, John Michael McConnell.

BOLTON: Do solemnly swear.

MCCONNELL: Do solemnly swear.

BOLTON: That I will support and defend.

MCCONNELL: That I will support and defend.

BOLTON: The Constitution of the United States.

MCCONNELL: The Constitution of the United States.

BOLTON: Against all enemies, foreign and domestic.

MCCONNELL: Against all enemies, foreign and domestic.

BOLTON: That I will bear true faith and allegiance to the same.

MCCONNELL: I will bear true faith and allegiance to the same.

BOLTON: That I take this obligation freely.

MCCONNELL: I take this obligation freely.

BOLTON: Without any mental reservation or purpose of evasion.

MCCONNELL: Without any mental reservation or purpose of evasion.

BOLTON: And that I will well and faithfully discharge.

MCCONNELL: And that I will well and faithfully discharge.

BOLTON: The duties of the office on which I am about to enter.

MCCONNELL: The duties of the office in which I'm about to enter.

BOLTON: So help me God.

MCCONNELL: So help me God.

BOLTON: Congratulations, Mr. Director.

HARRIS: And there you have it, the president of the United States, the White House Chief of Staff, Josh Bolton, swearing in John Mike McConnell as the new director of National Intelligence. McConnell now oversees 16 of the nation's spy agencies. John Mike McConnell, the new director of National Intelligence.

NGUYEN: We do have some breaking news that we want to tell you about. Let's get to CNN's T.J. Holmes with a developing story out of Cape Cod.

What do you have, T.J.?

HOLMES: Yes. Specifically, Betty, this is a place called Barnstable. A little joint (ph). Barnstable, Massachusetts. A little place there. But at the courthouse, certainly an interesting morning. Let's walk you through what happened here.

One person has been shot. That person that was shot was somebody who was at the courthouse actually to answer charges of receiving stolen property. He was a prisoner.

Now according to police, this is what happened this morning. The prisoner was there for an arraignment at the courthouse. He was able to get away from police officer there at the courthouse. And what he did, he took off and ran across the street, trying to get away. He stole a car from a parking lot across the way from the actual courthouse. And then he was shot in that parking lot as police were trying to get a hold of him.

Again, the suspect is Anthony Roberts, a 20-year-old. Really, so it's kind of strange goings on and happenings. Don't have all the details about what was happening at that courthouse.

But again, he was able to get away, tried to make an escape. It was a short escape. He was shot, then taken now, we understand, to the hospital. Don't exactly know his condition.

No one else was injured in all this going on, but really just an interesting morning there in Barnstable. We're keeping our eye on it, trying to possibly find out the condition and more details surrounding this escape, albeit a short escape, but he was able to get away but ended up being shot in the chest and headed to the hospital now, Anthony Roberts, the suspect in this case.

So, Betty, we're keeping an eye on really kind of a just a strange sequence of events there at the courthouse.

NGUYEN: No doubt. CNN's T.J. Holmes, thank you.

Well, good morning, everybody, and welcome to the NEWSROOM. I'm betty Nguyen.

HARRIS: And I'm Tony Harris.

Good to see you, Betty.

Heidi Collins a little under the weather today. Glad, as always, have to Betty with us.

NGUYEN: Good to be here.

HARRIS: Good to see you, lady (ph).

Making amends and winning back passengers. JetBlue Airlines says it will be operating at full flight schedule today and it is rolling out a customer bill of rights that outlines procedures for handling disruptions. This comes after a Valentine's Day storm forced the airline to cancel more than a thousand flights, leaving some fuming passengers stuck on snowy New York runway for up to 10 hours.

(BEGIN VIDEO CLIP)

DAVID NEELEMAN, CEO, JETBLUE AIRWAYS: That was a defining moment in our company and things are going to be different. I mean it was a very, very difficult weekend for our customers and for our crew members and we failed them and we're going to fix it and we're going to be better than ever. If you're on an airplane and you arrive in a city and you can't get off that airplane within 30 minutes, you get compensation starting at 30 minutes. If you get to two hours you get the full credit on your trip back. If you're departing, there is obviously a little bit of a different situation if we're in line with a bunch of airplanes. You start getting compensation at three hours, then at four hours, you get a free ticket, full credit and then we have to take you off that airplane within five hours.

(END OF VIDEO CLIP)

HARRIS: The airline also plans to start delivering misplaced bags to passengers around the country.

NGUYEN: Three climbers rescued from Mt. Hood. We're going to talk with the man who helped bring those climbers down from that mountain. That's ahead in the NEWSROOM.

HARRIS: Take a moment, stop and listen to the music Mardi Gras, New Orleans, today happening right now, Fat Tuesday. We will take you to all the festivities coming up in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: An hour into the trading day, a little over -- man, what's happening so far? Ok, the Dow down 41 points, the NASDAQ down as well, about seven points. A lot of business news today. We're going to get to it in just a couple of minutes. Susan Lisovicz following all of the business headlines for us from the New York Stock Exchange. And right now we want to get to T.J. Holmes he's in the NEWSROOM for us and he's following another -- you're busy over there, T.J.

T.J. HOLMES, CNN ANCHOR: Supreme Court's busy.

HARRIS: Yeah, this is another case at the U.S. Court of Appeals, a decision there, pertaining to Guantanamo Bay detainees.

HOLMES: Yes, we were actually, of course earlier talking about the Supreme Court. You're right, this is a district court here, a federal appeals court out of Washington, D.C. now ruled in kind of a victory here for the Bush administration, ruled that the prisoners being held at Guantanamo Bay in Cuba do not have the right to challenge their detention in U.S. federal courts. This was part of a big sweeping anti-terror law by the president that he signed into law. But a part of that did say that prisoners there, some 500 or so, do not have the right to challenge their detention in U.S. courts. Of course, Guantanamo Bay has been the center of criticism in this country, around the world really, so many there, 500 or so who've been, many like the president claims, have been essentially picked up on the battlefield. Prisoners of war, almost, if you will. You don't know what to do with them and so they've been the subject of so many lawsuits. Lawyers are saying that these guys have the right to challenge their detention. They have a right to confront witnesses. But, no. Federal appeals court now saying the civilian courts do not have that authority to hear the cases. This is a major ruling here, a two to one ruling, that -- where to go from here.

HARRIS: Supreme Court, that's where it's going to go.

HOLMES: Supreme Court, that's all that's left now. This has been -- Guantanamo Bay certainly been the subject of so many lawsuits and this is another major ruling, a major step. Not many places to go but one more step here. Tony?

HARRIS: Ok, T.J. Holmes for us in the NEWSROOM. T.J., thanks.

NGUYEN: Another story, New Orleans throwing a party today and it looks like a lot of people actually showed up. Yes, it is Mardi Gras, revelry though, amid post-Katrina recovery. CNN gulf coast correspondent Susan Roesgen is live in New Orleans right now where the parties are under way. Where are your beads Susan?

SUSAN ROESGEN, CNN GULF COAST CORRESPONDENT: Betty, I've got my beads but what you really want in this parade, one of the two final parades of Mardi Gras is the coveted Zulu coconut. This is Zulu, the traditional African-American parade that has both white and black riders, men and women. Let me go see if I can get you one of those coconuts. This is what everybody wants. Hey! A Coconut! Hey! Coconut for CNN! Got a coconut for CNN? A coconut! Thank you!

NGUYEN: Oh, she got one!

ROESGEN: Betty, I got it!

NGUYEN: It didn't hurt to drop CNN's name, did it?

ROESGEN: I can't tell you why these are the most prized possessions in all of carnival. They're ordinary coconuts, they buy them in big boxes from the supermarkets. The members of the crews shave them off, then they hand-paint them and put little eyes and mouths on them. And this is what everybody wants. You saw they gave a lot of beads but you had to really ask for the Zulu coconut. Again, this is Zulu, about 2,300 members, a lot of beautiful floats, known for their beautiful costumes. They're just now coming past and then it will be the granddaddy of them all, the very last parade of Mardi Gras is the one that started it all back in 1876, the rex parade. So we'll be watching for that one too Betty.

NGUYEN: All right Susan, well I'll trade you these two little lame beads that I have for that coconut, deal?

ROESGEN: No way! No way, sister.

NGUYEN: Oh come on! All right, all right. I guess I just have to be there in person.

ROESGEN: This is for my cameraman.

NGUYEN: Thank you, Susan.

HARRIS: And right now we want to follow up on a developing story we told you about just a short time ago, the Supreme Court throwing out a $79.5 million punitive damages award to a smoker's widow. Boy, what are the implications of this decision? Bill Meers is on the line with us, he's our Supreme Court producer. Bill, if you would, there's the story, sort of break it down for us and give us an idea of the decision making process. This was a 5 to 4 ruling and what the implications of this decision might be.

BILL MEERS, SUPREME COURT PRODUCER: Well the implications are that it gets a big victory for companies like Philip Morris that have had one lawsuit after another filed against them by smokers and the estates of smokers. It's going to limit the discretion that juries have to award these large punitive damages. So-called "sending a message" to the company over alleged misconduct and misleading of the public over the dangers of smoking.

HARRIS: Is there no award? I mean is this totally -- does this vacate any award? Is there another court that gets this or is this over for this widow?

MEERS: No, what it does, the ruling sends the case back to the Oregon courts and they're going to have to reconsider it in the light of this. But it reduces discretion that juries and judges have to award these kind of large awards.

HARRIS: But does it imply some kind of a cap? It doesn't give a specific number, but does it imply that there should be some kind of a cap? MEERS: No specifics. The court in recent rulings over the years has used a standard of reasonableness when it comes to awarding these kinds of awards. Clearly the courts found this award, which was 100 times what the -- 100 times what the other kind of damages were against them, was excessive in this case.

HARRIS: And Bill, this is that whole area of tort reform that we hear so much about. I'm curious as to whether or not this is going to be perceived as important, an important test case, for this new conservative majority on the court.

MEERS: It does, although the breakup of the decision was kind of unusual. We had some justices which have been perceived as being a little more liberal, siding with Philip Morris in this case, including Justices Stephen Breyer and David Suitor. And on the other side, in favor of the widow of the smoker here you had Justice Scalia and Justice Thomas, which have been perceived as being more conservative. So, I don't think it's a clear conservative-liberal breakdown over here. But the court clearly is concerned about these large awards and how juries should deal with them.

HARRIS: Ok, Bill Meers, our Supreme Court producer for us. Bill, thanks for the clarity.

And still to come here in the NEWSROOM, three climbers rescued. We are talking live with the man who led the search and rescue mission on Mt. Hood. That is coming up in the NEWSROOM.

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NGUYEN: Well, we are learning more information out of Cape Cod, Massachusetts today about a suspect who was supposed to be in court for an arraignment for stolen property, well that all changed when he tried to escape, got into a car, tried to take off and then was shot. Let's pick this up from here with Drew Segadelli, who's not only a witness but also the attorney for the suspect, Anthony Roberts. Drew, tell me what happened today in court.

DREW SEGADELLI, ATTY. FOR MAN SHOT: Well, Mr. Roberts was being brought in for arraignment on several charges from an arrest last Friday. While he was being given over to the court officers, the handcuffs were removed, there are reports he flees from the scene. And it's relatively quiet Village of Barnstable, where he jumped into a motor vehicle, careened off several other vehicles. Law enforcement is trying to apprehend him. They believed a court officer may have been in danger, that the vehicle was pointed at him, the police officer discharged his firearm and my client sustained significant injuries.

NGUYEN: I understand he was shot in the chest, he was taken to the hospital. Any idea what his condition is?

SEGADELLI: Right now, no. They med evac'd him off Cape Cod to Boston where he's being treated and I'm obviously attempting to speak to his family and others concerned.

NGUYEN: How shocked are you? You go to court today to represent your client and this happens.

SEGADELLI: Well, again, yeah. Concerns for the village at large, my client, I'm obviously concerned with him and getting to the facts as to what really transpired.

NGUYEN: You were a witness, you saw it. What happens to his case now?

SEGADELLI: Well, what happens to his case, we just simply put it on for status for another week to determine his medical condition and whether or not he will be able to come and address those charges.

NGUYEN: Did you have any idea of his state of mind that perhaps he might try to flee today?

SEGADELLI: I did not. I was coming in -- again, these are relatively innocuous charges, so it was of concern obviously and now he's been significantly harmed. We have to wait and see.

NGUYEN: All right, Drew Segadelli, not only a witness to what happened today there in Barnstable, Massachusetts, but also the attorney for the suspect involved this. Thank you for your time.

SEGADELLI: You've got it.

HARRIS: Betty, it certainly reminds us here in Atlanta what happened here almost two years ago. We're coming up on the two-year anniversary, I believe its March 11th, when Brian Nichols, exactly --

NGUYEN: And he fled for quite some time. I remember that morning we were anchoring.

HARRIS: That's right, we were here together.

NGUYEN: They found him just north of Atlanta in an apartment building.

HARRIS: Some striking similarities there. Of course Nichols went on to kill three court officers on that day. But, boy, when you hear this story, it certainly makes you think of that day almost two years ago here in Atlanta at the courthouse not far from here, right down the street.

We want to talk about the amazing Mt. Hood rescue. A successful search and rescue it was. Three climbers brought down off Mt. Hood after a difficult search in blizzard-like conditions. Erik Broms is with Portland Mountain Rescue and led search teams on Mt. Hood, he joins us now from Portland. Boy Erik, congratulations on a successful outcome.

ERIK BROMS, PORTLAND MOUNTAIN RESCUE: Thank you, it was a team effort.

HARRIS: Tell us how difficult this was going into this rescue yesterday. There were all kinds of concerns about weather conditions, whiteout conditions, blizzard conditions, avalanche conditions, from what I'm understanding, it was a pretty straight-forward rescue given what you were up against.

BROMS: Yes, it was. It was -- we did have somewhat of an idea of where they were. The problem was just getting to them in the weather conditions and traversing avalanche terrain and just getting to them. And high winds was very challenging.

HARRIS: How many feet up the mountain did you find the climbers?

BROMS: It was about 2,500 feet.

HARRIS: Twenty five hundred feet. What kind of condition were they in?

BROMS: I would say the winds were blowing where they were at, once we got to them, they couldn't have picked a windier place. It was probably gusts of up to about 60, 70 miles an hour with a constant 40 mile an hour wind easily.

HARRIS: Erik, the mountain locator unit, maybe you can describe what that is for us. But I guess the question is, did it save the day?

BROMS: Yes, it did save the day. Because their cell phone I believe quit working and they did not have GPS coordinates for that location. But they did have the MLU, which sends out a radio signal which I had the receiver to and it led us right to them.

HARRIS: Did the climbers do everything properly? Did they do everything right?

BROMS: They did everything right except -- you know checking the weather beforehand.

HARRIS: You don't want to fall. Except what now?

BROMS: Except for checking the weather prior to their excursion.

HARRIS: Which makes me wonder, Erik, should there be, in your mind, a sort of off-season -- a no-go season for this mountain? We know of the tragic events in December and this is a very treacherous time of year to be on that mountain. Should there be a declared signs everywhere, this is no-go season for Mt. Hood?

BROMS: I don't think so. Because you do get weather opportunities that provide fairly safe climbing conditions. I mean climbing does have its hazards and you just have to be careful with the weather.

HARRIS: There were some concerns about the woman who apparently -- who was among the three who had a head injury. Was she ok?

BROMS: She was actually pretty good. I was concerned about her when we first got to her because she was experiencing some dizzy spells. But once we got her up and moving, she improved. My main concern was just getting her off the mountain without having to bring in more resources. It would have lengthened the time on the mountain and our time and put us more -- put more people in danger.

HARRIS: What kind of a rush, a thrill, is it for you to do what you do, go and execute this rescue and have it turn out the way it did?

BROMS: It was pretty emotional to find them alive and in good condition. That's why I do it. If I were in that same situation, I'd really like to have qualified people to come and find me. I just enjoy doing it. I love climbing and I love the climbing community.

HARRIS: Well, Erik, congratulations on a terrific outcome and thanks for your time this morning.

BROMS: Thank you.

HARRIS: My pleasure.

NGUYEN: JetBlue now departing. The budget airline says it is back on track and it's throwing more than just peanuts at passengers. You've got rights in the NEWSROOM.

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NGUYEN: Let's take a look at the big board right now. You know it may be Fat Tuesday, but it doesn't look like investors are celebrating too much. Dow down 33 points and the NASDAQ down as well in that negative three territory today.

HARRIS: Still to come in the NEWSROOM this morning, rescued from Mt. Hood. Hey, Velvet! How you doing, girl? Those climbers owe an awful lot to a little creature comfort. A live report straight ahead in the NEWSROOM.

NGUYEN: And a bomb and a chlorine gas tanker, it is a deadly mix in Iraq. Today's new developments here in the NEWSROOM.

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