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Amanda Knox Faces Murder Re-Trial; North Korea Issues New Threats; Another Compounding Pharmacy Recall; UNC Investigated Over Sexual Assaults; Supreme Court On Same Sex Marriage; No Check In The Mail; Winter Cold Lingers Into Spring; NRA's Robocalls To Newtown; Transformer Explosion Sparks Fire; Arias Expert's Credibility Attacked

Aired March 26, 2013 - 10:00   ET

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


(COMMERCIAL BREAK)

CAROL COSTELLO, CNN ANCHOR: Happening now in the NEWSROOM, do same- sex couples have the right to marry? The historic argument starting right now at the U.S. Supreme Court, but for many, this isn't a courtroom story. It's about family.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: According to what I believe, I'm against it. I have my reasons and I believe strongly in those reasons.

UNIDENTIFIED MALE: It's just kind of really hard to hear him say that. I know it's a process for everyone.

(END VIDEO CLIP)

COSTELLO: Plus the decision that set Amanda Knox free overturned by Italy's Supreme Court. It's ordered a new trial for the former college student.

And this is getting old, the calendar says spring, but the skies say snow. It's wearing on people still digging out.

And don't feel bad if you didn't know about Florida Gulf Coast University. You're not the only one.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: A lot of people in Southwest Florida hadn't followed this school until Friday night.

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COSTELLO: We're heading to the little known school that shocked the basketball world. You're live in the CNN NEWSROOM.

Good morning. Thank you so much for joining me. I'm Carol Costello. The case that grabbed global headlines just will not end. Today, the Italian Supreme Court ruled Amanda Knox will face trial once again for the murder of her roommate. Back in 2007, Meredith Kercher was found stabbed to death, Knox and her then boyfriend were found guilty. Both were sentenced to more than 25 years in prison, but four years later, those convictions were overturned.

Now despite today's ruling, Knox's attorney told CNN, he expects his client to be cleared a second time.

(BEGIN VIDEO CLIP)

THEODORE SIMON, KNOX'S ATTORNEY: Amanda and her family will scrupulously abide by the rule of law and they are not required to appear for those proceedings. So let's not get ahead of ourselves. Let's just see what happens. And we fully expect because these charges are totally unfounded, they're totally unjust, and we fully expect that she will be exonerated as she was before.

(END VIDEO CLIP)

COSTELLO: Of course, Knox is living in the United States now so she was not in court today. And she might not ever return to Italy. Senior international correspondent Ben Wedeman has more for you from Rome.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: The Italian Supreme Court has ruled that Amanda Knox and her former Italian boyfriend Rafaele Sollecito must stand for a re-trial. This came after lengthy deliberations on Monday in which the prosecution argued that the broad body of evidence collected by the investigators was enough to bring them back to retrial.

They argued that the defense focused on the botched investigation by the police, but that did not mean they said that these two are innocent. Now, according to the judges, they have 60 days to submit the reasoning for their ruling. The defense and the prosecution then have 45 days to put forward their cases.

A trial is not expected -- a retrial is not expected until sometime early next year. I'm Ben Wedeman reporting from Rome.

(END VIDEOTAPE)

COSTELLO: And in about a half hour, we'll talk to Barbie Nadeau. She is the Rome Bureau Chief for "Newsweek" and "The Daily Beast." We'll find out what is next in this long running legal battle for Amanda Knox.

Other stories we're watching right now, North Korea issues yet another threat saying it's putting its military units on combat-ready status. The north also says those units have the capability to target South Korea and U.S. forces across the Pacific. New threats come as the United States continues military exercises with the south.

Another Massachusetts drug compounding company is pulling injectable drugs off the market. Pallimed Solutions announced the voluntary recall saying foreign materials were found in vials of a dozen products. The firm is also suspending certain compounding activities.

The University of North Carolina is under federal investigation over how it hams sexual assault cases. Two women tell CNN school administrators brushed aside their complaints, did not take them seriously. And that's not all.

Our David Mattingly travelled to Chapel Hill in search of answers.

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DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (voice-over): After being sexually assaulted while enrolled at the University of North Carolina, Annie Clark and Andrea Penal say they approached administrators for help, but the response only added to their pain.

ANNIE CLARK, SEXUAL ASSAULT VICTIM: She told me a rape is like football and if you look back on the game, what would you have done differently in that situation?

MATTINGLY (on camera): Did you feel like you were being blamed for this?

CLARK: Absolutely.

MATTINGLY (voice-over): Clark says she was raped off campus in 2007. She did not go to the police thinking an investigation was pointless because her attacker was unknown to her. Pino says it was a similar situation for her five years later with another insensitive response from a university adviser.

ANDREA PINO, SEXUAL ASSAULT VICTIM: And when I said I had been through a trauma and I was having a difficulty adjusting, they said, well, everyone's having a difficult time adjusting. You're just being lazy. Maybe you can't handle Carolina.

MATTINGLY: Clark and Pino along with two other students who say they were rape victims and a former UNC administrator filed a civil rights complaint that led to a federal investigation by the Department of Education into how the university handles and reports rape cases.

(on camera): What do you think the investigation is going to find here?

CLARK: They're going to find that there is a pervasive culture of sexual assault where the university has acted with deliberate indifference.

MATTINGLY: If an administrator tells a student rape is like football, what does that tell you about the culture here?

HOLDEN THORP, UNC CHANCELLOR: Well, I'm not going to comment on any specific case, but I think that it absolutely needs to be the case that our administrators respond in a way that is supportive and fair to all the parties involved in these incidents. MATTINGLY (voice-over): Holden Thorp is the chancellor of UNC. The federal probe comes amid new outrage on the Chapel Hill campus over a case before the student-run honor court. A young one unsuccessfully sought punishment for an ex-boyfriend she claimed sexually abused her instead she ended up facing honor court charges of intimidation.

(on camera): What do you say to these women who say that the system here failed them?

THORP: Well, we're supportive of our students and we need to be as supportive as we can possibly be. And I say to them thank you for sharing your concerns with us so that we can address them for you and also make sure that what we do better in the future.

MATTINGLY: The university recently defended how it handles sexual assault cases and is pledging full cooperation with federal investigators. There is also a recent wave of changes on campus.

(voice-over): The student-run honor court is no longer allowed to hear sexual assault complaints. A former prosecutor has been hired to help formulate changes in university policies. The women behind the federal complaint say their problem is national and not limited to UNC.

CLARK: So I think universities are failing when they're more concerned about, you know, either not getting sued or their reputation or compliance than actually helping students.

(END VIDEOTAPE)

MATTINGLY: The Department of education says its decision to investigate is not based on any determination that wrongdoing has in fact occurred. There is no word on when the inquiry might be complete. David Mattingly, CNN, Chapel Hill, North Carolina.

COSTELLO: All right, now let's head to the U.S. Supreme Court where justices are taking their first steps toward possibly redefining the American family. Right now, they're hearing arguments on the first of two laws that restrict same-sex marriage and the legal rights of those who have such unions.

It is an epic debate and one teaming with emotions. For days and days supporters of same-sex marriage have camped out braving the cold and snow hoping to get inside the court to hear those historic arguments.

We have our correspondents and analysts inside and outside the court. They're covering all angles of this landmark fight over same sex rights and we want to view it from both sides this morning.

Darlene Nipper is the deputy executive director of the National Gay and Lesbian Task Force and Peter Sprigg is a senior fellow of Policy Studies at the Family Research Council. Welcome to you both.

You're standing together too. That looks nice. Peter, I'd like to start with you and I want to show you a headline on the "Huffington Post" this morning. It says -- here it is. It says America has decided.

Meaning that it doesn't much matter what the U.S. Supreme Court decides because the majority of Americans already think same-sex marriage should be the law of the land.

PETER SPRIGG, POLICY STUDIES AT THE FAMILY RESEARCH COUNCIL: Well, America should decide that through the democratic process. Thirty states have decided to uphold marriage as the union of one man and one woman. So I wouldn't say America has decided by any means.

We're discussing here the definition of marriage, which for years has been defined as the union of a man and a woman because it brings together men and women to make babies and it keeps those men and women together to provide a mom and dad to the children they produce.

That's an important public purpose just as important today as it ever was. And the second reason we're here is to hopefully maintain the right of the people to decide these issues for themselves.

COSTELLO: Although I'm married and I don't have any babies, but I married my husband for different reasons, I guess. So I'm not sure I follow that part of your argument, Peter. Darlene, do you agree with that?

DARLENE NIPPER, NATIONAL GAY AND LESBIAN TASK FORCE: Well, look, it's clear that the American public is ready for marriage equality. The majority of Americans have already said that they believe in marriage equality and the freedom to marry. It's a fact, no need to really argue about that.

And the demonstration that's happening here today is that there are hundreds and hundreds of people out here, but more importantly, Carol, all over this country, more than 150 events in all 50 states with people letting their community, their neighbors, their co-workers, their community know that they care about marriage equality and that it is time America is ready for this and the time is now.

COSTELLO: Well, Darlene, Peter does have a point because Prop 8, which in essence bans marriage -- or limits marriage to between a man and a woman, Prop 8 was voted on by the people of California.

NIPPER: That's right. Prop 8 was voted on by the people of California. But you know what, Carol, we never talk about how close it was. We never talk about the fact that this was practically split 50/50 at the time.

And let me tell you, Carol, it's been an extraordinary time from 2008 to 2012 where in four states we have very clear decisions by voters saying, look, we vote for marriage equality, not against it.

COSTELLO: Peter, what are you hoping the court will do today because some people hope for a narrow decision, what does that mean?

SPRIGG: We certainly hope that the court will uphold Proposition 8 in California, which is being argued today and uphold the federal Defense of Marriage Act, which will be argued tomorrow. We feel that both the people of California in the case of California law and Congress in the case of DOMA made the right decision and the Supreme Court should not overturn either one of those laws.

COSTELLO: Peter Sprigg, Darlene Nipper, thank you so much for joining us this morning. We appreciate it.

NIPPER: Thank you, Carol.

SPRIGG: Thank you.

COSTELLO: You're welcome. Maybe you're like many Americans who depend on getting a tax refund about now, but this year more of you are finding that's just not the case. In other words, you owe Uncle Sam.

CNN personal finance and business correspondent, Zain Asher joins me now. Well, that's depressing.

ZAIN ASHER, CNN PERSONAL FINANCE/BUSINESS CORRESPONDENT: Yes, that's right. More people expect to be writing checks to the IRS come tax time this year. Fewer people expecting to get a refund. So that natural boost that a lot of people rely on this time of year may not necessarily be there sadly enough to make you want to delay filing taxes.

But here are some stats for you. According to an American Express survey, 19 percent of taxpayers say they will be owing money this year up from 13 percent last year. Analysts say this might actually be a good sign, believe it or not, a sign that the economy is improving.

People are earning more, therefore, they owe more. The bad news is that the average tax refund was $2,700 last year. Huge amount that people will be saying goodbye to. Of those expecting a refund, the majority, 37 percent, say they plan to use it to pay down debt or bills.

Others say they plan to save the money, 28 percent say they plan to spend the money on themselves, family, home improvements, that kind of thing. According to an American Express spokesperson, the fact that most people are saving their refunds or using to pay down debt shows there is still a recession mentality in the air and that people have learned some valuable lessons since 2009 -- Carol.

COSTELLO: Hope so. Zain Asher reporting live from New York this morning.

Jodi Arias' murder trial has become the national spectacle. Now the trial is entering its final phase. We'll have the latest details for you next.

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COSTELLO: It's 16 minutes past the hour, time to check our top stories. The calendar tells us it is spring, but somebody forgot to tell the snow to go away. It's downright cold across much of the country. Temperatures below average from Minneapolis to Orlando. Some areas of the south are under freeze warnings and watches.

Newtown, Connecticut families are upset about the NRA and its robocalls. The NRA calls asked voters to lobby state lawmakers against new gun control legislation.

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SENATOR CHRIS MURPHY (D), CONNECTICUT: I think it's disgusting and I think it's intentional. I don't think it's a mistake that the NRA is making calls into Newtown.

(END VIDEO CLIP)

COSTELLO: The calls come three months after the Sandy Hook massacre. In addition to the calls, people have received postcards with similar messages. Our affiliate WFSB, has reached out for a comment from the NRA, hasn't heard back yet.

Outside Seattle, a power transformer explodes sending flames into the air. Residents a mile away had to be evacuated. Firefighters were forced to let it burn out because the transformer was still energized. No one was injured, but investigators are trying to figure out what exactly caused the explosion.

A domestic violence expert returns to the witness stand today in the Jodi Arias murder trial. Arias is accused of killing her ex-boyfriend and the prosecution has torn into a psychologist who diagnosed Arias with post-traumatic stress and amnesia.

CNN's Miguel Marquez was in court.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: She met that criteria.

UNIDENTIFIED MALE: And you can bang on it all you want and it's still your judgment, isn't it?

MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): Aggressive cross- examination, prosecutor Juan Martinez hammering away at the credibility of a key defense expert, psychologist, Richard Samuels.

JUAN MARTINEZ, PROSECUTOR: Right. You wouldn't say that because you have feelings for the defendant, right?

UNIDENTIFIED MALE: I beg your pardon, sir.

MARQUEZ: Martinez, all but taunting the witness, telegraphing to the jury the idea that Samuels cannot be trusted, that he's too close to Jodi Arias.

MARTINEZ: Isn't it true that in this case, you lost your objectivity?

UNIDENTIFIED FEMALE: Objection.

UNIDENTIFIED MALE: Absolutely not. MARQUEZ: Samuels' testimony critical in explaining Jodi Arias' 18 days of testimony and keeping the 32-year-old off death row for killing her on again/off again boyfriend, Travis Alexander, in 2008.

BETH KARAS, "IN SESSION" CORRESPONDENT: Dr. Samuels is a critical witness for the defense because if jurors believe Dr. Samuels, then Jodi Arias really doesn't remember the details of the killing.

MARQUEZ: The trial going nearly three months now is attracting snowbirds like Steve Pinto from New Jersey. He's been watching on TV since day one. Today is his first day in court. He lined up at 4:00 a.m.

(on camera): Why, what has hooked you into it?

STEVE PINTO, COURT WATCHER: Because she looks so innocent, but the crime that she made is very, very fierce that what she's done.

MARQUEZ: But you don't believe she's innocent though.

PINTO: No, definitely not.

MARQUEZ: The trial now entering its final phase, the level of interest here only growing.

(END VIDEOTAPE)

MARQUEZ: Now, that domestic violence expert is expected to be on the stand at least this week possibly into next week. And then we think we're going to get to closing arguments in a couple of weeks and then finally, the jury will get it on April 2nd this trial will hit three months old, amazing -- Carol.

COSTELLO: More like crazy. Thanks so much Miguel Marquez reporting live.

Talk back question, if you fly, should you have to pay what you weigh? Facebook.com/carolcnn or tweet me @carolcnn.

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COSTELLO: Now is your chance to talk back on one of the stories of the day. The question for you, if you fly, should you have to pay what you weigh? A Norwegian professor is fuelling a frenzied debate over his big idea, a fat tax. Economics Professor Bharat Bhatta says it's only fair. Passengers who are obese should pay more to fly than lighter passengers.

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BHARAT BHATTA, ECONOMIST: Because I'm a straight up economics, for me it is not discriminatory at all.

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COSTELLO: As airlinereporter.com puts it, weight equals money. The heavier the plane, the more fuel it takes to move it and the more it costs. Not that airlinereporter.com is endorsing the plan, but it is pondering its merits.

It asks should an 80-pound child with 10 pounds of baggage pay the same amount to fly across the country as a 250-pound person with 150 pounds of luggage? Airlines are already grappling with weight. A private operator is already charging by the pound. Take a look its web site.

Samoa Air, introducing a world first. Pay only what you weigh. We at Samoa Air are keeping airfares fair by charging our passengers only for what they weigh. Other airlines are grappling with weight, although in different ways.

Qantas is installing carbon fibre seats to lighten the load and save money on fuel. But some ask why not take the next step and charge everything, including people by the pound.

Talk back today, if you fly, should you have to pay what you weigh? Facebook.com/carolcnn or tweet me @carolcnn.

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COSTELLO: Now a story across the Atlantic Ocean. Italy Supreme Court says American exchange student, Amanda Knox, should face a new trial in the murder of her roommate.

Knox, of course, was not there for today's ruling. She's been living in the United States since her murder conviction was overturned a year and a half ago. Barbie Nadeau is the Rome bureau chief for "Newsweek" and "The Daily Beast." She joins us live from Rome. Welcome, Barbie. I just want --

BARBIE NADEAU, ROME BUREAU CHIEF, "NEWSWEEK" AND "THE DAILY BEAST": It's a complicated situation today.

COSTELLO: I know. I want to read you something that the judge in the case said at the time that Amanda Knox, you know, I guess, was acquitted of murder. He said, in legal paper work published in December of 2011.

The judge in the case wrote that the jury had cleared the pair of murder for lack of evidence proving they were guilty. So I just don't get why the Italian courts have ordered a new trial. Did they find something new, some new piece of evidence?

NADEAU: Well, this is very much a standard procedure in Italian criminal cases. All cases are subject to review by three levels of court, the first court in which Amanda Knox was convicted of murder, the second level in which she was acquitted and now this is the third and high court ruling.

Cases are not considered complete until the high court has ruled on them. The prosecution in this case very successfully was able to petition the court based on the DNA evidence and their arguments yesterday and in the documents they filed, 112-page document they filed about six months ago.

They really outlined the fact that they thought that during the appellate process of the trial in which they were acquitted, they overlooked the whole body of evidence and focused instead on just two very specific pieces of evidence, that being the victim and knife that had Amanda Knox's DNA on the handle and victims on the blade.

To those were the focus of the appeal and the prosecution convinced the high court that they should have looked at all the body of evidence.

So Amanda Knox is living in the United States. She's going to college. She is trying to get her life together. I mean, if I were her, I would not be going back to Italy anytime soon. Is there any way that Italian authorities could force her to return to the country?