Overlawyered: Chronicling The High Cost Of Our Legal System

Archive for August, 2007

Kentucky Fen-Phen update: judgment entered

We’ve provided extensive coverage of the Kentucky fen-phen scandal, in which the lawyers who represented fen-phen plaintiffs were found in a civil suit to have misappropriated more than $64 million of their clients’ money. The judge who heard the suit has now entered final judgment against the lawyers, which will allow the plaintiffs to start collection proceedings in 30 days, barring appeal by the lawyers. (The good news: to appeal, they would need to put up an appeals bond, which would make it easier for the plaintiffs to collect. It’s not clear whether they’re going to appeal; they may be too busy defending themselves against the criminal charges which have been filed against them.)

The lawyers’ lawyer calls it a “travesty of justice,” and offers an unusual defense to charges of defrauding clients:

“No one, including the judge, has acknowledged that the attorneys’ fees were ordered by a judge or the fact that each and every client in the case received multiples, and I repeat multiples, of any amount that they would have received if they had not been represented by my clients — Bill and Shirley.”

Since the lawyers did a good job in achieving the initial settlement, it’s okay for them to defraud their clients of some of the money? Pretty sure it doesn’t work that way. (And of course, in claiming that the fees were “ordered by a judge,” she somehow neglects to mention the fact that the judge was paid off by the lawyers, and that as a result he quit just before he was going to be kicked off the bench.)

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Canadian tattoo studio

The owner of the Longhorn Custom Bodyart Studio in Oshawa says the shop’s sterilizer had a screw misaligned and as a result reached only 128 degrees C instead of the required 132. The regional health department urged patrons to get checkups, which have proved reassuring, with no indication that anyone caught anything. Oshawa resident Kaleb Beaulieu has nonetheless filed an intended class action demanding $C10 million, saying that tests take a while to prove conclusively negative and that in the mean time he lives in fear. (Carola Vyhnak, “Tattoo studio faces $10M lawsuit”, Toronto Star, Aug. 22; Rosalyn Solomon, “More tattoo clients sue”, Toronto Sun, Aug. 23).

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Leisurely mills of legal discipline

This from Mike Frisch of Georgetown at Legal Profession Blog (Aug. 6):

The D. C. Court of Appeals disbarred [NB: should be “suspended for three years”, as commenter Richard Harrison points out] an attorney last week. The case involved acts of dishonesty including forgery and would be unremarkable but for the amount of time it took to resolve the matter. The firm that had reported the misconduct did so in 1997. Disciplinary charges — which were essentially uncontested — were filed in February 1999. It took 8 1/2 years for the D.C. bar disciplinary system to work its magic — and the lawyer was free to practice throughout that time. Most of the time was taken by the hearing committee (3 1/2 years) and the court (over three years from argument to disposition).

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Bainbridge on foie gras and dog-fighting

Professor Stephen Bainbridge springboards off of our August 24 post to take a cut in the Examiner at a principled distinction between banning dogfighting and foie gras.

As I’ve mentioned before, I’m quite happy with a state of the world where dogfighting is banned but foie gras isn’t. But I’m not persuaded that the good professor has made the case for a principled distinction. Discussion of this (and of the almost entirely unrelated Larry Craig case) after the jump:

Read On…

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Youtube lawsuit of the week: A&P vs. rappers

The only thing growing faster than the number of videos being shown on Youtube is the number of lawsuits arising from videos being shown on Youtube. The company itself has been sued by every media company in the known universe — led by Viacom — over copyright infringement by users of the website. And when Youtube isn’t being sued, the people who post the offending or infringing clips are.

A few weeks ago, a couple of college students posted a juvenile rap video about their work in a supermarket produce department. They filmed the video in the A&P supermarket where they were employed stocking shelves, but they never mentioned or displayed the A&P name. No matter; someone figured it out, and they were fired.

That could have been the end of that… except that A&P got the brilliant idea to file a $1,000,000 lawsuit against the two, for defamation. (Just a guess, but unless A&P pays a lot better than I suspect, they may not be good for the money.) And, shockingly, the video, which had just 2,500 hits earlier this week before the lawsuit, now has been viewed 60,000 times. Wonder who thought that this lawsuit was a good idea.

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Lawyers’ license to defame adversaries

The Tennessee Supreme Court confirms that lawyers in that state may publish potentially defamatory material outside the courtroom provided they are acting in quest of an “identifiable prospective client”. The case was filed by a screw maker against a law firm whose client-trolling website had asserted that the company’s deck screws were “defectively manufactured”. Without determining whether the phrase was defamatory, the court ruled that even if it was, the manufacturer would be afforded no legal remedy. (Day on Torts, Aug. 21; Simpson Strong-Tie Company v. Stewart, Estes, & Donnell, Aug. 20 (PDF)).

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Painting blue waves across town

Litigation or its threat really does seem to wind up as the ultimate deciding weapon in all sorts of controversies, including whether the city of Santa Barbara can install a temporary public art project aimed at raising alarm about global warming. (Instapundit, quoting James Q. Wilson, Aug. 28; Steve Chawkins, “Property value worries sink Santa Barbara art project”, Los Angeles Times, Aug. 26).

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