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Arkansas

In the mail: “Bad Dad”

by Walter Olson on February 17, 2012

We blogged about this case in 2008, and now Fort Worth Star-Telegram columnist Dave Lieber has turned it into a book. From the description:

A newspaper columnist investigates the shenanigans of a small-town police department — then pays a price for it. After he orders his misbehaving 11-year-old son to walk home from a local restaurant, police arrest the dad for two felony counts. A true-story thriller about parental responsibility, small-town corruption and the consequences of being a public figure.

And: should an Arkansas mother whose son had been thrown off the regular school bus for misbehavior face child endangerment charges for making him walk 4.5 miles to school instead? [Alkon] From Australia, should police warn parents for letting a 7-year-old visit a local shop alone, and a 10-year-old ride a bus unaccompanied? [Sydney Morning Herald via Skenazy]

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November 23 roundup

by Walter Olson on November 23, 2011

  • Big win for Ted Frank against cy pres slush funds [CCAF, Fisher, Zywicki, CL&P, @tedfrank ("Ninth Circuit rules in my favor ... but I still think I'm right".)]
  • “Can the Vatican Be Subject to ICC Prosecution?” [Ku/OJ]
  • “Tennessee: ATS Sues City Over Right Turn Ticket Money” [The Newspaper]
  • “Law firms dominating campaign contributions to Obama” [WaPo]
  • Does that mean it’s an entitlement? Punitive damage limits face constitutional challenges in Arkansas, Missouri [Cal Punitives]
  • Businessman sues to silence critical blogger, case is dismissed, now files suit #2 [Scott Greenfield]
  • Going Hollywood? “The Supreme Court should move to Los Angeles” [Conor Friedersdorf]

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Update roundup

by Walter Olson on November 13, 2011

Further on stories we’ve noted in the past:

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July 26 roundup

by Walter Olson on July 26, 2011

  • Murder victim’s family sues Schwarzenegger for commuting sentence [KTXL]
  • Easter egg in Dodd-Frank: Lawmaker’s pet “conflict minerals” proposal, to be enforced by SEC [Protess] More on costs to automakers and others: WLF, Carter Wood, more. Further: Bader.
  • Push is on again for fashion design copyright protection [NYT, earlier] Another skeptical view of bill [Katy Tasker, Public Knowledge]
  • Charges dropped against woman who videotaped cops from her front yard [Rochester D&C]
  • “Mom Charged with ‘Child Endangerment’ When Tot Wanders Off” [Free-Range Kids]
  • Live off the land? Better not try that in rural L.A. County [Cavanaugh]
  • Does the U.S. maintain diplomatic relations with this strange realm of “Gould, Arkansas”? [Volokh, Underhill/Forbes]

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It’s surprising there isn’t more controversy over state AGs’ frequent practice of using moneys from lawsuit settlements for their own favored causes (as opposed to, say, handing it over to the state treasury). Now Arkansas AG Dustin McDaniel is drawing criticism for his funneling of cy pres funds to politically advantageous causes that don’t happen to have been voted appropriations by the state legislature [John Brummett, Arkansas News; Dan Greenberg, The Arkansas Project, and followup]

P.S. Related on cy pres in private class actions: Dan Popeo, WLF (Google Buzz settlement); Michael Tremoglie, LNL; Ted Frank.

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Pruett Nance was hurt riding an all-terrain vehicle on the grounds of a no-longer-operating theme park in Arkansas, Dogpatch USA. The owners having not paid a $650,000 judgment, a judge has awarded Nance ownership of the park. [Arkansas Online via Childs, TortsProf]

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April 18 roundup

by Walter Olson on April 18, 2011

March 30 roundup

by Walter Olson on March 30, 2011

  • “Woman Sues Adidas After Fall She Blames on Sticky Shoes” [Lowering the Bar]
  • Texas lawmakers file loser pays proposals [SE Tex Record] Actual scope of proposals hard to discern through funhouse lens of NYT reporting [PoL] Marie Gryphon testimony on loser-pays proposals in Arkansas [Manhattan Institute, related]
  • Google awarded patent on changing of logo for special days [Engadget via Coyote]
  • “Civil Gideon in Deadbeat Dad Cases Would Be ‘Massive’ Change, Lawyer Tells Justices” [Weiss, ABA Journal, Legal Ethics Forum]
  • Amateur-hour crash-fakers in Bronx didn’t reckon on store surveillance camera [NY Post]
  • “Plaintiffs’ Lawyers in Cobell Defend $223M Fee Request” [BLT]
  • Show of harm not needed: FDA kicks another 500 or so legacy drugs off market, this time in the cold-and-cough area [WaPo]
  • “Wal-Mart v. Dukes: Rough Justice Without Due Process” [Andrew Trask, WLF]

February 17 roundup

by Walter Olson on February 17, 2011

Arkansas Attorney General Dustin McDaniel has bestowed $100,000 to assist in construction of the Arkansas Fallen Firefighters Memorial on the grounds of the state Capitol. The money came from the settlement of a lawsuit against the Pfizer drug concern, the connection of which to the cause of fallen firefighters is at best obscure. [Arkansas Online]

December 4 roundup

by Walter Olson on December 4, 2009

  • Insurance mandate or no, New Jersey specialists tending to duck out of high-legal-risk procedures like mammography [Amy Handlin, Gloucester County Times via NJLRA]
  • Audi redux, or something different this time? L.A. Times endorses charges of sudden acceleration against Toyota [Holman Jenkins/WSJ, FindLaw "Injured"]
  • Ghastly idea of the year: Rep. Waxman wants federal government to be “responsible” for fixing journalism [Coyote, Bainbridge]
  • “Arkansas Judge Tosses Defamation Lawsuit Against Dixie Chicks Over ‘West Memphis Three’ Letter” [Citizen Media Law, Longstreth/American Lawyer]
  • Judge Weinstein: falsification by arresting officers seems “widespread” in NYPD [Balko, Greenfield]
  • U.K.: Carbon ration cards? [Krauthammer]
  • Nova Scotia, Canada: “A Couple in their 70s Wave at A Kid…And In Swoop the Cops” [Free-Range Kids]
  • Barbra Streisand loses suit over aerial photo of her Malibu home taken by environmental group; by suing, she ensures that many thousands more people will see the photograph, in what is dubbed “Streisand effect” [six years ago on Overlawyered]

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Gene Cauley gets seven years

by Walter Olson on November 24, 2009

The Arkansas plaintiff’s lawyer says he was too embarrassed to make layoffs as his finances turned sour, which is why he stole the $9.3 million in class-action settlement funds [WSJ Law Blog, ABA Journal] Earlier here, here, and here.

More from Kevin LaCroix:

An earlier WSJ.com Law Blog post reported (here) that Cauley was in fact a protégé of Bill Lerach. Today’s article on Bloomberg (here) about Cauley’s criminal sentencing notes that Cauley joins a growing list of plaintiffs’ securities class action attorneys who have “been jailed for felonies,” including Bill Lerach himself and his former law partners, Mel Weiss, Steven Schulman and David Bershad, and including even Marc Dreier.

These gentlemen of course made their living for many years accusing corporate officials of fraud. Ahem. Yes, well…isn’t ironic, don’t you think?

Who would have dreamed that a protege of Bill Lerach would wind up later copping to a felony rap resulting from ethical infractions? (Wait, don’t answer.)

At a barbershop in 1994, [Cauley] says, he picked up Forbes magazine and saw a profile of Lerach; it was the famous article, where the attorney was quoted as saying, “I have the greatest practice . . . I have no clients.”

Cauley approached Lerach and was soon launched in a thriving class action practice (“His usual way to deal with things was to yell and bang things and threaten,” said a fellow plaintiffs lawyer, Glen DeValerio of Boston.) It came crashing down under revelations that the Little Rock, Ark.-based lawyer took $9 million from clients’ settlements to spend on firm overhead and unrelated investments. [Koppel/WSJ, ABA Journal, interview-based WSJ Law Blog story first, second]

According to Manhattan D.A. Robert Morgenthau, New York lawyer Marc Bernstein “settled these cases pretty cheap, then took the money and ran.” [NY Daily News, press release] Meanwhile: “Prominent Arkansas plaintiffs securities lawyer Gene Cauley is expected to plead guilty for failing to pay clients $9.3 million in settlement funds he was supposed to be holding as their escrow agent.” [ABA Journal, earlier] According to a report dated February (PDF) from the ABA’s Center for Professional Responsibility, New York is among the states that have adopted payee notification reforms intended to catch this category of fraud at an early stage; Arkansas has not. For more on payee notification, see my 2006 paper with Peter Morin.

“Prominent Arkansas plaintiffs’ lawyer Gene Cauley has landed in some hot water due to his apparent inability to produce more than $9 million in settlement money he was overseeing for clients, according to federal court records.” His lawyer, John Wesley Hall, told Judge Jed Rakoff at a hearing “that the missing settlement funds ‘are presently unavailable,’ but Hall declined to elaborate, citing Cauley’s privilege against self-incrimination.” He says, however, that Cauley is working to “find the money and pay it in 90 days” and expects to “make everyone 100% whole”. [WSJ Law Blog].

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Despite some objections by class members to the resulting class action settlement, its approval is consider likely; class lawyers are set to bag $15 million while class members will get mostly vouchers unless they care to take delivery of the actual (generally useless to them) axles and wheels used to transport their manufactured homes. [SE Texas Record; Texarkana, Keil & Goodson, Nix Patterson & Roach, Crowley Norman, W.H. Dub Arnold]

Their hands are tied

  • Finally! Today’s Boston Globe covers the thrift-store calamity:


    In recent weeks, Goodwill pulled all children’s merchandise from its nine stores in the state. Thrift chain Second Time Around eliminated kids’ clothing from several of its 16 shops. St Vincent de Paul is currently removing children’s clothing with metal zippers, buttons, and painted fabrics from its processing center, which sends out merchandise to its six stores in Massachusetts.

    It’s exactly the sort of coverage that’s been overdue in the biggest newspapers since Feb. 10: well-reported, making clear the human costs of the law for both cash-strapped shoppers and charitable sponsors, and including words like “devastating” and “heartbreaking”. And on page one.

  • If you missed it yesterday, Overlawyered gets results! Although sometimes the opposite of the kind we intend. Yesterday we hailed as a breakthrough the House Small Business Committee’s willingness to hold a hearing next week on the costs of CPSIA. Within a few hours, as Rick Woldenberg relates, Congressional staffers hastily put out word that they were canceling the hearing and that the idea is “not likely to ever be brought back”. There’s no way for us to know just who placed the phone call, but odds are good it was someone who realized that letting people from around the country get in front of a microphone and talk about this law’s effects would not exactly do wonders for the image of Henry Waxman, Bobby Rush, Jan Schakowsky, Public Citizen, PIRG, or their allies. More on the cancellation from Rick Woldenberg, who reports that this is the third time he’s been disinvited from Capitol Hill testimony. Sounds like someone really dislikes the message he would deliver.
  • About ten colors too many

  • Hair bow makers on the verge of a nervous breakdown.
  • The Examiner, which has a wide readership in Washington, D.C., San Francisco, and other cities, is out today with a great editorial on CPSIA which also generously directs readers to this site and its “chilling” reports. It concludes: “This law is an utter disaster. Congress ought to fix it, immediately.” The Examiner also quotes Sen. Mark Pryor (D-Ark.), one of the law’s sponsors, as saying “the law allows the CPSC to make ‘commonsense exceptions’ to anti-lead requirements.” This is not the first time I have been obliged to wonder whether Sen. Pryor actually has a close familiarity with the terms of the bill he helped guide to passage, and if not, whose summaries he has been relying on when he talks to the press. arkansasstateflag
    It is precisely because the law does not confer on the CPSC any “commonsense exception” authority that the commission was obliged to turn down the makers of kids’ minibikes in their plea for an exemption the other day. Same for many other instances that could be cited, such as the pre-1985 books and the size 10 winter coats with zippers and snaps that are being yanked from thrift store shelves. Had the commission such a “commonsense exception” discretion, it would almost certainly have acted by now to defuse these sources of public outcry. To repeat the question: who does Sen. Pryor rely on for his briefings?
  • For adult use only

  • Speaking of products with vanishingly low risk of poisoning that have trouble obtaining commonsense exemptions, we’ve been remiss in not staying on the case of ballpoint pens, mentioned in our Feb. 6 and Feb. 13 roundups. Deputy Headmistress has quite a bit more on the legal limbo occupied by the writing implements, which appear now to be unlawful when intended primarily for under-12 use. And visitor “Scott” wrote last week in our comments section:



    What still amazes me is that the story about ballpoint pens being in violation of the CPSIA isn’t getting more notice. The CPSC admits that ballpoint pens intended for children are covered. As it happens, the US trade association for the makers of pens, pencils and erasers has sent a letter to the CPSC that ballpoint pens are not-compliant and no existing alloy satisfies the lead limits. It may take 2 years to develop an alloy, if one exists. I can only conclude that there must be very very very many stores not in compliance and ‘poisoning’ our children with lead. Are these stores not facing strict liability and risking felony criminal liability including 5 years in prison and $250,000 fines? The stay by the CPSC doesn’t help the pen-makers or sellers, because they’re in knowing violation of the lead limits. All they can hope for is that none of the 50 state attorney generals decides to prosecute what would appear to be a slam-dunk case. There is a chance that the CPSC may eventually decide to make an exemption for pens, however the CPSC admits that its staff is ‘not yet aware of any substance as to which the required showing [of no absorption of any lead into the human body] can be made.’.

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December 9 roundup

by Walter Olson on December 9, 2008

  • Go vote for Overlawyered now, please, in the ABA Journal best-blogs contest; some details on contestants in other categories;
  • Update on “Got Breastmilk?” trademark dispute [Giacalone; earlier]
  • Trauma patient is bleeding while you fumble to get the IV equipment out of its blister pack. Soon it’ll be even more complicated. Thanks OSHA! [Throckmorton] And where are the stand-up medical comedy routines?
  • Arkansas Supreme Court’s handling of school finance litigation suggests it’s making it up as it goes along [Jay Greene]
  • “Linux Defenders” is tech-firm consortium’s new effort to create “no-fly zone” protecting open-source system from patent trolls [Parloff, Fortune]
  • Zero tolerance roundup: 10 year old who took $5.96 Wal-Mart cap gun to school arrested, fingerprinted, faces expulsion [11alive.com, Newton County, Ga.] Harford County, Md. mom, acting as chaperone on school field trip, “reached out to tap” third grader to shush him, now faces ten years if convicted of assault [ABC2News.com, Baltimore] Related: we’re too afraid of touch [Times Online] Teasing is bad for children and other living things. Really? Are you sure? [Althouse, NYT]
  • Columnist has opposed bailouts and favored free market liquidation of uneconomic firms. Now that his newspaper faces bankruptcy, has he changed his mind? [Steve Chapman]
  • Good way to suffer reputational damage: file a lawsuit claiming characters in movie “Dazed and Confused” were based on your own teenage selves [four years ago on Overlawyered]