Posts tagged as:

bankruptcy

We’ve already mentioned this in the context of the Chrysler bankruptcy (criticized in some quarters for having divested the reorganized company of punitive damage exposure over pre-bankruptcy conduct) but here’s Drug and Device Law gathering up decisions from various states to confirm that, no, there is no vested or constitutional right to punitive damages:

Constitutional challenges have been rejected under due process, taking, jury trial, open courts and various other state constitutional provisions. It makes sense. While compensatory damages might present a closer question (depending on issues such as retroactivity), there’s simply no constitutional right for one private party to demand that another private party be punished.

Especially not when the putative purpose of the damages, to inflict financial distress on the target, has been obviated by an intervening bankruptcy.

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December 7 roundup

by Walter Olson on December 7, 2011

  • Debate on medical malpractice between Ted Frank (Manhattan Institute) and Shirley Svorny (Cato Institute) [PoL]
  • Lawyers, accountants have done well from litigation-ridden Pearlman Ponzi aftermath [Orlando Sentinel]
  • Book drop “inherently dangerous”, says rape victim’s family suing library designers [Florida, LISNews]
  • “The iTunes Class Action Lawsuit You’ll Never Hear About”[NJLRA] “Jackson v. Unocal – Class Actions Find a Welcome Home in Colorado” [Karlsgodt]
  • Another tot accused of sexual harassment, this time a first grader [Boston Herald, earlier (six year old's "assault")]
  • Profile of lawyer who defends fair use of clips for documentary makers [ABA Journal]

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January 12 roundup

by Walter Olson on January 12, 2011

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$1 billion so far in lawyers’ and other professional fees, and counting. [Reuters]

October 9 roundup

by Walter Olson on October 9, 2010

  • Update: “Tax Panel Rejects Lawyer’s Bid to Deduct Spending for Sex” [NYLJ, William Barrett/Forbes, earlier] And: “Musings on laws affecting adult entertainment, alcoholic beverages and other ‘vice’ industries” [Meeting the Sin Laws blog]
  • Mississippi: judge jails lawyer for not saying Pledge of Allegiance [Freeland]
  • More on much-written-about Israeli “rape by fraud” case [Volokh, more, earlier here and here]
  • “Tribune bankruptcy talks complicated by emergence of pugnacious hedge fund” [Romenesko; earlier on involvement of hedge funds in bankruptcies]
  • More disturbing tales from Connecticut probate court [Rick Green, Hartford Courant, earlier]
  • Marc Williams of the Defense Research Institute responds to Ted Frank’s criticism of many defense lawyers [PoL]
  • Advice for Australians: to fix your litigation system, look to Germany’s success [Ackland, Sydney Morning Herald]
  • Rep. John Hall (D-N.Y.) & ’70s band Orleans threaten suit against GOP remix ["Orleans Reunion Tour"]

September 21 roundup

by Walter Olson on September 21, 2010

  • Facing four harassment claims, embattled Philadelphia housing chief files his own suit for $600K+ [Inquirer]
  • “Ohio State Abuses Trademark Law to Suppress a Fan Magazine and Website” [Paul Alan Levy, CL&P]
  • “Judge Dismisses Baltimore Blight Suit Against Wells Fargo, Will Allow Refiling” [ABA Journal]
  • Trial lawyer taking behind-the-scenes hand in Louisiana politics [OpenSecrets via Tapscott]
  • “Are hedge funds abusing bankruptcy?” [Felix Salmon and WSJ]
  • North Carolina alienation-of-affection law strikes again: “’Mistress Ordered to Pay $5.8 Million’ to Wronged Wife” [Volokh, Althouse]
  • “Lawyers take a haircut on a contingency fee in Colorado” [Legal Ethics Forum]
  • ADA lawsuits close another beloved eatery [Stockton, Calif.; six years ago on Overlawyered]

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August 12 roundup

by Walter Olson on August 12, 2010

  • “Father demands $7.5 million because school officials read daughter’s text message” [KDAF via CALA Houston]
  • How many different defendants can injured spectator sue in Shea Stadium broken-bat case? [Melprophet]
  • Prominent trial lawyer Russell Budd of Baron & Budd hosts Obama at Texas fundraiser [PoL]
  • DNA be damned: when actual nonpaternity doesn’t suffice to get out from under a child support order [Alkon, more]
  • “Sean Coffey, a plaintiffs’ lawyer-turned-candidate for New York Attorney General, made more than $150,000 in state-level campaign contributions nationwide over 10 years.” [WSJ Law Blog] “Days before announcing a shareholder lawsuit against Bank of America, state Comptroller Thomas DiNapoli accepted $14,000 in campaign donations from a law firm hired to help litigate the case.” [WSJ]
  • Big new RAND Corp. study on asbestos bankruptcy trusts may spur reform [Lloyd Dixon, Geoffrey McGovern & Amy Coombe, PDF, via Hartley, more, Daniel Fisher/Forbes, background here and here] Update: Stier.
  • Public contingency suits? Of course the elected officials are in control (wink, wink) [The Recorder via Cal Civil Justice]
  • Copyright enforcement mill appears to have copied its competitor’s website [TechDirt via Eric Goldman]

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“Pay me now”

by Walter Olson on June 17, 2010

Low-budget ads might seem fitting for a consumer bankruptcy law practice, one supposes:

According to the YouTube-watcher who called this to the attention of reader R.T., “it seems to be a franchise”:

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What a bad precedent it set. [Prof. Bainbridge] More: Indiana Gov. Mitch Daniels, WSJ (via Stoll).

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May 10 roundup

by Walter Olson on May 10, 2010

  • Failure to warn? “Non-Child Sues For Slide-Related Injury” [Lowering the Bar]
  • “AG Cuomo Sues Lawyer for Fraud, Says He Sold His Name to Debt Collector for $141K” [ABA Journal]
  • Ted Frank on his move to the Manhattan Institute and Point of Law [CCAF]
  • “Viacom is becoming a lawsuit company instead of a TV company” [Doctorow, BoingBoing]
  • UK: “NHS pays £10,000 to family of psychiatric patient who committed suicide” [Times Online]
  • American Cancer Society: federal advisory panel’s chemicals-cause-cancer alarms are overblown [NYTimes] More: Taranto, WSJ.
  • “Who Knew Bankruptcy Paid So Well?” [NYTimes]
  • Famed sleuth Bloomberg Holmes on the case: was the Pathfinder headed for a vile sodium den? [IowaHawk]

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March 9 roundup

by Walter Olson on March 9, 2010

Yes, it’s probably the biggest and most complicated bankruptcy ever. Fees so far: $310,791,000, including $296,631 per day for lead counsel Weil Gotshal. [AmLaw Daily, Business Insider]

“U.S. Bankruptcy Judge Joan Lloyd ruled Friday that attorney Bruce Atherton and [financier] Randall Scott Waldman ‘blatantly breached’ their duty to the owner of a Louisville tool machinery company by forcing him out of business and seizing his assets. …Atherton was suspended from practicing law last month by the Kentucky Supreme Court based on his guilty plea in September in Pennsylvania federal court to charges that he aided a scheme in which other defendants allegedly ‘busted out’ small businesses by pretending to buy them, then draining their assets before the deals were completed.” [Louisville Courier-Journal via ABA Journal]

Update on Mraz v. Chrysler

by Ted Frank on September 30, 2009

Readers might remember the Mraz case, where a driver was run over by his own truck because he failed to engage the parking brake, and a jury nevertheless awarded $55 million. (March 8 and March 21, 2007.)

The Chrysler bankruptcy threw a wrench into the appellate process. Given the number of unsecured (and secured!) creditors who were taking a haircut on what Chrysler owed them, and the weakness of the case, one would expect the claim to be extinguished. But Chrysler unilaterally (and almost certainly politically) decided not to extinguish product-liability lawsuits against it, and the Mraz case has settled for $24 million. (Amanda Bronstad, “Chrysler bankruptcy judge approves $24 million personal injury settlement”, National Law Journal, Sep. 25). Of course, the likely $8-$10 million attorneys’ fee in this case is being funded by taxpayers’ bailout money.

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Critics including the Securities and Exchange Commission dispute whether receivers really deserve $27 million for their work through May in cleaning up after the collapse of Texas businessman R. Allen Stanford’s empire. [AP/USA Today; earlier]

“Golden receivers”

by Walter Olson on August 10, 2009

Fees for receivers, administrators and other professionals are eating up too much of the remaining assets of Madoff and other collapsed investment ventures, critics charge: “in one recent $6.6 million fraud, the receiver distributed 43 percent of the assets to the victim — the rest went to professionals.” [NY Post]

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August 10 roundup

by Walter Olson on August 10, 2009

  • Annals of legal marketing: law firm says its flyers offering to sue landlords over sexual assault on premises were left indiscriminately on car windshields, and it didn’t mean to target the woman who found it on hers and assumed it referred to her case [New Jersey Law Journal, Legal Blog Watch, Legal Ethics Forum]
  • “The Bankruptcy Files: Inside Michael Vick’s ‘Excessive’ Legal Bills” [AmLaw Daily]
  • Panel spanks U. of Illinois law school for admitting students at behest of politicos, but goes easy on the pols themselves [Ribstein, more, earlier here, here, here]
  • Youths who obtained big settlement in San Francisco Zoo tiger attack are having more encounters with the law [SF Chronicle, earlier]
  • Czech Republic: Suit by communist professor against critical students still in progress after 18 years [Volokh]
  • More thoughts on Florida lawmakers’ criminalization of purported gang signals, on MySpace and elsewhere [Citizen Media Law, earlier]
  • RIAA case: does the Constitution restrain unreasonable statutory damages? [Kennerly]
  • Eager law grad hoping to make a career of suing foodmakers over obesity [six years ago on Overlawyered]

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July 27 roundup

by Walter Olson on July 27, 2009

  • High-profile Pennsylvania attorney John P. Karoly Jr. pleads guilty to tax evasion, faces possible prison term [Allentown Morning Call, Legal Intelligencer, Lehigh Valley Live, WFMZ, his website; earlier]
  • Tennessee congressman pushes to overturn NBA age limit [Fanhouse, Sports Law Blog]
  • $262 million in bankruptcy fees to date for Lehman, ultimate figure could approach $1 billion [Hartley]
  • Complaint by gay altar server to Ontario Human Rights Tribunal menaces church’s autonomy [National Post via Box Turtle Bulletin]
  • Lawsuit seeks shutdown of Domelights.com, private message board for Philadelphia cops that has had “racially offensive” posts and comments [CNN, Post @ Volokh] 2002 Sotomayor decision in Pappas v. Giuliani may be on point [Popehat, Kennerly]
  • New Jersey organ scandal should come as little surprise given our failed policies on kidney donation [Satel, WSJ]
  • Deputy D.A. arrested for drunk driving lands on her feet, hired by local DWI Resource Center [KRQE, Albuquerque]
  • “San Diego Judge Denies Class Action Motions in 2007 Wildfires” [California Civil Justice]