The story is from Kentucky, but it’s different from and evidently unrelated to the much-publicized episode in which three lawyers from that state arranged to divert large sums from the proceeds of a group settlement of fen-phen claims. Patricia Fulkerson of Nelson County sued the lawyer and law firm that had represented her in her fen-phen claim, saying that the lawyer sexually harassed her and that the law firm (quoting Andrew Wolfson in the Louisville Courier-Journal) “exaggerated her heart injuries — and those of other clients — so it could collect higher fees”:
A former paralegal in the firm, Fonda Walters, testified in a deposition that it exaggerated the injuries of a half-dozen clients, and that their initial test results, which had showed little or no heart damage, were altered. …Walters acknowledged she was fired from the firm in connection with a dispute over a bonus she claims she was owed.
The law firm’s defense raised (inter alia) an interesting argument:
Those lawyers also have argued that the alleged altering of Fulkerson’s medical records by the Florida-based firm of Wasserman Riley & Associates also doesn’t amount to negligence because “the claimed goal of the alleged malpractice was to get her more money.”
Apparently the judge rejected that argument, though. In a second Journal-Courier report dated June 22 — the same date as the above item, but presumably subsequent to it — Wolfson reports that Fulkerson’s lawsuit “has been successfully mediated and will be dismissed, lawyers for both sides said.” Speaking to the Broward-Palm Beach (Fla.) New Times, partner Jay Wasserman called the claims of diagnosis-embellishment “absolute nonsense”:
Wasserman also says there were only about six claims filed among the many prospective clients who received the complimentary tests. “If [falsifying results] was going on, why didn’t we have a much bigger number?” Wasserman asks, adding that since the reports were produced by experts and would be part of the case, it wouldn’t be possible to fake them, even if he wanted to.
More: Ronald Miller.
Tagged as:
fen-phen,
Kentucky
You may recall the earlier trial of the Kentucky fen-phen attorneys who had stolen tens of millions of dollars from their clients ended in a mistrial for two and an acquittal for their third compatriot. This time around, a federal court jury, after ten hours of deliberation, found William Gallion and Shirley Cunningham Jr. guilty of eight counts of fraud and one count of conspiracy. A streamlined prosecution case no doubt helped make a difference; defense attorneys sought to blame the matter on Stan Chesley, who negotiated the underlying settlement and received millions more than he was contracted to receive, and it remains mysterious why he was not charged. [Courier-Journal]
Tagged as:
crime and punishment,
ethics,
fen-phen,
Kentucky,
Kentucky fen-phen settlement fraud,
Shirley Allen Cunningham Jr.,
Stan Chesley,
William Gallion
- “God convinces woman to withdraw her voodoo-related lawsuit” [Minneapolis Star-Tribune via Obscure Store]
- Federal, state judges differ on whether wildlife officials can be sued over fatal Utah bear attack [Heller/OnPoint News]
- GPS helped trip him up: highest-paid Schenectady cop sure seems to spend a lot of time off patrol in a certain apartment [Greenfield]
- More coverage of Luzerne County, Pa. corrupt-judge scandal, including reputed mobster link [Legal Intelligencer/Law.com, ABA Journal, earlier here and here]
- Reductio ad absurdum of laws dictating where released sex offenders can live: proposal to keep them from living near each other [Giacalone and sequel]
- Defamation suits: “What happens when it’s the plaintiff that is anonymous, and wants to stay that way?” [Ron Coleman]
- Scalia: “Honest Services” fraud statute lacks any “coherent limiting principle” to restrain runaway prosecution [Grossman/PoL, Kerr/Volokh, Hills/Prawfsblawg]
- Because they’d never enact a law except to deal with a real problem: “Kentucky Prohibits First Responders from Dueling” [Lowering the Bar]
Tagged as:
Kentucky,
Luzerne County judicial scandal,
police,
prosecution,
Utah
The state of Kentucky enacted a new sales tax on the services of telecommunications companies. It also forbade the companies from breaking the tax out as a line item on customer’s bills — that might get people mad at the legislators, after all. The Sixth Circuit, Sutton, J., ruled that under the intermediate level of First Amendment scrutiny applied to limitations on commercial speech, the “no-stating-the-tax” provision was unconstitutional. (BellSouth v. Farris, Sept. 9).
Tagged as:
Kentucky,
Sixth Circuit,
telecommunications
- Bulgarians employ “decoy lawyers” to get around corruption in official bureaus [Cowen, MargRev]
- Forum-shopping vol. MMMCCXII: Taiwan company claims Apple broke California unfair-practices law so of course it sues in Texarkana [AppleInsider]
- “U.S. produces far too many lawyers for society to absorb” and one reason is that law schools want warm seats on chairs [Greenfield]
- Second Circuit: lawyers can’t buy their way out of sanctions for filing meritless lawsuit [Krauss, PoL]
- Some reasons furor over free speech in Canada is relevant this side of the border [Bernstein @ Volokh]
- We’re quoted on the subject of those websites that offer “point-and-click access to trial lawyers” [Business First of Columbus]
- Tight lid kept on study of disposable diapers’ environmental impact since findings were … inconvenient [Times Online (U.K.) via Stuttaford]
- Judge backs Kentucky’s bid to seize domains of online gambling sites, implications for everyone else [Balko, "Hit and Run"; earlier here and here]
Tagged as:
Apple,
chasing clients,
forum shopping,
free speech in Canada,
gambling,
Kentucky,
law schools,
sanctions,
Second Circuit
- Appeals court upholds Ted Roberts “sextortion” conviction [Bashman with lots of links, San Antonio Express-News]
- Alito incredulous at FTC: you guys have failed to raise a peep about bogus tar & nicotine numbers for how long? [PoL]
- Please, Mr. Pandit, do the country a favor and don’t litigate Citigroup’s rights to the utmost in the Wachovia-Wells Fargo affair [Jenkins, WSJ]
- Docblogger Westby Fisher, hit with expensive subpoena over contents of his comments section, wonders whether it’s worth it to go on blogging [Dr. Wes, earlier]
- “Title IX and Athletics: A Primer”, critical study for Independent Women’s Forum [Kasic/Schuld, PDF; my two cents]
- Case of whale-bothering Navy sonar, often covered in this space, argued before high court [FoxNews.com]
- More on Kentucky’s efforts to seize Internet domain names of online gambling providers [WaPo, earlier]
- Exposure to pigeon droppings at Iraq ammo warehouse doesn’t seem to have affected worker’s health, but it was disgusting and she’s filed a False Claims Act lawsuit against private contractor for big bucks [St. Petersburg Times, Patricia Howard, USA Environmental; but see comment taking issue]
Tagged as:
bloggers and the law,
gambling,
Kentucky,
Navy sonar,
Roberts sextortion,
Supreme Court,
Title IX,
tobacco,
whistleblowers
- Watch where you click: “Kentucky (secretly) commandeers world’s most popular gambling sites” [The Register/OUT-LAW]
- Erin Brockovich enlists as pitchwoman for NYC tort firm Weitz & Luxenberg [PoL roundup]
- U.K.: “Millionaire Claims Ghosts Caused Him to Flee His Mortgage, I Mean Mansion” [Lowering the Bar]
- Prosecution of Lori Drew (MySpace imposture followed by victim’s suicide) a “case study in overcriminalization” [Andrew Grossman, Heritage; earlier; some other resources on overcriminalization here, here, and here]
- Exonerated Marine plans to sue Rep. John Murtha for defamation [Pittsburgh Post-Gazette]
- Snooping on jurors’ online profiles? “Everything is fair game” since “this is war”, says one jury consultant [L.A. Times; earlier]
- Allentown, Pa. attorney John Karoly, known for police-brutality suits, indicted on charges of forging will to obtain large chunk of his brother’s estate; “Charged with the same offenses are J.P. Karoly, 28, who is John Karoly’s son, and John J. Shane, 72, who has served as an expert medical witness in some of John Karoly’s cases.” [Express-Times, AP, Legal Intelligencer]
- School safety: “What do the teachers think they might do with the Hula-Hoop, choke on it?” [Betsy Hart, Chicago Sun-Times/Common Good]
Tagged as:
Erin Brockovich,
gambling,
jury selection,
Kentucky,
lawyering vs. privacy,
libel slander and defamation,
MySpace,
Pennsylvania,
schools,
wills and trusts
If you recall, the theory of defenders of the McDonald’s coffee case was that McDonald’s, and only McDonald’s, served coffee so hot as to burn, and thus merited special disapprobation.
As Overlawyered readers know, that just ain’t so. The recommended serving temperature of coffee can cause third-degree burns; coffee-drinkers prefer coffee that is that hot. Thus, lots of vendors sell coffee that causes third-degree burns when spilled.
Add to that list the Pilot Travel Center truck stop in Mount Sterling, which is the defendant in a Kentucky suit brought by Thomas Skaggs, who says he spilled coffee on his leg in December and got a third-degree burn. The skimpy press coverage on WLKY.com gives no further details other than an unimpressive photo.
Tagged as:
hot coffee,
Kentucky,
personal responsibility
The name does have a clean, daisy-fresh smell to it, like a good laundry. In this case the laundering being done was of settlement money in the Kentucky fen-phen scandal. (WSJ law blog, Louisville Courier-Journal, Lexington Herald-Leader, Krauss @ PoL).
Tagged as:
cy pres,
fen-phen,
Kentucky,
Kentucky fen-phen settlement fraud,
Melbourne Mills Jr.,
Shirley Allen Cunningham Jr.,
Stan Chesley,
William Gallion
Here’s your $3 million bonus, young man, and whatever you do, don’t tell the clients how much the case settled for (Jim Hannah, “Fen-phen lawyer details bonus”, Cincinnati Enquirer, May 15; earlier)(via Slater, WSJ law blog).
Tagged as:
Cincinnati,
ethics,
feeing frenzy,
fen-phen,
Kentucky,
Kentucky fen-phen settlement fraud
We’ve extensively covered the scandal over charges that attorneys William Gallion, Shirley Allen Cunningham Jr. and Melbourne Mills Jr. siphoned off $65 million or so in settlement money due claimants in the diet drug litigation, using the proceeds to buy, among other things, the Preakness-winning race horse Curlin. Ted notes the latest developments over at Point of Law, as does Carter Wood. (Wolfson/Courier-Journal, WSJ law blog).
More from WSJ law blog: Mills’ lawyer tells jury his client “was hospitalized for an ‘alcoholic seizure’ a month after the case was settled, didn’t take part in any court hearings and was too drunk at the time to be responsible,” while prosecutor says “that Mills ’sat back and laughed’ when the other two described a plan to overcharge the clients.”
Tagged as:
Curlin,
fen-phen,
hospitals,
Kentucky,
Kentucky fen-phen settlement fraud,
Melbourne Mills Jr.,
scandals,
Shirley Allen Cunningham Jr.,
William Gallion
Not only can you not sell the Kentucky dessert unless you are Kern’s Kitchen, Inc., but you’d better not offer any “Bluegrass Bourbon Pie” and get all winky-winky with your customers about it, either. Wikipedia discusses the litigation history. (Charlie Pearl, “Still playing the pie game”, Frankfort State-Journal, Apr. 17)(via Catallaxy.net).
Tagged as:
Kentucky,
restaurants,
trademarks
- Ninth Circuit, Kozinski, J., rules 8-3 that Roommates.com can be found to have violated fair housing law by asking users to sort themselves according to their wish to room with males or other protected groups; the court distinguished the Craigslist cases [L.A. Times, Volokh, Drum]
- Class-action claim: Apple says its 20-inch iMac displays millions of colors but the true number is a mere 262,144, the others being simulated [WaPo]
- U.K.: compulsive gambler loses $2 million suit against his bookmakers, who are awarded hefty costs under loser-pays rule [BBC first, second, third, fourth stories]
- Pittsburgh couple sue Google saying its Street Views invades their privacy by including pics of their house [The Smoking Gun via WSJ law blog]
- U.S. labor unions keep going to International Labour Organization trying to get current federal ground rules on union organizing declared in violation of international law [PoL]
- Illinois Supreme Court reverses $2 million jury award to woman who sued her fiance’s parents for not warning her he had AIDS [Chicago Tribune]
- Italian family “preparing to sue the previous owners of their house for not telling them it was haunted”; perhaps most famous such case was in Nyack, N.Y. [Ananova, Cleverly]
- Per their hired expert, Kentucky lawyers charged with fen-phen settlement fraud “relied heavily on the advice of famed trial lawyer Stan Chesley in the handling of” the $200 million deal [Lexington Herald-Leader]
- Actor Hal Holbrook of Mark Twain fame doesn’t think much of those local anti-tobacco ordinances that ban smoking on stage even when needed for dramatic effect [Bruce Ramsey, Seattle Times]
- Six U.S. cities so far have been caught “shortening the amber cycles below what is allowed by law on intersections equipped with cameras meant to catch red-light runners.” [Left Lane via Virtuous Republic and Asymmetrical Information]
Tagged as:
AIDS,
Alex Kozinski,
compulsive gambling,
Craigslist,
fair housing,
fen-phen,
Google,
haunted house,
Illinois,
international law,
Italy,
Kentucky,
Kentucky fen-phen settlement fraud,
Ninth Circuit,
Pittsburgh,
red light cameras,
roundups,
Seattle,
Stan Chesley,
tobacco
- Easterbrook: “One who misuses litigation to obtain money to which he is not entitled is hardly in a position to insist that the court now proceed to address his legitimate claims, if any there are…. Plaintiffs have behaved like a pack of weasels and can’t expect any part of their tale be believed.” [Ridge Chrysler v. Daimler Chrysler via Decision of the Day]
- Retail stores and their lawyers find sending scare letters with implausible threats of litigation against accused shoplifters mildly profitable. [WSJ]
- Kentucky exploring ways to reform mass-tort litigation in wake of fen-phen scandal. [Mass Tort Prof; Torts Prof; AP/Herald-Dispatch; earlier: Frank @ American]
- After Posner opinion, expert should be looking for other lines of work. [Kirkendall; Emerald Investments v. Allmerica Financial Life Insurance & Annuity]
- Judge reduces jury verdict in Premarin & Prempro case to “only” $58 million. And I still haven’t seen anyone explain why it makes sense for a judge to decide damages awards were “the result of passion and prejudice,” but uphold a liability finding from the same impassioned and prejudiced jury. Wyeth will appeal. [W$J via Burch; AP/Business Week]
- Judge lets lawyers get to private MySpace and Facebook postings. [OnPoint; also Feb. 19]
- Nanny staters’ implausible case for regulating salt. [Sara Wexler @ American; earlier: Nov. 2002]
- Doctor: usually it’s cheaper to pay than to go to court. [GNIF BrainBlogger]
- Trial lawyers in Colorado move to eviscerate non-economic damages cap in malpractice cases [Rocky Mountain News]
- Bonin: don’t regulate free speech on the Internet in the name of “campaign finance” [Philadelphia Inquirer]
- “Executives face greater risks—but investors are no safer.” [City Journal]
- Professors discuss adverse ripple effects from law school affirmative action without mentioning affirmative action. Paging Richard Sander. Note also the absence of “disparate impact” from the discussion. [PrawfsBlawg; Blackprof]
- ATL commenters debate my American piece on Edwards. [Above the Law]
Tagged as:
campaign regulation,
Chrysler,
Colorado,
Facebook,
fen-phen,
Frank Easterbrook,
free speech,
Kentucky,
Kentucky fen-phen settlement fraud,
legal extortion,
MySpace,
nanny state,
nastygrams,
online speech,
Philadelphia,
racial preferences,
remittitur,
Richard Posner,
salt,
Wyeth
Yesterday’s guilty plea by Booneville, Miss. attorney Joseph (”Joey”) Langston in the attempted improper influencing of a Mississippi state judge would be major news even if it had nothing to do with the state’s most famous attorney, Richard (”Dickie”) Scruggs. That’s because Langston and his Langston Law Firm have themselves for years been important players on the national mass tort scene. The firm’s own website, along with search engines, can furnish some details:
- Per the firm’s website, it has represented thousands of persons claiming injury from pharmaceuticals, including fen-phen (Pondimin/Redux), Baycol, Rezulin, Lotronex, Propulsid and Vioxx. It was heavily involved in the actions against Bausch & Lomb over ReNu contact lens solution (and its former #2 Timothy Balducci, the first to plead in the widening round of corruption scandals, won appointment to the steering committee of that litigation.)
- The Langston firm has represented thousands of asbestos claimants and says it has “significant” experience in the emerging field of manganese welding-rod litigation, also a specialty of the Scruggs law firm. The website AsbestosCrisis.com includes the Langston law firm in its listing of about thirty law firms deemed notable players on the plaintiff’s side of asbestos litigation (”Tiny firm founded by Joe Ray Langston powerhouse in Mississippi with 50-year roots in state political circles.”)
- Langston appeared to play a sensitive insider role for Scruggs in the largest and most lucrative legal settlement in history, the tobacco-Medicaid deal between state attorneys general and cigarette companies, the ethical squalor of which was a central topic of my 2003 book The Rule of Lawyers; as mentioned previously, when Dickie Scruggs routed mysterious and extremely large tobacco payments to P.L. Blake, he used attorney Langston as intermediary.
- Langston has repeatedly taken a high profile in the same fields of litigation as has Scruggs, including not only suits over asbestos, tobacco and welding rods but also two of Scruggs’s “signature” campaigns, those against HMOs/managed care companies and not-for-profit hospitals.
- Though the firm is better known for its plaintiff’s-side work, the Langston firm’s “national practice” page asserts: “The Langston Law Firm virtually defined the role of ‘Resolution Counsel’ in the modern era of jurisprudence. Prominent domestic and foreign companies facing massive litigation have turned to The Langston Law Firm to create winning strategies to save their companies.”
Many commenters (as at David Rossmiller’s) have noted that Langston appears to have drawn an unusually favorable plea deal from federal investigators, who are granting him remarkably broad immunity as to uncharged offenses, and not even stipulating that he give up all ill-gotten funds. Presumably this signals that they expect Langston’s cooperation to be unusually extensive and valuable. One hopes that this cooperation will include the full and frank disclosure of any earlier corruption and misconduct there may have been in all the past litigation in which Langston has been involved. In particular, tobacco, asbestos, and pharmaceutical litigation have all raised suspicions in the past because of instances in which forum-shopping lawyers took lawsuits of national significance to relatively obscure local courts — quite often in Mississippi — and proceeded to get unusually favorable results which paved the way for the changing hands of very large sums in settlement nationally. Were all these results achieved honestly?
Incidentally, and because it may confuse those researching the matter on the web, it should be noted that there is a second prominent Mississippi plaintiff’s lawyer who bears the same surname but has not been involved in the recent Scruggs scandals, that being Joey’s brother Shane Langston, formerly of Jackson-based Langston, Sweet & Freese. Shane Langston, whose name turned up often in connection with the “hot spots” of pharmaceutical litigation of Southwest Mississippi, has more recently been in the news over client complaints regarding alleged mishandling of expenses related to the Kentucky fen-phen litigation scandals. [Family relationship between the two confirmed 1/16 on the strength of emails from several readers.] (& welcome WSJ Law Blog readers)
[First of a two-part post. The second part is here.]
Tagged as:
asbestos,
attorneys general,
Dickie Scruggs,
fen-phen,
hospitals,
Joey Langston,
Kentucky,
Kentucky fen-phen settlement fraud,
Mississippi,
P.L. Blake,
product liability,
scandals,
Timothy Balducci,
tobacco,
tobacco settlement,
welding
As one of our reader/informants sums up this litigation against a Kentucky surgeon filed by (and backfiring against) a Tennessee attorney: “Plaintiff lawyer (who is a JD/MD) gets sued by both his plaintiff client and the defendant doctor and he loses to both.” (Andrew Wolfson, “Attorney is loser in malpractice lawsuit”, Louisville Courier-Journal, Nov. 28; Childs, Dec. 27). More on countersuits by doctors: Point of Law, Dec. 20.
Tagged as:
Kentucky,
loser pays,
medical,
Tennessee
Two noteworthy stories in the Mississippi press: Anita Lee of the Biloxi Sun-Herald takes a look at “Dickie Scruggs’ $50 million man: What did P.L. Blake do to earn all that money?” (Dec. 16; some earlier Blake discussion).
Blake will earn $50 million, court records show, for clipping newspaper articles and alerting Scruggs to maneuvering in political “cloakrooms,” as Scruggs put it, from Mississippi to Washington. …
Accounts of how Blake earned the money are vague and contradictory.
Even more surprising, Blake and Scruggs were unable to say whether they sealed their business agreement with a handshake or in writing.
A few points brought out in the article: “Scruggs said Tom Anderson, who then worked in Lott’s office, referred Blake to Scruggs.” Attorney General Mike Moore, nominally Scruggs’s public client after hiring him to advance the state’s interests in the tobacco litigation, was aware that Blake was being paid, though he professes surprise at how much. And Scruggs routed the $10 million in initial tobacco payments to Blake through attorney Joey Langston as intermediary. (more discussion)
The assignment of steady continuing payments to Blake over the life of the tobacco settlement distinctly resembles a gesture toward diverting a share of the tobacco proceeds (a contingency share, as it were) to reward and incentivize Blake, or perhaps Blake-and-others-too, to work for the success of the deal. [corrected 12:24 on proofreading after posting; I mistakenly used a wrong surname in place of "Blake" here and below.]
If reporters or others at some point succeed in reaching and questioning Blake, who is said to have moved to Alabama, presumably one of the questions worth asking him will be: is he really the final recipient and ultimate beneficiary of all that impressive cash flow — declaring it on his income tax, having all the funds available for his personal use, and so forth — or does he pass/has he passed some of the money along to anyone else? If he keeps it all, it’s no wonder the questions will keep re-echoing about whether his services could really have been worth that much. If it turns out he is passing/has passed some of it along to another actor or actors, why would things have been arranged that way? One possibility — though not the only one, of course — is that such further beneficiary or beneficiaries might not wish to be known publicly as holding a share in the payouts of the great tobacco project. (Update: a Monday article by Anita Lee in the Sun-Herald (”Blake’s information ‘right-on’”, Dec. 17) quotes Moore saying that Blake seemed to have accurate intelligence in what was going on in tobacco-industry and Republican circles.)
The other noteworthy story is by Jerry Mitchell in the Jackson Clarion-Ledger (”Feds probe Hinds case under scrutiny”, Dec. 16). It confirms that one of the “bodies buried” that Balducci told federal agents about relates to the Luckey/Wilson asbestos fee matter, which was eventually split into two legal proceedings, both hard-fought, with Luckey faring better than Wilson in the legal battle against Scruggs. In addition, the search warrant for the Langston law firm sought documents relating to the Wilson case “as well as documents regarding payments to Jackson lawyer Ed Peters, who played no known role in the case. In 2001, Peters retired as Hinds County district attorney.”
An active comment thread at Lotus/folo includes additional information about Peters, among other topics, and also passes along details about some of non-wannabe Timothy Balducci’s past involvements in high-stakes litigation, from his own promotional material. A sampling:
In 2006, Tim was Lead Counsel in Mississippi’s successful prosecution of securities fraud claims against Citigroup in Federal District Court in New York. His success in representing the state in so many complex litigations was a major factor which contributed to his selection by the Commonwealth of Kentucky to prosecute an action on its behalf to recover over $1 Billion dollars in government funds from a major chemical manufacturer. Also, the United States District Court in Charleston, South Carolina, selected Tim to serve on the National Leadership Committee for the ReNu contact lens solution litigation against Bausch & Lomb.
Notes a commenter: “it’s amazing how much lawyering these tiny law firms seem to get done. It’s just as amazing that he gets it done with *no reported decisions.* Pretty strange.”
Alan Lange at Y’All Politics is back with a synopsis of Scruggs’s current troubles, and as always don’t miss the David Rossmiller updates (Dec. 15 and Dec. 16).
Tagged as:
Alabama,
asbestos,
attorneys general,
Dickie Scruggs,
Joey Langston,
Kentucky,
Mississippi,
scandals,
South Carolina,
Timothy Balducci,
tobacco settlement
