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Manhattan Institute

TrialLawyersIncNew from the Manhattan Institute’s Trial Lawyers Inc. project, on health care and the Litigation Lobby; a few of its highlights are summarized here, at Point of Law.

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Manhattan Institute Senior Fellow John Avlon, in Forbes:

New York City spends more money on lawsuits than the next five largest American cities — Los Angeles, Chicago, Houston, Phoenix and Philadelphia — combined. The city’s $568 million outlay in fiscal year 2008 was more than double what it spent 15 years ago and 20 times what it paid in 1977.

And the odd and extreme cases continue:

A Brooklyn insurance investigator won $2.3 million this year after he tumbled onto the subway tracks with a 0.18 blood-alcohol level and lost his right leg. (”They’re not allowed to hit you just because you’re drunk and on the track,” his lawyer explained.) A corrections officer received $7.25 million after unsuccessfully attempting suicide, on the grounds that the city should not have permitted her to have a gun. (”Ms. Jones could just have easily turned her city-authorized firearm on anyone,” her lawyer said.)

The piece is adapted from a contribution to a City Journal symposium, “New York’s Tomorrow”, and there’s also an associated podcast (cross-posted from Point of Law). More: Eric Turkewitz talks back from a plaintiff’s point of view (”when you account for inflation, there really hasn’t been much change at all” [compared with 15 years ago)] (& welcome Above the Law, WSJ Law Blog readers)

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Microblog 2008-12-19

by Walter Olson on December 19, 2008

  • Newest “Trial Lawyers Inc.” report is on Louisiana [Manhattan Institute, Point of Law]
  • Mel Weiss disbarred automatically w/strong language from judges [Matter of Weiss h/t @erwiest]
  • Pro se claimant: I wrote down cure for cancer and then the darn hospital stole it! [Above the Law]
  • “California Supreme Court Ruling May Deter Good Samaritans” [The Recorder; SF Chronicle with copious reader comments, GruntDoc, our coverage last year]
  • Due diligence on dodgy funds? Sometimes it seems everyone’s relying on someone else to do that [Bronte Capital] Madoff fraud may date to 1970s, maybe “recent laxity” angle has been overdone [Securities Docket] “Ponzi crawl” = pub crawl whereby new person is added at each location and has to buy a round [Re Risk]
  • Radley Balko on Julie Amero malware-prosecution story [Reason, earlier]
  • Join Paul Ehrlich in some of the world’s most famously refuted predictions, and you too may get to be Obama’s science adviser [John Tierney/NYT, John Holdren]
  • Wisconsin Minnesota pig-sitter trial set for March, claim is that defendant let star porker overfeed and gain a hundred pounds [LaCrosse Tribune h/t @kevinokeefe]
  • More on the Patent and Trademark Office “acceptable error” employment case [Venture Chronicles, Jeff Nolan; earlier]
  • Procter & Gamble “Satanism” case finally settles, soap giant got $19 million verdict against four Amway distributors who spread rumor [OnPoint News]
  • Once filing of a suit severs the channels of communication, attorneys and clients alike begin to make up “what really happened” narratives [Settle It Now]
  • Sometimes lawyers need to be formal. Don’t IM “Court denied your appeal u will b executed saturday thx” [Beck & Herrmann]
  • Bangladesh hoping to build replica of Taj Mahal despite copyright claims [Times Online h/t @mglickman]
  • Midnight regulations? “OMB Watch” vigilant (and with reason) during this R-2-D transition but sang different tune in 2000’s D-2-R [Gillespie, Reason]

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Yesterday the Manhattan Institute unveiled a new study by my colleague there, Senior Fellow Marie Gryphon, entitled “Greater Justice, Lower Cost: How a ‘Loser Pays’ Rule Would Improve the American Legal System” (podcast; Pajamas TV video). It’s got an introduction by former New York mayor Rudy Giuliani, whose endorsement of the idea all by itself counts as a welcome news story, I think. I was part of the panel discussion held to welcome the paper, along with Philip Howard of Common Good, Ted Frank of AEI (and this site), and NYU law professor Mark Geistfeld. Some coverage of and reactions to the study: ABA Journal, AmLaw Litigation Daily, Quin Hillyer @ Washington Examiner, Brooklyn Daily Eagle, Legal NewsLine, Jane Genova, and Jim Copland and Michael Krauss at Point of Law.

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I’ll be on a morning panel discussion sponsored by the Manhattan Institute to discuss a new paper on loser-pays reform by Marie Gryphon. Details here.

New at Point of Law

by Walter Olson on November 3, 2008

If you’re not visiting my other site — or subscribing to it in your RSS reader, or following its Twitter feed — here’s some of what you may have missed lately:

Manhattan Institute fellow Marie Gryphon, in National Review, on the state’s loser-pays rule:

Alaska’s unique rule is a product of its history. When the United States purchased Alaska from Russia in 1867, the icy wilderness had so few inhabitants that the U.S. neglected to establish immediately any civil law there at all. Congress instituted a civil legal system for Alaska in 1884 through an Act that borrowed from Oregon’s civil code and applied it to the new territory virtually wholesale. At that time, an Oregon statute allowed the prevailing party in a civil suit to recover attorney’s fees from the loser. While Oregon unwisely dumped its loser-pays rule eventually, Alaska embraced loser pays and stuck with it. …

The Alaska Judicial Council conducted a review of Alaska’s loser-pays rule in 1989 and found that, while the law could not deter filings by irrational plaintiffs, it did reduce the number of low-merit lawsuits in Alaskan courts. The Council also found that a majority of Alaskan attorneys liked the system and believed that it functioned well.

(cross-posted from Point of Law).

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Welcome LA Weekly readers; this website is mentioned and I am quoted in a less-than-entirely-coherent story about mold litigation in this week’s LA Weekly. The story focuses on Sharon Kramer, who has given up a full-time career to pound the drums over her fight with her insurer alleging mold harms after a remediation; and an unfortunate lawsuit brought by scientist Bruce Kelman against Kramer. Kelman only wants an apology from Kramer for her issuing a press release that falsely claimed he lied under oath; Kramer has refused, and Kelman is still stuck in litigation where he will likely come up with a Pyrrhic victory. (Kelman’s work writing a layperson’s guide to the science of mold for the Manhattan Institute is central to the libel allegations.) Kramer, meanwhile, blames her aging on exposure to mold, rather than, say, turning 56. The story suffers for treating Erin Brockovich as the archetype of a justified plaintiff; Overlawyered readers know better.

The story is worthwhile for one new tidbit of information, the poetic justice facing Ed McMahon for his bogus mold lawsuit:

In 2003, another raft of huge mold news stories broke nationwide, and Kramer paid close attention. The most famous, and strangest, was that of Johnny Carson’s sidekick Ed McMahon, who took a $7.2 million settlement after suing for $20 million in his claim that mold made him and his wife sick — and killed his sheepdog, Muffin. …

In the McMahon case, some see the tragic unraveling of a popular public figure egged on by an attorney, Allan Browne. No hard, scientific evidence was ever made public proving that McMahon or his dog suffered the specific mold allergies and immune-system problems that, in rare cases, can be set off by household mold.

Since then, McMahon has become a sad figure, with a series of new troubles, including his default this year on his palatial 7,000-square-foot home on Mulholland Drive, involving a $4.8 million loan from the infamous lender Countrywide. And he just sued again, bizarrely accusing investment tycoon Robert Day of having in his mansion a poorly lit staircase on which McMahon says he fell during a party last year. McMahon is belatedly alleging he broke his neck but that doctors missed it.

The longtime TV pitchman spent years convincing the courts and the general public that his home contained rampant, poisonous, deadly mold strong enough to fell a large dog. McMahon talked it up for so long that he now faces the daunting task of selling a home he can no longer afford, that people believe is riddled with toxins.

Also interesting to me is the story’s quote of me. I gave an e-mail interview to the author, Daniel Heimpel in February. It’s interesting what gets used and what doesn’t get used, so I am going to attach the entire interview.

Here’s the full February 28 interview:

[click to continue…]

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Few battlegrounds of legal reform have been harder-fought than that in the state of Michigan, where I grew up. On the plus side, the Wolverine State has seen three rounds of legislatively enacted litigation reform, along with the appointment by former Gov. John Engler of probably the most reform-minded state supreme court majority in the nation. On the minus side, trial lawyer interests have long been key players in state politics, often practicing a bare-knuckled brand of advocacy, and the career of colorful (and recently acquitted) Geoffrey Fieger of Southfield, arguably the Midwest’s most prominent trial attorney, is virtually a synonym for waywardness in the courtroom and out.

Now the Manhattan Institute’s Trial Lawyers Inc. series, under the able direction of Jim Copland, has published a new installment taking a look at the state’s tense legal politics. Trial lawyers are expected to work hard this year to knock off reformist Supreme Court Justice Clifford Taylor at the polls, and are also engaged in an all-out push to repeal the state’s one-of-a-kind law directing its courts in liability cases not to second-guess Food and Drug Administration determinations on pharmaceutical approval and marketing. To get up to speed on these issues and more, start here. (cross-posted from Point of Law).

“Former heavyweight boxer Mitchell Rose has filed an $88 million dollar copyright lawsuit against Jay-Z in Brooklyn Federal Court, AllHipHop.com has learned.” Rose says he gave Jay-Z a demo tape in 2001 and that the musician took from it a style of rhyming, a “whispering” delivery, “and even certain lyrics” for which he should owe compensation. “Rose, 39, is also a personal injury lawyer who wrote a book called Mike Tyson Tried To Kill My Daddy.” (Nolan Strong, AllHipHop.com, Jun. 12). While we’re at it, my Manhattan Institute colleague John McWhorter has a new book out entitled “All About the Beat: Why Hip-Hop Can’t Save Black America“.

About

by Walter Olson on May 12, 2008

Overlawyered began in July 1999 and is regularly described as the oldest law blog; at least, no one seems to be able to name one that’s older. Its founder and predominant writer is Walter Olson, a senior fellow at the Manhattan Institute and author of several books about the U.S. litigation system, with (since 2003) frequent contributions by Ted Frank, who founded and directs the Center for Class Action Fairness; he was formerly director of the American Enterprise Institute’s AEI Legal Center and a practicing lawyer with O’Melveny & Myers. New Jersey lawyer David Nieporent, has also contributed occasionally, and the site has had dozens of visiting guestbloggers.

Walter Olson: editor – at – [this domain name]
Ted Frank: tedfrank – at – gmail – dot – com

The site is not published by, and should not be seen as reflecting the views of, any wider organization, such as the Manhattan Institute or AEI. Its modest hosting and operating expenses come out of my own pocket. The site took advertising for a while but at the moment does not.

For a sampling of the many nice things said about us, check our accolades page.

– Walter Olson, editor

The site’s original self-description:

Overlawyered.com explores an American legal system that too often turns litigation into a weapon against guilty and innocent alike, erodes individual responsibility, rewards sharp practice, enriches its participants at the public’s expense, and resists even modest efforts at reform and accountability.

I can’t say how excited I am to be here as a guest at overlawyered — the first legal blog still in existence! I’ll never be the indefatigable blogger that is my colleague Walter, or my friend and fellow legal reformer Ted, but I jumped at the opportunity to come over here to Mr. Olson’s “other” blog (he and Ted are also the mainstays of the Manhattan Institute’s PointofLaw.com, to which I occasionally contribute).

Overlawyered’s long-time readers have doubtless read a lot about asbestos. And we’ve covered asbestos litigation very extensively over at Point of Law. But there’s a lot of new material in the Manhattan Institute’s just-released Trial Lawyers, Inc.: Asbestos, as well as a lot of background for those new to the subject. Over the next week, I’ll be going through both.

I’d urge anyone interested to read the entire report, available here. Those who want a quicker review of some of the newer material should read my column in the Washington Examiner, which ran yesterday. And there’s a good overview of my thoughts in an on-line interview available here.

I’ll be back shortly to begin my walk-through of the report, looking at the underpinnings of the trial lawyers’ big asbestos machine.

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How many errors can you spot in the Jeannette Borzo/California Lawyer magazine story on legal blogging and its sentence about this weblog?

As best as most people can tell, the history of legal blogs began in July 1999 when two lawyers-a senior fellow at the Manhattan Institute and another attorney from New Jersey-launched Overlawyered (www.overlawyered.com).

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Yesterday the Manhattan Institute released a new report by my colleague Jim Copland, “Trial Lawyers Inc. — Asbestos“. As I note at Point of Law, even as a longtime observer of asbestos litigation I found it quite an eye-opener. I’m happy to announce that Jim Copland will be joining us tomorrow for a guestblogging stint to explain some of his findings.

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In addition to being a colleague of mine at the Manhattan Institute, Jay Greene is 1) a prominent national expert on education who 2) is based in the college town of Fayetteville, Ark., so I was eager to hear what he had to say about Dan Barry’s New York Times article of last month which called shame on the Fayetteville schools for their supposed toleration of the horrendous bullying of an unoffending high school student by the name of Billy Wolfe. Today Greene has a blog post on the case which concludes, as did I in my Apr. 8 post, that Barry’s coverage was by no stretch of the imagination responsible or balanced. Greene zeroes in on Barry’s assertions that “It remains unclear why Billy became a target…” and that “[Billy] has received a few suspensions for misbehavior, though none for bullying,” both of which appear, at best, grossly misleading in the light of a police report aired in the Northwest Arkansas Times detailing Billy’s alleged aggressions against other students, physical and otherwise. Greene also observes that his inquiry to the New York Times public editor about the discrepancies has gone unanswered aside from a form response. He adds:

Finding the police report and collecting all of the interviews found in the NW AR Times article would have required — uhm — reporting. It was much easier to take the story that the Wolfes’ attorney was peddling. And yes, the Wolfes are suing some of the other students and are planning to sue the school district. Barry’s article may read like a plaintiff’s brief because there actually is a plaintiff’s brief out there. …

Unfortunately, the Fayetteville School District is inexperienced with handing national reporters and they are handcuffed in responding to accusations because of student privacy issues and a pending lawsuit. Dan Barry from the NYT was able to ride roughshod over a small town school district. Maybe the Gray Lady is the most obvious bully here.

The full post is here. Among other local coverage not linked in my earlier post is an editorial in the Northwest Arkansas Times, Mar. 30, and John Brummett, “Bullies Crying ‘Wolfe’”, Northwest Arkansas Morning News, Apr. 2.

P.S. And now Gawker is on it.

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Education expert Jay Greene, a colleague of mine at the Manhattan Institute, has just launched his own blog, which is likely to be of wide interest. He gets off to a good start (Apr. 19) with a post based on a simple but clever idea for measuring influence:

If you stand on the steps of a state capitol building and throw a rock (with a really strong arm), the first building you can hit has a good chance of being the headquarters of the state teacher union. For interest groups, proximity to the capitol is a way of displaying power and influence. The teacher union, more than any other interest group, strives to be the closest. They want to remind everyone that among powerful interest groups, they are the most powerful – a prince among princes.

To see who has the most powerful digs, Jonathan Butcher and I actually bothered to measure just how close interest group offices are to state capitol buildings. We started with a list of the 25 most influential interest groups, as compiled by Fortune magazine. We then used Google Maps to plot the location of the state offices of those 25 interest groups and measured the distance to the capitol building.

The results are illuminating. Of the 25 most influential interest groups, the teacher union is the closest in 14 of the 50 states. The labor union, AFL-CIO, is the closest in 7 states. The American Association of Retired Persons (AARP) and National Federation of Independent Business are the closest in 5 states, each. The trial lawyers lobby, the American Association for Justice, is the closest in 4 states.

The teacher union is among the four closest interest groups in 27 states. The trial lawyers are in the top four in 22 states, followed by the AARP in 20 states and the AFL-CIO in 19 states. …

If we gave four points for being closest, three for being the second closest, two for being third closest, and one for being the fourth closest, teacher unions would have a total of 85 points. No other group would have more than 60 points. Only four of the 25 groups would have above 40 points, with the trial lawyers, AARP, and AFL-CIO joining the teacher union in this elite group.

As Greene notes, the point of capitol proximity may be less a practical one (shaving a minute or two off the time needed to drop by to do some influencing) as that of making “a visible display of their power and influence”, like having the most sought-after seats at a sporting event. He’s followed with a state-by-state rundown of proximity here.

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Some developments of the past ten days or so:

* In major blow to defense, Judge Biggers denies motions to suppress wiretap evidence and evidence of similar bad acts [Rossmiller]

* Balducci says he and Patterson got $500K from Scruggs to influence AG Hood to drop indictment of State Farm, motive being to advance civil settlement [Folo]

* WSJ gets into the act with some highlights of wiretap transcripts [edit page; earlier here]

* Sen. Trent Lott says he’s a witness, not a target, of federal investigation [Anita Lee, Biloxi Sun-Herald]

* Scruggs off the hook on Alabama criminal contempt charge [WSJ law blog, Rossmiller, Folo]

* “Mr. Blake has served for many years as a conduit and a layer of separation, if you will, between Mr. Scruggs and other people on sensitive issues.” (Balducci transcript highlights, Folo; more)

* In effort to get Zack Scruggs indictment dismissed, his lawyers dwell on switch from “y’all” to “you” as implying shift in persons addressed from plural to singular [Folo first, second; Rossmiller first, second; on a "sweet potatoes" point, NMC @ Folo and sequel; also]

* DeLaughter/Peters branch of scandal reaches deep into Jackson legal community [Adam Lynch, Jackson Free Press]

* Article in new American Lawyer notes that Scruggs’s ambitious suits have lately hit a big losing streak, notably those against HMOs, nonprofit hospitals and Lehman Brothers [Susan Beck]. And Lotus catches an interestingly lawyerly wording on John Keker’s part [Folo]

* I’m quoted and this site is discussed in an article on blog coverage of the case; my lack of clarity as an interviewee probably accounts for Scruggs being said to have addressed audiences at the Manhattan Institute “a few” times, when if memory serves the correct reference is “twice”. [Patsy Brumfield, Northeast Mississippi Daily Journal (Tupelo) @ Folo]

* For more background see our Scandals page; also YallPolitics.

Flu shots in supermarkets

by Walter Olson on February 10, 2008

The mayor of Boston is against ‘em: “allowing retailers to make money off of sick people is wrong.” (David Gratzer, “Health care innovation, and its enemies”, Examiner.com, Feb. 7). More views: Gene Pinkham, “Is the flu on your shopping list?”, Malden (Mass.) Observer, Jan. 18 (sick people might start visiting supermarkets and we can’t have that); Paul Howard (Manhattan Institute), “Competition won’t ail you”, Boston Herald, Feb. 9. More: Bainbridge.

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