Posts Tagged ‘McDonald’s’

June 24 roundup

  • Judge lifts gag order against Reason magazine in commenter subpoena case, and U.S. Attorney’s Office for Manhattan is shown to have behaved even more outrageously than had been thought [Nick Gillespie and Matt Welch, Ken White/Popehat (magistrate’s approval of gag order looks an awful lot like rubber stamp; AUSA directly contacted represented party), Paul Alan Levy (when bloggers push back, gag orders tend to get lifted), Matt Welch again with coverage roundup]
  • Maryland authorities clear “free range” Meitiv family of all remaining charges in kids-walking-alone neglect case [Donna St. George, Washington Post]
  • Disgraced politico Monica Conyers sues McDonald’s over cut finger [Detroit News]
  • American Law Institute considers redefining tort of “battery” to protect the “unusually sensitive”, Prof. Ronald Rotunda on problems with that [W$J]
  • “Did you ever falsely represent yourself as an attorney?” asks the lawyer to her client in front of reporter [Eric Turkewitz]
  • Feds endorse alcohol-sniff interlock as new-car option, critics say eventual goal is to force it into all cars, assuming rise of self-driving cars doesn’t moot the issue first [Jon Schmitz/Tribune News Service]
  • Echoes of CPSIA: regulatory danger is back for smaller soap and cosmetic makers as big companies, safety groups combine to push Personal Care Products Safety Act [Handmade Cosmetic Alliance, Elizabeth Scalia, Ted Balaker, Reason TV and followup (Sen. Dianne Feinstein objects to “nanny of month” designation, points to threshold exemptions for smaller businesses), earlier on predecessor bills described as “CPSIA for cosmetics”, National Law Review (panic over recent NYT nail salon expose might contribute to momentum)]

Disabled rights roundup

  • Per The Economist, long-awaited Justice Department rules decreeing ADA accessibility for websites (earlier here, here, etc.) expected any day now, “in June. For example, each picture must have text describing it, so that screen-reader programs can tell blind people what is there.” Individual enforcement actions, as against Peapod, aren’t waiting [DoJ press release] Settlement with MOOC firm signals DOJ plans to deal with online education providers [Cooley] Contributor believes it’s a snap to include online captioning in all online Harvard and MIT courses, so what’re they waiting for? [Time]
  • Rest of the Economist article is of interest too, especially on ADA filing mills in Florida and elsewhere;
  • In Sheehan v. San Francisco, Ninth Circuit created right to ADA accommodation in confrontations with law enforcers, SCOTUS reversed on other (qualified immunity) grounds [Mark Pulliam, City Journal; Richard Re, Prawfs]
  • Commemorations of 25th anniversary of the ADA — here’s what I had to say about the 20th — include plans “to hold [various Chicago institutions] publicly accountable for their commitments” to, inter alia, “increase civic engagement around disability issues” [Michael Waterstone, Prawfs]
  • Sacramento: “Squeeze Inn owner joins fight against costly ADA lawsuits” [KCRA]
  • Spread of fake service dog paraphernalia alarms groups that work with actual service dogs [BBC]
  • Intended class-action plaintiff sues McDonald’s over new style Coca-Cola Freestyle dispensers, saying touchscreen format unfair to disabled users []

Liability roundup

  • Kip Viscusi: current structure of tort law gives firms like General Motors reason not to investigate risks/benefits of their designs [Alison Frankel, Reuters]
  • California woman in trouble after allegedly sending “faked treatment documents and burn photos from a hospital website” to bolster hot coffee spill claim against McDonald’s [ABA Journal]
  • Despite Kumho Tire, Joiner, and amendments to evidence rules in 2000, Eighth Circuit cuts its own liberal path on expert witness admissibility [Bernstein]
  • “In the BP case, the rule of law is on trial” [Lester Brickman, The Hill, on cert petition]
  • “Fighting and Winning Against Pit Bull Defense Lawyers” [Ronald Miller]
  • Business groups savor victory in racketeering suit over concocted asbestos claims [Barrett, Bloomberg Business Week]
  • Peter Spiro adds another favorable review of Paul Barrett’s Chevron/ Ecuador book Law of the Jungle [Opinio Juris]

California high court rejects franchisor-as-joint-employer liability

Like most courts to consider the issue, the California Supreme Court in a case involving Domino’s Pizza has held that a franchisor generally cannot be held liable for the independently made employment decisions of one of its franchisees. Who would disagree with that commonsense view? Well, the Obama National Labor Relations Board (NLRB), as well as three liberal dissenters on the seven-member California court, who would have left it up to case-by-case jury factual balancing, an arrangement likely to coax settlement offers from risk-averse franchisor defendants. [Daniel Fisher, Forbes, also; Shaw Valenza; Fox Rothschild; Gordon Rees; related, Epoch Times last week quoting me; earlier here, here, and here]

Aaron Schepler, Quarles & Brady;

In the supreme court’s view, the fact that Domino’s exercised extensive control over the manner in which the franchisee operates its business was merely a way to ensure the uniformity of the customer experience at its franchised outlets. As the court explained, this uniformity actually benefits both parties to the franchise relationship because “chain-wide variations … can affect product quality, customer service, trade name, business methods, public reputation, and commercial image” and, thus, the value of the brand. And because “comprehensive operating system[s]” are present in nearly every franchise relationship, those systems standing alone could not reasonably “constitute[] the ‘control’ needed to support vicarious liability claims like those raised here.”

Labor roundup

  • What’s wrong with the NLRB attack on McDonald’s franchising, cont’d [On Labor, earlier here, here, etc.]
  • Postal union calls in American Federation of Teachers, other public employee unions to kill Staples postal partnership plan [Huffington Post]
  • U.S. Department of Labor uses coercive hot-goods orders to arm-twist blueberry farmers, judges say no [Jared Meyer, Econ21 and Salem Statesman-Journal]
  • “Watch Closely Obama’s Treatment of Unions” [Diana Furchtgott-Roth] “Obama ‘Fair Pay and Safe Workplaces’ Executive Order Will Punish Firms in Pro-Worker States” [Hans Bader, CEI]
  • Judge: massive document request signals NLRB’s emergence as litigation arm, and co-organizer, of unions [Sean Higgins, Examiner] Wobblies on top: NLRB sides with IWW workers over poster claiming eatery’s food was unsafe [Minneapolis Star-Tribune, earlier]
  • Academic debate on union issues already wildly lopsided, union-backed labor history curriculum unlikely to help [Alex Bolt, Workplace Choice]
  • Turning unionism into a protected-class category in parallel with discrimination law is one of the worst ideas ever [Jon Hyman, earlier here, etc.]

Food roundup

NLRB claims franchisors are joint employers

In this Cato podcast (7:01), I talk with Caleb Brown about the National Labor Relations Board’s groundbreaking attempt last week to tag McDonald’s with liability for labor violations found at its independently owned local operators. (Reportage: Steven Greenhouse, NYT; Jon Hyman; Diana Furchtgott-Roth/RCP) It’s a drastic departure from current law that would carry implications for outsourcing more generally: a food company that contracts with independent farmers to grow a particular crop, for example, might wind up being liable for the farmers’ treatment of farm workers, a company that outsources its cafeteria, vehicle maintenance, or janitorial services to outside vendors might become legally responsible for ensuring the labor-law compliance of those contractors, and so forth.

The McDonald’s case is the first of what is expected to be multiple cases filed by the NLRB’s general counsel (akin to a prosecutor), and the full Board has not ruled on the resulting complaints, although given the union-friendly role of the Obama NLRB that is likely to be little more than a formality. The initiative will inevitably land in the courts, which have not always been friendly toward Obama regulatory adventurism, and perhaps eventually the Supreme Court.

One consequence, successful or otherwise, if this ploy works: by treating legally distinct entities that contract with each other as if they were parts of a single vertically integrated enterprise, progressive labor law thinkers will create an incentive for giantism to become more real, by giving fast-food franchisers, for example, legal reason to move toward company-owned rather than independently-owned store arrangements. Not for the first time, the law would mow down the ranks of mid-sized businesses in favor of large or nothing. Commentary from others: Megan McArdle; Stephen Bainbridge; Catherine Fisk, On Labor (supporting the idea); Steve Caldeira, The Hill; Alex Bolt. And a relevant House hearing.

Liability roundup

  • By convention the business/defense side isn’t fond of jury trial while plaintiff’s side sings its praises, but Louisiana fight might turn that image on its head [Hayride, sequel at TortsProf (measure fails)]
  • Generous tort law, modern industrial economy, doing away with principle of limited liability: pick (at most) two of three [Megan McArdle]
  • Fallacies about Stella Liebeck McDonald’s hot coffee case go on and on, which means correctives need to keep coming too [Jim Dedman, DRI]
  • Interaction of products liability with workplace injury often provides multiple bites at compensation apple, overdue for reform [Michael Krauss]
  • Ford Motor is among most recent seeking to pull back the curtain on asbestos bankruptcy shenanigans [Daniel Fisher; related, Washington Examiner] “Page after page he sits on the straw man’s chest, punching him in the face” [David Oliver on expert affidavit in asbestos case]
  • Kansas moves to raise med-mal caps as directed by state supreme court, rebuffs business requests for collateral source rule reform [Kansas Medical Society]
  • Let’s hope so: “More stringent pleading for class actions?” [Matthew J.B. Lawrence via Andrew Trask, Class Strategist]

Food roundup

  • “Farm Free Or Die! Maine Towns Rebel Against Food Rules” [NPR on “food sovereignty” ordinances]
  • “How much sense does it make for Detroit to be worrying people will open restaurants without enough parking?” [@mattyglesias]
  • Report: undercover cop co-wrote anti-McDonald’s leaflet that resulted in famous UK libel suit [Guardian]
  • Quizzed on food policy, post-Bloomberg NYC mayoral hopefuls offer many bad ideas; Republican John Catsimatidis, grocer, proposes regs “that would require new buildings to rent to grocery stores.” [Edible Geography]
  • Spontaneous consumer discontent over labeling? No, lawyer-driven: consortium of law firms has sued more than 30 food cos. in single federal court [WLF]
  • Private GMO labeling a wave of the future? [Baylen Linnekin]
  • “Eight toxic foods: a little chemical education” [Derek Lowe, Corante “Pipeline”, schooling BuzzFeed]
  • Obamacare calorie-count display mandate likely to curb menu variety [Liz Thatcher, RCP, earlier]

Judge orders man to take down Facebook comments critical of McDonald’s class action settlement

“Wayne County, Mich. Judge Kathleen MacDonald slapped a Dearborn man with an injunction ordering him to take down his Facebook comments critical of a class-action settlement of a case against McDonald’s for selling non-halal meat.” [Daniel Fisher, Forbes; Paul Alan Levy, Public Citizen; Ted Frank, PoL] More: Blue Dog Thoughts.