Chronicling the high cost of our legal system

Overlawyered

June 5th, 2008 at 1:09 pm

Ignatius on trial bar scandals; New Yorker on Scruggs

“At its worst, the system is close to legalized extortion. … It would be nice if the class-action lawyers reformed themselves, but if not, someone should file a lawsuit.” But op-ed columnist David Ignatius regards Melvyn Weiss and Dickie Scruggs as “good guys” gone wrong and says what occasioned their downfall “was a system in which the money just got too big”. This suggests their practices were more honest and aboveboard at an earlier stage in their careers when the stakes were smaller, but Ignatius does not offer evidence for this view, and I wonder whether he has any (”Reining In the Kings of Tort”, Washington Post, Jun. 5).

Relatedly, the New Yorker published a big article last month on the Scruggs scandal by correspondent Peter Boyer. (”The Bribe”, May 19, abstract; PDF at WSJ law blog). David Rossmiller, unsurpassed chronicler of that scandal, does an excellent job explaining why the article is, not wrong, exactly, but disappointing (May 27).


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June 3rd, 2008 at 11:32 pm

“The paid plaintiffs and their corrupt attorneys”

Judge Walter, pronouncing sentence, wasn’t buying any of the “victimless crime” spin from the Mel Weiss camp:

The wrongdoing, which included submitting false statements to courts overseeing the lawsuits, “strikes at the core — at the heart of the judicial system,” the judge said. …

Judge Walter said he was dubious of arguments that the conspiracy was a “victimless crime” because the firm, best-known simply as Milberg Weiss, vigorously represented investors in the cases that were brought. “In effect, the absent class members were at the mercy of the paid plaintiffs and their corrupt attorneys in this invidious scheme,” the judge said. The lead plaintiffs taking the secret payoffs may have been more interested in boosting Milberg’s fees than in getting the maximum recovery, the judge said.

Josh Gerstein at the Sun has more on the sentencing, including hints as to the curious role of a Denver, Colorado lawyer named Gary Lozow. (”Lawyer Weiss Gets 30-Month Sentence for Kickbacks”, Jun. 3).


In
June 2nd, 2008 at 4:37 pm

Weiss sentenced to 30 months

The judge chose to go near the high end of the plea-negotiated range of 18 to 33 months. (Bloomberg; earlier guilty plea, letters asking leniency from Arthur Miller et al., background).


In ;
May 29th, 2008 at 2:58 pm

“Mother Teresa, move aside”

Mel Weiss — yes, that Melvyn Weiss, of Milberg Weiss, the one who ran a corrupt but lucrative kickback scheme premised on systematic lies to judges over decades, then stonewalled its disclosure through years of investigation — “deserves recognition as ‘one of the greatest humanitarians of our time,’ according to a sentencing memo his lawyer filed Friday.” (Ben Hallman, “Urging Leniency, Big Names Go to Bat for Mel Weiss”, American Lawyer, May 28).

Included were more than 240 supportive letters filed by friends and well-wishers of the famously piratical class-actioneer. It’s hard to read the WSJ law blog’s excerpts from these letters without shedding a tear of admiration:

“Donald Kempf, the former chief legal officer at Morgan Stanley says that after an unexpected on-the-street encounter, Weiss offered to help Kempf find a certain kind of watch. “And he did.”

According to a letter submitted by a friend and art dealer in Sun Valley, Idaho, in a “spontaneous” gesture while in Vienna, Weiss bought the art dealer’s wife an expensive pair of boots.

(WSJ law blog, May 27). The roster (PDF) of character vouchers and pleaders for leniency includes many names familiar to readers of this site, including Stephen Susman, Benedict Morelli (president of the New York State Trial Lawyers Association), David Boies, Stan Chesley, Edward Labaton, and Christopher Seeger; the list is headed by lawprof and frequent Milberg Weiss expert witness Arthur Miller. We commented in February on the similar batch of letters on behalf of Weiss’s felonious collaborator Bill Lerach.


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March 25th, 2008 at 10:57 am

“My client is being framed”, cont’d

Our weekend post questioning defense attorney John Keker’s assertions of the innocence of client Dickie Scruggs (”prosecutors have concocted a ‘manufactured crime’ in which his client had no part”) drew a couple of comments from readers who saw Keker’s statements as no more than the zealous advocacy we should expect of a defense attorney. They’ve also been discussing the issue over at the WSJ law blog, where they quote defense attorney Benjamin Brafman’s rapidly disproved boast that his client Mel Weiss “will be fully exonerated,” as well as Monroe Freedman, the Hofstra legal ethicist and regular antipode of views expressed on this site, who

says that generally speaking, he doesn’t see problems with a lawyer making aggressive statements to the press in defense of his client. “We don’t know what the client told the lawyer when the lawyer made the statements,” he says. “We don’t know what Scruggs told his lawyer. We don’t know if Scruggs said I did it, but I want to fight it or something else entirely.”

George Sharswood’s Essay on Professional Responsibility, the standard American text on legal ethics before the modern period, contains the following assertion (pp. 99-100 of Google Books digitized version):

…no counsel can with propriety and good conscience express to court or jury his belief in the justice of his client’s cause, contrary to the fact. Indeed, the occasions are very rare in which he ought to throw the weight of his own private opinion into the scales in favor of the side he has espoused. If that opinion has been formed on a statement of facts not in evidence, it ought not to be heard — it would be illegal and improper in the tribunal to allow any force whatever to it; if on the evidence only, it is enough to show from that the legal and moral grounds on which such opinion rests.

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March 21st, 2008 at 12:09 am

Quoted in today’s Times

I’m quoted on the Melvyn Weiss guilty plea, and on the way certain crooks have successfully been passing themselves off as white knights in press coverage of shareholder and consumer litigation. (Jonathan D. Glater, “High-Profile Trial Lawyer Agrees to Guilty Plea”, New York Times, Mar. 21). For more on Weiss’s plea, see yesterday’s post.

More Weiss reactions include a NY Sun editorial:

Mr. Weiss and his partners made their careers, and their fortunes, casting those they were suing — insurance and tobacco executives, Swiss bankers — as crooks. Some of them may have been, though many were not. Now these lawyers are admitting to the court that they are crooks, too. … Congress has already acted to reform the class-action system from the “first-to-file” system that engendered the Milberg Weiss abuses. But until Congress and the state legislatures act further to reform the civil litigation system, the costs of Weiss’s career will be borne by all of us.

Interviewed by the L.A. Times, Columbia lawprof Jack Coffee (who’s done a lot of work for Milberg, right?) thinks Mel Weiss got a “uniquely good deal” in the plea. Similarly: Greenfield.


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March 20th, 2008 at 1:50 pm

Mel Weiss to plead guilty

WSJ: “Melvyn Weiss, the onetime powerhouse shareholders lawyer, has struck a deal to agree to plead guilty in a case alleging improper kickbacks, according to a person familiar with the investigation.” We’ve been covering the Milberg Weiss scandals on this site since they broke; my WSJ op-ed “Inside Milberg’s Credenza” is here. More:

According to a statement released Thursday by the defense lawyer, Benjamin Brafman, Mr. Weiss will plead guilty to participating in a criminal conspiracy to pay a share of legal fees to plaintiffs in shareholder suits brought by Milberg Weiss. Such kickbacks are improper because they give plaintiffs representing a class of all shareholders an incentive to accept a deal that might not be best for the class.

Under the terms of the plea agreement, Mr. Weiss faces a sentence of up to 33 months in prison. Mr. Weiss has also agreed to pay a total of $10 million in fines and penalties, according to the statement.

(Jonathan Glater, NYT). More at WSJ law blog (Weiss: “I deeply regret my conduct”) including a copy of the plea agreement and government statement, both PDF.

The firm of Milberg Weiss, formerly Milberg Weiss Bershad & Schulman LLP, famous for shedding indicted names as an ecdysiast sheds clothes on stage, is now down to plain old Milberg LLP, and will presumably be able to stop there, the Milberg after whom it was named being nearly twenty years deceased. (Bumped 1:50 p.m.)

And: World-class chutzpah morsel from the NYLJ: “If Mr. Weiss had proceeded to trial, his defense was expected to argue that he was so preoccupied with humanitarian and charity work during the charged period that Messrs. Bershad and Schulman had been able to carry on the kickback scheme without his knowledge.” In the plea agreement, Weiss stipulates that he was in effective control of the firm and its operations and party to the conspiracy, and agrees to forfeit a sum of nearly $10 million which he acknowledges is less than what he gained from the illegal conduct.

Plus: Portfolio:

Weiss made staggering profits from the kickback scheme. According to the indictment, his share of the law firms profits from 1983 to 2005 amounted to more than $209 million. …

Sanford Dumain, a member of the Milberg L.L.P. executive committee, said, “Having previously believed former leaders’ assurances of their innocence, the firm is now seeking to find a fair and appropriate resolution of remaining issues so that we can continue to work on behalf of injured investors and consumers.”

The firm added in a statement: “Milberg L.L.P. apologizes to all judges, lawyers, clients, and class members, who deserve full and complete adherence to all legal and ethical norms.”

Portfolio also reports that the Milberg firm is intent on obtaining a deferred prosecution agreement: “If the firm pleaded guilty to a federal criminal offense, it is highly unlikely that a judge would approve the law firm to serve as lead counsel for the plaintiff in a class action.” More on the firm’s renaming: Lat. And Carter Wood at NAM notes the silly encomia with which Weiss’s lawyer is still attempting to gild his crooked client.


In ; ;
February 7th, 2008 at 12:24 am

Exclusive: New details in Milberg Weiss obstruction of justice case

» by Ted Frank

The government accuses Mel Weiss of withholding a fax responsive to a subpoena that would have corroborated Hillel Cooperman’s claims of kickbacks hidden as options to purchase art. From the National Law Journal ($):

Prosecutors claim that Bershad, in response to the government’s 2002 subpoena, called Weiss to his office after discovering the fax and other documents in his desk drawer. “Weiss took them from Bershad, falsely stating, ‘David, you had nothing to do with the art option,’” prosecutors claimed in their recent motion. “Weiss then put the documents in his safe, concealing them from Milberg Weiss’ document custodian who was searching for documents responsive to the subpoena.”

Weiss then allegedly locked the documents in his safe. David Bershad has pled guilty, and is presumably the source for this conversation. Given the role of fundraising the law firm plays in Democratic politics (including for the two leading contenders for the Democratic nomination, Hillary Clinton and Barack Obama, and for John Edwards), one wonders why the only coverage of the ongoing scandal is in for-subscription legal papers. We have uploaded the government’s brief in opposition to Milberg Weiss’s motion to dismiss the obstruction-of-justice charge:

Continue Reading »


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February 6th, 2008 at 7:31 am

February 6 roundup

  • Calling it “oppressive”, committee chair in Mississippi legislature vows to defeat proposal to ban restaurants from serving obese patrons [AP/Picayune-Item; earlier]
  • Latest in whales vs. sub sonar: judge deep-sixes Bush’s attempt to exempt Navy from rules against bothering marine mammals [CNN; earlier]
  • Much-criticized opener of ABC’s new series Eli Stone aired last Thursday, and Orac takes a scalpel to the vaccine-scare script [Respectful Insolence, which also covers new autism studies]
  • Scary proposal approved by California assembly would strong-arm larger private foundations — and businesses that deal with them — into “diversity” numbers game [Lehrer/Hicks @ L.A. Times]
  • New Dutch study finds thin people and nonsmokers cost health system more in long run than obese and smokers — theories behind Medicaid-recoupment litigation are looking more fraudulent every day, aren’t they? [AP]
  • Late, but worth noting: blogger nails John Edwards’s demagoguery on Nataline Sarkisyan case [Matthew Holt @ Spot-On, via KevinMD; more here, here, and from Ted here]
  • Puff piece on food-poisoning lawyer William Marler [AP/KOMO]
  • Ready, set, all take offense: Sen. McCain likes to tell lawyer jokes [WSJ law blog]
  • In suit charging UFCW with “racketeering”, Smithfield cites as an underlying offense union’s having lobbied city councils to pass resolutions condemning the meatpacker; company has hired Prof. G. Robert Blakey, who denies the RICO law he drafted is a menace to liberty [Liptak, NYT; some earlier parallels in federal tobacco suit]
  • Golden age of comic books was 1930s-1950s, but golden age of comic book litigation is now [NLJ]
  • New at Point of Law: Hillary’s “disastrous” mortgage scheme; Qualcomm sanctions ruling could curb discovery abuse; if Mel Weiss has been kind to you, why drop him down memory hole?; new academic theory on uniformity of contingency fees; the trouble with patenting tax avoidance strategies; and much more [visit][bumped Wed. a.m.]


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January 29th, 2008 at 7:07 am

Milberg Weiss scandal: plaintiff-for-pay sentenced

Elderly (80) and ailing, retired entertainment lawyer Seymour Lazar drew an unusually light sentence of six months home detention after having “pled guilty to taking secret payments from Milberg Weiss for helping to bring dozens of securities lawsuits by serving as a plaintiff or arranging for his relatives to do so. Three former Milberg partners, William Lerach, David Bershad, and Steven Schulman, have also pled guilty in the scheme,” while the law firm itself and founder Mel Weiss continue to fight the charges and are expected to face trial later this year. “According to a statement from the prosecution, [federal judge John] Walter said he would have sentenced Lazar to a substantial prison term if he were younger and healthier.” (Josh Gerstein, New York Sun, Jan. 29).


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September 21st, 2007 at 12:03 am

Feds indict Mel Weiss

Critics long derided the federal investigation of Milberg Weiss as slow to produce results, but things are moving along at a brisk clip now, with an indictment charging the nation’s best-known class-action securities lawyer with conspiracy, racketeering, obstruction of justice and making false statements, just after his best-known former colleague at the firm, William Lerach, agreed to cop a plea deal. “In addition, Steven G. Schulman, a former senior partner at the Milberg Weiss firm, agreed to plead guilty to a racketeering conspiracy charge, prosecutors said.” (AP/Business Week; Jurist “Paper Chase”; ABA Journal first and second stories. Documents, all PDF: Milberg Weiss superseding indictment; Schulman charge, plea, press release).

The Sirota & Sirota law blog, an “unfriendly competitor” of Milberg Weiss in the class-action biz, has this post from June offering some perspective on the ongoing investigation.


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September 19th, 2007 at 11:48 am

More on Lerach plea

The Washington Post quotes me on the hubris that the now-disgraced class-action potentate came to symbolize (Carrie Johnson, “Guilty Plea to End Crusading Lawyer’s Lucrative Run”, Sept. 19). Few tears will be shed in Silicon Valley (Wired “Epicenter” blog, Sept. 18). The John Edwards campaign says it’s handing over Lerach’s contributions to charity, and the Joe Biden campaign says it’s already done so; no word yet from Hillary Clinton, who took Lerach money for her Senate bid (Josh Gerstein, “Fortunes Darken for Lawyer Melvyn Weiss”, New York Sun, Sept. 19). More coverage: Lattman, What About Clients?, NAM Shop Floor. Plus: Ben Smith at Politico has more on the John Edwards connection: “Though he’s giving away the $4,600 from Lerach, Lerach is also listed as a bundler, and employees of the lawyer’s firm are his third-largest group of donors, mostly giving in the first quarter.” (Sept. 19).


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September 19th, 2007 at 6:28 am

Lerach’s guilty plea

» by Ted Frank

Following up on Walter’s Sep. 18 roundup, Lerach should be proud of his lawyers: his plea deal is for a single count of mispaying Steven Cooperman, drops all of the Torkelsen-related charges, will likely get him out of prison in under two years, requires the government to forgo prosecution of his current law partners, and doesn’t require him to cooperate with the prosecution of Melvyn Weiss. He may well be disbarred afterwards, but he’ll also be a multimillionaire in his late sixties who can retire comfortably even after paying an $8 million fine, and nothing stops plaintiffs’ firms from offering small fortunes to Lerach to act as a “non-legal consultant.” [plea agreement; WSJ; The Recorder; NY Times]

Relatedly, Wired reprints its 1996 “Bloodsucking Scumbag” article.


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June 13th, 2006 at 5:10 pm

It’s only fair, the GOP had Enron

“The embattled securities class-action law firm Milberg Weiss Bershad & Schulman received some political backing last week with the release of a statement signed by four Democrats from the House of Representatives condemning last month’s indictment in Los Angeles of the firm on criminal charges. … The statement was signed by three representatives from New York — Charles Rangel, Carolyn McCarthy and Gary Ackerman — and Robert Wexler from Florida. One of the founders of the law firm, Melvyn Weiss, is a high-profile fund-raiser for the Democratic Party.” (Julie Creswell, New York Times/Wilmington (N.C.) Star-News, Jun. 12).

TheLawyer.com, based in the United Kingdom, fumbles the story badly by reporting that Milberg “has picked up a powerful ally in the shape of the US Congress”. (Joanne Harris, “US Congress slams Milberg Weiss indictment”, Jun. 13, note the equally erroneous headline). In fact, the four representatives who signed the letter are hardly typical members even of the Democratic caucus in the House, let alone of the Congress as a whole (which, someone should tell TheLawyer.com, is controlled by Republicans). See, for example, Jeremy Pelofsky, “Democrats returning money to two Milberg lawyers”, Reuters, Jun. 9 (Democratic National Committee, perhaps wiser than Reps. Rangel, McCarthy et al., seek to distance themselves from firm by returning some of its donations, a step already taken by New York’s Eliot Spitzer). More: Prof. Bainbridge, Jun. 12.


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May 22nd, 2006 at 12:10 am

“Inside Milberg’s Credenza”

I’ve got a lengthy op-ed in today’s Wall Street Journal (sub-only) discussing the indictment of Milberg Weiss. A few excerpts:

Since such payoffs are baldly illegal, prosecutors claim the firm took elaborate steps to keep them concealed from judges and others. They say Milberg funneled much of the money through law-firm cut-outs and other channels, including casinos, and drew on a stash of money kept in a safe located in a credenza in partner David Bershad’s New York office, “to which access was strictly limited.” Again and again, prosecutors add, the firm submitted sworn statements on behalf of its clients denying any receipt of the sorts of payments they were in fact receiving. …

With other class members absent, named plaintiffs are one of the few watchdogs against self-dealing or misconduct by the lawyers — specifically, the pursuit of settlements that result in high legal fees, whether or not they serve the interest of the class. … if the Justice Department’s allegations are correct, Milberg was taking no chances on the watchdogs staying pacified: It threw regular chunks of raw liver into their cages. …

The two celebrity lawyers who made Milberg famous, Melvyn Weiss and the now-departed William Lerach, have thus far escaped indictment: Of course, if they were prosecuting such a case, they would miss no opportunity to insinuate that misconduct by part of a team of top executives must have been at least tolerated by the others, that the rot goes straight to the top, that senior partners turned a convenient blind eye to signs of misconduct because they profited handsomely from that misconduct, and so forth. Messrs. Weiss and Lerach must count themselves lucky that such reasoning did not lead to their inclusion as defendants.

The Journal also has an editorial today on the subject.

Our earlier coverage: May 20 and links from there, May 21, as well as many posts at Point of Law. When The Economist profiled Melvyn Weiss three years ago, I told them, “A distinguishing characteristic of the Milberg Weiss approach is that the clients became tokens to be moved around a game board” (Jan. 17, 2002).


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February 4th, 2004 at 2:58 pm

Lerach to Forbes: just go away

Cover story in Forbes examines fissiparous but still pre-eminent class-action firm Milberg Weiss Bershad Hynes & Lerach, with details about the investigations of the firm under way for the past two years before federal grand juries in Los Angeles and Philadelphia. Among topics explored in the article: the firm’s relationships with repeat plaintiffs, with unions and with short sellers. Name partner Melvyn Weiss gets the cover photo; meanwhile, his West Coast counterpart William Lerach, “after initially responding to some questions from FORBES, refused to be interviewed and instructed in a terse e-mail: ‘Please don’t call, write or stop by ever again.’” (Robert Lenzner and Emily Lambert, “Mr. Class Action”, Forbes, Feb. 16)


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June 14th, 2003 at 2:07 pm

Archived class action materials, pre-July 2003


Madison County, Ill., 2003:To tame Madison County, pass the Class Action Fairness Act“, Jun. 12-15; “The intimidation tactics of Madison County“, Jun. 9; “‘Lawyers who won $10 bil. verdict had donated to judge’“, Apr. 30; “A bond too far“, Apr. 4-6; “Appeals bonds, again“, Apr. 2-3; “Mad County pays out again” (”light” cigarette class action), Mar. 24. 2002:Malpractice-crisis latest: let ‘em become CPAs“, Oct. 7-8; “Intel sued in notorious county“, Aug. 30-Sept. 2. 2000: Update: Publishers’ Clearing House case“, Feb. 29. 1999:  “Criticizing lawyers proves hazardous” (columnist Bill McClellan makes fun of class-action attorneys, they sue him for libel), Nov. 4 (& Nov. 30; Feb. 29, 2000)

Securities class actions, 2003:Prospering despite reform“, May 5; “‘Lawyers find gold mine in Phila. pension cases’“, Mar. 21-23; “NYC challenges class action fees; taxpayers save $200 million“, Feb. 28-Mar. 2 (& Jun. 20, 2000). 2002:Updates” (Ninth Circuit ruling), Oct. 1-2; “Second Circuit: we mean business about stopping frivolous securities suits“, Aug. 29-Sept. 2; “Financial scandals: legislate in haste“, Jul. 12-14; “‘How to stuff a wild Enron’“, Apr. 22; “Judge compares class action lawyers to ’squeegee boys’“, Apr. 18.  2001:Short-sellers had right to a drop in stock price“, Nov. 12; “Third Circuit cuts class action fees” (Cendant, CBS/ Westinghouse), Sept. 25-26 (& on Cendant, June 20, Sept. 4, 2000); “Dotcom wreckage: sue ‘em all“, Aug. 7-8; “‘2d Circuit Upholds Sanctions Against Firms for Frivolous Securities Claims’” (Schoengold & Sporn), July 23; “Razorfish, Cisco, IPO suits“, May 22; “Securities law: time for loser-pays“, Mar. 2-4; “3Com prevails in shareholder suit“, Feb. 21-22; “$1,000/hour for shareholder class lawyers” (Aetna case), Feb. 14-15; “What they did for lead-plaintiff status?“, Jan. 18 (& see Feb. 21-22). 2000:Did securities-law reform fail?“, Nov. 10-12; “Emulex fraud: gotta find a defendant“, Sept. 4; “Fortune on Lerach“, Aug. 16-17; “Lion’s share” (commodity brokerage case), May 5-7; “Fee shrinkage“, May 3; “Celera stockholders vent at Milberg Weiss“, Apr. 25-26.  1999: Piggyback suit not entitled to piggybank contents” (Second Circuit rejects fees in Texaco action), Oct. 9-10; “Effects of shareholder-suit reform“, Sept. 22.

Fee review, 2003:Vitamin class action: some questions for the lawyers“, May 28; “Sauce for the gander dept.“, May 19; “NYC challenges class action fees; taxpayers save $200 million“, Feb. 28-Mar. 2 (& Jun. 20, 2000). 2002:FTC cracks down on excessive legal fees“, Oct. 1-2; “Smog fee case: ‘unreal world of greed’“, Jul. 24.  2001:Court’s chutzpah-award nominee” (Wells Fargo), Oct. 17-18; “Third Circuit cuts class action fees” (Cendant, CBS/ Westinghouse), Sept. 25-26 (& on Cendant, June 20, Sept. 4, 2000); “Coupon settlement?  Pay the lawyers in coupons“, Mar. 16-18.  2000:Fee shrinkage“, May 3; “‘Accord tossed: Class members ‘got nothing’” (Equifax, 7th Circuit), Jan. 6. 1999:Class action fee control: it’s not just a good idea, it’s the law” (Ninth Circuit on “separately negotiated” fees), Nov. 30; “Piggyback suit not entitled to piggybank contents” (2nd Circuit, Texaco), Oct. 9-10. 

Milberg Weiss Bershad Hynes & Lerach, 2003:Prospering despite reform“, May 5; “Milberg copyrights its complaints“, Jan. 3-6.  2002:Updates” (Ninth Circuit ruling), Oct. 1-2; “Smog fee case: ‘unreal world of greed’“, Jul. 24 (& Dec. 5, 2000, Jun. 22-24, 2001); “Judge compares class action lawyers to ’squeegee boys’“, Apr. 18; “Milberg faces second probe” (Phila. politics), Feb. 27-28; “‘Probe of Milberg Weiss has bar buzzing’“, Jan. 28-29; “‘In a class of his own’” (Melvyn Weiss profiled in The Economist), Jan. 21-22.  2001:NFL satellite ticket class action“, June 5 (& update Aug. 20-21: court disallows settlement); “Update: cookie lawsuit crumbles“, May 9; “‘Lawyers to Get $4.7 Million in Suit Against Iomega’” (zip drive defect allegations), May 8; “California electricity linkfest” (representing San Francisco), March 26; “(Another) ‘Monster Fee Award for Tobacco Fighters’” (Calif. cities and counties), March 21-22; “3Com prevails in shareholder suit“, Feb. 21-22; “$1,000/hour for shareholder class lawyers” (Aetna case), Feb. 14-15; “What they did for lead-plaintiff status?“, Jan. 18 (& see Feb. 21-22).  2000:Fortune on Lerach“, Aug. 16-17; “Fee shrinkage“, May 3; “Celera stockholders vent at Milberg Weiss“, Apr. 25-26; “Class-actioneers’ woes“, Mar. 1; “Pokemon litigation roundup“, Jan. 10 (& Oct. 1-3, Oct. 13, 1999). 

Toshiba laptop settlement: see separate page on high-tech law

Microsoft class actions:Microsoft case and AG contributions“, Apr. 3-4, 2002; “Columnist-fest” (proposed settlement), Nov. 27, 2001; “Hiring talent from the opposing camp“, Feb. 28, 2000; “In race to sue Microsoft, some trip“, Dec. 23-26; “Microsoft roundup“, Dec. 3-5; “‘Actions without class’“, Dec. 2; “Class actions vs. high-tech“, Nov. 23; “Vice President gets an earful“, Nov. 22; “Microsoft roundup“, Nov. 17; “Fins circle in water“, Nov. 13-14; “Microsoft roundup“, Nov. 11; “Microsoft ruling: guest editorials“, Nov. 8; “Why doesn’t Windows cost more?“, Oct. 27; “Are you sure you want to delete ‘Microsoft’?“, Oct. 11. 

Employment class actions: see separate page on employment law.


Overlawyered.com commentaries:

Texas’s giant legal reform“, Jun. 18-19, 2003.

To tame Madison County, pass the Class Action Fairness Act“, Jun. 12-15, 2003; “‘Reforming class action suits’” (Class Action Fairness Act), Apr. 25-27, 2003.

Judge kicks class-action lawyers off case” (H&R Block), May 15, 2003.

Class action lawyer takes $20 million from defendant’s side“, Mar. 15-16, 2003.

FBI probes Philadelphia’s hiring of class action firm“, Jan. 31-Feb. 2, 2003.

Ninth Circuit panel sniffs collusion in bias settlement fees“, Dec. 16-17, 2002.

Auctions:Third Circuit cuts class action fees“, Sept. 25-26, 2001; “Letter to the editor” (competitive bidding for class representation), Jun. 13, 2001 (& Oct. 1-2, 2002). 

7,000 missing colors, many of them crisply green“, Aug. 29, 2002. 

‘Junk-fax’ suit demands $2 trillion“, Aug. 26, 2002; “Junk-fax litigation: blood in the water“, July 24, 2001; “Junk-fax bonanza“, March 27, 2001; “Junk fax litigation, continued“, March 3-5, 2000; “In Houston, expensive menus” (unsolicited faxes), Oct. 22, 1999. 

Penthouse sued on behalf of disappointed Kournikova-oglers“, Jun. 3-4, 2002. 

The mystery of the transgenic corn“, May 14-15, 2002. 

Editorial-fest“, Mar. 11, 2002; “Washington Post on class action reform” (good editorial), Aug. 29-30, 2001; “Actions without class” (Washington Post editorial), Dec. 2, 1999. 

The thrill of it all: plaintiffs win 28 cent coupon“, Feb. 27-28, 2002. 

‘Toyota buyers’ suit yields cash — for lawyers’“, Feb. 18-19, 2002; “Golf ball class action” (Acushnet Co.), Nov. 18-19, 1999; “Class action coupon clippers” (Washington Post on settlement abuses), Nov. 15, 1999. 

‘Congress looks to change class action system’“, Feb. 11-12, 2002; “‘They’re making a federal case out of it … in state court’“, Nov. 7-8, 2001. 

Selling out the class?” (allegations of collusive settlement in H&R Block case), April 5, 2001 (& see Dec. 3). 

Swiss banks vindicated“, Nov. 1, 2001. 

Letter to the editor (lawyers’ own incremental billing disclosed?), Oct. 22, 2001 (& see Dec. 3). 

Counterterrorism bill footnote” (forum shopping), Oct. 16, 2001; “Best little forum-shopping in Texas” (class actions make their way to Texarkana), August 27, 1999. 

Employment class actions: EEOC to the rescue“, Sept. 10, 2001. 

220 percent rate of farmer participation” (USDA black farmer settlement), July 25, 2001.

The rest of Justice O’Connor’s speech“, July 6-8, 2001. 

Blockbuster Video class action“, June 11, 2001 (& see July 3-4 (Vince Carroll column)). 

Letter to the editor” (First USA credit cards), June 13, 2001; “Bank error in your favor” (credit card holders), Sept. 27-28, 2000; & letter to the editor, Sept. 3, 2001. 

Ghost blurber case“, June 12, 2001. 

NFL satellite ticket class action“, June 5, 2001 (& update Aug. 20-21: court disallows settlement). 

Insurance class settlement scuttled“, Feb. 26, 2001. 

Florida lawyers’ day jobs, cont’d” (hotbed of class action filing), Dec. 11-12, 2000; “Florida’s legal talent, before the Chad War” (Florida Marlins ticketholders), Dec. 8-10, 2000. 

Obese soldiers class action“, Nov. 10-12, 2000. 

Sweepstakes, for sure” (American Family Publishers), Oct. 20-22, 2000; “Update: Publishers’ Clearing House case“, Feb. 29, 2000. 

Courtroom crusade on drug prices?“, Oct. 19, 2000. 

Class actions: are we all litigants yet?“, Aug. 23-24, 2000. 

Coke:Class-action lawyers to Coke clients: you’re fired“, July 21-23, 2000; “‘Coke plaintiff eavesdrops on lawyers; case unravels’” (what do lawyers tell each other after they think their clients have hung up on the conference call?), July 19-20; “‘Ad deal links Coke, lawyer in suit’” (Willie Gary, suing Coke, cuts lucrative ad deal with it), May 11, 2000.

Target Detroit” (lawyers countersue DaimlerChrysler and exec personally), July 19-20, 2000; “Turning the tables” (DaimlerChrysler sues class action lawyers), Nov. 12, 1999. 

Class-action assault on eBay“, July 13, 2000. 

AOL ‘pop-up’ class action” (ads said to be unfair), June 27, 2000. 

Rise, fall, and rise of class actions” (enormous increase in filing rates in past decade), Mar. 10-12, 2000. 

Criticizing lawyers proves hazardous” (columnist Bill McClellan makes fun of class-action attorneys, they sue him for libel), Nov. 4, 1999 (update Nov. 30: he criticizes them again, though suit is still pending); “Update: Publishers’ Clearing House case” (judge approves settlement including legal fee request; agreement reached to end libel suit), Feb. 29, 2000. 

Secrets of class action defense“, Feb. 25, 2000; “Mobile Register probes class action biz” (BancBoston and other mortgage escrow cases), Feb. 7, 2000. 

AOL upgrade’s sharp elbows“, Feb. 12-13, 2000. 

Weekend reading: columnist-fest” (Laura Pulfer on suit against Ralph Lauren outlet stores; Alex Cockburn on Swiss banks), Feb. 5-6, 2000. 

From our mail sack: unclear on the concept“, Jan. 28, 2000. 

Santa came late” (suit against Toys-R-Us for missing Christmas delivery), Jan. 19, 2000. 

Pokemon litigation roundup“, Jan. 10, 2000;  “Pokemon cards update“, Oct. 13, 1999; “Pokemon-card class actions“, Oct. 1-3, 1999

Expert witnesses and their ghostwriters” (life insurance class actions), Jan. 4, 2000. 

Lawyers for famine and wilderness-busting?” (anti-biotech), Jan. 3, 1999. 

Class action toy story” (antitrust), Dec. 29-30, 1999. 

‘In race to sue Microsoft, some trip’” (lawyers inadvertently copy details of pleadings in earlier cases), Dec. 23-26, 1999. 

Rolling the dice, cont’d” (suits over online gambling), Dec. 7, 1999 (earlier report, Aug. 26). 

Beware of market crashes” (class action sought against E*Trade for alleged computer-related trading losses), Nov. 26-28, 1999. 

Are they kidding, or not-kidding?” (proposals for suits against makers of fattening foods, losing sports teams), Nov. 15, 1999. 

Public by 2-1 margin disapproves of tobacco suits” (if class actions are filed on behalf of the public, why don’t they reflect public opinion?), Nov. 5-7, 1999. 

Demolition derby for consumer budgets” (class action against State Farm over generic crash parts), Oct. 8, 1999. 

Power attracts power” (Boies joins anti-HMO effort), Sept. 30, 1999; “Impending assault on HMOs“, Sept. 30. 

$49 million lawyers’ fee okayed in case where clients got nothing” (secondhand smoke action), Sept. 28, 1999; “Personal responsibility takes a vacation in Miami” (tobacco class-action verdict), Jul. 8, 1999.

Judge throws out four WWII reparations lawsuits“, Sept. 20, 1999. 

Tainted cycle” (Milwaukee taxpayers sue themselves), Sept. 2, 1999. 

Three insurers sued for $100 million” (how the press covers class action announcements), Aug. 20, 1999.


Resources on class actions are found at many different places on Overlawyered.com.  For example, most of the massive lawsuits filed against individual industries over personal injury to classes of consumers are covered on pages specific to the subject matter of the cases, such as the pages on firearms litigation, tobacco litigation, managed-care litigation, breast implant litigation, product liability, and so forth. 

This page assembles resources on class actions as a procedural device and as an institution.  Among topics covered are the unique role in this area of an “entrepreneurial” plaintiff’s bar that decides on its own behalf who and how to sue and lines up clients as needed; the history of the device and the reasons why it is either sharply limited or virtually unknown in the courts of other industrial democracies; the distinctive ethical problems that arise because of the extreme difficulty of policing lawyers’ faithfulness to the interests of the absent class; and the operations of the class action “industry” in the areas in which it has been a familiar part of the American legal landscape for decades, namely shareholder litigation and class actions over consumer and antitrust grievances aggregating large numbers of (usually smallish) claims. 

Background — procedural history, ethical issues:

Overlawyered.com’s editor wrote about class actions (as well as “champerty and maintenance”, the “invisible-fist theory”, and other topics) in Chapter 3 of his book The Litigation Explosion; an excerpt is online

Chapter 5 (”The New Town Meeting”) of Peter Huber’s book Liability: The Legal Revolution and Its Consequences contains a valuable discussion of the class action format, particularly as it applies to the so-called toxic tort; it is unfortunately not online. 

Lawrence Schonbrun, a Northern California attorney who has developed a specialty in filing challenges to excessive class action attorneys’ fee requests, wrote a prescient article in 1996 on “coupon deals”, “separately negotiated” fees from defendants, and other innovative ways the class action bar was finding to escape scrutiny of its remuneration.  (”Class Actions: The New Ethical Frontier“) 

Shareholder litigation:

A starting point for research on this topic is Stanford Law School’s comprehensive Securities Class Action Clearinghouse.  See also the commentaries on this site

In Felzen v. Andreas (1998), Judge Frank Easterbrook of the Seventh Circuit wrote that “Many thoughtful students of the subject conclude, with empirical support, that derivative actions do little to promote sound management and often hurt the firm by diverting the managers’ time from running the business while diverting the firm’s resources to the plaintiffs’ lawyers without providing a corresponding benefit.”  He cited a long list of scholarly articles including Janet Cooper Alexander, Do the Merits Matter? A Study of Settlements in Securities Class Actions, 43 Stanford L. Rev. 497 (1991), which found that the “structural characteristics common to securities class actions . . . combine to produce outcomes that are not a function of the substantive merits of the case.” and Roberta Romano, The Shareholder Suit: Litigation without Foundation?, 7 J. L. Econ. & Organization 55 (1991), which examined 39 shareholder suits filed between the late 1960s and 1987 and concluded that “shareholder litigation is a weak, if not ineffective, instrument of corporate governance.” 

In 1995 Congress passed the Private Securities Litigation Reform Act, which aimed to rectify some of the worst abuses in the field.  This client memo from Fried, Frank describes the wider powers institutional investors obtained under the act to influence litigation going on purportedly in the name of investors such as themselves. 

In Polar International Brokerage v. Reeve, a New York federal judge rejected a proposed class action settlement and request for $200,000 in attorneys’ fees, saying it offered shareholders “nothing of real value”.  (Deborah Pines, National Law Journal, May 24, 1999). 

Although the securities bar frequently alleges that well-known companies in Silicon Valley and elsewhere are run by crooked managements that fleece their shareholders, they ironically turn out to keep a lot of their (very substantial) stock holdings invested in the very same companies. (Paul Elias, San Francisco Recorder, June 8, 1999).  Among the reasons is that in many cases they have accepted stock as payment for dropping earlier legal actions. 

Other class action resources:

The Federalist Society publishes a Class Action Watch newsletter.  The first issue is in conventional web-page format. The second issue is a PDF document (Adobe Acrobat needed to view; get it here). 

Among the better-known law firms representing class action plaintiffs are Milberg Weiss Bershad Hynes & Lerach LLP, Lieff, Cabraser, Heimann & Bernstein LLP, Cohen Milstein, Hausfeld & Toll, Krause & Kalfayan, and Barrack, Rodos & Bacine

Actuary Jack Patterson has written an account for a plaintiff’s lawyer readership of class actions against life insurance companies, one of the big practice areas of the 1990s. 

The class action bar also files many antitrust suits on behalf of large groups of consumers or business purchasers.  The Antitrust Policy web site collects many worthwhile resources on antitrust law.


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January 31st, 2002 at 2:34 pm

January 2002 archives, part 3


January 30-31 – Don’t mess with the taste cops. Arizona: Angelica Flores was handcuffed by police officers in front of her daughter and packed off to jail because “she and her husband, Tony, last year violated a code requiring Christmas decorations to be removed 19 days after the holiday.” Thinking that the charges had been dropped, the couple had skipped a court date with officials of the town of Peoria. (Monica Alonzo-Dunsmoor, “Couple jailed for Christmas lights see charge as humbug”, Arizona Republic, Jan. 28).

January 30-31 – “Legal Lesson for Afghanistan: War’s Not a Slip-and-Fall Case”. “For centuries, it has been accepted that damage caused in wartime cannot be claimed as injuries deserving compensation. … combatants are not required to treat every invasion like a massive slip-and-fall case,” notes law prof/pundit Jonathan Turley of George Washington University (L.A. Times, Jan. 29) (via InstaPundit).

January 30-31 – Washington Post blasts HMO class actions. The paper’s editorialists warn of “a new rash of abusive class action lawsuits” that “are being filed by an array of plaintiff’s lawyers, led by Richard Scruggs — of tobacco litigation fame and fortune — and David Boies”. The suits’ premise that managed health care cost control amounts to “racketeering” is a “novel but silly” theory that has already been rejected by one federal appeals court, the Third Circuit. “The notion of a national class of HMO enrollees is absurd. … The suits are a transparent effort to hijack the policy debate about managed care.” (”More actions without class”, Jan. 28).

January 30-31 – All things sentimental and recoverable. Down, attorney, down! cont’d: trial lawyers are salivating at the prospect of getting the law changed so they can file malpractice suits against veterinarians not just for a pet’s economic or replacement value as an animal, as is mostly the rule now, but for its personal and sentimental value, which would clear the way for six- and even seven-figure recoveries. In a closely watched case called Bluestone v. Bergstrom, an Orange County, Calif. judge has ruled in favor of a plaintiff’s right to pursue the larger scope of damages. At present only one veterinarian in sixteen faces a malpractice claim every year, but insurance specialist Mike Ahlert of Mack & Parker predicts skyrocketing rates if courts adopt the new doctrines: “it will drive up the cost of claims and attract plaintiff’s attorneys looking for new sources of income”. (Jennifer Fiala, “Court rulings could up ante on DVM malpractice”, DVM (veterinary newsmagazine), Sept., reprinted at ABD Services site); see also Thomas Scheffey, “Putting a Price on Pets”, Connecticut Law Tribune, Nov. 21).

January 28-29 – “Probe of Milberg Weiss Has Bar Buzzing”. Rumors fly that a grand jury is investigating class-action behemoth Milberg Weiss. Accounts differ, but the focus of the investigation is said to be the firm’s financial relationships with clients serving as plaintiffs in securities cases. (Jason Hoppin, The Recorder, Jan. 28). (DURABLE LINK)

January 28-29 – State of prosecution in Iowa. In a bizarre application of federal sentencing guidelines, the U.S. attorney’s office in Cedar Rapids, Iowa has gotten Dane Allen Yirkovsky, 38, sentenced to prison for 15 years for possessing a single .22 caliber bullet. “Yirkovsky’s saga began when he happened to come across a loaded .22-caliber round while pulling up carpets in the home of a friend who was putting him up in exchange for some remodeling work. He stuck the bullet in a box in his room. The bullet was discovered by police who were searching Yirkovsky’s room after his ex-girlfriend asserted he had some of her belongings.” (”Editorial: One bullet, 15 years”, Des Moines Register, Jan. 21). “The Iowa Supreme Court ruled Thursday that Polk County authorities were within their rights to confiscate a $9,000 car for a $35.81 crime.” (Frank Santiago, “County seizure of $9,000 car for $35.81 crime is upheld”, Des Moines Register, Jan. 25) And thank the Iowa attorney general’s office for this one: “Critics say a state law aimed at confining sexual predators past their prison terms is being used to punish offenders for crimes that aren’t sex-related.” (Jeff Eckhart, “Predator law used in non-sex crimes, critics say”, Des Moines Register, Dec. 23 — via Free-Market.Net). (DURABLE LINK)

January 28-29 – Strain, sprain injuries get $350K. “A California shopper who sustained a lower-back injury after a slip and fall in a department store settled her case for $349,999. On Dec. 26, 1998, plaintiff Bianca Hernandez, an unemployed female in her early 50s, was shopping in the sportswear section of a J.C. Penney store when she slipped and fell on coat hangers, clothes and other debris that were left on the floor.” Hernandez was taken to an emergency room. “She suffered sprain and strain injuries to her lumbar spine, left knee and left ankle.” Her suit alleged “that the store was inadequately supervised because the department manager and the assistant manager were both on break at the time, and sales associates were fully occupied serving customers.” Hernandez v. J.C. Penney Co. Inc., No. VC 030 725 (L.A. County) (”Fall during post-holiday sale costs J.C. Penney”, National Law Journal, Jan. 21, not online). (DURABLE LINK)

January 28-29 – Third Circuit nixes Philly gun suit. Goodbye to the city’s nuisance of a suit against the gun industry: “gun manufacturers are under no legal duty to protect citizens from the deliberate and unlawful use of their products,” said the federal appeals court, which also ruled the city couldn’t show the gunmakers were the “proximate cause” of harm suffered. (Shannon P. Duffy, “Philadelphia’s Gun Suit Off Target, 3rd Circuit Says”, Legal Intelligencer, Jan. 14). (DURABLE LINK)

January 25-27 – Warning on fireplace log: “Risk of Fire”. Michigan Lawsuit Abuse Watch has released the results of its fifth annual contest for the wackiest warning label, with the warning on the fireplace log coming in second. The winning entry, found on a CD player: “Do not use the Ultradisc2000 as a projectile in a catapult.” Third prize went to the label on a box of birthday candles: “DO NOT use soft wax as ear plugs or for any other function that involves insertion into a body cavity.” (Larry Hatfield, “Dumbest warning labels get their due”, San Francisco Chronicle, Jan. 24; M-Law press release, Jan. 22). (DURABLE LINK)

January 25-27 – Goodbye to zero tolerance? Democratic state senator Richard Marable is leading a bipartisan group of lawmakers in the Georgia legislature who want to give school authorities more discretion for lenience in cases of students found with weapons or weapon-like objects in their possession. The public has been soured on zero-tolerance policies by cases like that of Ashley Smith, the Cobb County sixth-grader suspended for 10 days for bringing to school a Tweety Bird keychain (see Sept. 29, Oct. 4, 2000), and an Eagle Scout punished after “return[ing] to school from a weekend expedition with a broken ax in his car … An Atlanta Journal-Constitution poll this past Friday found that 96 percent of respondents supported examining each case individually. Only 1 percent liked zero tolerance the way it was, and 3 percent wanted school safety laws to be stricter.” (”Georgia Pols Want ‘Common Sense’ to Trump ‘Zero Tolerance’”, FoxNews.com, Jan. 21). (DURABLE LINK)

January 25-27 – McMouse story looking dubious. Brett B., 32, “said he found a mouse inside his Big Mac sandwich in June of 2001.” His story has been looking a little peaked, however, since he and four others were busted “as part of a methamphetamine ring in Berkeley County. Police say [he] was also part of a scam that went around the state stealing people’s identities and credit cards. But one of his alleged accomplices spoke up about last June’s mouse incident, telling police, ‘Brett had got together with myself … and had planned to come up with a scam to pull on McDonald’s where Brett was going to say he had bit into a mouse that the employees of McDonald’s had put in there.’” (Dan Krosse, “McMouse Case Looks Like a Hoax”, WCIV-TV (Charleston, S.C.), Jan. 15). (DURABLE LINK)

January 25-27 – “Companies may be liable for drugs used in rapes”. “Drug manufacturers whose products are used by offenders to help them commit rape could be held legally responsible for the crimes, according to a Melbourne lawyer. Eugene Arocca was commenting on reports of increasing drug-assisted date-rape in and around Melbourne clubs and entertainment venues. … However, the managing director of Roche Australia, the drug company that produces several drugs that have allegedly been used in date-rapes, described the whole idea as ‘bloody ridiculous’.” (Heather Kennedy, The Age (Melbourne), Jan. 6). (DURABLE LINK)

January 23-24 – Life imitates parody: “Whose Fault Is Fat?” By reader acclaim: “Some say the food industry — particularly fast food, vending machine and processed food companies — should be held accountable for playing a role in the declining health of the nation, just as the tobacco industry ultimately was forced to bear responsibility for public health costs associated with smoking in its landmark $206 billion settlement with the states. Although no one is taking such legal action against the food industry, nutrition and legal experts say it is reasonable to think that someday, it may come to that. ‘There is a movement afoot to do something about the obesity problem, not just as a visual blight but to see it in terms of costs,’ says John Banzhaf, a George Washington University Law School professor.” (Geraldine Sealey, “Whose Fault Is Fat? Experts Weigh Holding Food Companies Responsible for Obesity”, ABCNews.com, Jan. 22). OpinionJournal.com “Best of the Web” (Jan. 22) reports that “This past Sunday, ‘The Simpsons’ aired a new episode in which Marge, shocked to learn that Springfield is the fattest town in America, hires a lawyer to sue ‘big sugar.’” See Michael Y. Park, “Lawyers See Fat Payoffs in Junk Food Lawsuits”, FoxNews.com, Jan. 23 (quotes our editor).

January 23-24 – “Law hurts men, women”. Title IX, the feminist sports law run amok, is taking an ever-increasing toll: “Baseball at Boston University — gone. Kent State hockey — goodbye. Swimming at New Mexico — finished. The list goes on and on, more than 350 programs in virtually every sport on campus, and with it go the scholarships earned by student athletes and their dreams of competition to which most have devoted a lifetime. Incredibly, that has happened to more than 22,000 college athletes in recent years.” (Mike Moyer (executive director of the National Wrestling Coaches Association), Yahoo/USA Today, Jan. 21)(see Nov. 3, 2000, and our 1998 take).

January 23-24 – “Dangerous compensation”. “It seems that envy has replaced acceptance as the final stage of grief. … Washington’s payments to the victims of terrorism exposes the government to a potentially limitless array of future claims. Families of those killed in the 1988 bombing of Pan Am 103 over Lockerbie, Scotland, received nothing from Washington; relatives of federal employees killed in the 1995 Oklahoma City bombing collected approximately US $100,000 each. But if US $1.6-million per decedent is the going rate, then a proper accounting for past and future terrorist attacks might bleed the coffers dry.” (National Post (editorial), Jan. 21).

January 23-24 – Drug demagogy and needless pain. Doctors still underprescribe opioids for the control of chronic pain, and it doesn’t help when CBS “60 Minutes” lends its assistance to the campaign against one of the most important recent pain advances, the drug OxyContin (Jane E. Brody, “Misunderstood Prescription Drugs and Needless Pain”, New York Times, Jan. 22 (reg); Jacob Sullum, “Killing a Painkiller”, Dec. 18; Geov Parrish, “A junkie’s confession”, Seattle Weekly, Dec. 20-26) (see Aug. 7, 2001). A Google search on the drug’s name immediately calls up ads from the websites AboutOxyContin.com and OxycontinInfoCenter.com, which might sound neutrally informative but turn out to be client intake sites for trial lawyers.

January 21-22 – Med-mal: should doctors strike? Insurance rates for doctors are soaring in New Jersey, and the legislature in Trenton is too deeply entwined with trial lawyers to pass anything likely to curtail the bar’s prosperity. “Calling the supply of surgeons tenuous, Dr. Michael Goldfarb, chief of surgery at Monmouth Medical Center in Long Branch, said that unless action is taken soon, New Jersey and the rest of the nation will have a surgeon shortage.” Neptune, N.J. ob/gyn Dr. George Lauback “gave up the obstetrical side of his practice, realizing that paying the $170,000 annual premium would mean he was working for the insurance company, not his family.” Brick, N.J. obstetrician Dr. Charles Brick suggests the state’s physicians stage a work stoppage of non-emergency care to draw attention to their plight (Naomi Mueller, “Malpractice costs driving doctors out”, Asbury Park Press, Jan. 19). In neighboring Pennsylvania, where payouts per doctor are said to be the highest in the country, the “Pennsylvania Medical Society reports that, according to data compiled by CASCO Consulting, a typical obstetrician in the regions of Pennsylvania with the highest average premiums, pays $83,541 a year in insurance premiums …[a] typical orthopedic surgeon in Pennsylvania’s highest region pays $96,199 a year … the average neurosurgeon in the same Pennsylvania region pays $111,296 a year.” (”Focus on medical malpractice”, Law.com, Oct. 31).

One Delaware County, Pa., orthopedic surgeon calculates that his liability insurance costs him $300 per surgery, which is more than some of the procedures are reimbursed for, so that “he’s losing money before other expenses are even factored into the equation.” (Tanya Albert, “Liability rates squeezing out specialties”, American Medical News (A.M.A.), Dec. 3; Tanya Albert and Damon Adams, “Professional liability insurance rates go up, up; doctors go away”, Jan. 7). On the withdrawal from delivering babies of half or more of the obstetricians practicing in various Mississippi Delta counties since just a year or two ago, see Hugh A. Gamble (president, Mississippi State Medical Association), letter to the editor, Mississippi Medical News, Dec., (PDF format, large download), at p. 4. (DURABLE LINK)

January 21-22 – “In a class of his own”. Profile of famed class-actioneer Melvyn Weiss of Milberg Weiss Bershad Hynes & Lerach. Quotes our editor (The Economist, Jan. 17).

January 21-22 – Student: clown college harder to get into than law school. Soon after graduating with his law degree from the University of California, Berkeley, David Carlyon left it all behind to enroll in the Ringling Bros.-Barnum & Bailey clown training program. “Hey, listen, it’s harder to get into that Clown College than it is into a law school,” he told the Saginaw (Mich.) News. “Some 3,000 apply to it each year, only 60 get in and only 30 get contracts after they graduate.” (”Berkley [sic] grad says getting into clown school harder than getting into law school”, AP/AZcentral.com, Jan. 18). (DURABLE LINK)

January 21-22 – “Judo champion refuses to bend in lawsuit”. Challenging the ritual which begins sanctioned judo matches, a suit by three students “against three U.S. judo groups, as well as the International Judo Federation. …claim[s] that the forced bowing to inanimate objects, such as judo mats and pictures of the Japanese martial art’s founder, is religious in nature and violates federal and Washington state discrimination laws.” (Sam Skolnik, Seattle Post-Intelligencer, Dec. 7) (via OpinionJournal.comBest of the Web“).


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