Posts Tagged ‘New York Times’

New York Times on the AG-trial lawyer alliance

The close working relationship between some state attorneys general and private trial lawyers — in which the AGs hire the lawyers to represent their states for a percentage fee of the haul — is not a new topic to us here at Overlawyered, but it’s nice to see it getting aired at length in the Dec. 18 New York Times piece by reporter Eric Lipton. The title gives a good introduction: “Lawyers Create Big Paydays by Coaxing Attorneys General to Sue” and in fact the private lawyers who commonly pitch the suits are themselves sometimes former state attorneys general, such as Michael Moore of Mississippi (of longstanding fame here), Patricia Madrid of New Mexico, Patrick Lynch of Rhode Island, Drew Edmondson of Oklahoma, and Peg Lautenschlager of Wisconsin. A few excerpts:

  • Law firm donations to AGs or “party-backed organizations that they run” “often come in large chunks just before or after” inking contracts to represent the state. A sidebar chart, “Political Gifts from Plaintiffs Lawyers,” confirms that most of the money flows to partisan attorney general associations ($3.8 million to Democrats and $1.6 million to Republicans over a decade) or state parties ($1.5 vs. $445,000) as opposed to candidates directly ($2 million vs. $240,000, not counting AGs running for governor).
  • When various AGs signed a brief to the Supreme Court supporting the plaintiff’s side in a securities litigation case, it was after being sedulously cultivated to do so by the lawyers.
  • “…at least three former attorneys general are pitching painkiller abuse cases to states nationwide, although no state has yet publicly signed up.” More on the Chicago and California-county painkiller cases here.
  • Yes: “‘Farming out the police powers of the state to a private firm with a profit incentive is a very, very bad thing,’ said Attorney General John Suthers of Colorado, a Republican and a former United States attorney.”

Full article, again, here. Michael Greve has further commentary on why it’s often AGs from small states who take the lead and whether business really started it all.

Labor and employment roundup

New York Times on pre-dispute agreements to arbitrate

From James Taranto’s “Best of the Web” Wall Street Journal column, under his recurring “Two Papers in One!” series:

  • “Buried in the fine print of most contracts for cellphones, health insurance and credit cards is a clause requiring that all disputes be decided by binding arbitration, rather than a court. Businesses love these provisions, because arbitrators act quickly and almost always rule in their favor, and many employers are requiring new hires to sign similar agreements. All of this sounds pretty unfair, but apparently not unfair enough for the Supreme Court, which has now made the arbitration process even more onerous.” — editorial, New York Times, June 27, 2010
  • “In lieu of litigation and jury trials, each of which is expressly waived, any dispute concerning, relating or referring to this Participation Agreement, the brochure, or any other literature concerning your trip or the Tour shall be resolved exclusively by binding arbitration in New York City, New York, according to the then existing commercial rules of the American Arbitration Association. Such proceeding will be governed by the substantive law of the State of New York. The arbitrator(s) and not any federal, state, or local court or agency shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability, conscionability, or formation of this Participant Agreement, including but not limited to any claim that all or any part of this Participant Agreement is void or voidable.” — Times Journeys Terms and Conditions, NYTimes.com, 2014

September 26 roundup

  • Was California workers’ comp claim against NFL by former Tampa Bay Buccaneer-turned-P.I.-lawyer inconsistent with his mixed martial arts prowess? [Tampa Bay Times, Lakeland Ledger, earlier and more on California workers’ comp and professional football]
  • Salt Lake City’s $6,500 stings: “Secret Shopper Hired to Punish Lyft & Uber Actually Prefers Them” [Connor Boyack, Libertas Institute]
  • Are libertarians undermining public accommodations law? (If only.) [Stanford Law Review, Samuel Bagenstos and Richard Epstein via Paul Horwitz]
  • Why NYC is losing its last bed and breakfasts [Crain’s New York via @vpostrel]
  • U.S. continues foolish policy of restricting crude oil and gas exports, time for that to change [David Henderson first and second posts]
  • So it seems the New York Times is now committed to the theory that Toyotas show mechanical unintended acceleration;
  • OK, the future Kansas politician was at the strip club strictly on attorney business when the police arrived. Was he billing? [Politico]

OMG! Betty Crocker clickwrap destroys your legal rights!

For those who freaked out at those headlines Thursday, Daniel Fisher at Forbes has a corrective to the New York Times’ latest story advancing the trial lawyer campaign against arbitration. More: Eric Goldman. Sequel: General Mills quickly withdraws new policy, perhaps reasoning that even when the New York Times is wrong, a consumer marketing company really can’t win trying to argue with it. Yet more: Dave Hoffman with an analysis of whether the language actually creates a contract.

Banking and finance roundup

  • Still money left in that piggy bank: Justice Department shakes $1.7 billion out of J.P. Morgan because its custody wing kept handling a primary Bernie Madoff account while a distant equity desk grew suspicious of him, in what “looks a bit like a tax on bigness and integration” [Matt Levine, Bloomberg; NPR].
  • Legacy of TARP one of cronyism and lawlessness [Mark Calabria, USA Today]
  • NYT assails a couple of academics as mouthpieces for Wall Street, Felix Salmon has a bit to say about that [Reuters, EconBrowser, Bainbridge, Pirrong] Daniel Fisher on a possible tie-in with Times reporter David Kocieniewski’s earlier piece flaying Goldman Sachs over aluminum warehousing [Forbes]
  • “Court Receptive to Overturning SEC’s Conflict Minerals Disclosure Rule” [Fed Soc Blog]
  • “Target Breach — Are Dodd-Frank ‘Swipe Fee’ Price Controls to Blame?” [John Berlau, CEI “Open Market”] “Volcker Rule Overshoots Wall Street to Hit Utah” [same]
  • “CFPB and Disparate Impact” [Hester Peirce, Point of Law]
  • “It might cost you $39K to crowdfund $100K under the SEC’s new rules” [Sherwood Neiss, VentureBeat via @jerrybrito]
  • Here’s a novel proposal for corporate governance: use the rules agreed upon by the original parties to the transaction [Hodak]

Fifty years ago today…

…the U.S. Supreme Court heard argument in what was to become one of its most celebrated tort reform decisions. A profitable national manufacturer had been sued in a distant rural state in which it was decidedly unpopular, resulting in a runaway jury verdict which it sought to challenge on appeal. Pointing out the disadvantages of unpredictable and locally variable tort standards, the corporation’s lawyers pushed for a more uniform and modern standard of liability suited to a nationwide market, which the high court agreed unanimously to develop for the occasion and impose on state courts. And ever since 1964, the winning party in the case — that is to say, the New York Times Company — has taken a sympathetic editorial interest in the plight of other national businesses subjected to runaway verdicts in local courts.

Well, OK, maybe not that last sentence. But the rest of it did happen, in the celebrated case of New York Times v. Sullivan.