August 15th, 2008 at 5:25 am
(Bumping Aug. 14 6:43 pm post to keep at the top of the page.)
In a post I made yesterday, I noted a transaction between Andrew Young and Timothy Toben that I suggested may raise the possibility of a sweetheart deal on the purchase and sale of a 5000-square-foot Raleigh home. I have since done some additional research that rules out that possibility–it turns out that Young purchased a plot of land in a different county, which explains what had otherwise appeared to be a discrepancy–but raises other interesting issues about Young’s cash flow shortly after the National Enquirer allegations first appeared. I have updated the post, and regret the error in the premise.
In John Edwards; politics; Rielle Hunter; scandals
August 13th, 2008 at 1:17 pm
Update: See important update below. The Toben-Young transaction appears to be for a different parcel of land than the $1.2 million house–but the new documents reveal something else that’s interesting. More details below.
Andrew Young, who publicly claims to be the father of Rielle Hunter’s baby (though he hasn’t been heard from since John Edwards’s confession of an affair), was moved to Santa Barbara by the generosity of John Edwards’s campaign chairman, trial lawyer Fred Baron. He was paid $3,500/month to work for the Edwards campaign. Yet the Raleigh News & Observer reports that Andrew Young and his wife sold their Raleigh house to Carolyn Grissom for a jaw-dropping $1.2 million on February 14, 2007, and moved into the Chapel Hill Governors Club country-club gated community, where they rented a few doors down from Hunter. (Rentals there are available for as low as $1700/month, and home prices range from $289,000 to $2.3 million, so nothing necessarily unusual about that.)
(Update: New documents I’ve found show that the Toben-Young transaction appears to be for a different parcel of land than the $1.2 million house. More details below. This paragraph, based on the mistaken reading of the transaction that it was for the Raleigh home, is incorrect. I regret the error, but the correction reveals something else interesting about the Toben transaction; see the discussion below.) What’s more unusual is that North Carolina real-estate records on the web show that Andrew and Cheri Young purchased the 5000-square-foot house for $300,000 on September 28, 2005. (Update: this is incorrect. The house was purchased in 2001.) (The home was built in 1989, so they weren’t buying a vacant lot and building.) So either Andrew Young is a secret real-estate genius on a level not seen since Hillary Clinton’s commodities trading, and was able to flip a house for a 300% and $900,000 return in under eighteen months, or something else is going on.
It’s interesting to note that the Youngs purchased the place from North Carolina real-estate developer Timothy Toben–a long-time North Carolina Democratic fundraiser who donated $6,500 to the Edwards campaign in 2007 (which, if the FEC reports are accurate, exceeds the federal campaign limits substantially). If Toben gave Young an unusually good deal, the 2005 timing suggests that Young got the deal for some reason other than Rielle Hunter, but, if so, what?
Meanwhile, if one looks up the home on Zillow.com, one sees that Zillow is skeptical of the $1.2 million purchase price, and values the house for substantially less (though well over $300,000), because of “anomalies” in the deal, though it does not specify what those anomalies are. (I found no indication that Carolyn Grissom is anything other than an innocent homebuyer; she’s not listed in the FEC database.)
This could all be coincidence in hindsight, and there could be a perfectly innocent explanation for all of this. It could be that the $300,000 figure is wrong, though then that raises the question of how Young was able to afford a 5000-square-foot house on a $42,000/year salary. But reporters with more resources than I might want to look into whether an Edwards staffer was getting a sweetheart deal from an Edwards contributor, why, and whether campaign finance laws were violated.
And welcome Michelle Malkin readers; apologies that so many of you clicked through that you briefly crashed the site. For Overlawyered’s coverage of the Rielle Hunter scandal, see the tag, and don’t miss our years-long coverage of John Edwards and his trial-lawyer record.
(August 14: Welcome Kaus and Instapundit readers. Post was corrected August 14, because it incorrectly said “Chapel Hill” instead of “Raleigh” as the location of the $1.2 million house.)
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In campaign regulation; John Edwards; politics; Rielle Hunter; scandals
August 13th, 2008 at 9:58 am
August 11th, 2008 at 9:30 am
Daniel Fisher usually understands legal issues and has done some good reporting about trial-lawyer abuses, so I was very disappointed in today’s Forbes.com story (which quotes me about Obama and CAFA). Most notably, it’s not true that tort reform is a “catchall phrase for legislative measures designed to make it harder for individuals to sue businesses”–many tort reforms make it easier for individuals with legitimate claims to sue businesses. Tort reforms are simply measures to improve the accuracy and efficiency of the civil justice system; they’re opposed by trial lawyers because they derive billions of dollars of wealth from inaccuracies and inefficiencies in the civil justice system, and supported by businesses and consumers that are the victims of such inaccuracies and inefficiencies.
The article also inaccurately characterizes the Obama-Clinton medical malpractice legislation, and furthers the idea of “Kennedy is a moderate,” blurring the role of the Supreme Court by implicitly endorsing the liberal idea of it as a political superlegislature rather than a judicial body with an obligation to follow the law. The focus on anti-preemption legislation, as opposed to some of the dozens of other pro-trial-lawyer-lobby bills pending in this Congress and likely to be renewed next Congress, is unusual. (Separately, I disagree with Jim Copland; I don’t think McCain would hesitate to veto the giveaways to the trial-lawyer lobby if they’re in single-purpose bills and not attached as hidden amendments to omnibus legislation.)
I’m less surprised than Fisher and Bill Childs that Obama is getting money from defense firms, or, more accurately, attorneys who work at defense firms. The legal establishment is overwhelmingly liberal (hence the 3:1 fundraising advantage Obama has), and many defense attorneys are perfectly happy with a status quo that requires companies to pay them millions of dollars to continue doing business. (Some are too happy, and have vocally supported ABA resolutions that would harm their clients–something their clients should pay closer attention to.)
Kirkland & Ellis may have tobacco and asbestos defense in its portfolio, and many alumni in the Bush administration, but most Kirkland attorneys are doing other things, and a disproportionate number of them at the Chicago-based firm are going to be former classmates of or students of Harvard Law graduate and Chicago Law lecturer Obama, and have the six- and seven-digit incomes to give maximum contributions–and it only takes a few dozen $4600 contributions to make a firm look like a big contributor. (And, on the other hand, as if to demonstrate the bipartisan nature of most law firms, John McCain turned to a Republican attorney, former Reagan White House Counsel A.B. Culvahouse, at the largely Democratic O’Melveny & Myers to lead his vice presidential search.) During the primaries, the trial lawyers were giving most of their money to Edwards, Clinton, and Biden, but those fundraisers are now doing business with Obama, as the recent press coverage of Fred Baron shows.
But the article is correct that the outlook for federal tort reform is grim, and that reformers are looking at rearguard actions defending against numerous attempts to make the system worse.
In Barack Obama; John McCain; litigation lobby; politics; Ted Frank; tort reform; trial lawyer earmarks
August 8th, 2008 at 10:25 pm
We described the Dallas attorney as poster boy for legal ethics for his astoundingly brazen conduct in the scandal over an asbestos testimony-coaching memo. Now his name is hitting front pages on the John Edwards-Rielle Hunter affair:
Dallas lawyer Fred Baron told The Dallas Morning News today that he paid relocation and housing expenses for the woman that former presidential candidate John Edwards has confessed to having an affair with.
Mr. Baron, who was chairman of Mr. Edwards’ presidential campaign finance committee, said he paid money for Rielle Hunter to move from North Carolina to another location. …
He said Mr. Edwards did not know about the arrangement.
(Gromer Jeffers Jr., “Dallas lawyer Fred Baron paid for Edwards’ mistress to relocate”, Dallas Morning News, Aug. 8).
More coverage of Edwards’s (partial or otherwise) confession: ABC News, AP, Memeorandum, Marc Ambinder, Ben Smith/Politico, News & Observer, Just One Minute, Shaun Mullen/Moderate Voice. Readers will remember that Ted had the story very, very early, before it was much noticed even on the blogs (more). As for Edwards’s own credibility, Mickey Kaus, whose news judgment in pursuing the matter now stands vindicated, has this to say: “There is now one player in this scandal with far less credibility than the National Enquirer, after all.”
More: Byron York at NRO “Corner” quotes the Raleigh News & Observer account with Baron’s statement:
“I decided independently to help two friends and former colleagues rebuild their lives when harassment by supermarket tabloids made it impossible for them to conduct a normal life,” Baron, a Dallas trial lawyer said in a statement, Rob Christensen reports.
“John Edwards was not aware that assistance was provided to anyone involved in this matter,” Baron said. “I did it of my own voilition and without the knowledge, instruction, or suggestion of John Edwards or anyone else. The assistance was offered and accepted without condition.”
York points out:
Hunter and Young, the recipients of Baron’s generosity, were not high-ranking officials in the Edwards campaign. How Baron got to know them and how he decided to fund their move to California, and why he decided to do so without Edwards’ knowledge, might be the subject of more questions as the Edwards matter goes forward.
Blogger Gina Cobb hopes the window of Baron’s generosity is still open:
I am touched and moved by your generosity. I especially like the part about “The assistance was offered and accepted without condition.” Accordingly, I would like to request the same generosity from you. Henceforward, I would like you to rent me an enormous house and pay my living expenses in perpetuity. I can assure you that the assistance you offer will be accepted without condition.
And see Ted’s follow-up post.
In Dallas; Fred Baron; John Edwards; politics; Rielle Hunter
August 7th, 2008 at 1:12 am
- Speech tribunal in
Alberta, Canada, acquits Ezra Levant over publication of Mohammed cartoons, and it only cost him C$100,000* [National Post, his site, Daimnation]
- Must not cover John Edwards-Rielle Hunter story … must not cover John Edwards-Rielle Hunter story … oh darn!
- U.K. version of a story we’ve seen stateside: noise restrictions threaten roving musical ice cream trucks [Telegraph, Times Online, earlier from NYC]
- “Lawyer Who Says She Was Chastised for Not Being Sweet Is Allowed to Sue” [ABA Journal]
- More thoughts about “going on disability” [White Coat Rants]
- Willie Gary perhaps less than gallant (though undeniably hard-hitting) in countering woman’s claim of sexual assault [WPTV, ABA Journal, Ambrogi]
- Arguing against release, federal prosecutors say millions in assets of two Kentucky fen-phen defendants can’t be traced [Lexington Herald Leader]
- Virginia restaurantgoers looking forward to sangria on sultry evenings [Lindsay Nair, Roanoke Times]
- “It’s true that [veep-buzzed Sen. Bayh] sided with Republicans on tort reform … but do Democrats really want to be the kind of party that makes litmus tests out of those issues?” [Patashnik, TNR "Plank"]
- Third Circuit strikes down ban on “depiction of animal cruelty” as unconstitutional, protecting both bullfight travelogues and those bizarro-fetish “crush videos” [Volokh, our 1999 report]
- Sen. Lieberman brought an outspoken pro-legal-reform voice to the Democratic ticket [eight years ago on Overlawyered]
*Levant can recover nothing from his tormentors because the so-called human rights tribunals are given a special dispensation from the normally prevailing Canadian rule of loser-pays.
In free speech in Canada; John Edwards; Kentucky fen-phen settlement fraud; loser pays; politics; Rielle Hunter; Virginia; Willie Gary
August 4th, 2008 at 7:58 am
In a daring journalistic departure, yesterday’s New York Times “Style” section piece actually interviewed some people who use the product. (Mireya Navarro, “Take Away Their Menthols? Is That Cool?”, Aug. 3). The paper’s coverage a week ago, by contrast, hewed more strictly to the favored narrative of the “tobacco control” crowd, vilifying as corrupt black members of Congress not yet ready to jump on board in banning a product very popular with their constituents. (Stephanie Saul, “Blacks in Congress Split Over Menthol Cigarettes”, Jul. 25).
In menthol; nanny state; politics; tobacco
August 2nd, 2008 at 9:04 am
Analyzing the upcoming race between the incumbent, Darrell McGraw, and his clean-government opponent, Dan Greear, the West Virginia Record has an extensive story on the West Virginia attorney general’s habit of giving lucrative no-bid contingency-fee contracts to his campaign contributors, as well as holding on to settlement money for his own personal slush fund. I am quoted at length and described as “widely regarded as one of the country’s leading voices in tort reform.” Also notable are quotes from another “Washington, D.C.-based lawyer who has written articles about the need for reform.” Kim Strassel also has a good piece on the subject in Friday’s Wall Street Journal:
To Mr. Greear’s advantage, his opponent is a case study of abuse in office. Mr. McGraw, in more than 14 years as West Virginia’s attorney general, has been a pioneer in the practice of filing questionable lawsuits against big companies, secretly doling out the legal work to outside trial lawyer friends who reap millions in fees. Those lawyers then turn around and donate heavily to Mr. McGraw’s re-election.
Polls show the public, in theory, disapproves. In a Tarrance Group survey last year, 75% of West Virginians think an attorney general should publicly disclose outside contracts with lawyers. Nearly 60% think attorneys should have to competitively bid for those jobs.
It’s this that motivates Mr. Greear. “I’ve watched what’s going on and thought: ‘If I were doing this to a client, I’d lose my law license.’ I don’t think any fair-thinking person can think this is good government, or good solid legal representation for West Virginia,” he tells me.
Also helping is that Mr. McGraw’s own sense of political immortality has recently landed him, and his state, in hot water. In 2001, he appointed four private law firms to sue drug companies for alleged deceptive advertising of OxyContin. Having forced a settlement in 2004, he handed his tort allies $3.3 million of the $10 million haul. Mr. McGraw had sued on behalf of state agencies (including the state’s Medicaid program) — yet his office kept the rest of the settlement money.
The federal government, which pays a significant portion of the state’s Medicaid bills, remains furious the program received none of the settlement, and is now threatening to withhold millions in Medicaid money. Mr. Greear is hitting hard on the uproar, using it to suggest Mr. McGraw has lost sight of why he’s suing companies, other than for the headlines.
In attorneys general; contingent fee; Darrell McGraw; politics; Ted Frank; West Virginia
July 27th, 2008 at 11:05 am
I’m quoted by Quin Hillyer in an Examiner story today about the dozens of bills pending in Congress that engage in tort deform–favors for the trial bar. The new Trial Lawyer Earmarks website does a marvelous job documenting most of the bills out there, though one wishes it would provide direct links to THOMAS rather than forcing one to engage in separate searches. (Mislink and misspelling corrected.)
In litigation lobby; politics; Ted Frank; tort deform; trial lawyer earmarks
July 18th, 2008 at 7:53 am
The Texas Review of Law & Politics has published my review of Thomas Geoghegan’s book. I differ from the favorable reviews of Adam Liptak and others:
Many books and writers have documented the problems caused by the tremendous expansion of liability in the last half century. In response, several writers on the political left have written defenses of unfettered liability or indictments of the tort reform movement, sometimes even rationalizing such infamous outliers as the McDonald’s coffee case as legitimate uses of the tort system.
The latest arrival in this genre comes from much-celebrated labor lawyer and author Thomas Geoghegan: See You in Court: How the Right Made America a Lawsuit Nation. Unlike many on his political side of the aisle, Geoghegan acknowledges that the litigation explosion has harmed America, but blames it on right-wing policies. Deregulation, deunionization, and the right’s putative dismantling of the legal system and Rule of Law, Geoghegan argues, have driven Americans to the courts by cutting off alternative routes to social justice. Geoghegan effectively demonstrates that the left should view skeptically the claims of the litigation lobby, a skepticism sadly disappearing from the political discourse as the Democratic Party more and more reflexively adopts the positions of trial-lawyer benefactors at the expense of its other constituents. But Geoghegan’s attempt to blame conservatives for the increased role of litigation in society suffers from non sequiturs, self-contradictory arguments, and a general failure to engage his opponents’ arguments fairly.
Thanks to those at Overlawyered who commented on an earlier draft and helped make the paper better by reminding me that political contributions were a revealed preference.
In politics; regulation through litigation; Ted Frank
July 2nd, 2008 at 2:36 pm
Stuart Taylor agrees that the courts are right to rebuke some of the Bush administration’s aggressive war-powers claims, but that doesn’t make it anything other than a “deeply misguided” notion to try its leaders for supposed “war crimes”, let alone encourage other countries to snatch traveling U.S. ex-officials for trial there (”Our Leaders Are Not War Criminals”, National Journal, Jun. 28).
One of the most dedicated enthusiasts for such trials is attorney/controversialist Scott Horton, who writes at Harper’s and Balkinization and is an adjunct faculty member at Columbia Law School; after noticing how often Horton’s output seemed to be in need of fact-checking, I spent a few minutes just for the fun of it stringing together a sampling of such instances which appears here (scroll).
In politics; Stuart Taylor Jr.
June 29th, 2008 at 9:02 am
June 20th, 2008 at 11:54 am
Illinois state Rep. Jay Hoffman of Madison County, who doubles as an attorney with the Lakin Law Firm, is also said to be a big-time political fundraiser and a key link between the county’s far-famed class-action culture and the world of Illinois politics. Hoffman has long been a close and loyal advisor to now-Gov. Rod Blagojevich, something that’s no longer such a big political advantage what with the Rezko trial having badly sullied the governor’s reputation. Things got worse last month when Hoffman’s name came up during some of the most explosive testimony at that trial, though he’s been charged with no wrongdoing. And now he’s at odds with a fellow Democrat, state house Speaker Michael Madigan — himself a longtime guardian of trial lawyer interests in Springfield — following what the St. Louis Post-Dispatch describes as “the airing of a secret memo from [Madigan's] staff directing legislative candidates to call for Blagojevich’s impeachment — complete with instructions to deny that they’re getting instructions.” (AP’s version). Ed Murnane of the Illinois Civil Justice League has more at Illinois Review, as do the editorialists of the Chamber-backed Madison County Record, while Eric Zorn of the Tribune and ArchPundit speculate that Blagojevich might appoint Hoffman to Barack Obama’s seat in the U.S. Senate should his election as President leave it vacant.
In Antoin Rezko; Barack Obama; Illinois; Madison County; politics
June 16th, 2008 at 12:03 am
- Educator acquitted on charges of roughness toward special ed student sues Teacher Smackdown website over anonymous comments criticizing her [NW Arkansas Morning News, Citizen Media Law Project, House of Eratosthenes]
- Lorain County, Ohio judge who struck down state’s death penalty has Che Guevara poster in his office, though Guevara wasn’t exactly an opponent of killing [USA Today]
- Privatization of U.S. Senate food service is a parable for wider issues [Tabarrok]
- Low-end strategies for acquiring criminal-law clients include trolling the attorney visiting area at the federal lockup, paying the hot dog guy in front of the courthouse [Greenfield]
- A Canadian Senator on why his country’s medical malpractice law works better than you-know-whose [Val Jones MD leads to audio]
- U.K.: convicted rapist sexually assaults and murders teenage girl after housing authority is told evicting him would breach his human rights [Telegraph]
- No word of legal action (yet, at least) in Salina, Kansas car crash that driver blames on “brain freeze” from Sonic restaurant frozen drink [AP/K.C. Star]
- In Michigan, some mysterious entity is trying to drop an electoral anvil on two of our favorite jurists [PoL]
In brain freeze; Canada; chasing clients; judges; Kansas; medical malpractice; Michigan; Ohio; online speech; politics; restaurants; schools; United Kingdom
June 9th, 2008 at 5:39 pm
Arbitration opponents complain that mandatory arbitration clauses “deprive” consumers of a day in court. One such set of complaints was aired in a big Business Week story (to which NAF responded and refuted); CNN recently repeated these allegations in a one-sided story. So it’s worth taking a look at how well consumers do in court when it comes to debt collection:
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In arbitration; media bias; politics
June 2nd, 2008 at 4:16 pm
All those reimbursements of employees who donated to John Edwards? Just one vast coincidence, not a purposeful way of evading federal campaign finance laws. Now that the verdict’s in, could we please repeal the campaign finance laws in question ASAP, before some less lucky soul tries the same thing and gets sentenced to time in the slammer because his name isn’t Geoffrey Fieger and his lawyer isn’t Gerry Spence? (David Ashenfelter and Joe Swickard, “Fieger, law partner acquitted of illegal political donations”, Detroit Free Press, Jun. 2).
In campaign regulation; Geoffrey Fieger; John Edwards; Michigan; politics
May 27th, 2008 at 2:55 pm
In an interview of Senator Barack Obama on Fox News, Chris Wallace questioned Obama’s claims of being a post-partisan leader who reached across the aisle. In response, Obama identified his support of the Class Action Fairness Act tort reform bill. Is this persuasive evidence of bipartisan behavior? I explore the question in today’s Examiner.
In Barack Obama; Class Action Fairness Act; politics; Ted Frank; tort reform
May 23rd, 2008 at 12:10 pm
H.R. 6049, “The Renewable Energy and Job Creation Act, among other things, reduces taxes on lawyers with an offsetting increase in taxes on investment managers and corporations.” To the tune of $1.6 billion, literally transferred from the productive sectors of the economy to the parasitic sector. Carter Wood and Marc Hodak comment; Bush threatens a veto. (Separately, don’t miss Marc Hodak’s comments on Ted Kennedy’s glioma.)
In politics; trial lawyer earmarks