Overlawyered » punitive damages

November 23 roundup

Walter Olson — Wed, 23 Nov 2011 13:02:02 +0000

Big win for Ted Frank against cy pres slush funds [CCAF, Fisher, Zywicki, CL&P, @tedfrank ("Ninth Circuit rules in my favor ... but I still think I'm right".)]
“Can the Vatican Be Subject to ICC Prosecution?” [Ku/OJ]
“Tennessee: ATS Sues City Over Right Turn Ticket Money” [The Newspaper]
“Law firms dominating campaign contributions to Obama” [WaPo]
Does that mean it’s an entitlement? Punitive damage limits face constitutional challenges in Arkansas, Missouri [Cal Punitives]
Businessman sues to silence critical blogger, case is dismissed, now files suit #2 [Scott Greenfield]
Going Hollywood? “The Supreme Court should move to Los Angeles” [Conor Friedersdorf]

Tags: Arkansas, Barack Obama, bloggers and the law, Catholic Church, cy pres, Missouri, punitive damages, red light cameras, Supreme Court, Ted Frank

Cause for furrowed brows?

Walter Olson — Tue, 03 May 2011 11:44:15 +0000

The maker of Botox is hit with a $212 million jury award [Richmond Times-Dispatch]

Tags: pharmaceuticals, punitive damages, Virginia

March 24 roundup

Walter Olson — Thu, 24 Mar 2011 13:53:43 +0000

“Woman suing Carnival: Ship sailed too fast, made me sick” [Gene Sloan, USA Today "Cruise Log"]
U.S. Department of Justice sues Illinois school district for denying Muslim teacher’s request for three-week Mecca-trip leave [WaPo]
“California Assembly Says Complying with Government Standards Not Enough to Avoid Punitive Damages” [Cal Civil Justice]
“Four Loko Suit Is an Example of Bogus Economic Loss Classes” [Russell Jackson]
New Benjamin Barton book on lawyer-judge bias reviewed by Larry Ribstein [TotM, earlier]
“Prolific Colorado Consumer Attorney Filed 2/3rds of State’s FDCPA Cases Since 2007″ [ABA Journal]
Different kind of false marking case? Judge says company knowingly claimed inapplicable patent [WSJ Law Blog]
“Extra-special education at public expense” [five years ago on Overlawyered]

Tags: California, class actions, Colorado, cruise ships, debtor-creditor law, patent marking, punitive damages, religious discrimination

March 15 roundup

Walter Olson — Tue, 15 Mar 2011 13:37:58 +0000

“A conversation with class action objector Ted Frank” [American Lawyer]
Reviews of new Lester Brickman book Lawyer Barons [Dan Fisher/Forbes, Russell Jackson] Plus: interview at TortsProf; comments from Columbia legal ethicist William Simon [Legal Ethics Forum]
“Collective Bargaining for States But Not for Uncle Sam” [Adler] Examples of how Wisconsin public-sector unionism has worked in practice [Perry] Wisconsin cop union: nice business you got there, shame if anything were to happen to it [Sykes, WTMJ] “Union ‘rights’ that aren’t” [Jeff Jacoby, Boston Globe]
“Minnesota House Considering Significant Consumer Class Action Reform Measures” [Karlsgodt]
10,000 lawyers at DoD? Rumsfeld complains military overlawyered [Althouse via Instapundit]
“Are Meritless Claims More Prevalent in Copyright?” [Boyden, Prawfs]
Claim: availability of punitive damages reduces rate of truck accidents. Really? [Curt Cutting]
Now with improved federalism: “The Return of the Lawsuit Abuse Reduction Act” [Carter Wood, more, earlier here].

Tags: class actions, copyright, labor unions, Lester Brickman, military, Minnesota, police, public employment, punitive damages, sanctions, Ted Frank, Wisconsin

“Jury Awards Law Professors $5 Million Against West Publishing For Defamatory Pocket Part”

Walter Olson — Wed, 22 Dec 2010 16:44:15 +0000

A major law-book publisher seems to have gone ahead with an update under the authors’ names despite their unwillingness to cooperate. [Max Kennerly; Philadelphia Inquirer]

Tags: libel slander and defamation, Philadelphia, publishers, punitive damages

July 9 roundup

Walter Olson — Fri, 09 Jul 2010 12:51:53 +0000

Many interesting reader comments on post about jury award against manufacturer over injury on bicycle motorized post-sale;
Reimbursed for money never paid: “Calif. Trial Lawyers Welcome Latest Ruling on Recovery of Medical Expenses” [The Recorder]
Update: Defamation suit against travel blogger Chris Elliott resolved successfully [Citizen Media Law, earlier]
Podcast: Northwestern lawprof Steven Calabresi on McDonald (Second Amendment incorporation) case [Federalist Society]
“Provost Umphrey claims banana picker reps siphoned clients, money” [SE Texas Record]
Lawprofs in a NYT flutter about deductibility of punitive damages [Walk, Drug & Device Law] On the merits, Carter at ShopFloor: “Changing Tax Laws to Punish Businesses — Unless They Settle”
Troubled Pacific Law Center to close in San Diego [ABA Journal, earlier]
New York high court rules Atlanta exec cannot invoke New York’s pro-plaintiff state or city laws to contest firing [NYLJ]

Tags: Atlanta, banana pesticide litigation fraud, bloggers and the law, California, forum shopping, guns, New York, punitive damages, taxes

Update on Ogborn v. McDonald’s

Ted Frank — Mon, 23 Nov 2009 21:11:53 +0000

Those of you who have attended my “Law of McDonald’s” talks in California and Florida may recall the case of the strip search hoax. A Florida man who was unusually persuasive would call dozens of fast food restaurants until he could find someone who would believe he was with the police and who would disrobe employees (or themselves) at his instructions; though there have been other lawsuits seeking to blame the fast food restaurants for this, courts have generally thrown them out. One exception was the case of Ogborn v. McDonald’s, where two targets of the hoax successfully sued for millions. On Friday, the Kentucky Court of Appeals largely affirmed the lower court judgment, though it reduced the punitive damages received by Donna Summers (who gave an Alford guilty plea for her role in the strip search) from $1 million to $400,000. McDonald’s hasn’t yet decided whether to appeal to the Kentucky Supreme Court. (Andrew Wolfson, “Appeals court upholds $6.1 million strip-search verdict against McDonald’s”, Kentucky Courier-Journal, Nov. 20, via ABA Journal).

Tags: criminals who sue, deep pocket, failure to warn, Kentucky, McDonald's, personal responsibility, punitive damages, strip search hoax, third party liability for crime, workplace

Thumb-in-the-eye II: Cal Supremes affirm Buell-Wilson

Ted Frank — Mon, 01 Jun 2009 12:57:53 +0000

We’ve been following Buell-Wilson v. Ford for some time, including the U.S. Supreme Court remand. Curt Cutting’s blog has the latest in two April posts here and here. Cal Biz Lit also has good commentary.

Tags: autos, Buell-Wilson v. Ford, California, Ford Motor, punitive damages, San Diego

SCOTUS refuses to review Flax punitive damages

Ted Frank — Fri, 29 May 2009 20:20:14 +0000

I expressed skepticism this summer that the Exxon Shipping v. Baker decision was a positive sign for the Court’s punitive damages jurisprudence. After the replay of Philip Morris v. Williams and, now, the Court’s denial of certiorari in DaimlerChrysler v. Flax this week, I can say I was right.

As readers of Overlawyered know, the Tennessee Supreme Court reinstated $13.3 million of punitive damages over a good-faith dispute over a van’s seat back design (in an accident caused by a drunk driver), giving no credit to the fact that the design in question was safer than federal safety standards, or to Exxon Shipping’s suggestion that punitive damages greater than a 1:1 ratio were possibly constitutionally inappropriate where compensatory damages were substantial and the defendant’s actions were not intentional or done for profit. As I described the case back then:

In 2001, Louis Stockell, driving his pickup at 70 mph, twice the speed limit, rear-ended a Chrysler minivan. Physics being what they are, the front passenger seat in the van collapsed backwards and the passenger’s head struck and fatally injured 8-month old Joshua Flax. The rest of the family walked away from the horrific accident. Plaintiffs’ attorney Jim Butler argued that Chrysler, which already designed its seats above federal standards, should be punished for not making the seats stronger — never mind that a stronger and stiffer seat would result in more injuries from other kinds of crashes because it wouldn’t absorb any energy from the crash. (Rear-end collisions are responsible for only 3% of auto fatalities.) Apparently car companies are expected to anticipate which type of crash a particular vehicle will encounter, and design accordingly.

(h/t Cutting)

Tags: autos, Chrysler, punitive damages, seat backs, Supreme Court, Tennessee

Trial lawyer earmarks: ending deductions for punitive damage payments

Ted Frank — Tue, 19 May 2009 10:55:43 +0000

One can certainly see why ending tax deductions for punitive damages is a superficially appealing idea.

But the main effect will be to increase settlement pressure in cases where there are unjust punitive damages awards. Because settlements can be characterized as “compensatory” and tax-deductible while court-ordered judgments cannot, trial lawyers will be able to use the tax differential to discourage defendants from seeking appellate review. So one cannot expect very much tax revenue from this: “punitive damages” will drop precipitously, but money going to trial lawyers will go up. Moreover, appellate courts will have fewer opportunities to correct bad decisions by trial courts, creating more uncertainty in litigation, which raises litigation expenses because it will be harder to predict outcomes.

Note that taxpayers are not subsidizing punitive damages award deductions by businesses: the income “lost” because a defendant deducted the punitive damages award will be income realized by the plaintiff and his or her attorney. If the deduction is forbidden, the government will be, in effect, double-taxing the same money.

The Obama administration makes much of its claim of being pragmatic, rather than ideological, but this looks like an indirect giveaway to the trial bar rather than a source of government revenue. More: Walter at Point of Law; and my shining mug quoted at the Southeast Texas Record.

Tags: Barack Obama, politics, punitive damages, taxes, Ted Frank, trial lawyer earmarks

Overlawyered » punitive damages

November 23 roundup

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March 24 roundup

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July 9 roundup

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