Posts tagged as:

sanctions

May 7 roundup

by Walter Olson on May 7, 2012

  • NY lawyer sanctioned $10K for behavior at deposition [Debra Cassens Weiss, ABA Journal]
  • Obvious dangers and the W.V. frat-house rear-launched bottle rocket case [Popehat, earlier here, here]
  • Review of Liberty’s Refuge, new book on freedom of assembly by Washington U. lawprof John Inazu [Anthony Deardurff, Liberty Law]
  • If forfeiture and asset freeze can be deployed in a copyright enforcement case, where will they strike next? [Timothy Lee, Cato]
  • Hard-hitting Kim Strassel column on Al “Crucify Them” Armendariz [WSJ, earlier] Exxon CEO Rex Tillerson: “If you want to live by the precautionary principle, then crawl up in a ball and live in a cave.” [Coyote] Washington Post on the case for the Keystone pipeline [Adler]
  • Losing two looks like carelessness: second Durham County D.A. removed from office for misconduct [Volokh, KC Johnson]
  • Why won’t the Eighth Circuit recognize fraudulent misjoinder? [Beck]

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“A federal judge in Indiana ordered lawyers including the prominent firm of Motley Rice to pay ITT Educational Services almost $400,000 in legal fees for pursuing a ‘frivolous’ lawsuit the judge said was ‘based on a completely false story.’” In line with the reluctance of American judges to award Rule 11 sanctions, the judge awarded only a small fraction of the defendant’s actual outlay in attorney’s fees, which ran into many millions. Motley Rice is a chief beneficiary of the ongoing income stream of the tobacco litigation fees, which return $500 million a year to an assortment of plaintiff’s firms. [Dan Fisher, Forbes]

Locked in litigation with the Associated Press over whether his famous poster improperly infringed on the copyright of the news photograph on which it was based, Shepard Fairey did not conduct himself well. According to U.S. Attorney Preet Bharara, Fairey “went to extreme lengths to obtain an unfair and illegal advantage in his civil litigation, creating fake documents and destroying others in an effort to subvert the civil discovery process.” [AP]

Longtime Twin Cities attorney John Murrin lost money in a dodgy business deal, and started out by pressing what critics agree were some meritorious complaints arising from it. But courts began to look askance as he added more and more actions, pleadings and (nearly four dozen) defendants. Now a sanctions order has resulted in a bankruptcy proceeding. ["Lawyer's tactics leave him bankrupt," Minneapolis Star-Tribune].

To quote the court: Texas lawyer Evan Stone, mass-suing file-sharers and seeking to uncover their identities, “asked the Court to authorize sending subpoenas to the ISPs. The Court said ‘not yet.’ Stone sent the subpoenas anyway.” [ArsTechnica, Volokh]

A court has dismissed the Illinois action, saying that to let such cases proceed “could potentially open the floodgates to subject family childrearing to … excessive judicial scrutiny and interference.” [Chicago Tribune/SLT; Volokh]

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An end to impunity

by Walter Olson on July 28, 2011

The Lawsuit Abuse Reduction Act (LARA), versions of which have been discussed in this space for years, would reverse the 1993 gutting of Rule 11, the federal rule providing sanctions for baseless lawsuits, and would thus establish that lawyers, like other professionals, should expect to be responsible for compensating those they injure by negligence or worse. Early this month LARA won the approval of the House Judiciary Committee, but is unlikely to prevail (this term, at least) in the more Litigation-Lobby-friendly Senate. [Stier, ShopFloor; earlier here, etc.]

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Copyright troll tripped up:

A federal judge in Las Vegas today issued a potentially devastating ruling against copyright enforcer Righthaven LLC, finding it doesn’t have standing to sue over Las Vegas Review-Journal stories, that it has misled the court and threatening to impose sanctions against Righthaven. … [U.S. District Court Judge Roger] Hunt’s ruling today came in a 2010 Righthaven lawsuit against the Democratic Underground, operator of a big political website.

One of DU’s message board posters had reprinted without permission, but with link and credit, four paragraphs’ worth of an article under copyright to the Las Vegas Review-Journal, which is one of a number of newspapers with working agreements with RightHaven. And this part’s interesting:

In their counterclaim [which Judge Hunt allowed to proceed], attorneys for the Electronic Frontier Foundation (EFF), a digital free speech group based in San Francisco, hit Righthaven and Stephens Media with allegations of barratry (the alleged improper incitement of litigation); and champerty (an allegedly improper relationship between one funding and one pursuing a lawsuit)….

Some fans of entrepreneurial lawyering in the academy and elsewhere have sought to portray rules against barratry and champerty as wrongheaded survivals of a much older approach to the role of the legal profession. But it looks as if EFF — no one’s idea of a Blackstone-reading antiquarian club — just put those rules to powerful use. [Las Vegas Sun]

P.S. Bloggers who settled wonder: can we get our money back?

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The First Amendment notwithstanding, wealthy and powerful litigants in this country often exercise the tactical power “to bully those who publicly criticize them into silence by filing frivolous lawsuits that the critics can’t afford to litigate,” with defamation lawsuits being a particularly favored means of such bullying. The majority of states have moved to enact “anti-SLAPP” laws aimed at curtailing this tactical exercise through the application of sanctions or otherwise, but such laws are often quite weak, sometimes applying only, for example, to speech aimed at petitioning the government on public matters. Now Texas lawmakers are considering what would be one of the nation’s strongest laws, protecting “communication made in connection with a matter of public concern” and including statements made in non-public forums, such as emails. The website SLAPPED in Texas has compiled a list of speech-chilling lawsuits in the Lone Star State, including the oft-criticized suit by a real estate developer against author and eminent domain critic Carla Main. [Arthur Bright/Citizen Media Law, Paul Alan Levy/CL&P]

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April 18 roundup

by Walter Olson on April 18, 2011

March 15 roundup

by Walter Olson on March 15, 2011

  • “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].

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A California court rules that attorneys who file unjustified suits aimed at speech or political activity can’t be made to pay the other side’s fees. If you’re a victim of such an action, you still might get lucky and collect from the client who instigated it. [Cal Attorneys Fees]

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In New Haven, federal judge Janet Bond Arterton has granted sanctions against two leading plaintiff’s securities firms, Labaton Sucharow and Barroway Topaz Kessler Meltzer & Check, in an unsuccessful class action against Star Gas. “Arterton agreed with Star’s counsel from Skadden, Arps, Slate, Meagher & Flom that the class’ claims were almost entirely without merit, and that Labaton and Barroway knew as much early in the litigation. She ordered the plaintiffs firms to pay all of Star’s attorney fees and costs.” [Frankel, American Lawyer, ruling, PDF, courtesy American Lawyer]

July 27 roundup

by Walter Olson on July 27, 2010

  • Dodd-Frank major oops: Faced with new liabilities, agencies refuse to let their ratings be used in bond issuance [WaPo, Salmon] SEC scurries to suspend requirement for six months while it figures out what to do [Salmon]
  • Left-leaning law lectern: study of newly hired lawprofs identifies 52 liberals, 8 conservatives [Caron, ABA Journal, Lindgren/Volokh]
  • “Progress in protecting gripe site owners against silly trademark claims” [Levy, CL&P]
  • “Congress Investigates Beck, Ingraham Advertisers” [Stoll]
  • “Uncle Sam Kicks Out Legal Immigrants for Down Profits in Recession” [Shapiro, Cato]
  • Judge punishes Goodyear for discovery heel-dragging by denying it chance to disprove liability in $32M case [Las Vegas Sun]
  • “$2.3M verdict against Dole thrown out on fraud grounds” [PoL, background]
  • Paul Campos vs. Elena Kagan: this time it’s personal [Lawyers Guns & Money]

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July 26 roundup

by Walter Olson on July 26, 2010

  • Emerging newspaper business model: copyright lawsuits against bloggers? [Kravets, Wired, Ron Coleman, TechDirt, PoL]
  • Five NYC hospitals to use “health courts” to seek agreements before medical malpractice cases go to trial [WSJ]
  • Serpentine asbestos politics behind “California state rock” fracas [Cal Civil Justice, more, PoL, Bailey, earlier here and here]
  • From Andrew Grossman: “Feinberg: ‘priests, mayors or even sheriffs could vouch for [BP trust fund] claims of local businesses.’ Has he ever been to Miss, La.?!”
  • Va. lawyer, real estate agent sanctioned for “frivolous claims supported by wild speculation” [ABA Journal]
  • An injury lawyer reads and reacts to my first book, The Litigation Explosion [Alan Crede]
  • Le Corbusier’s writing made him sound like certain pro se litigants [Johnson, PrawfsBlawg]
  • “Tip: Photoshopping Self Into Charity Photos Not Likely to Reduce Sentence” [Lowering the Bar, more]

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July 24 roundup

by Walter Olson on July 24, 2010

  • San Francisco considers, then tables, ban on pet sales at stores [Amy Alkon]
  • Florida: we’ll pull you into our courts as an online-defamation defendant even if you’ve never set foot here [CBS4.com]
  • Bratz case: “Alex Kozinski gives Barbie a spanking” [AtL]
  • GEICO launches counterattack against crash fraud in New York [PoL]
  • When a lawyer sues the wrong doctor: hey, isn’t everyone entitled to mistakes now and then? [American Medical News, sanctions affirmed in Virginia case]
  • “[Congressman Alan] Grayson’s shakedown lawsuit threatens D.C. business” [LaFetra, PLF/Examiner]
  • Asbestos: Do component makers have a duty to warn about other manufacturers’ hazardous products? [Cal Biz Lit and two followups on California decisions, NAM and Levy Phillips & Konigsberg on a since-settled New York case against Foster Wheeler]
  • Subsidies for durum wheat flowed in happy circle for everyone but taxpayer and consumer [Mark Perry]

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July 15 roundup

by Walter Olson on July 15, 2010

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“A New Jersey judge has sanctioned two firms, Paul, Weiss, Rifkind, Wharton & Garrison and Lowenstein Sandler, for pursuing a ‘frivolous’ and ‘ridiculous’ legal claim on behalf of billionaire Ronald Perelman against his 85-year-old ex-father-in-law.” [NYLJ]

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