Chronicling the high cost of our legal system

Overlawyered

September 10th, 2008 at 8:53 am

Bogus “Stella Awards” — at VC

Volokh contributor Paul Cassell is momentarily taken in by a whiskery email hoax, and the usual comments uproar ensues. Among ways of avoiding future embarrassment: check Snopes.com, Google key phrases of the suspect material, or just be a regular reader of Overlawyered.


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October 21st, 2005 at 7:55 am

Responses to comments on yesterday’s McDonald’s coffee posts

» by Ted Frank

Several comments on yesterday’s post merit responses.

1. One commenter invokes the Ford Pinto case, which is interesting because that’s perhaps the most famous anti-reform urban legend of all. He mistakenly says that Ford’s problem there was undervaluing human life (though the figure in the memo merely repeated the NHTSA number), but, in reality, the plaintiffs sought and obtained punitive damages because Ford performed a cost-benefit calculation at all. Any manufacturer caught performing the cost-benefit calculation that the commenter believes reflects the tort system operating at its most efficient is going to be accused of “putting profits before people” and undervaluing human life, and is at severe risk of being hit with punitive damages unless the judge or jury is unusually economically literate.

2. I’m not saying the court should have thrown the case out because of the factual dispute. The jury made the wrong decision on the facts, but the judge made the wrong decision on the law: see McMahon v. Bunn-O-Matic and the dozen or so cases throwing identical theories out.

3. I agree that it’s not enough to look solely at the costs of the tort system, and that one must look at the benefits also. I don’t oppose the tort system as a whole, but there are certainly problems with the tort system that can be improved to increase the benefits while decreasing the costs. The McDonald’s case illustrates several of these problems: (a) bogus expert testimony; (b) the distorting effect of punitive damages, especially when punitive damages in a products liability case is based on the defendants’ sales, rather than the defendants’ conduct; (c) the erosion of the concept of proximate cause from the tort system; and (d) the erosion of the concept of personal responsibility from the tort system; (e) the backwards-looking “failure to warn” cause of action; (f) the system’s unscientific rejection of concepts of statistical significance.

This would be bad enough if the case was simply an outlier, a case where bad luck, a bad judge, a bad jury, and defense mistakes combined to create a wrong result, but ATLA and law professors are holding up this case as a good result, and there’s a generation of law students who mistakenly think that this is what the tort system should aspire to.

4. I mentioned Snopes.com in the post; they appear to have taken down their original McDonald’s coffee page. I’ve changed the link from the main Snopes page to a different post discussing the “Stella Awards” (which we debunked August 27, 2001). There, Snopes.com repeats the claim that the McDonald’s coffee lawsuit was legitimate, and furthers the urban legend that there’s a sinister force behind the Stella Awards—a curious claim, given that the Mikkelsons’ experience with urban legends has surely taught them that no right-wing conspiracy is needed to result in the spreading of a good yarn that isn’t true. (See also Aug. 14.) In contrast, ATLA affirmatively promotes urban legends about the Ford Pinto and McDonald’s coffee case on their page.

5. Side note about an irony of the Ford Pinto case: the litigation was sold to the American public as a godsend because Pintos were so dangerous that their gas tanks killed a thousand or more. Gary Schwartz added up the numbers, and discovered that only 28 people died in Ford Pinto fuel-fed fires—a rate lower than many other small cars. ATLA shamelessly uses the new number to exclaim that current product manufacturing snafus are “worse than the infamous Ford Pinto,” which is, of course, infamous only because of the successful propaganda of the trial bar.


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October 20th, 2005 at 12:38 am

Urban legends and Stella Liebeck and the McDonald’s coffee case

» by Ted Frank

Thirteen courts have reported opinions looking at product-liability/failure-to-warn claims alleging that coffee was “unreasonably dangerous” and the provider was thus liable when the plaintiff spilled coffee on him- or herself. Twelve courts correctly threw the case out. Another trial court in New Mexico, however, didn’t, and became a national icon when the jury claimed that Stella Liebeck deserved $2.9 million in compensatory and punitive damages because McDonald’s dared to sell the 79-year-old hot 170-degree coffee.

The case is ludicrous on its face, as a matter of law and as a matter of common sense. Eleven years later, this should be beyond debate, yet somehow, it keeps coming up in the blogs, and we keep having to refute it. (Dec. 10, 2003, Aug. 3, 2004, Aug. 4, 2004).

Amazingly, rather than argue that the tort system shouldn’t be judged by the occasional outlier, the litigation lobby has succeeded in persuading some in the media and on the left that the Liebeck case is actually an aspirational result for the tort system, and, not only that, but that anyone who says otherwise is just a foolish right-winger buying into “urban legends” (Aug. 14, Aug. 16, and links therein). Even the Mikkelsons at snopes.com have made the mistake of buying into the trial lawyer hype, calling the case “perfectly legitimate” and effectively classifying the common-sense understanding of the case as an urban legend.

But the real urban legend has to be that the case has any legitimacy. Worse, this urban legend is being taught to a generation of law students by professors like Jonathan Turley and Michael McCann. Now, any peripheral mention of the McDonald’s coffee case provokes a gigantic backlash from the left, who, while congratulating themselves on their seeing past the common-sense view of the case and being above urban legends, spread a number of urban legends of their own about the case. Witness the 200-plus comment outpouring at Kevin Drum’s Political Animal blog. This post provides a partial rebuttal to some of the things said in that thread, and will hopefully serve as a FAQ in the future.

Continue Reading »


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August 15th, 2005 at 3:21 pm

Winnebago/Stella Award myths, pt. 4

Reader Gerald Affeldt writes:

I first heard a version of the “Winnebago cruise control” story while I was in the Navy stationed at Whiting Field in Milton, Fla. in 1977. And I’ve heard different versions of it over the years.

The earliest version I heard, as well as a number of later versions, had an ethnic angle. At the time, the U.S. Navy was training pilots for the Shah of Iran, and what with language and customs difference, the trainees weren’t considered technically acute. So the first version of the story I heard was of a supposed Iranian driver. Over the years versions I heard involved a number of other ethnic groups. Just plug in who you wanted.

In the first version I heard, the vehicle was a conversion van. Bed in the back, couple of captain chairs and large mural on the side. Didn’t start hearing motorhome versions till the 90’s. So I guess it’s plug in the popular large vehicle of the time.

In the early versions, the point of the story was just that the driver was too dumb to know cruise control wasn’t the same as an autopilot. I never heard of a lawyer being involved until a few years ago. Guess the story’s age was showing and it needed spicing up.

Most people telling it thought it was true. A friend had seen it in a paper, etc. I guess the whole story works because of the number of stupid people in the world.

For those who came in late, the L.A. Times on Sunday printed a prominent piece on the Winnebago and other “Stella Award” tall tales, which it suggested were “fabrications” spread by the tort reform movement (see Ted’s and my take on the story, as well as our four-year-old debunking of the tales themselves with credit to Snopes). Regarding Mr. Affeldt’s recollections, a few observations:

* You’d think before running an article suggesting that the tales’ wide circulation over the Net reflects a campaign of purposeful disinformation, L.A. Times reporter Myron Levin might have done a little digging into the origins of the tales to find out things like where and when the earliest sightings occur. But there’s scant sign that he did.

* As a visit to the generally excellent urban-legends site Snopes.com will make clear, it’s typical of garden-variety urban legends — the kind whose circulation reflects mere credulity on the part of reader/forwarders, as opposed to a conscious plot to hoodwink the public — that they are older than the tale-tellers realize them to be, and have gone through mutations reflecting what in musicology would be called the folk process.

* To be sure, Mr. Affeldt’s recollections do not conclusively refute the ATLA/L.A. Times thesis that the Winnebago and similar tales have been purposely fabricated. After all, even if there were already an urban legend in wide circulation about a clueless driver’s mistaking cruise control for autopilot, it’s conceivable that the plotters came up with the sly stroke of inserting a lawsuit into the narrative as part of their unceasing efforts to sap public confidence in the U.S. legal system. Of course, it bears repeating that ATLA-’n'-L.A.T. have offered zero evidence of any such thing happening.

* One other thing missing from the L.A. Times account: any showing that the lawsuit-reform groups mentioned, such as ATRA and Common Good, or any similarly prominent group, have in fact circulated the Winnebago/Stella Award stories at all. Credulity being part of the human condition, of course, there are no doubt instances where the newsletter editor of the East Kankakee Citizens for Lawsuit Reform was taken in by a Stella email from his Aunt Fran and passed it along. That the L.A. Times piece does not adduce even one instance of serious backing from such groups should have raised a flag about the quote from Prof. Turley claiming that such stories have been devised with “skill” for purposes of “influencing policy”.

* Thanks to Patterico, Gail Heriot and Southern California Law Blog for linking to our earlier discussion. Among some bloggers of an opposite persuasion, the L.A. Times piece seems to have come as a confirmation of their own dearly held preconceptions on the subject, as with Ezra Klein, John Cole, and Mr. Furious, to some of whose comments sections Ted has paid a visit.


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