As we noted Jan. 13 and Jan. 23, the structure of the great 1998 tobacco robbery puts state governments under financial pressure to restrict or suppress the activities of maverick cigarette makers that do not participate in the settlement fund. Vice Squad, which has been following this issue, has recent posts detailing how this is happening in Pennsylvania, West Virginia, Florida (Feb. 23) and Pennsylvania again (Feb. 26)(Florida is one of four states with their own settlements with the tobacco majors paralleling the 46-state main settlement).
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Who’s serving as muscle to enforce a cartel that costs American consumers billions of dollars a year? Why, the National Association of Attorneys General, that’s who. As reported in our Jan. 13 item, the Big Four tobacco companies are starting to lose significant market share to small, regional and foreign cigarette companies that either do not contribute to the MSA (multistate settlement agreement) or do not contribute as much as the majors proportionally. Now AP confirms that NAAG sees this as a big problem and is urging states to pass laws closing the supposed “loophole” (which loophole appears to consist simply of the smaller companies’ not having to pay for past sins absent any showing that they’ve committed such sins). AP also obtained a confidential September memo from NAAG that’s a bit of a smoking gun, we’d say, as far as illuminating the true motives behind the plan. The memo “warned states to expect a $2.5 billion decrease in settlement payments due April 15, down from a projected $9.3 billion. It says about $600 million of that decrease, or 25 percent, is the result ‘not of a decline in smoking but rather of NPM (nonparticipating manufacturer) sales displacing sales by Participating Manufacturers.’ ‘NPM sales confer no benefits on the States,’ reads the memo…. ‘All States have an interest in reducing NPM sales in every State.’” (”Small cigarette makers cut into Big Tobacco’s markets, states’ pockets”, AP/Raleigh News & Observer, Jan. 16). (via Vice Squad).
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More trouble (besides the trouble described yesterday) for states financially dependent on the spoils of the great 1998 tobacco robbery: the market share of companies that signed the agreement is eroding at a surprisingly rapid clip, despite the passage of harsh state laws aimed at protecting the loot by discouraging the rise of new, small or foreign cigarette companies. “In four years, the market share of the small cigarette companies has multiplied more than tenfold, from 0.5 percent of cigarettes sold in the United States in 1998 to 6.5 percent in 2002, according to the National Association of Attorneys General. The group said the numbers for 2003 will be more startling.” (”Small Cigarette Companies Whittle Away At Big Tobacco’s Sales”, AP/WRAL, Jan. 5) (via Vice Squad)(& see Jan. 23)
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We’ve been saying it for years (here and here, for instance), and now we can cite authority from one of the nation’s most distinguished jurists, Judge Ralph Winter of the Second Circuit: the 1998 tobacco settlement was skillfully designed to create the sort of cartel among cigarette manufacturers that would have gotten tobacco executives packed off to jail had not state attorneys general been on hand to bestow their blessing. In a case called Freedom Holdings, Inc. v. Spitzer (yes, the New York AG, a vocal defender of the 1998 travesty, continues to be on the wrong side), a three-judge panel headed by Winter reinstated a lawsuit by a cigarette importer challenging the deal’s anticompetitive provisions.
A reader asks, in the wake of our discussion of Dr. Dean’s 1988 letter, whether other candidates have spoken out on tort reform.
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“Dan Morales, the former attorney general jailed for scheming to steal millions of dollars from Texas’ tobacco settlement, says sealed court documents could show wrongdoing on the part of private lawyers who represented the state.” (see Nov. 2 and links from there). Morales said a year ago that he believed the Big Five tobacco lawyers he hired may have breached their loyalty to the state in the course of taking home $3.3 billion in fees, and now says documents sealed as part of his criminal case would show such misconduct if made public. The documents were sealed by U.S. District Judge Sam Sparks at the request of attorney Mike Tigar, representing the Five. “Also Friday, Marc Murr, a former Houston lawyer charged as a co-defendant to Morales, was sentenced to six months in federal prison. In October, Murr pleaded guilty to mail fraud.” (Janet Elliott, “Morales urges probe of tobacco attorneys”, Houston Chronicle, Dec. 20).
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Law firms Brown Rudnick Berlack & Israels and Lieff, Cabraser, Heimann & Bernstein now say they’ll sue the state of Massachusetts for the whole $2 billion they say they’re entitled to — a 25 percent contingency share of the state’s $8 billion tobacco-settlement booty — rather than accept the measly $775 million they’ve been awarded in arbitration. The Associated Press says the firms “risk becoming poster children for attorney greed at a time when the profession is already under attack for high damage awards. ‘This lawsuit is about greed and it’s about selfishness. They should be ashamed of themselves,’ said former Maine Attorney General James Tierney, who worked with attorneys general from around the country to help negotiate the $246 billion master settlement.” (”Law firms go to court to make Massachusetts pay full tobacco legal fee”, AP/San Francisco Chronicle, Nov. 3; Steve Bailey, “Pigs at the trough”, Boston Globe, Oct. 10) For earlier coverage of the Massachusetts fees, see May 19; Jan. 2-3, 2002; Aug. 13-14, 2001; Dec. 22, 1999. (& see Dec. 17)
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“Former Texas Attorney General Dan Morales was sentenced Friday to four years in prison for filing a false income tax return and mail fraud in a case stemming from the state’s $17 billion tobacco settlement.” Although Morales had entered a guilty plea as part of a plea agreement, “he insisted most of the accusations about public misdeeds were untrue.” (AP/Tyler Morning Telegraph , Oct. 31; Janet Elliott, “Morales ordered to prison”, Houston Chronicle, Nov. 1). Background: Oct. 2, Jul. 17, Jun. 26 and links from there.
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It’s been a great couple of weeks for impunity for the devisers and beneficiaries of the gigantic 1998 tobacco heist. On July 31 a New York appellate panel unanimously slapped down Judge Charles Ramos’s attempt to launch an inquiry under his own authority into the ethical status of the $625 million in fees awarded to lawyers representing the Empire State in the litigation. The panel found that Judge Ramos lacked authority to pursue such review in the absence of controversy between the parties to the litigation and said he had mistaken a variety of points of law along the way. The politically well-connected recipients of that $625 million bonanza had good reason to heave a sigh of relief, since it seems practically no one in the state other than Judge Ramos is curious as to what they did to become entitled to the money (Daniel Wise, “N.Y. Panel Rejects Review Of Tobacco Fee Award”, New York Law Journal, Aug. 1)(see Jul. 30-31, 2002 and links from there). Meanwhile, “[o]nce again, the 3rd U.S. Circuit Court of Appeals has rejected an antitrust challenge to the $200 billion settlement between the top four tobacco companies and 46 states, finding that while the mega-deal did result in stifled competition, the state officials who agreed to it are immune from suit.” Previously, a suit by cigarette wholesalers had been dismissed on the ground of antitrust law’s Noerr-Pennington doctrine, which immunizes anticompetitive conduct related to lobbying and government action itself; the newly dismissed suit was filed on behalf of consumers (Shannon P. Duffy, “Smokers’ Antitrust Challenge Rejected”, The Legal Intelligencer, Jul. 31).
“A Mississippi Supreme Court justice and a wealthy attorney who helped land the state millions in tobacco settlement money were among five people indicted Friday on federal fraud and bribery charges. Biloxi attorney Paul Minor is accused of funneling hundreds of thousands of dollars to Justice Oliver Diaz Jr., Diaz’ former wife, Jennifer, and to two lower court judges. In return, Minor allegedly received favorable treatment for Minor and his clients in cases involving multimillion dollar judgments.” The 16-count indictment also names former Harrison County Judges Wes Teel and John Whitfield. Prominent in the state’s tobacco litigation, Minor is the son of a well known Magnolia State political columnist, Bill Minor. (Jack Elliott Jr., “Justice, Attorney Charged in Mississippi”, AP/Sarasota Herald Tribune, Jul. 25; Jerry Mitchell, “Justice, 4 others indicted”, Jackson Clarion Ledger, Jul. 26; Jerry Mitchell, “Charges may alter opinions of Miss. judiciary”, Jackson Clarion Ledger, Jul. 27; Jack Elliott Jr., “Indictment of justice and lawyer come amid debate between Mississippi business, trial lawyers”, AP/New Orleans Times Picayune, Jul. 27). More: Beth Musgrave, “‘Go see Paul Minor’”, Biloxi Sun Herald, May 18. For our earlier coverage, see: Oct. 9-10 and Oct. 11-13, 2002; May 7 and Jul. 24, 2003.
Former Texas Attorney General and key tobacco-suit figure Dan Morales, long a focus of scrutiny on this page, has withdrawn his former plea of innocent and has agreed to a four-year prison term, pleading guilty to one count each of mail and tax fraud; he will also pay fines of up to $1.25 million (Ken Herman & David Hafetz, “Morales pleads guilty to mail fraud, tax evasion”, Austin American Statesman, Jul. 17; more stories). The mail fraud charge relates to a backdated contract in which Morales purported to bestow a chunk of the state’s tobacco-settlement booty on his friend Marc Murr (see Jun. 26 and links from there). Our big question — our only question, really — is: does this mean he’ll talk?
“Former Texas Attorney General Dan Morales was ordered to remain in jail while awaiting trial on federal fraud charges after a judge determined today that he may have lied on two recent car loan applications and was a risk to commit financial crimes.” Morales, a key figure in the multistate tobacco litigation and long a familiar figure to readers of this site (see Jul. 15, 2002 and links from there; Jan. 10-12, 2003), was indicted in March (see Mar. 8-9) along with his friend Marc Murr and pleaded innocent to charges of having made improper efforts to gain hundreds of millions of dollars in fees for Murr from the state’s tobacco settlement. In the new development, Assistant U.S. Attorney Jim Blankinship presented U.S. District Judge Sam Sparks “with documents that he said showed Morales had purchased two used cars — a Mercedes and a Lexus — within days of filing a sworn affidavit with the court indicating that he had no income,” entitling him to representation by an appointed public defender. “According to Blankinship, Morales paid about $70,000 for the Mercedes and Lexus, both 2000 models. On loan applications to buy the cars, Morales listed his income as either $20,000 a month or $20,800 a month.” Judge Sparks remanded Morales into custody. (”Judge orders former attorney general to remain in jail”, AP/Houston Chronicle, Jun. 26; “Judge orders ex-AG Morales to remain jailed until October”, AP/Dallas Morning News, Jun. 26; David Pasztor, “Dan Morales jailed”, Austin American-Statesman, Jun. 25.)
Florida class action (Engle), 2003: “A $710 million loose end“, Jun. 24; ““Trial lawyers get spanked’“, May 24-26; “Court overturns $145 billion Engle award“, May 22-23. 2001: “Angles on Engle“, May 24. 2000: “‘Not even thinking about’ fees“, Aug. 11-13; “Smoking and responsibility: columnists weigh in“, Jul. 28-30; “‘Poll: majority disapprove of tobacco fine’“, Jul. 24-25; “Florida verdict: more editorial reaction“, Jul. 24-25; “Smoking and responsibility: columnists weigh in“, Jul. 28-30; Editorial roundup“, Jul. 19-20; “Florida tobacco verdict“, July 18; “Tobacco: why stop at net worth?” (punitive damage rulings by judge), Jul. 10; “Another Mr. Civility nominee” (Stanley Rosenblatt), Jun. 2-4. 1999: “$49 million lawyers’ fee okayed in case where clients got nothing” (secondhand smoke class action), Sept. 28; “Personal responsibility takes a vacation in Miami“, Jul. 8; “The Florida tobacco jurors: anything but typical“, Wall Street Journal, Jul. 12, 1999.
Tobacco fees reconsidered, 2003: “Senate panel nixes tobacco-fee clawback“, May 9-11; “Feds indict former Texas AG“, Mar. 8-9; “‘Not a pretty picture’“, Jan. 10-12. 2002: “Judge overturns $1.3 billion tobacco fee award” (Castano Group), Sept. 27-29; “Welcome Fox News viewers/ readers“, Aug. 2-4; “Tobacco fees: one brave judge” (New York), Jul. 30-31 (& Aug. 2-4, Jun. 21-23, Oct. 16-17, Oct. 25-27, 2002; Feb. 11 & Jun. 6-8, 2003; May 11, 2001).
“‘Lawyers who won $10 bil. verdict had donated to judge’“, Apr. 30, 2003; “A bond too far“, Apr. 4-6; “Appeals bonds, again“, Apr. 2-3; “Mad County pays out again” (”light” cigarette class action), Mar. 24, 2003.
“‘Nanny Bloomberg’” (NYC smoking ban), Oct. 22, 2002.
Tobacco fees, state by state, 2003: “‘Law firms in tobacco suit seek $1.2b more’” (Mass.), May 19 (& Jan. 2-3, 2002, Dec. 22, 1999); “Feds indict former Texas AG“, Mar. 8-9 (& May 22, Sept. 1-3, 2000; Jun. 21, Aug. 29-30, Nov. 12, 2001, Jul. 15, Jul. 30-31, 2002; Jan. 10-12, 2003). 2002: “Judge overturns $1.3 billion tobacco fee award” (Castano Group, California), Sept. 27-29; “Tobacco fees: one brave judge” (N.Y.), Jul. 30-31 (& Aug. 2-4, Jun. 21-23, 2002, Oct. 16-17, 2002, Feb. 11, 2003, May 11, 2001); “Dewey deserve that much?“, Mar. 6; “Mass., Ill., NYC tobacco fees“, Jan. 2-3. 2001: “Michigan tobacco fees“, Sept. 19-20; “Tobacco-fee tensions” (Fla. resumes investing in tobacco cos.), Jun. 21 (& letter to editor, Jul. 6); “Missouri’s tagalong tobacco fees“, Jun. 5 (& Sept. 21, 2000); “‘Lungren now a paid advocate for his former foes’” (Calif.), Apr. 5; “(Another) ‘Monster Fee Award for Tobacco Fighters’” (Calif. cities and counties), Mar. 21-22; “Reclaiming the tobacco loot“, Mar. 15; “Lawyers get tobacco fees early“, Mar. 5; “Tobacco arbitrator: they all know whose side I’m on“, Feb. 16-19. 2000: “Beehive of legal activity: Utah tobacco fees“, Nov. 6; “South Carolina tobacco fees: how to farm money“, Oct. 25; “Gore amid friendly crowd (again)” (Fla.), Apr. 12 (& “Dershowitz’s Florida frolic?“, Jul. 17; also see Dec. 8-10, 2000, Aug. 8-9, 2000, Dec. 27-28, 1999); “Sooner get rich” (Oklahoma), Jun. 7; “‘Lawyers’ tobacco-suit fees invite revolt’” (Ohio), May 23; “North Carolina (& Kentucky & Tennessee) tobacco fees“, May 2; “Connecticut AG has ‘no idea’ whether lawyers he hired are overcharging“, Feb. 3 (& update Feb. 16); “Pennsylvania tobacco fees: such a bargain!“, Jan. 10 (& Oct. 24, 2002). 1999: “Maryland’s kingmaker” (Peter Angelos), Oct. 19 (& Dec. 9, 1999, Oct. 16-17, 2000, June 21, 2001, Apr. 10, 2002); “Illinois tobacco fees“, Oct. 16-17; “My dear old tobacco-fee friends” (Kansas AG, like Connecticut’s, gave tobacco business to her old law firm), Oct. 11 (see also Sept. 21, 2000); “Boardwalk bonanza” (N.J.), Oct. 1-3; “News judgment“, Aug. 6; “Puff, the magic fees” (Wisc.), Jul. 13.
Tobacco-fee tycoons, 2003: “Class action lawyer takes $20 million from defendant’s side” (Joseph Rice), Mar. 15-16; “‘Not a pretty picture’“, Jan. 10-12; 2002: “Rumblings in Mississippi” (Scruggs, Minor), Oct. 9-10 (& Nov. 6); “Judge overturns $1.3 billion tobacco fee award” (Castano Group), Sept. 27-29. 2001: “Settle a dispute today” (O’Quinn vs. Jamail), Sept. 18; “Ness monster sighted in Narragansett Bay” (Rhode Island, Ness Motley), Jun. 7 (& see Oct. 6-9, 2000, July 17, 2000, Nov. 1, 1999). 2000: “Punch-outs, Florida style” (Robert Montgomery), Nov. 17-19 (& see Aug. 8, April 12, 2000; Aug. 21-22, 1999); “Friend to the famous” (Williams Bailey), Oct. 12; “Senator Lieberman: a sampler” (voted to curb tobacco fees), Aug. 8-9; “Trial lawyer candidates” (Minnesota’s Ciresi), Jul. 6 (& update Sept. 15-17; loses primary bid); “‘Lawyers’ tobacco-suit fees invite revolt’” (USA Today editorial), May 23. 1999: “Who’s afraid of Dickie Scruggs?“, Dec. 2; “Maryland’s kingmaker” (Peter Angelos), Oct. 19 (& Dec. 9, 1999, Oct. 16-17, 2000, June 21, 2001); “The Marie Antoinette school of public relations” (tobacco lawyers pose for photo shoot on their yachts, horse farms, etc.), Aug. 21-22; and see lawyers’ campaign contributions.
Humor: “Dave Barry on tobacco settlement, round III“, Sept. 16-17, 2002; “Dave Barry on tobacco suits, round II“, March 16, 2000; “Dave Barry on federal tobacco suit“, Oct. 26, 1999; “Cartoon that made us laugh” (”….We can’t take those off the market! Dangerous products are a gold mine for the government!”), Jan. 21-23, 2000.
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Terms of state tobacco settlement, 2003: “Appeals bonds, again“, Apr. 2-3. 2002: “We did it all for the public health, cont’d” (Alabama devotes more proceeds to tobacco farmers than to smoking reduction), Aug. 22; “Tobacco settlement funds go to tobacco promotion” (N.C.), Jun. 28-30; “‘Bush budget surprise: $25M for tobacco suit’” (Martha Derthick, Up in Smoke), Feb. 20. 2001: “Tobacco-fee tensions” (Fla. resumes investing in tobacco cos.), Jun. 21 (& letter to editor, Jul. 6); “Reclaiming the tobacco loot“, Mar. 15; “Push him into a bedroom, hand him a script” (Bill Clinton testimonial for tobacco lawyers), Mar. 9-11; “Lawyers get tobacco fees early“, Mar. 5; “Tobacco arbitrator: they all know whose side I’m on“, Feb. 16-19; “Safer smokes vs. the settlement cartel“, Feb. 7-8. 2000: “Missouri tobacco fees“, Sept. 21, 2000; “Tobacco- and gun-suit reading” (Stuart Taylor, Jr.), Aug. 21-22, 2000; “Challenging the multistate settlement“, Jul. 17, 2000. 1999: “‘Few Settlement Dollars Used for Tobacco Control’“, Dec. 27-28; “Tobacco bankruptcies, and what comes after” (state gov’ts, trial lawyers would become cigarette producers), Dec. 13; “How the tobacco settlement works” (the more cigarettes sold, the more money states get), Nov. 2; “Addictive tobacco money” (states sued over alleged burden on their taxpayers — so are they using the proceeds to cut taxes?), Sept. 7; “Collusion: it’s an AG thing” (terms of settlement cartelize cigarette industry), Jul. 29. Also see Walter Olson, “Puff, the magic settlement“, Reason, Jan. 2000.
“‘Tough tobacco laws may not deter kids’“, Jun. 7-9, 2002; “Blind newsdealer charged with selling cigarettes to underage buyer“, Sept. 16, 1999.
“Sin-suit city” (Banzhaf), Jun. 10, 2002.
“Ad model sues tobacco company“, May 1-2, 2002.
“Australian party calls for banning smoking while driving“, Jun. 3-4, 2002; “‘Positive nicotine test to keep student from prom’” (over-18 student, off-premises consumption), Apr. 26-28, 2002 (& update May 10-12: school backs down); “Judge orders woman to stop smoking at home“, Mar. 27-28, 2002; “‘Smokers told to fetter their fumes’” (smoking in homes that bothers neighbors), Nov. 26, 2001; “Utah lawmakers: don’t smoke in your car” (when kids present), Oct. 5-7, 2001; “Apartment smoking targeted“, Jan. 3, 2000.
“Australian party calls for banning smoking while driving“, Jun. 3-4, 2002 (document retention case); “International tobacco suits: not quite such easy pickings“, Feb. 1-3, 2002; “‘Saudi Arabia finally gets tough on terrorism!’“, Dec. 10, 2001; “More from Judge Kent” (Bolivian suit), Aug. 3, 2001; “Smoker’s suit nixed in Norway“, Dec. 18-19, 2000; “They call it distributive justice” (government of Saudi Arabia sues tobacco cos.), Nov. 16, 2000; “Spreading to Australia?“, Dec. 29-30, 1999; “Israeli court rejects cigarette reimbursement suit“, Oct. 7, 1999.
“Veeps ATLA could love” (Durbin, D-Ill., as guardian of tobacco lawyers’ fees), July 7, 2000 (& see Apr. 25, 2002).
“Competing interests: none declared”. “The unconflicted Prof. Daynard“, April 21-23, 2000 (& update: letters, Jan. 2001, June 2001; Aug. 2, Dec. 17, 2001).
Federal tobacco suit: our views: “‘Bush budget surprise: $25M for tobacco suit’“, Feb. 20, 2002; “Judge throws out half of federal tobacco suit“, October 2, 2000; “Good news out of Washington…” (House votes to cut off funding for suit), June 21, 2000 (& update June 26: action reversed, funds approved); “Feds: dissent on smoking = racketeering“, Sept. 23, 1999; “Guest column in Forbes by Overlawyered.com’s editor“, Oct. 25, 1999.
“Prison litigation: ‘Kittens and Rainbows Suites’” (cellmate’s smoking violates rights), Jan. 11-13, 2002.
Boeken v. Philip Morris: “Boeken record“, June 19, 2001; “$5,133.47 a cigarette“, Jun. 11, 2001; “Tobacco plunder in Los Angeles” ($3 billion damage award), Jun. 8-10, 2001.
Federal tobacco suit: others’ views: “Columnist-fest” (Jacob Sullum), Jun. 22-24, 2001; “Blatant end-runs around the democratic process” (former Labor Secretary Robert Reich), Jan. 15-16, 2000; “Dave Barry on federal tobacco suit” (plus novelist Tom Clancy’s critique), Oct. 26, 1999; “‘This wretched lawsuit’” (Jonathan Rauch in National Journal ), Oct. 13, 1999; “Feds’ tobacco shakedown: ‘A case of fraud’“, Sept. 29, 1999 (roundup of editorial pages); “Feds as tobacco pushers” (columnist Andrew Glass recalls encouragement of smoking in U.S. Army), Sept. 24, 1999; “Hurry up, before the spell breaks” (leading plaintiff’s lawyer wants feds to sue fast since public losing interest), Sept. 24, 1999.
Regulation by litigation: “Tobacco- and gun-suit reading” (law prof Michael Krauss), Aug. 21-22, 2000; “Convenient line at the time” (tobacco is unique, said state attorneys general — sure), May 15; “Stuart Taylor, Jr., on Smith & Wesson deal” (”Guns and Tobacco: Government by Litigation”), Apr. 11, 2000; “Arbitrary confiscation, from Pskov to Pascagoula” (Michael Barone in U.S. News on threat to rule of law), Jul. 24-25, 1999; “Guns, tobacco, and others to come” (Peter Huber in Commentary on the new mass-tort cases as “show trials”), Jul. 20; “‘A de facto fourth branch of government’” (prominent trial lawyer Wendell Gauthier’s view of plaintiff bar’s role), Jul. 4, 1999.
“Dewey deserve that much?“, Mar. 6, 2002; “Health plans rebuffed in bid to sue cigarette makers“, Jan. 11, 2000.
“Terrorists, American business execs compared“, Sept. 28-30, 2001.
“Columnist-fest“, Jun. 22-24, 2001 (Amity Shlaes on asbestos synergy case); “Best little forum-shopping in Texas” (state’s Medicaid suit got filed in Texarkana, contributing $6.1 million to local economy), Aug. 27, 1999.
“The Kessler agenda” (former FDA chief calls for cigarette ban), Jan. 12-14, 2001; “Kessler rebuked” (FDA claim of authority over tobacco), March 27, 2000.
“Updates” (baby Castano suit nixed in N.Y.), Dec. 26-29, 2000.
“Wal-Mart’s tobacco exposure“, Sept. 25-26, 2000; “The Wal-Mart docket” (sued over tobacco sales), July 7, 2000.
“Another billion, snuffed” (antitrust lawsuit between snuffmakers), May 10, 2000.
“Hollywood special: ‘The Insider’“, Mar. 30, 2000.
“Because they still had money” (Hausfeld’s price-fixing suit), Mar. 2, 2000.
“Tobacco lawyers’ lien leverage“, Feb. 29, 2000.
“Feds’ tobacco hypocrisy, cont’d: Indian ’smoke shops’“, Jan. 25, 2000; “Do as we say, please” (Indian tribes, after profiting immensely from tax-free smoke shops, turn around and sue suppliers), Jul. 14, 1999.
“The joy of tobacco fees“, Jan. 20, 2000.
“Calif. state funds used to compile ‘enemies list’“, Jan. 5, 2000.
“‘Trial lawyers on trial’” (Trevor Armbrister, Reader’s Digest), Dec. 23-26, 1999.
“Philadelphia Inquirer Tech.life: ‘Web Winners’” (this page is recommended), Dec. 15, 1999.
“Ohio tobacco-settlement booty“, Nov. 8, 1999.
“Public by 2-1 margin disapproves of tobacco suits“, Nov. 5-7, 1999.
“Not-so-Kool omen for NAACP suit“, Nov. 1, 1999.
“Minnesota to auction seized cigarettes“, Oct. 21, 1999.
“Reform stirrings on public contingency fees“, Oct. 15, 1999.
“Big guns” (tobacco example shaped gun litigation), Oct. 5-6, 1999.
“Plus extra damages for having argued with us” (”lesson of tobacco”: you can get punished for defending your product), Aug. 19, 1999.
“‘Settlement bonds’: are guns next?” (how Wall Street finances expropriation of industries), Aug. 5, 1999.
Do the tobacco wars that began in the mid-1990s represent an unprecedented triumph for public health? Are they an inevitable response to legislative gridlock on smoking policy? Or are they our legal system’s own updated version of the Gilded Age scandals that brought American government into disrepute a century ago, siphoning billions of dollars of publicly obtained money into the hands of politically connected attorneys? Commentaries on Overlawyered.com (above) may help you decide. In the mean time, the following links offer a way into the wider tobacco controversy:
Anti-tobacco groups, most of which are supportive of litigation as well as other coercive government actions aimed at curtailing tobacco sale and use, are well represented on the web. They include Tobacco.org, federally funded antitobacco activist Stanton Glantz’s Tobacco Control Archives, Americans for Non-Smokers’ Rights, Action on Smoking and Health, and the American Council on Science and Health. Tobacco.org’s links list is especially comprehensive. The empire associated with Prof. Richard Daynard, participant in tobacco suits, oft-quoted expert, and professor at Northeastern U., includes the Tobacco Products Liability Project and Tobacco Control Resource Center, as well as the State Tobacco Information Center. The Castano Group, a vast joint venture of trial lawyers cooperating to file tobacco class actions, maintains a website that is distinctly uninformative (unless you’re a lawyer/member or a cooperative pressie).
Relatively neutral sites include Yahoo Full Coverage.
Critics of the anti-tobacco crusade often note that it curtails individual liberty, freedom of contract and freedom of association. As part of its Breaking Issues series (”Fining Smokers“), Reason magazine includes a list of online articles skeptical of the government’s role in the tobacco field, while Reason senior editor Jacob Sullum is the author of 1998’s For Your Own Good : The Anti-Smoking Crusade and the Tyranny of Public Health. At the libertarian-oriented Cato Institute, Robert Levy has criticized “The Tobacco Wars“, written that “States Share Blame for Tobacco Lawyers’ Greed“, and called tobacco settlements “Dangerous to Your Liberty“; the state Medicaid suits, he argues, are “Snuffing Out the Rule of Law“. Cato’s Jerry Taylor describes the battle as “The Pickpocket State vs. Tobacco“. “The Anti-Tobacco Crusade” by Joseph Kellard, Capitalism magazine, March 1998, argues from a viewpoint supportive of Ayn Rand’s Objectivism. In Colorado, the Independence Institute maintains a Center for Personal Freedom run by Linda Gorman which draws the connection to other paternalist crusades on issues like drinking, seatbelt use and mandatory helmet laws. The Heritage Foundation’s Todd Gaziano makes the case that a proposed federal lawsuit against tobacco companies is “elevating politics over law” (July 30, 1999 Backgrounder). Overlawyered.com’s editor has taken exception to the retroactivity of the crusade, to its manipulative treatment of children, and to the hardball or demagogic tactics used in the Castano and Engle cases. Rep. Chris Cox (R-Calif.) delivered a notable critique of the tobacco litigation at a Congressional hearing held Dec. 10, 1997 (no longer online).
An extensive site offering an aggressive defense of smoking and smokers, along with a large collection of links, is Forces International (”Fight Ordinances and Restrictions to Control and Eliminate Smoking”).
May 9-11 – Senate panel nixes tobacco-fee clawback. “Senators working on a tax bill Thursday stripped a proposal that would have forced attorneys in a landmark tobacco lawsuit to give $9 billion in fees back to the states they represented.” Sen. Jon Kyl, R-Ariz., had proposed requiring plaintiff’s lawyers in the tobacco affair to return to their state-government clients fees in excess of $2,500/hour or thereabouts. “But Democrats, led by Sen. John Breaux, D-La., and joined by Republican Sens. Orrin Hatch of Utah and Gordon Smith of Oregon, won a 12-8 vote to strike the language. Sen. John Kerry, D-Mass., said that if Congress can change the terms of the tobacco settlement, there is nothing to stop it from telling every business in America to change the way they pay their executives.” It’s almost as if Sen. Kerry doesn’t realize that 1) a host of federal laws already on the books, notably tax provisions, do purposely shape the way businesses compensate their executives; 2) lawyers, unlike business execs, practice under professional ethical codes which are supposed to bar them specifically from charging excessive fees; 3) lawyers who claim to represent the government (and thus the public) come under some of the most stringent ethical constraints of all. (”Senate Democrats Strike Proposal to Limit Fees for Lawyers in Tobacco Case”, AP/Tampa Bay Online, May 8; Stephen Moore, “Targeting lawyers who got rich off tobacco trials”, Scripps Howard/Nando Times, May 2) (& welcome Law.com readers). (DURABLE LINK)
May 9-11 – Update: “U.S. is sued for deaths of crossers”. “The families of 14 illegal entrants who died crossing the desert east of Yuma in May 2001 have filed a $42 million lawsuit against the U.S. Department of the Interior.” As we reported a year ago when the cases were at an earlier procedural stage, “The suit charges the government with failing to authorize the placement of water stations intended for use by unlawful visitors, though it knew smugglers of immigrants were active in the desert area.” (Michael Marizco, Arizona Daily Star (Tucson), May 8). (DURABLE LINK)
May 8 – “No Crueler Tyrannies”. Dorothy Rabinowitz’s long-awaited book on the mass-child-abuse accusation frenzy of the 1980s and 1990s is now available at this link. It collects and extends the widely acclaimed Wall Street Journal reporting that prepared the way for the author’s 2001 Pulitzer Prize (review by Carol Iannone, Commentary, May; C-SPAN “Booknotes” interview with Brian Lamb, May 4; Suzanne Fields, “A cruel tyranny at home”, syndicated/TownHall, Apr. 3; other reviews at Amazon site). (DURABLE LINK)
May 8 – More on Edwards’ law-firm donations. Washington periodical The Hill digs deeper into the curiously uniform $2,000 contributions Sen. John Edwards’ presidential campaign got from so many receptionists, paralegals and other low-level staffers at plaintiff’s law firms. The $2,000 donors include many employees who had not given to candidates or even voted in the past, and others who are listed on the voting rolls as Republicans. Many spouses and relatives of the staffers likewise contributed the maximum. Some of the munificent staffers have recently gone through the kind of personal financial reverses — bankruptcy filings, for example — which would not seem to correlate in the natural order of things with having a large available checkbook for political donations. “In many instances, all the checks from a given firm arrived on the same day — from partners, attorneys, and other support staff.” Employees denied that their law-firm employers had signaled any willingness to reimburse the donations, which would constitute a violation of federal law. (Sam Dealey, “Donations to Sen. Edwards questioned”, The Hill, May 7). (DURABLE LINK)
May 7 – Mississippi investigation heats up. Per the Times of South Mississippi (Hattiesburg), the “net may be widening” in the FBI’s previously reported investigation of improper ties between Mississippi judges and well-known trial lawyers (see Oct. 9-10 and 11-13, 2002). “Sources said this week as many as 25 indictments could be issued …While reports of the investigation have focused on the Gulf Coast, sources said the probe now includes campaign contributions from trial lawyers connected to Southwest Mississippi,” renowned as the center of intense litigation against pharmaceutical companies. (”Bob Pittman, “FBI widening its investigation of campaign funding”, Times of South Mississippi (Hattiesburg), May 5. See also “Diaz’s dad testifies before grand jury”, Jackson Clarion Ledger, Apr. 12; Jerry Mitchell, “Judicial probe intensifying”, Jackson Clarion Ledger, May 2).
“Meanwhile,” the Hattiesburg paper continues, “four trial lawyers who have been active in lawsuits against prescription drug manufacturers are named as defendants in a growing number of court actions in Jefferson County. In at least four suits filed to date, trial lawyers Dennis Sweet, Shane Langston, Richard Freese and Richard Schwartz, all of Jackson, have been named as defendants in cases in which it is alleged that the four either withheld settlement money from clients or failed to pay hired ‘runners’ who were employed to enroll plaintiffs in cases which the lawyers filed in several different counties in Mississippi, including Jasper County.” (May 5 article, cited above). See also Bob Pittman, “Judge asked to step aside in trial lawyer suit”, May 1; Bob Pittman, “Suit alleges lawyer used ‘fake clients’”, May 1. (DURABLE LINK)
May 7 – Jury selection in Britain. Notwithstanding the understandable outcry over a recent case in which a British judge excluded prospective jurors from a politically sensitive trial based on their religion, the general rule in the English system is for jurors to be drawn from a near-universal pool and selection to be made at random. “English lawyers are not pestered by jury consultants: they do not exist here. We do not have days of jury selection before a trial starts, as I have seen for myself several times in the United States, with prospective jurors questioned in depth and sometimes with aggression by lawyers anxious to explore possible prejudices. Defense barristers in England used to have the right of seven (then whittled down to three) peremptory challenges without any need for courtroom interrogation….But Parliament abolished peremptory challenges by the defense in 1989, and although not technically abolished, ’standing by for the Crown’ [the equivalent for the prosecution] now seldom occurs.” For-cause challenges are rare as well. (Fenton Bresler, “Picking juries — or not”, National Law Journal, Mar. 17, not online). (DURABLE LINK)
May 6 – “Robber sues clerk who shot him during holdup”. Muncie, Ind.: “A convicted robber is suing the convenience store clerk who shot him as he fled after a holdup. Willie Brown, 44, claimed the clerk acted ‘maliciously and sadistically’ in firing five shots as Brown ran out of Zipps Deli with money from the store’s cash register.” Brown, who was struck by bullets in the back and side, pleaded guilty to robbery and was sentenced to four years in prison. His earlier convictions included one for robbery and two for burglary. (AP/Indianapolis Star, Apr. 18). And in Great Britain, “Government lawyers trying to keep the Norfolk farmer Tony Martin behind bars will tell a High Court judge tomorrow that burglars are members of the public who must be protected from violent householders.” (Robert Verkaik, “Government lawyers say burglars ‘need protection’”, The Independent (UK), May 5). Plus: in Bentonville, Ark., inmate Kenneth J. Lewis II is suing Nina Baugh for $140,000 in damages; according to affidavits, Lewis was shot by Baugh after he attempted to burglarize her family’s pawn shop and another business. Lewis was sentenced in January to 12 years’ imprisonment after he pleaded guilty to commercial burglary and aggravated assault (Tracy M. Neal, “Convicted burglar sues woman who shot him during crime”, Benton County Daily Record, Apr. 19). (DURABLE LINK)
May 6 – Year’s most injudicious judges. The National Law Journal’s annual survey of misbehavior on the bench includes jurists alleged to have slept with litigants, offered to fix cases, set new records for rudeness, and run a Ponzi scheme from chambers, not to mention the jurist who is said to have referred to himself as “God”. (Gail Diane Cox, “The Injudicious: Judges who crossed the line — or erased it”, May 5). (DURABLE LINK)
May 5 – Friends in high places, cont’d. A bill expanding wrongful death damages — a top priority of the state’s trial lawyer association — is moving quickly through the GOP-controlled New York state senate; it happens that the “head of the Judiciary Committee and the sponsor of the bill is big-time trial lawyer John DeFrancisco (R-Syracuse). It’s not just Democrats like Assembly Speaker (and trial lawyer) Shelly Silver who are in the lawyer lobby’s pocket.” (”Lawyer leeches would bleed N.Y.C.” (editorial), New York Daily News, Apr. 18)(more on bill, Business Council of New York State)(see Dec. 13-15, 2002, Oct. 4, 2000). And in Kansas, “Gov. Kathleen Sebelius used her first veto to reject a bill designed to promote rural tourism. Specifically, the bill would shield from lawsuits farmers and ranchers who, for a fee, let people watch and take part in some farm activities. … The strongest opposition to the bill came from the Kansas Trial Lawyers Association, which employed Sebelius as executive director before her election to the House in 1986.” (Steve Painter, “Sebelius vetoes farmer liability shield”, Wichita Eagle, Apr. 16). While with the KTLA Sebelius “worked closely with the Legislature as a lobbyist” (bio) and then went on to attract widespread notice as her state’s insurance commissioner before running for governor. (DURABLE LINK)
May 5 – Prospering despite reform. Some observers thought the Private Securities Litigation Reform Act of 1995 law “was aimed at putting [class action firm] Milberg Weiss — and especially partner William Lerach, the lawyer many corporate executives love to hate — out of business. … Instead, according to a new study by Stanford Law School’s Securities Class Action Clearinghouse and Cornerstone Research, Milberg Weiss is doing better than ever.” (Tamara Loomis, “Milberg Weiss Stronger Than Ever Despite Reform Act”, New York Law Journal, Apr. 24). An analysis for the Cato Institute by Adam S. Pritchard of the University of Michigan Law School concludes that the law has, as intended, worked to raise the average quality of securities suits and weed out those with least merit. (”Should Congress Repeal Securities Class Action Reform?”, Cato Policy Analysis, Feb. 27 (executive summary, full text in PDF format)). (DURABLE LINK)
May 3-4 – “Streets Strewn With Glass, Gold”. Don’t miss this profile of D.C.’s subculture of “accident investigators” who solicit participants in car crashes to file lawsuits, often bombarding their phones with evening and early-morning calls for days. “The lawyer who introduced him to the business was killed by a car while standing on an exit ramp, apparently talking with accident victims, ["personal injury specialist" Warren] Johnson says.” (Libby Copeland, Washington Post, May 1). (DURABLE LINK)
May 3-4 – By reader acclaim: “Student sues over top title”. “A Moorestown [N.J.] High School senior, contending that the district superintendent is engineering new rules that would force her to share the title of valedictorian with another student, sued school officials yesterday. Blair L. Hornstine, 18, who aspires to be a lawyer, asked a federal judge to prevent the school from declaring valedictorian anyone other than the student with the highest GPA.” (John Shiffman, Philadelphia Inquirer, May 2; Tanya Barrientos, “Student’s lawsuit shows lack of class”, May 3). Update May 13: Hornstine wins suit (DURABLE LINK)
May 1-2 – It ain’t heavy to him, he’s my brother. In September, according to the National Law Journal’s “Verdicts and Settlements” column (Oct. 7, 2002, not online) a Texas jury awarded $134,000 to Jennifer Grobe, an employee of the Granite & Iron Store in Fredericksburg. “According to Grobe, she suffered two herniated lumbar discs when she lifted one of two 100- to 125-pound granite tables that the store’s owners had left in the entrance”. Why Grobe’s claim went to a jury in the form of a lawsuit, rather than to the workers’ comp system, is not clear from the context.
The bit in the NLJ’s report that drew our attention was the following: Grobe’s suit alleged that her employer was negligent “for placing the tables in the entrance and for failing to comply with store policy by not having two male employees available.” Perhaps we’re missing something, but wouldn’t the employer have faced likely liability exposure if it had enforced a policy of “having two male employees available” to handle heavy deliveries? As any self-respecting sex-discrimination litigator would point out, such a policy closes off some work opportunities to women and trades on impermissible (no matter how generally accurate) stereotypes of men as wielding greater upper-body strength. (DURABLE LINK)
May 1-2 – Those litigious Americans. “An ad for Dutch brewer Heineken NV depicts lawsuit-happy Americans suing each other over spilled beer…The idea is that Heineken is so good it makes Americans abandon their litigious natures.” (Erin White, “National Lampoon: U.K. Ads Satirize American Demeanor”, Wall Street Journal, Apr. 28, online subscribers only). (DURABLE LINK)
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March 10-11 – “Burglars to be banned from suing victims”. United Kingdom: “Burglars who are injured while committing a crime are to banned from suing their victims for compensation. David Blunkett, the Home Secretary, has bowed to public pressure after the outcry over the case of Brendon Fearon, the burglar who is trying to sue Tony Martin for £15,000 after being shot while breaking into his home.” (David Bamber, Daily Telegraph, Mar. 9). (DURABLE LINK)
March 10-11 – Clear Channel = Deep Pocket. “With damage claims in the Rhode Island fire expected to run up to $1 billion, two lawyers representing victims have set their sights on a potential defendant with very deep pockets: Clear Channel Communications. The broadcasting giant owns WHJY-FM, a Providence radio station that ran ads for the Great White concert at The Station that ended moments into the first song when pyrotechnics set off by the band ignited the nation’s fourth-deadliest fire. A popular disc jockey at WHJY, Michael Gonsalves, introduced Great White and was among the 99 who died in the fire or from injuries suffered in the blaze. The two Providence lawyers, who between them represent about a dozen victims, said yesterday their expected lawsuits will almost certainly name Clear Channel as a defendant. The company, the largest operator of radio stations in the country, has assets that far outstrip those of the 14 defendants who were named in the only lawsuit filed so far.” (Jonathan Saltzman, “R.I. fire victims’ lawyers eye firm”, Boston Globe, Mar. 8). (DURABLE LINK)
March 10-11 – New Medicare drug benefit? Link it to product liability reform. “Even drugs like aspirin, which cause hundreds of deaths each year, could not meet the safety standards patients expect today,” argues Scott Gottlieb of the American Enterprise Institute. ” … But putting [older] patients on the pills they need means we need to prepare to tolerate more side effects or tolerate more lawsuits. Litigation should not be a cost of commerce when government puts itself in the business of pushing pills. … Without product liability reform, prescription drug coverage will transform into a full employment act for the lawyers, limiting development of new drugs and driving up prices for everybody.” (Scott Gottlieb, “More Drug Use Will Mean More Lawsuits,” AEI On the Issues, Mar.). (DURABLE LINK)
March 10-11 – Lawsuits vs. free speech, cont’d: jailhouse rock. Last year VH1 aired a special entitled Music Behind Bars, featuring the music of prisoners. Now the family of a West Virginia man murdered in 1994 by one of the inmate-performers is suing the network. The family’s lawyers are arguing that whether or not the network compensated the convicted killer for his performance — it says it did not — its broadcast occasioned the family emotional distress for which it should have to pay compensatory and punitive damages. (Maria Lehner, “Murder Victim’s Family Sues VH1″, Fox News, Mar. 6). (DURABLE LINK)
March 8-9 – Tobacco fees: feds indict former Texas AG. One of the biggest developments yet in the tobacco-fee saga: a federal grand jury is charging former Texas attorney general Dan Morales and his friend Marc Murr with conspiracy and mail fraud over Morales’s attempt to gain hundreds of millions of dollars in fees for Murr from the state’s tobacco settlement. More recently, Morales has suggested that he might be able to furnish information that would throw in question the fee entitlements of five politically influential trial lawyers who managed the state’s case (R. G. Ratcliffe and Clay Robison, “Former Attorney General Dan Morales indicted”, Houston Chronicle, Mar. 6; April Castro, “Ex-Attorney General Morales Indicted”, AP/Washington Post, Mar. 6; “Former Texas Attorney General Surrenders”, AP/ABC News, Mar. 7). For earlier coverage, see Jul. 15, 2002 and links from there; Jan. 10-12, 2003. (DURABLE LINK)
March 8-9 – Should have watched his step answering call of nature. Update: an appeals court in the Australian state of New South Wales has overturned the $60,000 judgment (see Mar. 5, 2002) awarded to Paul Jackson, who after a night drinking with friends walked home along a highway and “stepped over a low guard rail in order to urinate, not realising there was a drop of several metres.” The “plaintiff was not taking reasonable care for his own safety as he was obliged to do,” the justices said. (”That’s a long drop”, Sydney Morning Herald, Mar. 5; “Wee change in fortune for Wollongong man”, Aust. Broadcasting Corp., Mar. 5). (DURABLE LINK)
March 5-7 – Update: hospital rapist’s suit dismissed. Sandusky, Ohio: “A judge has dismissed the $2 million lawsuit filed by a convicted rapist who claimed the hospital where he sexually assaulted a woman was negligent because it didn’t prevent the crime, according to court records.” ((Richard Payerchin, “Ruling: Convict responsible for his own crime”, Lorain Morning Journal, Feb. 20)(see May 22-23, 2002). (DURABLE LINK)
March 5-7 – Stuart Taylor, Jr., on lead paint litigation. At his most scathing: “[O]ne group deserves a special niche in the annals of those who have perverted the legal system for personal and political gain at the expense of everyone else: the politically connected trial lawyers who have signed up Rhode Island, Chicago, San Francisco, St. Louis, and dozens of other governments, school districts, and housing authorities to sue over health hazards associated with sales of lead pigment and paint for indoor use. The last of those sales took place more than 45 years ago.” With details on the unusual “retainer agreement” with which former Rhode Island AG Sheldon Whitehouse signed over the state’s sovereign authority to two influential private law firms: “It not only guaranteed the lawyers a contingent fee of 16.67 percent of any money recovered, plus all litigation expenses; it also gave them considerable control over whom to sue, what to claim, whether to settle, and on what terms.” (Stuart Taylor Jr., “Perverting the Legal System: The Lead-Paint Rip-Off”, National Journal/The Atlantic, Feb. 19) (DURABLE LINK)
March 5-7 – Incoming link of the day. From the website of a Fort Worth, Texas cardiology practice: “We do not provide ANY email advice regarding medical issues. DO NOT contact us by email with clinical questions. The email addresses above are for business correspondence only. For some insight as to why, click here.” (DURABLE LINK)
March 5-7 – $6 million fee request knocked down to $25,000. Ouch! An appeals court in El Paso has upheld a trial judge’s decision to “award a group of plaintiffs’ lawyers $25,000 in attorney fees instead of the nearly $6 million they sought under a contingent-fee contract.” However, the attorneys, led by brothers Stephen F. Malouf and E. Wayne Malouf, are unlikely to go hungry; they’ve apparently obtained upwards of $2 million in fees from other aspects of the case, a complex litigation over oil rights. (Brenda Sapino Jeffreys, “Appeals Court Says Trial Judge Had Discretion to Reduce Fees”, Texas Lawyer, Feb. 26). (DURABLE LINK)
March 4 – “The Tort Tax”. “According to a new study by Tillinghast-Towers Perrin, the total cost of the U.S. tort system reached $205.4 billion in 2001, an increase of 14.3% over the previous year — far faster than the rate of economic growth. This is like a tax of 2% on everything in the American economy that takes $721 per year out of the pockets of every citizen.” Also cites a certain “excellent website that, unfortunately, I find too depressing to read regularly”. (Bruce Bartlett, syndicated/National Review Online, Mar. 3). (DURABLE LINK)
March 4 – Thrill of the chase. NYC: “A half-dozen personal-injury lawyers were charged [last week] in a scam that allowed a network of corrupt hospital employees to do the ambulance-chasing for them, authorities said. In at least three hospitals — Elmhurst, New York Presbyterian and Lincoln — emergency-room workers sold the attorneys confidential medical records of car-accident victims, evaluating the sales potential of the information as doctors were evaluating the patients for treatments, authorities said. Officials were clued in on the scheme — which ran for seven years — by a hospital employee after patients began complaining about calls at home from strangers who knew a lot about their medical conditions, according to Manhattan District Attorney Robert Morgenthau.” (Tom Perrotta, “Personal Injury Lawyers Indicted for Soliciting Scam”, New York Law Journal, Feb. 27; Laura Italiano, “Lawyers Charged in Hosp. E.R. Scam”, New York Post, Feb. 27). (DURABLE LINK)
March 4 – “Edwards doesn’t tell whole story”. In stump speeches since the outset of his political career, Sen. John Edwards has invoked the case of little Ethan Bedrick, a cerebral palsy victim, as emblematic of “the kids and families I’ve fought for.” One reporter was curious to learn more about Bedrick’s case, but Edwards’s campaign press secretary “told me if I wanted to know any details, I should ‘look it up.”’ So she did. It turns out Edwards’ firm obtained a settlement, often described as being for $5 million, of a lawsuit charging that asphyxiation during delivery caused Ethan’s disability. Edwards’s speech picks up the story only later, when Ethan’s family battled a health insurer to obtain needed therapy (Lynn Sweet, Chicago Sun-Times, Feb. 27) (& see letter to the editor, Mar. 31). (DURABLE LINK)
March 3 – By reader acclaim: “Man who threw dog into traffic sues dog’s former owner”. “A man who threw a dog to its death in a fit of road rage is suing the dog’s former owner and a newspaper, alleging mental anguish and seeking more than $1 million in damages. … [Andrew] Burnett was sentenced in July 2001 to three years in jail in the death of Leo, a bichon frise whose owner tapped Burnett’s bumper in rainy-day traffic in February 2000 near the San Jose Airport. Burnett threw the little dog into traffic before driving off.” (AP/San Francisco Chronicle, Feb. 28; Dan Reed, “Leo the dog’s killer claims mental anguish in suit”, San Jose Mercury News, Feb. 28). (DURABLE LINK)
March 3 – Update: Lockyer sues complaint mill. Following a continuing furor in California (see Jan. 15-16) about entrepreneurial lawyers’ practice of filing assembly-line complaints against thousands of small businesses, which then are informed that they must pay thousands of dollars to get the charges dropped, state Attorney General Bill Lockyer has announced that he is suing the most-publicized such law firm, Trevor Law Group, under the same unfair-business-practices law that it employs in its complaints. “Trevor Law Group operates a shakedown operation designed to extract attorneys’ fees from law-abiding small businesses,” Lockyer said. “They’ve abused one of the state’s most important consumer protection statutes and dishonored attorneys who practice law in the public interest. There’s some delicious irony in turning the weapon around and using it on them.” (Monte Morin, “State Accuses Law Firm of Extortion”, Los Angeles Times, Feb. 27; Dan Walters, “In ironic twist, law firm finds itself on other end of suit”, Sacramento Bee, Mar. 3). See also Jessica V. Brice, “Wave of lawsuits threatens 70-year-old consumer law”, AP/Sacramento Bee, Jan. 21). (DURABLE LINK)
October 9-10 – Rumblings in Mississippi. Two big stories out of the Magnolia State: the legislature on Monday passed, and Gov. Ronnie Musgrove indicates that he will sign, a compromise malpractice reform bill intended to relieve the state’s worst-in-the-nation medical liability crisis. Among its terms: capping non-economic damages at $500,000, restricting venue to the county where alleged wrongdoing occurred, and requiring that plaintiffs line up an expert before a suit can proceed. (Patrice Sawyer and Julie Goodman, “Legislature passes civil justice reform”, Jackson Clarion-Ledger, Oct. 8). It also curtails but does not eliminate joint and several liability in medical cases and shortens some time limits for suing. (”Other provisions”, sidebar; Jackson Clarion-Ledger editorial, Oct. 8).
In a separate story that will bear close watching as it unfolds, “Federal authorities are investigating whether state court judges took out loans that were repaid by nationally prominent trial lawyers from South Mississippi whose cases the judges handle. Investigators believe the judges, including state Supreme Court Justice Oliver Diaz Jr. of Biloxi, borrowed thousands of dollars from The Peoples Bank, which has headquarters in Biloxi, and Merchants & Marine Bank in Jackson County. Plaintiffs’ attorneys who try multimillion-dollar cases before the judges subsequently repaid the loans, investigators believe. Paul Minor of Ocean Springs and Richard ‘Dickie’ Scruggs of Pascagoula are being investigated by the FBI and U.S. Attorney’s Office in Jackson, according to a source close to the investigation.” Scruggs, of course, is among the most powerful lawyers in the country and did more than any other figure to engineer the $200-billion-plus settlement between the tobacco industry and state governments; he is also the brother-in-law of Sen. Minority Leader Trent Lott (R-Miss.) Scruggs “has said that he expects to earn about $844 million from tobacco settlements” while Minor expects to receive something like $70 million from tobacco settlements. (Anita Lee, Tom Wilemon and Beth Musgrave, “Loans to Judges Probed”, Biloxi Sun-Herald, Oct. 7; Jerry Mitchell, “Judges’ loans focus of probe”, Jackson Clarion-Ledger, Oct. 8; “Coast newspaper reports lawyer-judge link to loans being checked”, AP/Alabama Live, Oct. 7). Scruggs “denies that he repaid loans for Diaz or any other judge.” (”Investigation Targets Lawyers, Judges & Loans”, WLOX, Oct. 7). Update Oct. 11-13 more allegations; May 7, 2003 investigation widens. (DURABLE LINK)
October 9-10 – Trial lawyers and politics: Michigan, Texas. Two legal reform groups have released studies documenting the flow of trial lawyer money into their states’ politics. Michigan Lawsuit Abuse Watch reveals that the state’s personal injury lawyers “have contributed a total of $426,280 to [Democratic gubernatorial nominee Jennifer] Granholm’s campaign. This is more than the $394,209 she has received from the PACs of all other Michigan special interest groups backing her. Personal injury lawyers have given just $2,900 to Granholm’s opponent, Dick Posthumus.” And Texas Trial Lawyer Watch has a new report out on the gargantuan sums spent by lawyers in that state, with special emphasis on the lengths to which the attorneys are willing to go to conceal their generosity (”Hiding Their Influence“, PDF format) (DURABLE LINK)
October 9-10 – Latest sacked-Santa suit. In Edinburgh, Scotland an actor “hired to play Santa Claus at a shopping centre who was sacked for his allegedly lugubrious manner is suing his former employers for more than £1,500.” Television actor Colin Brown, 50, says he had fulfilled the role for many years past with no complaints of insufficient jolliness. “He is also seeking £10 compensation for a 12-inch square cushion he supplied for the padding and £30 for his size nine wellington boots.” (Edward Black, “Sacked Santa sues ex-employers”, The Scotsman, Oct. 8). For further annals of Santa employment litigation, see Oct. 12 and Dec. 13-14, 2000. (DURABLE LINK)
October 7-8 – Malpractice-crisis latest: let ‘em become CPAs. Detailed report in the St. Louis Post-Dispatch of malpractice woes in Missouri and (especially) in adjoining counties of Illinois known for litigiousness, Madison and St. Clair, where “doctors are handing off more patients needing risky procedures to St. Louis medical centers. Doctors in the two counties pay double the premiums of most surrounding Illinois counties because of the flurry of claims filed there,” according to the head of underwriting at the doctors’-mutual insurer that writes more than half of Illinois policies. Insurance is becoming unaffordable for many doctors with records considered less than pristine, such as those with past claims that were resolved for token payments or even for no payment at all.
In litigious Belleville, Ill., patients can obtain a long list of medical services only by heading over to St. Louis. “Several years ago, Belleville physicians decided to transfer all critically ill children to St. Louis Children’s Hospital or Cardinal Glennon Children’s Hospital. Anne Thomure, public relations director for Memorial Hospital in Belleville, said many of these young patients could have gotten comparable care in the community, but liability risks were deemed too great”. “Trauma is routinely sent to St. Louis because of the medical-legal climate,” said one doctor. Other Belleville doctors have stopped handling high-risk pregnancies, administering clot-busting TPA to stroke patients, and performing surgery on complex elbow fractures, which often lead to complications. Many neurosurgeons are shunning brain surgery in favor of relatively safe spinal procedures. Dr. Kathy Maupin “said almost every doctor involved in trauma care gets sued, because outcomes are unpredictable and patients do not have a pre-existing relationship with the doctors.” Don’t miss this priceless quote from the other side, from “Bruce Cook, a personal injury lawyer in Belleville” who “has little sympathy for doctors lamenting liability coverage costs.” “Perhaps the doctors retiring early are the doctors who are sued too much,” he said. “Perhaps they should have been accountants.” (Judith VandeWater, “Insurance rates pinch doctors, care”, St. Louis Post-Dispatch, Oct. 6).
The Bloviator (Sept. 27) summarizes the terms of the federal malpractice-reform bill, H.R. 4600 Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of 2002″, which passed the House Sept. 26 but is considered unlikely to make it past the litigation lobby’s grip on the U.S. Senate. Last Thursday, Pennsylvania doctors held rallies in Philadelphia and Scranton to protest the state legislature’s inaction on malpractice reform (AP/New York Times, undated; MedRants, Oct. 4; Politically Active Physicians Association, organization of Pa. doctors). New York doctors may not be holding demonstrations yet, but according to William Tucker in the New York Post, they pay the highest malpractice premiums in the country. From “1994 to 1999, the average New York jury verdict tripled, from $1.7 million to $6 million. Empire State physicians settled $633 million in malpractice claims in 2000, 80 percent more than second-place Pennsylvania ($352 million) and triple third-place California ($200 million, for twice the population)”. California, unlike New York and Pennsylvania, has a strong cap on noneconomic damages. (New York Post, Sept. 26).
The disarray in Mississippi’s malpractice system “extends to the state’s ambulance companies and their workers”, reports AP. (Matthew Volz, “Paramedics face malpractice suits, too”, AP/Jackson Clarion-Ledger, Sept. 19). A past president of the Mississippi Trial Lawyers Association pooh-poohs the concerns, saying he “cannot recall off the top of my head a single substantial or even moderate verdict against an ambulance company in the state of Mississippi” — note how by framing the issue as one of verdicts only, he gets to sidestep the question of how often ambulance operators are named in complaints resolved before that point. On the Mississippi legislature’s lack of seriousness in pursuing tort reform, see the Clarion-Ledger’s editorial, Sept. 25.
A study from the American Association of Neurological Surgeons and other neurosurgery groups finds that liability woes have plunged that specialty into a state of emergency across the country. (Sept. 25 study in PDF format, press release, resource page). And while litigation lobby stalwarts such as the misnamed “Center for Justice and Democracy” have tried to scapegoat malpractice insurance providers as the source of the crisis (Sept. 25), a report last month from the U.S. Department of Health and Human Services thoroughly refutes that contention, pointing out that: 1) states that have enacted serious liability limits are not undergoing a crisis; 2) actuarial data show a sharp upturn in the past few years in large medical claims in unreformed states, as well as in the high verdicts which influence the magnitude of settlements; 3) medical malpractice insurers have not generally suffered major losses due to speculative or volative investments, and a relatively small share of their investment is in the stock market; 4) the decreasing competitiveness of the insurance market is itself a reflection of the liability-driven increase in claims expense; and 5) liability reforms in states like California have not made it impossible to sue — the number of claims has not been declining there lately — but have kept medical care affordable, notwithstanding the influence of the much-cited “insurance cycle”. (”Update on the Medical Litigation Crisis: Not the Result of the ‘Insurance Cycle’”, HHS, Sept. 25). (DURABLE LINK)
October 7-8 – “Judge Throws Out ‘Harry Potter’ Copyright Suit”. “”A federal judge has sanctioned an author $50,000 for submitting false evidence in an unsuccessful copyright lawsuit against the publisher of the blockbuster ‘Harry Potter’ series of children’s books. Southern District of New York Judge Allen G. Schwartz found that Nancy Stouffer had knowingly submitted fraudulent documents to the court in an attempt to bolster claims that the author of the ‘Harry Potter’ series, J.K. Rowling, copied several ideas from Stouffer’s unsuccessful children’s stories.” In addition to the $50,000 sanctions, Judge Schwartz ordered Stouffer to pay Rowling’s and her publisher’s attorneys’ fees and costs. Stouffer’s lawyer says he is considering appellate options. (Tom Perrotta, “Judge Throws Out ‘Harry Potter’ Copyright Suit”, New York Law Journal, Sept. 19). (DURABLE LINK)
October 7-8 – Cutting edge of discrimination law. Near Seattle, the Puyallup School District has agreed to settle a two-year-old civil rights suit by paying $7.5 million and instituting diversity training, administrative and curriculum changes to encourage racial diversity. Four black families had sued the school district in 1999 saying it “tolerated and encouraged a racially hostile environment. ‘One specific complaint was against the use of racial slurs in exams and class discussion of books like ‘Huckleberry Finn’ and ‘The Grapes of Wrath.”" (Mike Roarke and Candace Heckman, “Civil rights suit settled in Puyallup schools”, Seattle Post-Intelligencer, Sept. 18 (via Scott Norvell, FoxNews.com, Sept. 23). And the Denny’s restaurant chain says it is looking into contentions that one of its outlets in Springfield, Ill. is behaving in a racially discriminatory manner by not staying open all night. The restaurant in question “recently started locking its doors between 3 and 5 a.m. Sundays, reportedly because a large number of patrons, many of whom have been at nearby clubs that close at 3 a.m., were descending on the restaurant and causing problems, including not paying for food.” The president of the local NAACP branch is hinting at a lawsuit: “Denny’s [on the East Side] will stay open, or other Denny’s worldwide will close from 3 a.m. to 5 a.m.,’ he said. ‘If there’s one Denny’s out there that is closing from 3 a.m. to 5 a.m., then either they’re going to do it worldwide, or they’ll remain open 24 hours.” (Jayette Bolinski, “Denny’s accused of discrimination”, State Journal-Register (Springfield, Ill.), Sept. 12). (DURABLE LINK)
October 7-8 – Blue-ribbon excuses. New York City: “A lawyer representing a couple accused of taking part in three-way sex on a train says they were helping road safety.” Vincent Siccardi says his clients “should be praised for taking the train instead of driving while drunk. Mr Siccardi told the New York Post: ‘Here are two responsible people. They were at a party. They were drinking. It shows that they are responsible. If more people did that, we’d have fewer problems on the road.’” (”Lawyer says couple accused of sex on train were helping road safety”, Ananova.com, Oct. 1). (DURABLE LINK)
October 4-6 – Breaking: L.A. jury docks Philip Morris $28 billion. The plaintiff had been smoking since age 17 and developed lung cancer; the sum awarded by the jury approximately equals the annual gross domestic product of Lithuania. The smooth lawyer who represented Mrs. Bullock, named Michael Piuze, has coaxed a whole series of bizarrely high verdicts out of West Coast juries. (Fox News, Oct. 4). (DURABLE LINK)
October 4-6 – Pets Warehouse owner sues Google. Robert Novak, owner of PetsWarehouse.com, has filed two earlier rounds of pro se lawsuits arising from his claim that his business was defamed in online discussion forums (see May 22 and May 27, 2002 and links from there). Now, in a third round, he is suing search engine Google and several other defendants. His complaint (PDF format) charges that Google failed to remove Usenet archive postings even after being informed that they were defamatory. It also demands damages for Google’s and other search engines’ use of keyword-based “sponsored links”, by which a user’s search on the phrase “pets warehouse” calls up advertising for another online pet store that has paid for the privilege. (Slashdot thread) (overview of case by defense attorney) Further update: Oct. 5, 2003. (DURABLE LINK)
October 4-6 – Commentary-fest. Henry Mark Holzer believes he’s identified the appropriate social response to the campaign for slave-reparations lawsuits: it’s called “Rule 11 sanctions”. (”The Achilles’ Heel of the Reparations Lawsuits”, FrontPage, Oct. 3). The Onion reports that record companies are suing radio stations to stop them from infringing their intellectual property by playing music over the air for free — oh wait, it’s just a parody (we think)(”RIAA Sues Radio Stations for Giving Away Free Music”, Oct. 2). And: “With the assistance and backing of trial lawyers, small and extreme groups are finding it increasingly easy to bypass and subvert the democratic process and impose their agenda on the rest of society by abusing litigation and manipulating the courts,” writes former Wyoming Sen. Malcolm Wallop (”Litigation: The Death of Democracy”, TownHall, Sept. 25). (DURABLE LINK)
October 4-6 – Lawsuit threats vs. campaign speech. “Television station managers in small communities across the nation are being forced this fall to adjudicate a barrage of demands from Democratic and Republican Party lawyers pressuring them to pull political advertisements in closely fought Congressional races — or face the risk of a defamation suit.” (Adam Nagourney and Adam Clymer, “Local Television Stations Become the New Arbiter of Political Fair Play,” New York Times, Oct. 2) (reg). (DURABLE LINK)
October 3 – Lawyers fret about bad image. Bar associations are resorting to all sorts of measures to try to counter the profession’s perceived unpopularity: the Wisconsin Bar has hired consultants “to institute a branding campaign based on focus group response”, while the Florida Bar has budgeted a contemplated $750,000 for its new “Dignity in Law” program (see Jul. 10) which targets 1,000 journalists and government officials described by the group’s president as “influential decision-makers” who will be sent “blast e-mails describing the great work that lawyers and judges do for our clients, in our courtroom and in our communities.” (We hope those 1,000 journalists and influentials have all previously opted into those “blast e-mails” — spam doesn’t make friends, you know.) “Prior to launching the campaign, the Florida Bar surveyed 880 journalists about their attitudes toward the legal profession and rated their stories as positive or negative. As the campaign continues, it will monitor their changing attitudes toward lawyers to measure the campaign’s effectiveness.” If we were Florida journalists, we’re not sure we’d be thrilled to learn that a group of dissatisfied newsmakers who wield writs had decided to “rate” and then “monitor” the tone of our coverage of them.
Meanwhile, on a national level: “Disenchanted with the public outcry against attorneys and the legal profession, Robert Clifford, who heads the American Bar Association’s Litigation Section and is a founding partner of Clifford Law Offices, a personal injury firm in Chicago, personally financed a $250,000 national telephone survey for the ABA of 750 households.” The results could hardly have been welcome. “Only 19 percent of the respondents expressed confidence in lawyers’ work compared with a 50 percent confidence rating for doctors.” (Physician readers, take note, and heart.) The survey effort “also included 10 focus groups in five cities including Chicago and Los Angeles whose respondents repeatedly described attorneys as ‘greedy, manipulative and corrupt.’ … The public lambasted criminal defense, personal injury and divorce lawyers”, praising only real estate and civil rights attorneys. (& see letter to the editor, Oct. 23)
To its credit, the National Law Journal’s roundup of the matter airs not only the legal establishment’s view — which is that the profession is merely misunderstood and suffering from bad public relations — but also the views of critics both inside and outside the profession who think the best way to improve lawyers’ image would be, well, to start cleaning up the bad things that go on in legal practice. Tallahassee Democrat columnist Bill Cotterell, a critic of the Florida bar program, notes: “People don’t like lawyers gaming the system for personal profit — enormous profit — and not caring who gets hurt.” Cotterell “recommended adopting ‘a loser pays‘ system under which the losing plaintiff in a meritless suit would pay the defendant’s legal expenses.” And Catherine Crier, the Court TV host and former judge whose book “The Case Against Lawyers” is forthcoming momentarily, says bar p.r. campaigns “don’t do anything to address the underlying areas. I’d rather see a campaign that introduces ethics classes.’ Crier would prefer to see the law ‘eliminate contingency fees except in cases aimed at the poor and institute loser pays in all categories. In that way, good lawyers can proceed with dignity and pursue cases that are meritorious, and those pressing frivolous actions corrupting our system will no longer have a forum.’” Hear, hear! (Gary M. Stern, “Polishing the Image”, National Law Journal, Sept. 16). (DURABLE LINK)
October 1-2 – FTC cracks down on excessive legal fees. Here’s an important story that’s flown mostly under the radar: the new leadership of the Federal Trade Commission is taking pioneering steps to protect consumers from exploitative legal fees, under the same mandate by which it cracks down on deceptive or unfair overcharging by businesses generally. “So far this year, the FTC has challenged attorney fees in three proposed class action settlements, winning in two cases. It also has urged the Judicial Conference, which oversees the federal court system, to amend its class action rules in a way that could limit attorney fees, particularly in cases that rely on information already uncovered by government agencies. And the agency recently published a guide for consumers, ‘Need a Lawyer? Judge for Yourself,’ giving advice on how to pick a lawyer — and seek a lower fee. … Trial lawyers and their allies aren’t happy about the FTC initiative.” (Caroline E. Mayer, “FTC Seeks to Limit Attorney Fees in Class Action Suits”, Washington Post, Sept. 30). (DURABLE LINK)
October 1-2 – Australia: seized by the Spirit, wants church to compensate her. Loraine [elsewhere reported Lorraine] Daly, 40, is suing an Assemblies of God-affiliated church in Sydney, saying she was injured one Sunday in 1996 when, gripped by religious enthusiasm, she fell over onto a carpeted floor and was not caught by anyone. “The court was told by Ms Daly’s lawyer that the Sydney Christian Life Centre had been negligent in failing to ensure there were enough ‘catchers’ — people appointed by the church to cushion the fall of those experiencing what is referred to within the Pentecostal movement as being ’slain in the spirit’. It was also claimed that the church had failed to ensure that the catchers were in position before the Rev Tim Hall started the prayer service which usually brought on such fainting episodes. And the church had not provided falling members of the congregation with a sufficiently padded area to prevent injury.” Ms. Daly wants up to A$750,000 in damages, including future loss of earnings and compensation for “disabilities including headaches, nausea, memory loss, impaired concentration and a feeling of vagueness. …The court also heard, however, that Ms Daly had previously suffered similar ailments after two car accidents in 1986 and 1993.” (Kelly Burke, “Fallen Christian puts faith in the law”, Sydney Morning Herald, Sept. 27). Update Oct. 25-27: judge rules against Ms. Daly. (DURABLE LINK)
October 1-2 – Updates. Judges pull the plug on various bright ideas discussed previously in these pages:
* A judge has dismissed attorney Peter Angelos’s effort to bring the cellphone industry to trial on the theory that using its wares causes brain tumors, ruling that the proffered scientific evidence for that proposition is insufficient (see Apr. 23 and Jan. 11, 2001) (Gretchen Parker, “Judge Dismisses $800M Cell Phone-Brain Tumor Suit “, AP/Washington Post, Sept. 30) (opinion in PDF format)
* In a unanimous decision written by Judge Alex Kozinski, a three-judge panel of the Ninth Circuit has ruled that Judge Vaughn Walker should not have interpreted the 1995 Private Securities Litigation Reform Act as a mandate to take an active lead in selecting plaintiffs’ counsel to run lucrative securities fraud cases. The decision, which may put the kibosh on “auction” methods by which courts induce plaintiff’s counsel to accept work at lower fees, was a victory for Milberg Weiss Bershad Hynes & Lerach in its quest to represent security holders in a suit against Copper Mountain Networks Inc. (Jason Hoppin, “9th Circuit Strikes Down Class Action Fee Experiment”, The Recorder, Sept. 17) (opinion in PDF format)(see Sept. 25, 2001)
* Well, that’s a relief: “A British Telecommunications Inc. patent issued prior to the advent of the Internet does not cover hyperlinking, a New York federal judge ruled … Tossing out British Telecom’s infringement suit against Prodigy Communications Corp., U.S. District Judge Colleen McMahon of the Southern District of New York said no jury could find that Prodigy infringes the patent by providing hyperlinks, the coded, highlighted text that links one Web page to another.” (see Feb. 13) (Brenda Sandburg, “Closely Watched Hyperlink Patent Case Tossed”, The Recorder, Aug. 23). (DURABLE LINK)
September 20-22 – How sharper than a serpent’s tooth it is/To have a precociously musical child. “James Brown’s daughters have filed a federal lawsuit against the Godfather of Soul, seeking more than $1 million in back royalties and damages for 25 songs they say they co-wrote…. Even though they were children when the songs were written – 3 and 6 when ‘Get Up Offa That Thing’ was a hit in 1976 – Brown’s daughters helped write them, said their attorney, Gregory Reed.” (”Singer James Brown Sued by Daughters”, AP/Milwaukee Journal Sentinel, Sept. 18). (DURABLE LINK)
September 20-22 – “Patient pays price of suing over cold”. Salutary effects of loser-pays, cont’d: “A patient who claimed £227 damages from his doctor, insisting that she had given him her cold during an examination, was ordered to pay almost £1,000 in costs yesterday after his case was thrown out by a court. Trevor Perry, 47, sued Dr Helen Young for personal injury, stating that he went down with a sore throat, runny nose and a headache after a consultation with her when she had a cold.” (Stewart Payne, “Patient pays price of suing over cold”, Daily Telegraph (U.K.), Sept. 19). And don’t miss the very curious addendum to the case on the question of why Mr. Perry was observed running from the court with a jacket over his head (”The Broadsheets: Cold comfort”, Anorak, Sept. 19). (DURABLE LINK)
September 20-22 –Times on 9/11 fund. The New York Times editorially defends the federal 9/11 compensation fund from charges that its awards are inadequate in a way “especially prejudicial to high-income families”, who may be offered only a few million dollars of taxpayers’ money each. It is entirely legitimate, the paper believes, to seek to avoid “extravagant awards at the top”. We might add that if top-earning families want to feel secure in their living standards in case of disaster, the logical (and socially desirable) course is for them to make provision in advance through privately purchased insurance — which we suspect most of the higher-ups at places like Cantor Fitzgerald did in fact have in place. (”The Perils of Valuing Lives” (editorial), New York Times, Sept. 19). (DURABLE LINK)
September 18-19 – Claim: docs should have done more to help woman quit smoking and lose weight. “A Wilkes-Barre woman is suing several doctors at the Department of Veterans Affairs Medical Center, saying the physicians did not do enough to assist her in making life changes — including quitting smoking and losing weight — that might have prevented a debilitating heart attack she suffered.” Kathleen Ann McCormick’s suit “says the physicians knew she had multiple risk factors to develop heart disease” but dismissed her symptoms as “basically normal and non-life threatening” and failed to put her on aggressive anti-cholesterol medication, as well as failing to help her with the smoking and weight issues. (Terrie Morgan-Besecker, “Woman suing VA doctors”, Wilkes-Barre (Pa.) Times-Leader, Sept. 11). (DURABLE LINK)
September 18-19 – Voltaire spinning in grave. If you disagree with what someone says, but would defend to the death his right to say it, chances are you aren’t running things in today’s France. Prominent French author Michel Houllebecq (pronounced “Wellbeck”) went on trial this week for “inciting racial hatred” on the grounds that he had aimed contemptuous comments at Islam. The case, which evokes parallels with that of author Salman Rushdie, is “being brought by the largest mosques in Paris and Lyon, the National Federation of French Muslims (FNMN) and the World Islamic League. France’s Human Rights League has also joined them, saying that Mr Houellebecq’s comments amount to ‘Islamophobia’” (see Aug. 23-25) (Charles Bremner, “I attack … I insult”, The Times (London), Sept. 18; “French author denies racial hatred”, BBC, Sept. 17). More: Christopher Hitchens on the case (”The stupidest religion”, Free Inquiry, v. 21, #4). Update Oct. 25-27: Houellebecq acquitted. (DURABLE LINK)
September 18-19 – Canada: “Woman freezes, sues city, cabbie”. “A Winnipeg woman who nearly froze to death after a night of drinking is suing the city, emergency personnel and the taxi driver who dropped her at home.” Emergency workers left Kim Simon at her residence but “she was later found outside with her pants pulled down, her winter jacket open and a cut on her lip. The woman claims that emergency personnel and the taxi driver should have made sure Simon was safely inside her house before leaving.” (Canadian Press/Canada.com, Sept. 16). (DURABLE LINK)
September 18-19 – Mississippi: eyeing the exits. Washington Mutual, the giant lender and the nation’s largest thrift institution, “is in the process of suspending all its lending channels in the state of Mississippi due to litigation risk and other factors. ‘We are evaluating the litigation environment and business climate in the state,’ WaMu senior vice president and associate general counsel Jim Garner told MortgageWire. ‘That is why we are suspending loan originations.’” Last year a Mississippi jury hit one of the company’s subsidiaries with a $71 million verdict. (Origination News — will scroll off site’s front page soon). (DURABLE LINK)
September 18-19 – AVweb case and chatroom liability. Eugene Volokh (his site) comments regarding the litigation referenced below: “Incidentally, not supervising one’s chat room is *not* actionable, even if the chatters make libelous statements and you could have stepped in to stop them; that’s what 47 U.S.C. sec. 230 says, see also Zeran v. America Online (4th Cir.) (both available on Findlaw).” See also ChillingEffects.org, Mar. 8; summary of Zeran case, TechLawJournal. (DURABLE LINK)
September 16-17 – Free speech & web litigation: the theory…. Los Angeles Times columnist Norah Vincent, the target of a remarkably silly recent smear (summarized and refuted by, among others, Stuart Buck, Juan Non-Volokh and Megan McArdle) got so angry at her online attackers that she wondered aloud whether she should think of suing them for defamation. Our editor wrote in at her suggestion (Sept. 13) to offer some reasons why, no, she shouldn’t. (DURABLE LINK)
September 16-17 – Free speech & web litigation: AVweb capitulates to defamation suit. Which reminds us of an update we should have posted earlier: readers will recall the defamation lawsuits filed last year by aviation plaintiff’s attorney Arthur Alan Wolk against two editors and four subscribers of the aviation-news website AVweb, all of whom had sharply criticized him after he won a $480 million verdict against Cessna (Sept. 7 and Oct. 12-14, 2001). On July 19 the website rendered to Wolk a thoroughly abject capitulation and apology in connection with his agreement to drop his suit against it. Its statement to readers (link now dead) includes a number of passages which deserve to be read with great care by those to whom the Internet still represents some sort of idealized sanctuary for untrammeled discussion [italicized comments ours]:
“One of Mr. Wolk’s complaints was that we did not supervise our chat room to prevent libelous comments about him being published by our subscribers. We have corrected that. Another of Mr. Wolk’s complaints was that our characterizations instigated some of our subscribers to libel him. We will no longer characterize matters in such a way as to bring apparent discredit upon anyone.” [The consequences of such a formula for the future of hard-hitting journalism can be imagined. And the mind reels at what is involved in the task of avoiding all characterizations which, whether or not libelous themselves, might instigate others to commit that offense. -- ed.]
“While the defense of Mr. Wolk’s lawsuit has been expensive, he nonetheless has been gracious enough to settle with us for a payment to charity. In fact, even in settlement negotiations, when there was a demand for money, it was always to be contributed to charity, none for Mr. Wolk himself. He steadfastly insisted that his lawsuit was not about money and we have come to believe him.” [Why would it be thought surprising that the aim of such a lawsuit might be more to silence certain critics than to obtain cash from them? -- ed.]
As we say, read the whole thing, which lays out at considerable length Mr. Wolk’s reasons for considering himself libeled. AVweb then goes on to publish a sort of protracted advertisement for Mr. Wolk’s services, in the form of tributes and testimonials from grateful clients he has represented in litigation, as well as others. Also included is the painfully self-abasing apology of one of the reader-posters who found himself individually sued by the powerful lawyer — outgunned in every way, and facing who knows what sort of prolonged personal exposure to the cost of litigation. Among the lessons many observers will draw, we think, will be the old one: watch what you say about lawyers. (DURABLE LINK)
September 16-17 – Right to break workplace rules and then return. This summer the Ninth Circuit ruled that it was an unlawful violation of the Americans with Disabilities Act for a company to follow an otherwise neutral policy barring the rehire of employees who had been terminated (or resigned in lieu of termination) over violations of company rules. In the case at hand, an employee had resigned after testing positive for cocaine, had completed a rehabilitation program, and now wanted to return to the company. Although Hughes Missiles Systems’ rule did not bar the hiring of rehabilitated drug users as such, the court nonetheless ruled that “Hughes’ unwritten policy against rehiring former employees who were terminated for any violation of its misconduct rules, although not unlawful on its face, violates the ADA as applied to former drug addicts whose only work-related offense was testing positive because of their addiction. If Hernandez is in fact no longer using drugs and has been successfully rehabilitated, he may not be denied re-employment simply because of his past record of drug addiction.” (Hernandez v. Hughes Missiles Systems, No. 01-15512, June 11, 2002, write-up at Jackson Lewis site). Update Dec. 13, 2003: Supreme Court rules in favor of employer. (DURABLE LINK)
September 16-17 – Dave Barry on tobacco settlement, round III. Okay, maybe it’s easy to satirize (rounds I and II), but he still does it so well. “The underlying moral principle of these lawsuits was: ‘You are knowingly selling a product that kills tens of thousands of our citizens each year. We want a piece of that action!’” (”In War On Tobacco, money goes up in smoke”, Miami Herald, Sept. 15) (DURABLE LINK)
September 13-15 – Patriotic, or promotional? Mickey Kaus nominates this “Patriot Troll” and this “Twin Towers handbag” (appears as popup ad when link is clicked) as among the tackiest commercial tie-ins to arise from 9/11. We might also call to his attention this billboard from a personal injury law firm in Schenectady, New York (photographed by reader Steve Furlong) which isn’t going to win prizes for either taste or subtlety. (DURABLE LINK)
September 13-15 – “Epileptic ordered to pay £3,500 for contorted face”. “A man who suffers from epilepsy has been ordered to pay compensation to a student who was upset by his contorted face during a seizure. In a case described by an epilepsy charity as ‘like something you would see on the Ally McBeal show’, Edwin Young has been told to pay £3,500 to Yvonne Rennie for the mild post-traumatic stress that she suffered. Mrs Rennie sued after Mr Young suffered an epileptic fit while driving four years ago and crashed into her car at traffic lights in Perth.” In addition to awarding Mrs. Rennie £1,500 for slight personal injuries and £1,000 for a fear of driving that she had developed, the magistrate accepted that she had suffered emotional injuries from observing the contorted look on Mr. Young’s face during his fit, which made her think he was going to die. “Epilepsy Action Scotland described the case as ‘bizarre’.” (Auslan Cramb, Daily Telegraph (U.K.), Sept. 9).
Addendum: one of our less sympathetic readers calls to our attention this Sept. 13-dated press release and article from Epilepsy Action Scotland (EAS), describes it as proving that the above report is “not true”, and chides us for not referencing it in our original post. To begin with a minor housekeeping point, this reader is apparently unaware that items on this site dated “Sept. 13-15″ will in most instances have been posted in the final hours of Sept. 12, so that a fair bit of clairvoyance would be required to anticipate the contents of a press release issued the next day (even in Scotland, which is a few time zones ahead).
More substantively, although it may well be that other press reports did misstate the Rennie/Young case, it is by no means clear that EAS is questioning the accuracy of the Daily Telegraph report linked above. Both EAS and the Telegraph (and our excerpt) make clear that the overall award arose in the context of a car crash and drew on a number of factors. EAS is at pains to emphasize that the court did not rule that “watching a seizure in itself [emphasis added] provides grounds to sue for compensation” absent some other entitlement to compensation such as a physical injury — and of course it’s a familiar practice in compensation systems to let mental injury piggyback on physical injury but not stand alone as a claim. The one interviewee quoted in the Telegraph piece as wondering aloud whether a bystander’s distress at watching a person collapse might stand alone as a damage claim was the spokesman for EAS itself (”Does this mean…?”). This makes it less surprising that the organization would four days later make a point of reassuring the public that, no, it probably doesn’t mean that.
Does Epilepsy Action Scotland, as our reader seems to think, now therefore regard the Rennie/Young case as some kind of overblown urban legend that should never have gotten play in the papers, and regret that its spokesman had been so critical of the ruling before? Quite the contrary: it makes clear the extent to which it continues to be alarmed and upset at the case (”we have forcefully put across the points that this is a shocking case”), it has called for investigations and organized protests, and it “has offered its full support if [Mr. Young] decides to pursue the matter” on appeal. Nothing inaccurate in our post that we can see. (DURABLE LINK)
September 13-15 – We have competition! Or at least sorta-kinda competition, from Colorado humorist Randy Cassingham. But the more the merrier, say we. (DURABLE LINK)
September 12 – Personal responsibility roundup. New York attorney Samuel Hirsch, who made big headlines a few weeks ago by filing a lawsuit on behalf of an overweight man against fast-food chains, has now added another car to the train in the form of a suit on behalf of several obese teens who “say the restaurant chain used marketing practices such as toy and value meal promotions to entice its patrons to eat the food.” (No! Not value meals!) “Mr. Hirsch said his clients ate at McDonald’s almost every day for at least five years. One teenager, who is 5-foot-9-inches tall, now weighs 270 pounds; another, who is 5-foot-3-inches tall, now weighs 200. The parents of the teenagers, either unemployed or on disability, filed the lawsuit on behalf of their children.” Note to parents: those benefit checks will stretch further if you teach kids how to make sandwiches at home (Ellen Sorokin, “McDonald’s marketing cited for teens’ obesity”, Washington Times, Sept. 10). Director Tom Grey of the National Coalition Against Legalized Gambling, who has been beating the drums for years in hopes of making the wagering business the next tobacco, hopes governors and attorneys general will pile on in support of the latest lawsuit by a compulsive bettor claiming his losses were the casino’s fault for luring him in (Rod Smith, “Gambling foes hope federal lawsuit will lead casinos into tobacco industry’s fate”, Gaming Wire/Las Vegas Review-Journal, Sept. 10). The Wyoming Supreme Court has ruled that an employee who tried to commit suicide after being depressed over a work-related injury can collect workers’ compensation from his employer for the injuries inflicted by his attempt (Brierley v. Wyoming, Aug. 14). And the editorialists of Canada’s National Post applaud Ontario judges’ refusal to follow the lead of many American courts in making party hosts legally responsible if their guests drive away drunk (”Blame drunks, not hosts” (editorial), Sept. 5). (DURABLE LINK)
September 12 – “9/11 aid bill contains giant bonus for trial lawyers”. “Sacramento — Saying that it was primarily a bill to help families of Sept. 11 victims, Gov. Gray Davis on Tuesday signed a sweeping change in California tort law backed by trial lawyers, some of his biggest contributors. In a bill signing ceremony, the Democratic governor focused on only four paragraphs of the seven-page bill that allows relatives of the terrorist attacks more time to file civil lawsuits. Davis did not mention that the bulk of the bill — which extends from one year to two the filing period for all personal injury or wrongful death lawsuits in California — is opposed by more than 80 companies and business groups. They say the measure will sharply increase their insurance and litigation costs.” (Greg Lucas and Lynda Gledhill, San Francisco Chronicle, Sept. 11). (DURABLE LINK)
September 12 – No joy in Mudville. “Saying America’s favorite pastime had become a ‘nuisance’ to a northwest Houston man, a Harris County jury awarded him more than $75,000 Tuesday. ‘I’m happy that 12 people were in full agreement,’ said plaintiff E.S. Armstrong after the verdict was read. Armstrong filed a lawsuit in December 2000 in state district court against Baseball U.S.A., claiming games played on the group’s fields adjacent to his home in the Spring Shadows subdivision are too noisy and the field lights too bright. The lawsuit also claimed that baseballs from the fields, near Sam Houston Tollway and Gessner, twice crashed through Armstrong’s bedroom window.” Baseball U.S.A., a nonprofit group, may appeal. (Dale Lezon, Houston Chronicle, Sept. 11). (DURABLE LINK)
September 11 – Never forgotten. For this site’s commentaries from a year ago, begin here with Sept. 12 items and then scroll upwards. (DURABLE LINK)
