Archive for 2003

Aroma attends Alabama arbitrations

In a rural corner of Alabama, four different mobile home manufacturers get sued for alleged defects and independently agree to accept arbitration of the lawsuits. Each of them then gets whacked by the arbitrator for an award ranging from $360,000 to $590,000, even though the plaintiff’s own expert didn’t claim damages to any of the mobile homes exceeding $5,000. After the companies learn of each other’s misfortune, they begin comparing notes. “What they found, according to court records, were startling similarities in the cases, including undisclosed connections between the arbitrator, Grove Hill lawyer Spencer Walker, and Butler lawyer Jeff Utsey, the plaintiff’s attorney in all four cases. … In a blistering affidavit cited prominently in the [Alabama] Supreme Court’s decision [a unanimous decision in February to reopen one of the cases], Birmingham lawyer Joel Williams laid out evidence to support his contention that the awards resulted from a secret deal between Walker and Utsey, and that the men received assistance from a third lawyer, David Jordan of Brewton. …’The facts strongly suggest that this general plot to “set up” manufacturers was hatched in early 1999,’ Williams stated in his affidavit.” Perhaps even more remarkable, it seems the state bar association blessed attorney Utsey’s questionable conduct beforehand in an opinion letter in that year. This one looks like it will be worth watching (Eddie Curran, “Arbitration awards raise questions”, Mobile Register, Sept. 21).

Overlawyered gets results

On Aug. 27 we said we hoped Arnold Schwarzenegger would tell us where he stood on s. 17200, the state’s abuse-ridden business practices act. Now his campaign has published its official agenda, and not only is “End the Litigation Lottery” Plank #3 in “Arnold’s Five Point Plan for Economic Recovery”, but reform of s. 17200 is the first specific to be listed, along with reform of employment litigation and specifically age discrimination law (California accords more liberal treatment to such claims than does federal law). “California’s runaway litigation system has become a trial lawyer’s paradise — encouraging frivolous lawsuits and outrageous settlements that are bleeding money from businesses while driving the cost of virtually everything higher for average consumers.” (Californians for Schwarzenegger, “Agenda”, undated).

Hazards of being under arrest

The city of Greensboro, N.C. says it will probably appeal a jury’s award of $1.5 million to a man who was under arrest in the back of a police car when the officer driving the car slammed on the brakes to avoid an accident. John A. Clayton III filed a lawsuit claiming permanent back injuries; the city unsuccessfully cited the views of doctors that the impact could not have produced the complained-of injuries. (AP/Charlotte Observer, “Man hurt in police car awarded $1.5 million”, Sept. 28; Wilmington Star-News, Sept. 27).

Mississippi lame duck Supreme Court Justice troubles

Mississippi has an unusual system where not only do its state Supreme Court justices run for election (complete with full-scale television advertising), but the judges elected in November 2002 don’t take their seats until January 2004. Justice Chuck McRae (see Sep. 9, 2002) finished a distant third in 2002. (Robert Lenzner and Matthew Miller, “Buying Justice”, Forbes, Jul. 21). Now his fellow Justices have raised a complaint that he is acting petulantly as a lame duck, delaying cases and threatening violence. The unprecedented public hearing on whether to suspend Justice McRae will be held later this month. (Matt Volz, “Justices allege misconduct by McRae”, AP, Sep. 29; Jerry Mitchell, “Public to get rare glimpse of high court”, Hattiesburg American, Sep. 30; Eric Stringfellow, “McRae’s lame-duck term harmful to high court”, The Clarion-Ledger, Sep. 30). The Mississippi Supreme Court has had other troubles recently, as this site discussed on Aug. 19.

Update: (Jerry Mitchell, “2 justices must testify in McRae case”, The Clarion-Ledger, Oct. 3).

“Police can sue citizens for damages”

Since Florida’s repeal in 1990 of a little-known doctrine in state law known as the “fireman’s rule”, police officers and firefighters injured while responding to calls have been free to sue private parties for damages. “In the past month, a Jupiter motorcycle officer and a Palm Beach County sheriff’s deputy have sued people who called for help. In both cases, the officers blamed their injuries on the negligence of people they were dispatched to protect. Earlier this year, officers in Sunrise and Plantation filed similar suits after suffering serious injuries.” Although the fireman’s rule still exists in most states, it’s “being slowly eradicated state-by-state” according to one observer; in Florida, lobbying by a police union helped ensure its demise. And although the Florida police union claims it only wanted to open the gates for suits over gross negligence and the like, suits have become a growth area and often name deep-pocket bystanders. (Bill Douthat, Palm Beach Post, Sept. 30).

FTC Commissioner on class actions

Federal Trade Commissioner Thomas Leary’s June 26 speech on the FTC’s interest in class action litigation is on-line. Leary criticizes excessive attorney fees, cites the Manhattan Institute’s work on forum-shopping (see Mar. 24) and also notes the problem that the process can drive the result:

Once a class is certified to address a single common factor, it acquires a life of its own. If the case does not settle promptly, conservation of judicial resources may motivate courts to find ways to shortcut a burdensome inquiry into other substantive elements of the plaintiff’s case, like actual “impact” on, or “reliance” by, a large number of individuals who are differently situated. Substance is tailored to serve the needs of process rather than the other way around.

“Injured student sues goal post maker”

Had to happen dept.: “A man whose legs were paralyzed when fellow Ball State students toppled a goal post after a 2001 football upset of Toledo is suing the goal post maker. Andrew Bourne, 23, of Liberty, Ind., and his parents are suing Marty Gilman Inc. of Gilman, Conn., claiming the aluminum posts were ‘designed and constructed in a manner which allowed them to suddenly snap and collapse.'” (Gary Mihoces, USA Today, Sept. 30). Update Jul. 24, 2005: court rejects Bourne’s case and his lawyer vows appeal.

Increase in number of “retarded” on Death Row

The Philadelphia Inquirer reports on an unintended, but predictable, consequence of the Supreme Court’s 2002 decision forbidding executions of the mentally retarded: hundreds of prisoners sentenced to death claiming for the first time that they are retarded. Pennsylvania has two bills pending to address the tens of such claims in their state, but any laws passed on the subject are surely only the source of additional litigation. (L. Stuart Ditzen, “Suddenly, prisons full of ‘retarded'”, Sep. 28; Atkins v. Virginia decision).