Plaintiff’s lawyers cut a $300 million deal with Monsanto spinoff Solutia to resolve a long-running toxic-tort case in Anniston, Alabama. Under the agreement approved by the court, 27 lawyers are going to split $120 million, with $29 million going to Johnnie Cochran’s firm (Aug. 29 and links from there; much more) and $34 million to Jere Beasley’s Montgomery-based law firm (Dec. 1, 2003; Nov. 16, 1999). “Once the lawyers and other expenses are paid, the awards for each of the Anniston plaintiffs will average $7,725, though some will receive more if their health damages are shown to be greater.” Locals are furious. (“PCB Case Payouts Roil Alabama City”, AP/Washington Post, Mar. 24; Jessica Centers, “PCBs plaintiffs demand answers”, Anniston Star/MSNBC, Mar. 24; Ellen Barry, “Lawyers’ fees eat up much of settlement over toxic chemicals”, Los Angeles Times/Seattle Times, Apr. 14). More: Dr. Elizabeth Whelan of the American Council on Science and Health is dubious about the science underlying the Anniston claims (“The case of the mute scientists”, Washington Times, Feb. 27, 2003, reprinted at ACSH site). Update Dec. 6: Forbes covers aftermath; overall settlement reported at $600 million with lawyers taking $234 million.
Archive for April, 2004
Cosmetics settlement challenged
“A proposal to settle a nationwide class-action lawsuit by giving $175 million worth of high-end department-store cosmetics away for free may be in jeopardy following a move by the attorneys general of 11 states to challenge the deal. Critics warn the settlement would enrich class-action lawyers with up to $24 million in fees but could leave individual department-store customers with either nothing or little more than a tube of lipstick — maybe even in an unpopular color.” (Josh Gerstein, “11 States Seeking To Scupper Deal In Cosmetics Case”, New York Sun, Apr. 5). For our earlier coverage, see Jul. 21, 2003 (“A Lipstick-Up”). More: Monica Yant Kinney, “Cost of primping is a tad less dear”, Philadelphia Inquirer, Feb. 3 (reg). Update: see May 19, Dec. 3; Mar. 14, 2005: judge approves settlement).
“Database tech helps lawyers scoop up clients”
Lawyers as paladins of privacy, cont’d: After her son was erroneously arrested, Julie Danielson checked her mail and was “shocked to see at least 12 envelopes — postmarked only hours after her son’s arrest — from defense attorneys offering their services. The lawyers had been eager recipients of a jailhouse e-mail list supplied daily by the county sheriff. … The couple was astonished that Riverside County [California] deputies failed to call them when their son was arrested — though contact and medical information was in the young man’s wallet — yet managed to inform people who wanted his business.” One envelope was emblazoned “Experts in Drug Charges”. “In New Jersey, which sends information companies who have registered with the state daily updates of who’s been arrested, a Supreme Court committee recently tightened its rules on the content of direct-mail solicitations after hearing complaints ‘in a volume too great to ignore.’ One man had received 22 letters from lawyers.” (AP/CNN, Mar. 29). More on direct-mail: Jul. 15, 1999. And: Philadelphia Inquirer columnist John Grogan explores how police accident reports serve as grist for lawyer solicitation of injury suits (“Lawyers Sow the Seeds of Lawsuits”, Apr. 5)(reg).
“Soldier sues city for damages for stress in Iraq”
In Cherokee, Iowa, Vernon Fick, who was dismissed as a police sergeant last year, wants his job back and is suing the city on age-bias and other charges. In addition to seeking reinstatement, Fick “claims he couldn’t get a job anywhere else and was forced to join the military, which sent him to Iraq”, so he “is seeking damages for emotional stress and strain from serving in a war zone. … The lawsuit said the Army became his only ’employment alternative’ because the city falsely told other potential employers in the area that he had committed misconduct.” His attorney is Stephen Avery of Spencer. (AP/Creston News Advertiser, Apr. 9)
Judge Weinstein shepherds gun lawsuit
As if to confirm this website’s worst fears (Mar. 31, 2003 and Mar. 24, 2003), federal Judge Jack Weinstein of the Eastern District of New York is permitting the City of New York to proceed with a “public nuisance” suit against the gun industry. If that theory sounds eerily familiar, it is because a Manhattan appellate state court threw out an essentially identical public nuisance lawsuit by the state of New York against the gun industry in the Sturm, Ruger case, noting that New York state law did not countenance such attenuated theories of liability (Jun. 30 and Jul. 4). The district court opinion is a marvelous example of how an unprecedented theory of liability lifts itself up by the bootstraps: the decision relies heavily on Judge Weinstein’s previous opinions and the Ninth Circuit’s unreasoned Ileto v. Glock decision (Dec. 3 and Nov. 20); while claiming that Sturm, Ruger supports it, the decision ignores language (and related precedent) in that opinion that would preclude the City’s theory of liability. (Tom Perotta, “Federal Judge Keeps New York City’s Gun Suit Alive”, New York Law Journal, Apr. 13; City of New York v. Beretta opinion).
Update: Clayton Cramer comments.
“The Erin Brockovich Effect”
Parachuting in without actually touching toe? This time it’s a toxic-tort case in central Florida: “She has never set foot in Hillsborough County’s rural Plant City, but her name alone is influencing news coverage, attracting clients and conferring credibility to illness reports.” The suit alleges that Coronet Industries’ phosphate plant is responsible for a wide range of ills, including those of the lead claimant’s 3-year-old son, who suffers from autism and language disorders. (Ron Matus, “The Erin Brockovich effect: influence, inference”, St. Petersburg Times, Apr. 11). For much more on Brockovich, see Mar. 16, Jan. 3 and links from there, and our Oct. 2000 treatment.
Wal-Mart: target
“Encouraged by the press criticism, entrepreneurial trial lawyers, eyeing Wal-Mart’s deep pockets with glee, have made it perhaps the biggest private-sector target of the nation?s plaintiffs’ bar. In just ten years, the number of pending lawsuits against Wal-Mart has increased fourfold, to 8,000, and the company has tripled the size of its litigation department. … Wal-Mart faces a growing number of potentially costly class action lawsuits, exemplified by a sex-discrimination suit brought by the Cohen, Milstein, Hausfeld & Toll firm, notorious for getting Texaco to pay $176 million to black employees in a discrimination suit.” (Steven Malanga (Manhattan Institute), “What Does the War on Wal-Mart Mean?”, City Journal, Spring). See Jul. 7-9, 2000 and more links: Feb. 1, 2004; Dec. 4, 2003; Jan. 11, Jun. 14, and Aug. 29-30, 2001; Sept. 6-7, Sept. 25-26, Nov. 15, and Dec. 13-14, 2000; and Dec. 2, 1999. More: we are linked by Always Low Prices — Always, a blog whose mission is to chronicle “The Best and the Worst about Wal-Mart” and which is put out in part by Kevin Brancato of George Mason U. and the economics blog Truck and Barter. (More: Apr. 19, 2005).
Boulder (& Orange County) publicity
Last week I took part in no fewer than eight panel discussions (these hosts work you hard) at the University of Colorado’s 56th Conference on World Affairs. The Boulder Daily Camera covered the final panel, on taxes (Matt Branaugh, “Turning Up the Heat on Taxes”, Apr. 10) while the student-run Colorado Daily ran a story on Tuesday’s session, concerning the role of the media in court proceedings (Katherine Crowell, “‘Trial by press’ unjust”, Apr. 7). Also, while I was speaking in Orange County, Calif. last month, Kyle Beckley interviewed me for the Chapman University Law School publication, the Esquirer; an excerpt appears at Beckley’s website, OneL7 (Apr. 4).
“What the World Needs Now Is DDT”
“[W]hat really merits outrage about DDT today” is its underuse, as millions die annually of malaria for lack of the reviled pesticide, writes New York Times editorialist Tina Rosenberg. Commentators such as ABC’s John Stossel got to the story first (see CEI, Todd Seavey), but the Times may be more effective at reaching those who can do something about the state of the law (New York Times Magazine, Apr. 11).
Med mal: around the blogs
Not that this exactly qualifies as news, but Sen. Tom Daschle says things to pro-tort-reform constituents back home that are rather different from what he says in Washington, notices the South Dakota Politics blog (Apr. 4, Apr. 7). And the departure of a surgeon in MedPundit Sydney Smith’s home town, coinciding with a particularly obdurate sound bite from ATLA-admired Sen. Patrick Leahy, prompts her (Apr. 10) to give the Vermont Democrat an Open Secrets look-up (see also MedRants, Apr. 8, with comments section). Dr. Smith also notes (Apr. 6) that the med-mal crisis in famed Madison County, Ill., may play a role in the contemplated closure of Scott Air Force Base in Belleville.