Overlawyered: Chronicling The High Cost Of Our Legal System

Archive for March, 2006

Revealing someone’s criminal record = privacy invasion?

Eugene Volokh on the background of a case now pending in the Ninth Circuit:

Unfortunately, for several decades, California courts did indeed take the view that accurately discussing people’s crimes from a decade or more ago could lead to legal liability. Such speech, a discussion in a 1971 California Supreme Court said, serves no “public purpose” and is not “of legitimate public interest”; there is no “reason whatsoever” for it, when (in the court’s view) the plaintiff has been “rehabilitated” and has “paid his debt to society.”

In 2004, the state’s high court recognized that as regards the media and its reporting, this stance had become inconsistent with modern views of the First Amendment. Unfortunately, the court left open the possibility that non-media defendants might still face damage suits for privacy invasion over such disclosures, and exactly that possibility has now eventuated in a case by the name of Readylink Healthcare v. Lynch. (Mar. 15)

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Update: assigning air carrier poor safety grade not defamation

Following up on our item of last May 12: the Eighth Circuit federal court of appeals ruled last year that the safety rating group ARGUS (Aviation Research Group) had not defamed Aviation Charter Inc. in 2001 by assigning the charter operator its lowest safety rating, “DNQ” or “Does Not Qualify”. Aviation Charter Inc. operated the plane whose crash a year later, in 2002, killed Sen. Paul Wellstone of Minnesota and seven others. The Eighth Circuit affirmed a lower court’s decision to dismiss the suit, saying ARGUS’s comparative ratings involved subjective interpretations of data and were not “sufficiently factual to be susceptible of being proved true or false”. So for now, at least, it seems that if you want to rate air carriers’ safety, go ahead and rate away. (“Court decisions: Air carrier’s poor safety rating isn’t defamatory”, National Law Journal, Aug. 1, 2005, not online).

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Regulation vs. sous vide

We’re here from the government, and since we haven’t yet considered how to regulate your new cooking technique, we’re not going to let you use it (Dana Bowen, “With City Inspectors in Kitchen, Chefs Can’t Cook in a Vacuum”, New York Times, Mar. 9; Virginia Postrel, Mar. 10; Dana Bowen, “Chefs Wait for Rules on Sous Vide, as Experts Question Some Uses”, New York Times, Mar. 15)(& No Quarters).

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Federal anti-hacking law

According to Judge Posner, writing for a Seventh Circuit panel, that law can be triggered by an employee’s use of a secure file deletion program to erase data stored on his company-issued laptop. Declan McCullagh is uneasy (“Police blotter: Ex-employee faces suit over file deletion”, CNet, Mar. 10).

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After the lawsuit settlement, a spending spree

When big-ticket lawsuits are settled, a trust fund is often established for the future maintenance of the person whose injury occasioned the suit. How secure are these trust funds from being raided and squandered by faithless guardians? In New Jersey, apparently not very secure:

Calling it an “extremely sad case,” a judge on Friday sentenced a Fair Haven woman to seven years in prison for misappropriating much of her disabled daughter’s $2.8 million trust to buy drugs and a Porsche, among other things….[Barbara] Marschall in October admitted misappropriating funds from the $2.8 million special-needs trust established through a settlement of a medical malpractice lawsuit against Monmouth Medical Center, Long Branch. She did so between 1996 and 2004. The funds were intended to be used for services and other care for her daughter, Liza, now 20, to supplement care provided by Medicaid.

According to an assistant Monmouth County prosecutor, Marschall, an admitted heroin and cocaine addict, by 2002 had “spent about $614,000 she had received as an award from the medical malpractice settlement in 1995, then turned to the trust fund for Liza, who was born with neurological problems and cerebral palsy. By December 2004, only about $100,000 of the trust fund remained.”

Since it’s common for large funds of money to be set aside for purposes of covering future medical and personal needs for disabled plaintiffs, at least two questions suggest themselves. First, how frequently are such moneys dissipated (whether through criminal depredation, as here, or simply through less spectacular failings of stewardship) before they were supposed to run out? Second, given that they owe their existence in most cases to legal action, shouldn’t such trust funds be better protected from guardians’ criminality or incompetence? Wasn’t anyone required to ask questions — or call in an auditor, or withhold their co-signature — as this mother drained the trust fund at a rate of more than $100,000 a month over more than two years? (Karen Sudol, “7 years for raiding fund of infirm girl”, Asbury Park Press, Feb. 11; Christine Varno, “F.H. woman sentenced for embezzling”, Red Bank Hub, Feb. 16)(via Rovito).

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Antitrust enforcers get wiretap/bug powers

Quietly slipped into the reauthorization of the Patriot Act: first-time-ever authority for the Justice Department to engage in wiretapping and bugging of private premises for purposes of going after antitrust violators. The Patriot Act reauthorization was advertised as an emergency measure needed to combat international terrorism; very little was said about any supposed emergency need to enact miscellaneous prosecutorial wish lists at the expense of civil liberties. (Pamela A. MacLean, “Bugging the boardroom”, National Law Journal, Mar. 1; Skip Oliva, Voluntary Trade Council, Mar. 10 and Mar. 11; Reason “Hit and Run”, Mar. 10; Open Market (new Competitive Enterprise Institute blog), Mar. 10).

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Lawyer discipline systems

“Not getting any better,” in the opinion of HALT, the consumer-protection group that looks out for the interests of legal clients. The group has issued a report card rating each of the 50 state lawyer grievance systems, updating a similar effort four years ago. Worst state: Utah. Worst big state: California, ranked #46. Best state: Connecticut. Best big state: Pennsylvania (yes, really). (David Giacalone, Mar. 8).

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Latest newsletter

Our free periodic newsletter went out to subscribers last night, summarizing highlights of recent postings in terse yet wry style. To read the latest installment — or to join or leave the list, change your address, etc. — visit this page (requires Google registration).

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American Association of Physicians and Surgeons

The Tucson-based group, founded in 1943, bills itself promisingly as “the only national organization consistently supporting the principles of the free market in medical practice”. It’s published material favorable to liability reform in its Journal of American Physicians and Surgeons (formerly Medical Sentinel). Before citing to AAPS publications as one might cite to JAMA or The Lancet, however, it would be wise to read this and learn more about the group’s indulgence for anti-vaccine, anti-fluoridation and anti-gay crankery, as well as what one of its contributors regards as the superiority of “the creation religion of Jehovah” over the “religion of evolutionary humanism”. On the vaccine issue, at least, “the Journal of American Physicians and Surgeons [has been] transformed into one of the primary media allies of litigators and plaintiffs seeking to review medical care after the fact, and find legal fault with physicians, vaccine developers and public health authorities who exercised accepted standards of care prevalent at the time they made their decisions.” (Kathleen Seidel, Mar. 12).

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