Archive for October, 2006

Law firm extracts $200 million in class action

…and gets sued for malpractice by a second law firm contending that even more would have been extracted had the winning lawyers thrown in a claim under California’s wide-open unfair competition law. Result: San Francisco’s Rudy, Exelrod & Zieff has agreed to pay $1.5 million to resolve the claims (whether “for nuisance value” or “in contemplation of losing” will have to be left for others to decide), malpractice insurance rates for plaintiff’s lawyers may experience upward pressure, and class action lawyers have been sent a lesson, namely that they’d better throw in every colorable charge to play it safe in future. The underlying lawsuit was an overtime action against the Farmers Insurance group. (Matthew Hirsch, “Rudy Exelrod Settles Malpractice Suit”, The Recorder/Law.com, Oct. 11; Internet and Class Action Law Blog, Oct. 11).

Patenting tax avoidance strategies

Notes New York Times columnist Floyd Norris: “Now you may face a patent infringement suit if you use a tax strategy someone else thought of first. …a federal appeals court ruled in 1998 that business methods can be patented, and since then the Patent Office has issued 49 tax-strategy patents, with many more pending.” Paul Caron has more (Oct. 20; Floyd Norris, “Patent law is getting tax crazy”, NYT/IHT, Oct. 19; Slashdot).

P.S. At Slashdot, commenter msobkow writes: “Patience. It’s a matter of time before the remains of SCO patent the use of patent lawsuits as a business model. The hope would be to get into a lawsuit over that patent, creating a potential infinite recursion and thereby an infinite revenue stream out of thin air.”

U.K.: “Force muzzles dogs to protect suspects from bite injuries”

“Police dogs are being muzzled to prevent them from biting criminals. Instead of clamping their jaws around the legs of suspects, the dogs are trained to leap at their targets and disable them with a flying butt. … The policy follows a rise in compensation claims against forces from members of the public, and even serving officers, who have been bitten by police dogs. One force, in Greater Manchester, has paid out £59,000 in five years to 36 bite victims.” (Ben Leapman, Daily Telegraph, Oct. 15).

Jack Thompson, officer of the court

When anti-videogame crusader and perennial Overlawyered favorite Jack Thompson (Sept. 26, Oct. 15, etc.) lost his case over “Bully”, he dashed off the following letter to the judge who ruled against him:

Dear Judge Friedman:

Now that you have consigned innumerable children to skull fractures, eye injuries from slingshots, and beatings with baseball bats, without a hearing as to the danger, let me tell you a few things, with all respect for your office and with no respect for the arbitrary way in which you handled this matter. I can handle an adverse ruling by a judge. I’ve had plenty of those in my lifetime, and that’s fine. But the way you conducted yourself today helps explain why a great Dade County Judge, the late Rhea Pincus Grossman, could not abide you. She was not the only one . . . .

Next time you promise a “hearing,” I’ll bring a parent with me whose kid is in the ground because of a kid who trained to kill him or her on a violent video game. Try mocking that person, I dare you.

Full text of the letter here courtesy GamePolitics; via Lat who got it from ACSBlog. And a commenter at ACSBlog writes:

Jack Thompson did his part to inspire me to go to law school. I knew that if people of his mental capacity could succeed in the profession, I certainly could.

More: GamePolitics.com reports that lawyers for the game company are seeking to have Thompson held in contempt of court (further update here; h/t RebeccaFrog).

See someone smoking? Call 911

In Omaha, which recently enacted a restaurant smoking ban, authorities are urging vigilant citizens who notice illicit smoking to call 911 to summon a police response. The local emergency coordinator has objected, saying 911 calls over smoking could overwhelm the system and distract dispatchers from more dire emergencies, but the police department says it is sticking by its advisory. (“Dial 911 To Report Smokers”, KETV, Sept. 28; “911 Director: Smoking Reports Could Overwhelm System”, Sept. 28).

Overtime-suit spam

Unsolicited email arrived a few hours ago from a return address of EmploymentRights@media-uplink.com with the message: “Do You Know Your Rights As An Employee? Are Your Work Rights Being Neglected? Are You being paid for: Overtime? Putting your uniform on or off? Time spent preparing for your shift? Attending safety meetings? Travel time and expenses?” The link, when clicked, led to this page at a domain entitled legalleadshost.com. Overtime and employee-classification suits have emerged as a highly lucrative field of practice for the plaintiff’s bar in recent years. “In December, a California jury awarded $172.3 million to Wal-Mart workers for missed meal breaks.” (Sophia Pearson and Margaret Cronin Fisk, “Wal-Mart Loses Pennsylvania Suit Over Missed Breaks”, Bloomberg, Oct. 12).