Overlawyered: Chronicling The High Cost Of Our Legal System

Archive for August, 2007

What took so long?

I was wondering when former class members represented by Milberg Weiss would take a speculative flyer to convince a court that Federal Rule of Civil Procedure 60(b) does not preclude relief and sue the law firm over its kickback scandal and Peter Lattman reports that that has happened. Alas for schadenfreude, I am utterly unpersuaded by the complaint, which makes no attempt to jump that procedural hurdle: Fed. R. Civ. Proc. 60(b) prohibits reopening even judgments procured by fraud more than a year after they close, and I’m unaware of courts permitting end-arounds of the rule through collateral lawsuits. But perhaps the plaintiffs have an undisclosed legal trick up their sleeve for when the motion to dismiss comes.

Lattman’s blog posts on Milberg Weiss always attract an interesting flood of anonymous comments defending the firm, and this one is no different: one such comment suggests, perhaps libelously, that the suing law firm has its own history of kickbacks.

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Serial spam litigation backfires on plaintiff

I think it’s fair to say that serial spam litigation is less lucrative than serial ADA litigation. Walter discussed the setback suffered by plaintiff James Gordon (June 2007), in which a federal court ruled that Gordon, who makes his entire living using anti-spam laws to sue emailers, had no legitimate claims because he had not suffered any damages (and indeed, could not, since his only “business” was filing lawsuits for receiving spam).

The court was clearly disgusted by Gordon and his attempt to manipulate the CAN-SPAM act to extort millions of dollars from an emailer, because not only did it rule against him, but this week it awarded attorneys’ fees to his victim. Now, regular readers of Overlawyered know that one of my pet peeves is that even when courts order sanctions, they often award mere token amounts which are inadequate to deter plaintiffs or reimburse defendants for their troubles. That wasn’t the case here; the court awarded $110,440 in fees and costs to the victorious defendants. (This was actually significantly less than the defendants had requested — half a million dollars — but the court found that this was grossly inflated and not substantiated by the defense counsel’s own billing records. Still, $110,000 is nothing to sneeze at.)

So this case provides lessons for both sides about being greedy:

  • If you’re going to try to become a professional plaintiff, try to suffer actual damages — if possible, physical damages — rather than demanding millions of dollars for receiving emails. If you insist on suing without having been injured, at least try to be a sympathetic plaintiff in a wheelchair who can’t use public restrooms, rather than being a guy who sits around his living room in his pajamas looking at spam.
  • If you’re up against an unsympathetic professional plaintiff, don’t squander the court’s goodwill by demanding far more in legal fees than you’re entitled to. And if you’re going to pad your fee request to the court, at least make sure that the bills you submit to substantiate your demands actually match the numbers you’ve told the court. Judges don’t like it when you claim that you spent 2,000 hours and your own records show that you’ve only spent 1,500 hours. The judge was so annoyed here that after he re-calculated the legitimate bills, he determined that they were grossly overinflated and slashed them by an additional 70%.

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California ADA lawsuit mills: “Wheelchairs of fortune”

Serial ADA litigant (and Overlawyered repeat offender) Thomas Frankovich was profiled recently in SF Weekly. Overlawyered readers will be familiar with just about everything in there, from Frankovich’s extortionate tactics to his collaboration with professional plaintiffs like Jarek Molski, to his use of front groups in an attempt to make his litigiousness seem like a public service. (Frankovich, incidentally, does not work in a wheelchair accessible office.)

Matthew Hirsch of LegalPad reports that Frankovich is attempting to rehabilitate his image before the Ninth Circuit rules on whether he, and his fellow traveler Molski, are vexatious litigants:

Starting this month, Frankovich and a major client are offering defendants a deal: “You make your [entrance] doorway accessible, and we will waive any and all claims — including money damages,” he said.

Yes, but Frankovich is a lawyer, so be sure to read the fine print:

Frankovich said his clients who are affiliated with DREES will offer the front door deal if they are visiting only to check out the entrance. But if they spot a door that wheelchair users can’t open, then they go inside to shop and notice more problems, “that becomes something different,” Frankovich said, and the deal is off.

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Prosecutorial abuse “rarer than human rabies”?

So claims Joshua Marquis, vice president of the National District Attorneys Association, commenting on the Nifong-Duke lacrosse case. (Adam Liptak, “Prosecutor Becomes Prosecuted”, New York Times, Jun. 24). The reaction of Washington-based writer Carey Roberts: “Not by a long shot,” as witness a list with familiar names on it like Wenatchee, Wash. and the Scheck/Neufeld Innocence Project, as well as investigations by the Pittsburgh Post-Gazette and Chicago Tribune, and more. (“The Nifong case – how rare?”, Washington Times, Jul. 29).

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Judge Pearson update

(AM post bumped for PM update.)

A judicial panel is still deciding whether the Great American Pants-Suit plaintiff will keep his job as an administrative judge. A delayed decision is expected early next week.

Update to the update: Marc Fisher is reporting that the decision will be to start the bureaucratic process of firing Pearson. Amazingly, the chief ALJ recommended reappointing Pearson&mdash:until Pearson showed his typical good judgment by blasting the chief ALJ in an internal email as “evil,” causing his target to change his mind. Pearson will be entitled to a hearing (and who knows how many rounds of appeals) before he is officially fired; since April, he has been in a fully-paid no-work position as an “attorney-advisor.”

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A second bite at the apple

Minutes after being shot several times, Ibrahim Sidibe and Nicholas Watson identified 16-year old Francesco Kelly as the shooter. Kelly was arrested for the Silver Spring bus stop attack and convicted of first-degree attempted murder in 2003. Maryland’s high state court threw out the conviction on the grounds that Kelly’s inability to call two witnesses after the judge ruled (without a state objection) that their testimony was inadmissible hearsay violated Kelly’s rights. On retrial, a jury acquitted Kelly, to the dismay of Sidibe (who is paralyzed from the shooting) and Watson, who, perhaps implausibly, blames the shooting for his later criminal career. Kelly did not call the two witnesses whose testimony his attorneys previously claimed materially affected his ability to get a fair trial. The lawyers who made that argument to the Maryland Court of Appeals will suffer no consequences. (Ernesto Londoño, “As Suspect Is Acquitted, Shooting Victims Protest”, Washington Post, Aug. 2).

Read On…

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Illinois court: Taxpayers not responsible for porch collapse

In June 2003, there was a tragic porch collapse at an apartment building in Chicago; 13 people were killed and at least 50 more were injured. The quest for deep pockets began; as we discussed in August 2005, even though the porch was on private property, trial lawyers aimed their litigation guns at the city of Chicago, on the theory that Chicago taxpayers have more money than the building owner if city inspectors had done a better job, the accident wouldn’t have happened.

A trial judge bought that argument, but yesterday, in a victory for taxpayers, an appellate court reversed that ruling, holding that, contrary to the theory of the trial lawyers, the city is not a guarantor that nothing bad will ever happen within its city limits. The mere fact that the city inspectors failed to issue violation notices for the porch construction does not make the city financially liable for the collapse; if it did, then the potential to extend liability to taxpayers would be limited only by the imagination of the trial lawyer. Police fail to stop a driver who’s speeding, and he later hits you? Blame the city. Inspectors don’t make your neighbor cut down the dead tree on his property, and it falls on your house during a storm? Blame the city. The possibilities are endless.

The victims of the accident do have a legitimate case — but that legitimate case is against the building landlord, not taxpayers. But those deep pockets aren’t quite deep enough, so the trial lawyers aren’t satisfied with that answer:

But plaintiffs’ lawyers said that was not enough.

Pappas and his companies have about $17 million in insurance coverage, said Terry Ekl, who represents the family of Robert Koranda, who died in the collapse.

“Without the City of Chicago in the case, these families are not going to get anywhere near fair compensation,” Ekl said.

If the Appellate Court’s ruling stands, the plaintiffs would take up the issue with state lawmakers, Murphy said.

“We’re going to be having our clients go down to the legislature and say, ‘You can’t be letting this happen,’ ” Murphy said. “These children cannot have died or be injured in vain.’

Yep; they’re not doing it for their own bank accounts; rather, this is For the Children™.

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Helicopter chases and felony murder, cont’d

Arizona’s East Valley Tribune looks at the question (considered here Jul. 28 first and second post) of whether the fugitive being chased by Phoenix police could be held legally responsible for the crash of two news copters observing the scene. An unrelated local case puts a twist on an otherwise familiar “felony murder” fact pattern:

In an ongoing case, a Phoenix woman faces murder charges in a 2004 robbery attempt at a Mesa check-cashing store following the death of her accomplice. The accomplice was shot and killed by the store’s clerk, who also shot Rhonda Wright multiple times.

Prosecutors reasoned that the clerk would not have pulled his weapon if the assailants had not entered his store.

(Dennis Welch, “Homicide charges in helicopter crash a tough call”, East Valley Tribune, Jul. 29). More on felony murder and the Phoenix crash: Michelle Tsai, “News chopper down”, Slate, Jul. 30.

More: Mike Cernovich identifies another culprit in the chopper crash (Jul. 30).

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