Overlawyered: Chronicling The High Cost Of Our Legal System

Archive for August, 2007

Wright on Frank on Chemerinsky on Roberts

Josh Wright expands on my line “we all know darn well that many ‘pro-business’ legal rules favor consumers and employees as a group ex ante,” and is even harsher with Chemerinsky than I was:

[W]hat gets me about this section is the heading: “Supreme Court favors businesses over consumers.” Is that really what these cases are about? I have read political accounts of the Supreme Court opinions in newspapers and periodicals or blogs that read this way (”The Roberts Court wants to stick it to the consumer — I can prove it: the Defendant won in all 4 cases this term”). But I’ve not heard law professors take this route too often, and never an antitrust commentator. In fact, a reasonable reading of the Court’s antitrust output this year suggests that the issues are much more nuanced than this oversimplified soundbite that pits business against consumers.

Is Leegin a pro-business and anti-consumer decision? I’m not sure I even know what that means in this context. … Justice Kennedy’s opinion on behalf of the majority does allow manufacturers to engage in behavior that was previously constrained. Perhaps that is a sufficient condition for a pro-business label? On the other hand, the very reason the Court overturned the per se rule was the result of evidence that minimum resale price maintenance made consumers better off! Now, one might think that the Court got it wrong and that RPM actually harms consumers. … But to argue that the Court got there by favoring business over consumers is not accurate, and obvious from reading the opinion.

Earlier on Leegin: Skip Oliva, Jul. 26.

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Whatever happened to that $217 million verdict?

You may recall the questionable $217 million verdict issued against Florida doctors for allegedly misdiagnosing a stroke after a CT-scan was negative. (Also: Oct. 7.) The attorney, Steve Yerrid, got a lot of publicity from promising to donate the $100 million punitive damages award to charity.

In March, we reported that the case settled, and promised a follow-up from the public-reporting system.

Read On…

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Bipartisan group of SEC chairs, law professors, speak out against “scheme liability”

The trial bar’s efforts to broadly expand the securities laws through judicial fiat is challenged in an amicus brief filed in Stoneridge v. Scientific-Atlanta (earlier: Jul. 31, etc.), including former SEC chairs Roderick Hills, Harvey Pitt and Harold Williams; and law professors Richard Epstein, Joseph Grundfest, Stephen Bainbridge, and Larry Ribstein.

Update: Not only has the Department of Justice come out in favor of affirmance (despite extensive lobbying by the plaintiffs’ bar), but both major stock exchanges—who interests unquestionably parallel the interests of investors as a group—filed amicus briefs seeking affirmance. But watch the press portray this as “businesses versus investors” instead of “businesses and investors versus trial lawyers and government officials seeking donations from trial lawyers.”

Update: Oral argument is October 9. AEI will hold a panel discussing the case October 5.

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Imus in the Courtroom, Update

In April, Don Imus infamously called the Rutgers Unversity women’s basketball team “nappy-headed hos.” After a week of controversy, criticism, and grovelling apologies, he was fired from his job by CBS radio. Imus threatened a lawsuit, and yesterday he settled with CBS. That should have been the end of the story. But of course, if it were, then how would the poor trial lawyers feed their families? Now that Imus’s settlement is final, he has money to burn. So, just a few hours after the settlement was announced, the first Rutgers player rushed to the courthouse to file suit against Imus and the other deep pockets:

“Imus lost four months of employment and gained $20 million and a new platform. But what about these young women? How does Imus’ big payday affect their self-esteem?” said Vaughn’s lawyer Richard Ancowitz.

The suit, which also named CBS, MSNBC and Imus sidekick Bernard McGuirk, did not ask for a dollar amount. There was no immediate comment from the defendants.

“The kind of sexist and bigoted attack these young women and Kia in particular suffered demands more than lip service,” Ancowitz said. “She wants the court to recognize that Imus slandered her.”

I haven’t seen a copy of the complaint yet, but it’s hard to imagine that it is anything other than utterly frivolous. Imus’s comments might have been nasty and uncalled for, but calling someone a “nappy headed ho” is not defamatory unless it is interpreted as an actual accusation that the person is a prostitute. No reasonable person could interpret it that way. That’s without even getting to the issue of lack of actual damages.

Update: AP provides the money quote from the complaint, and unless there’s a lot more they failed to mention, it’s exactly as frivolous as I expected:

The Vaughn suit claims that the comments were made in the context of a news or sports report and therefore Imus had certain standards to abide by but ignored them. The suit reprints the script from the “Imus in the Morning” show on which the comments were made.

“The … false, defamatory, sexually denigrating and slanderous statements and comments against the women athletes of said basketball team were heard, believed and understood by millions of listeners … as factual pronouncements concerning the character, chastity and reputation of the plaintiff,” the lawsuit says.

I’d tell you what I think of a lawyer that actually tries to make such a claim with a straight face, but I’m afraid he’d sue me for challenging his character, chastity, and reputation.

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“The Politics of Bananas”

Alvaro Vargos Llosa writes on the $25 million fine paid by Chiquita for funding the United Self-Defense Forces of Colombia:

Ultimately, this is a story about double standards—those applied by Colombia’s institutions, which encouraged the AUC for many years by sanctifying the very rules of the game they now decry, and those applied by U.S. authorities, who did not hold Colombia to the same legal standards to which they held their own country.

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Chemerinsky on the Supreme Court

Erwin Chemerinsky writes a not-especially honest review of the most recent Supreme Court term. He falsely characterizes the Roberts Court as “a solid conservative voting majority,” notwithstanding the numerous decisions where conservatives were not in the majority, or where the majority decision fell far short of conservative ideals. He characterizes the divided Philip Morris v. Williams decision as “conservative,” even though it was Breyer and Souter in the majority and Scalia and Thomas in the dissent. He complains that conservatives “defer to the government in the face of most claims of individual rights,” but gives no mention of last term’s Wisconsin Right to Life v. Federal Election Commission, where five conservative justices reasserted first amendment rights for political speech over the dissent of Breyer, Souter, Ginsburg, and Stevens, who wanted to preserve the government ban on speech. We’ll ignore that Chemerinsky takes the typical liberal tactic of characterizing legal rules as favoring either businesses or consumers/employees—we all know darn well that many “pro-business” legal rules favor consumers and employees as a group ex ante.

Chemerinsky is entitled to his left-wing opinion, though one might justifiably complain that he’s not entitled to his own facts. But what I certainly object to is the fact that this is being distributed and printed by the State Bar of California in the California Bar Journal, and advertised at the top of the State Bar of California website, since I am required to pay the California Bar hundreds of dollars a year, and have no way of getting a refund for the fishwrap mailed to me every month. This sort of partisan activity strikes me as a highly unethical use of my dues, and I hope someone in California is doing something about it.

(Earlier: Coleman; Bainbridge.)

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