If ever you wonder while trial lawyers have a bad reputation, there’s no need to invent sinister conspiracies between moderate Supreme Court justices and the Chamber of Commerce. Just take a look at the affidavit of one of the leading lights of the plaintiffs’ class-action bar, Bill Lerach, as he tries to argue to a court that his client cannot fire him. Roger Parloff did, and the results are entertaining; and other journalists could certainly learn a lesson from Parloff’s skepticism and willingness to read between the lines. Earlier: POL Dec. 15 and Dec. 28.
Archive for 2007
Patent troll, meet Rule 11
Just sending out batches of letters claiming infringement and demanding money may no longer be a workable business plan:
Based in the British Virgin Islands, Eon-Net is run by an evangelical minister-cum-inventor, who holds several patents (including one on a device for collecting “canine waste”). In March 2005 the company filed a patent suit in New Jersey against Flagstar, a $16 billion savings bank based in Michigan. The bank was one of 32 companies sued separately by Eon-Net for infringing a patent that, the company claims, covers technology that allows online shoppers to enter information into Web sites and have it transferred to the Web retailer’s computer. Eon-Net, which also has pending litigation against JetBlue Airways and Liz Claiborne Inc., had successfully extracted settlement money from ING Bank and Sony Corp. over the same patent.
Eon-Net’s enforcement method involved filing a complaint followed by a letter offering a settlement ranging from $25,000 to $75,000.
Flagstar decided to fight the suit, and its attorney, Melissa Baily of Quinn Emanuel, noticed that Eon-Net’s lawyers “had used nearly identical complaints and demand letters in all 32 suits,” suggesting a lack of careful advance investigation. Although Rule 11 sanctions are especially hard to obtain in the Ninth Circuit, Western District of Washington Judge Marsha Pechman agreed that the suit was both baseless and made without reasonable inquiry and, after ruling in favor of Flagstar on summary judgment in the case itself, ordered Eon-Net and its attorney, Jean-Marc Zimmerman, to pay the bank’s defense costs, estimated at more than $100,000. (Xenia P. Kobylarz, “Patent Trolls Put on Notice Over Generic Infringement Letters”, IP Law & Business, Dec. 14).
Reader feedback
A reader from Australia writes, apropos of no post in particular:
Guys, I broadly agree with your website — personal injury litigation is out of control.
As a lawyer though, I think you’re missing the other side of the coin: that the system for necessary cases, ie suing someone who owes you money, is too long, and too complex. In my view the inefficiency of the legal system is a far bigger problem. Perhaps you could highlight this in some stories?
After all, having a quick efficient legal system to enforce the law is crucial in a modern economy.
Miers nomination
Roger Parloff thinks history will look back on it as a turning point in the history of the GWB presidency, if not the Court (Jan. 8).
Clients who care about the color of their attorneys II
Accounting firm Accenture sends its outside counsel a seven-page questionnaire asking them to compile “the number of ethnic minorities, gays and lesbians, and women at the entire firm, on management committees, among student and lateral recruits, and among those attorneys working on Accenture matters.” Firms that refuse to fill out the questionnaire or fail to reduce the percentage of white straight male attorneys working for them from year to year are fired, even if their work is satisfactory. Again, the press coverage is entirely laudatory, without questioning whether it should be at all appropriate to judge attorneys by skin color and quotas. It’s also poorly edited: a “Stern” is quoted several times without identification. (Aruna Viswanatha, “On Diversity, It’s Shape Up, or Ship Out”, Corporate Counsel, Jan. 9). Earlier: Dec. 27.
Skinny models with lawyers
The Council of Fashion Designers of America will issue guidelines discouraging anorexia-suggestive degrees of emaciation but won’t attempt to enforce any binding rules. “Those people could sue, in America they could sue everywhere for prejudice or discrimination,” said council president Stan Herman when the issue came up in the fall. “I wouldn’t touch it with a 10-foot pole.” (“New York fashion group to issue guidelines on skinny models”, AFP/Breitbart, Jan. 8; “Skinny model ban ‘discrimination'”, AFP/News.com.au, Sept. 16).
$5M asked after cop chase leads to fiery crash
“Gail McDoe admits her 16-year-old son never should have been driving that car in 2005. He was the one who set off the chase with police, ending in a fiery crash that killed him.” Nonetheless, her $5 million lawsuit against the city of Newburgh, N.Y. alleges that cops should not have been so aggressive in chasing Dionte Jones and should have acted more quickly to attempt a rescue after he flipped his car into a gas field full of fuels and hazardous chemicals. The city’s in-house lawyer says an investigation indicates Jones died instantly and would not have been helped by a rescue attempt. (John Doherty, “Mother wants Newburgh police to share burden of son’s death”, Middletown Times Herald-Record, Jan. 6).
Joe Jamail deposition video
It’s back on YouTube (via Prof. Childs and Nicole Black).
January 9 roundup
- Get in car with drunk driver, sue manufacturer and win $18.6M when you get hurt; lawyers fight over lottery-victory fees. [Andrews; Journal Star]
- LA Times decides that maybe preventing prison race riots isn’t so bad after all. [Patterico]
- Why LA jail cells are revolving doors. [LA Times]
- Popular coffee stand shut down because of government-mandated preferences for blind. [NYT]
- The special interests behind the call for additional hedge fund regulation. [Cafe Hayek]
- The ethical practice of legal scholarship. [Prawfsblawg]
- The Wag-Time/Stephanie Mencimer arrest scandal keeps getting weirder and weirder. [Murray Waas @ HuffPo; Circumlocutor]
Why wacky warnings matter
My experiences growing up in NoDak and later working as a crime reporter may not be typical, and perhaps the people I came to know were by some measures outside, shall we say, the social mainstream, but my first thought when I saw these purportedly wacky, useless warning labels was this: “I can see someone doing that!” Personally I’ve seen folks do much more ridiculous things many times.
The issue is whether people doing “ridiculous things” should have a cause of action for their own failure of common sense, or whether we require manufacturers to treat all of their adult customers like infants on pain of liability.
Such overwarnings have real social costs: as numerous studies have documented, if one’s personal watercraft manual says “Never use a lit match or open flame to check fuel level,” one’s going to be less likely to slog through the whole thing and find the warnings that aren’t so obvious. In many cases, the “failure-to-warn” is really just a Trojan horse to force the deep pocket to become a social insurer. In the Vioxx litigation, Mark Lanier has accused Merck of making too many warnings, and thus “hiding” its warning of VIGOR cardiovascular data. This effectively holds a manufacturer strictly liable for failing to anticipate with perfect foresight what risks will accompany which consumers, and tailoring its warnings on that micro-level—and if anyone regrets taking the risk later, they can always complain that the warning was legally insufficient for failing to be scary enough.
The wacky warning awards are often entertaining fluff, to be sure; the marginal harm from a “Do not iron” warning on a lottery ticket is infinitesimal, and is probably there as an anti-fraud device rather than as a product-safety mechanism. But ATLA, abetted by sympathetic law professors and credulous or disingenuous journalists, has engaged in a mass campaign to make equally silly warning cases—such as the McDonald’s coffee case, where Stella Liebeck complained that the warning on her cup of coffee wasn’t “big enough” to adequately warn her not to spill her coffee in her lap and sit in the puddle for ninety seconds—aspirational, rather than outliers. The wacky warnings are the canaries in that coal mine.