Overlawyered: Chronicling The High Cost Of Our Legal System

Archive for 2008

Granite kitchen countertops

Apparently a few of the ones with exotic striations have enough radioactive mineral content that you might have to worry if you spent many of your waking hours strapped to them as to a hospital gurney. (Staying even a few inches away should be enough to lower the risk to pretty much zero, which is fortunate given that the posture most of us use while chopping celery does not involved prolonged whole-body contact.) Nonetheless, per a New York Times account yesterday that does little to discourage reader alarmism, “Personal injury lawyers are already advertising on the Web for clients who think they may have been injured by countertops.” (Kate Murphy, “What’s Lurking In Your Countertop?”, Jul. 24).

Let me be the first to predict that if such litigation has any future, it will not be in recovering large sums for the unprovable (because almost certainly nonexistent) toxic effects, but in $20,000 claims against insurers and contractors for rip-out and replacement*, which, in the usual circular fashion, will be stimulated by alarmist accounts like the one in the Times. And the predominant injury risk from a chunk of hewn granite will continue to be, as it has always been, being in the way when it drops.

*I’m not sure why people choose a countertop material that will dull their knives and chip their china, to say nothing of being cold and ungrateful to the touch. But that’s another topic.

P.S. The EPA has a statement (scroll).

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$150,000 heartbalm award in Georgia

Wayne Gibbs and RoseMary Shell were engaged to be married.  Gibbs gave Shell an expensive engagement ring, and $30,000 to pay off her debts, but discovered that her financial situation was considerably more precarious, and broke off the engagement.  (Shell also alleges that Gibbs was cheating on her.)  Shell sued, and a jury awarded $150,000. (“Hall Co. jury awards jilted bride $150,000”, WDUN, Jul. 23; ABC News, Jul. 23).

Of course, if the two married, and Gibbs filed for a no-fault divorce a couple of days later, Shell would have no cause of action.  One of many reasons that breach of promise to marry suits are especially absurd in twenty-first century America.

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Is patent gridlock keeping drugs off the market?

Readers know I’m sympathetic to the idea of patent reform, but I have to agree with Derek Lowe’s skepticism as he tears a hole in the Michael Heller story told to the WSJ Law Blog about an alleged Alzheimer’s drug that will “earn billions” but can’t be tested because of patent gridlock.  A must read as he eviscerates the law and science behind that statement, and read the follow-up as well.  As Lowe points out,

the safe harbor provisions of the 1984 Hatch-Waxman Act, as reaffirmed in the 2005 Merck v. Integra decision by the Supreme Court [protects] from infringement [claims] in the use of a patented compound for purposes of submitting regulatory filings. And the language of the ruling makes it look like it’s intended to cover all sorts of patented technologies as well.

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July 25 roundup

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Prosecutors Gone Wild

[A] large deal of the gleeful Spitzerfreude on Wall Street arose from of the poetic justice of Spitzer’s undoing at the hands of the same extra-judicial tactics he regularly used against Wall Street firms and corporate executives when he was attorney general of New York. The real scandal of Spitzer’s career was not so much the former Girls Gone Wild model as the prosecutors gone wild.

My retrospective of Eliot Spitzer as both archetype and victim of overaggressive prosecutors in the July/August American Spectator is now on line at the AEI website.

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LA Weekly: The Mold Rush and the case of Sharon Kramer and Bruce Kelman

Welcome LA Weekly readers; this website is mentioned and I am quoted in a less-than-entirely-coherent story about mold litigation in this week’s LA Weekly. The story focuses on Sharon Kramer, who has given up a full-time career to pound the drums over her fight with her insurer alleging mold harms after a remediation; and an unfortunate lawsuit brought by scientist Bruce Kelman against Kramer. Kelman only wants an apology from Kramer for her issuing a press release that falsely claimed he lied under oath; Kramer has refused, and Kelman is still stuck in litigation where he will likely come up with a Pyrrhic victory. (Kelman’s work writing a layperson’s guide to the science of mold for the Manhattan Institute is central to the libel allegations.) Kramer, meanwhile, blames her aging on exposure to mold, rather than, say, turning 56. The story suffers for treating Erin Brockovich as the archetype of a justified plaintiff; Overlawyered readers know better.

The story is worthwhile for one new tidbit of information, the poetic justice facing Ed McMahon for his bogus mold lawsuit:

In 2003, another raft of huge mold news stories broke nationwide, and Kramer paid close attention. The most famous, and strangest, was that of Johnny Carson’s sidekick Ed McMahon, who took a $7.2 million settlement after suing for $20 million in his claim that mold made him and his wife sick — and killed his sheepdog, Muffin. …

In the McMahon case, some see the tragic unraveling of a popular public figure egged on by an attorney, Allan Browne. No hard, scientific evidence was ever made public proving that McMahon or his dog suffered the specific mold allergies and immune-system problems that, in rare cases, can be set off by household mold.

Since then, McMahon has become a sad figure, with a series of new troubles, including his default this year on his palatial 7,000-square-foot home on Mulholland Drive, involving a $4.8 million loan from the infamous lender Countrywide. And he just sued again, bizarrely accusing investment tycoon Robert Day of having in his mansion a poorly lit staircase on which McMahon says he fell during a party last year. McMahon is belatedly alleging he broke his neck but that doctors missed it.

The longtime TV pitchman spent years convincing the courts and the general public that his home contained rampant, poisonous, deadly mold strong enough to fell a large dog. McMahon talked it up for so long that he now faces the daunting task of selling a home he can no longer afford, that people believe is riddled with toxins.

Also interesting to me is the story’s quote of me. I gave an e-mail interview to the author, Daniel Heimpel in February. It’s interesting what gets used and what doesn’t get used, so I am going to attach the entire interview.

Here’s the full February 28 interview:

Read On…

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Breaking: Tennessee Supreme Court reinstates punitive damages in Flax v. DaimlerChrysler

Perhaps we spoke too soon when we commended the Tennessee appellate court for getting it partially right. As we stated in November 2004:

In 2001, Louis Stockell, driving his pickup at 70 mph, twice the speed limit, rear-ended a Chrysler minivan. Physics being what they are, the front passenger seat in the van collapsed backwards and the passenger’s head struck and fatally injured 8-month old Joshua Flax. The rest of the family walked away from the horrific accident. Plaintiffs’ attorney Jim Butler argued that Chrysler, which already designed its seats above federal standards, should be punished for not making the seats stronger — never mind that a stronger and stiffer seat would result in more injuries from other kinds of crashes because it wouldn’t absorb any energy from the crash. (Rear-end collisions are responsible for only 3% of auto fatalities.) Apparently car companies are expected to anticipate which type of crash a particular vehicle will encounter, and design accordingly. The $105M verdict includes $98M in punitives.

We had more details of trial shenanigans in December 2004 and noted the reduction of the punitives by the trial court to a still unreasonable $20 million in June 2005. In December 2006, the intermediate appellate court threw out the punitive damages and the negligent infliction of emotional distress claim, leaving a $5 million compensatory damages verdict to be split between Chrysler and the driver responsible for the accident. An injustice, but at least a smaller injustice.

However, today, a 3-2 vote of the Tennessee Supreme Court made it a larger injustice again, reinstating $13,367,345 of punitive damages over a good-faith dispute over appropriate seatback design, giving no credit to evidence that the design in the Caravan was safer than the plaintiffs’ proposed design, and effectively disregarding Tennessee statutory law that compliance with federal standards creates a presumption against punitive damages. The Court did not mention Exxon Shipping‘s suggestion that punitive damages greater than a 1:1 ratio were possibly constitutionally inappropriate where compensatory damages were substantial and the defendant’s actions were not intentional or done for profit. The Court unanimously affirmed the elimination of the NIED claim; one justice would have thrown out the compensatory damages, as well, because of the volume of inadmissible and improperly prejudicial evidence admitted. (Flax v. Daimler Chrysler (Tenn. Jul. 24, 2008); id. (Wade, J., concurring); id. (Clark, J., partially dissenting); id. (Koch, J., partially dissenting); E. Thomas Wood, “High court upholds $18.4M damage award in DaimlerChrysler case”, Nashville Post, Jul. 24; Kristin M. Hall, AP/Chicago Tribune, Jul. 24). The majority decision relied heavily on the expert testimony of Paul Sheridan, an MBA non-engineer and professional anti-Chrysler witness whom a federal court called “wholly unqualified” to testify on seat back design.

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Yet more Edwards campaign-cash laundering

Big-league Arkansas trial lawyer Tab Turner did it, and was fined $9,500. Big-league Michigan trial lawyer Geoffrey Fieger did it, and managed to beat the rap at his recent trial. And now we learn that big-league California trial lawyer Pierce O’Donnell did it too: evaded limits on campaign contributions to John Edwards by reimbursing underlings to enable them to contribute. Would it be simpler to compile a list of the big Edwards backers who did obey the law? (WSJ law blog, Jul. 24). More on Edwards campaign finance shenanigans here.

Update Jul. 25, NLJ: O’Donnell indicted, based on a separate episode of laundering of contributions (to Los Angeles mayoral campaign of James Hahn).

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Service animals, cont’d: “Ferret barred from Ottawa buses”

Continuing our theme, Frances Woodard has now lodged a complaint against the public transit authority in Canada’s capital city for barring the diminutive, weasel-like predator whose companionship, according to her psychiatrist, helps her stave off panic attacks. “A letter from OC Transpo customer relations sent in May said the decision was a result of fears about allergic reactions and phobias from other passengers and reactions from other animals, such as guide dogs.” (CBC News, Jul. 23). Monday’s post on the “service monkey” lawsuit from Springfield, Mo. is here.

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