Overlawyered: Chronicling The High Cost Of Our Legal System

Archive for 2008

Barred for life from the banking business

So why not become a judge instead?

Fort Lauderdale attorney Bruce Rogow, who teaches legal ethics at Nova Southeastern University’s Shepard Broad Law Center, said [Ricardo] Corona’s campaign should not be penalized for something that happened 20 years ago.

“Being barred from the banking business doesn’t mean you can’t be a lawyer,” he said.

Corona, unlike his father and brother, never faced criminal charges following the collapse of a bank acquired with drug money, but the FDIC barred him permanently from involvement with regulated banks. Palm Beach County judicial-election consultant Andre Fladell looks at the bright side:

“The argument of performance is not a fair one. Everybody’s got an incredible past, and it doesn’t stop them from being a fair judge,” he said. “A person who’s been involved with the sleaze can recognize it better than someone who hasn’t.”

(Billy Shields, Miami Daily Business Review, Jun. 19).

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Chicken-catchers and chicken-pluckers, international securities edition

Plaintiffs firm Berman DeValerio sued attorneys Eran and Susan Boltz Rubenstein, former Coughlin Stoia attorneys, for breach of contract; in their counterclaim, the Rubensteins claim they were hired on a contingent fee basis to wrangle international clients to serve as plaintiffs in securities class actions. Lyle Roberts has the details, and the complaint and counterclaim. Alas, the case settled before details of this interesting arrangement came to light in discovery or other court filings, and it is perhaps too much to ask for questions to be asked in the nonexistent Congressional investigation of the practices of the securities class action bar.

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City streets not safe to drive 100-120 mph on

Amanda Laabs was a passenger in a Porsche Carrera that was being driven at somewhere between 100 and 120 mph in Victorville, Calif., suggesting that the occupants were in quite a hurry to get to their destination, an In-N-Out Burger. Her driver did manage to slow down to an impact speed of 72 mph at the intersection at which he collided with the Mitsubishi of innocent driver Dorothy Specter. Have you spotted the allegedly responsible party yet? Yes, the city of Victorville, for designing the road with “inadequate sight distance and lack of warning signs, devices and signals”, so that Specter couldn’t see the Porsche coming, all that aside from the light pole that was too easy to run into. After pages of tortuous analysis, made more tortuous by the division of authority over the road between the city of Victorville and the County of San Bernardino, an appeals court upheld a trial court’s disposal of the case on summary judgment, but also declined the city’s request for fees, saying the city had not shown that an attorney would have assessed the claim as objectively unreasonable. (Laabs v. City of Victorville, courtesy Law.com; Civil Justice Association of California press release).

Update: The following was received April 14, 2010 from a commenter identifying herself as Amanda Laabs: “…You commented and had to make your business. If you had read it correctly we were not on our way to In-n- Out, we were turned around going the opposite direction for your information. I lost both of my legs in that accident and a good friend who was sitting behind me. This is a horrible site that allows people to be rude and insensitive to the people and family who were really hurt.”

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“Trial Lawyers Inc.: Michigan on trial”

Few battlegrounds of legal reform have been harder-fought than that in the state of Michigan, where I grew up. On the plus side, the Wolverine State has seen three rounds of legislatively enacted litigation reform, along with the appointment by former Gov. John Engler of probably the most reform-minded state supreme court majority in the nation. On the minus side, trial lawyer interests have long been key players in state politics, often practicing a bare-knuckled brand of advocacy, and the career of colorful (and recently acquitted) Geoffrey Fieger of Southfield, arguably the Midwest’s most prominent trial attorney, is virtually a synonym for waywardness in the courtroom and out.

Now the Manhattan Institute’s Trial Lawyers Inc. series, under the able direction of Jim Copland, has published a new installment taking a look at the state’s tense legal politics. Trial lawyers are expected to work hard this year to knock off reformist Supreme Court Justice Clifford Taylor at the polls, and are also engaged in an all-out push to repeal the state’s one-of-a-kind law directing its courts in liability cases not to second-guess Food and Drug Administration determinations on pharmaceutical approval and marketing. To get up to speed on these issues and more, start here. (cross-posted from Point of Law).

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June 18 roundup

  • Are plaintiffs’ attorneys judge-shopping by filing and dismissing and refiling identical class-action complaints in the highly-publicized restaurant menu case against Applebee’s? [Cal Biz Lit]
  • You won’t be surprised that most of the nine worst business stories picked by BMI involve spoon-feeding by plaintiffs’ attorneys to a credulous press. [Business & Media Institute]
  • “There’s no justification whatsoever for the agency to take any kind of action,” said Julie Vallese, a spokeswoman for the Consumer Product Safety Commission. “The claims being made about the dangers of shower curtains are phantasmagorical. It’s ridiculous.” Yeah, but the lawsuits are bound to happen anyway. [NY Daily News]
  • Jack Thompson stays in the news when U.S. Marshals pay him a visit after a letter to a judge. [GamePolitics (h/t J.L.)]
  • “A City lawyer who is demanding £19 million in compensation for work-place bullying faked a nervous breakdown to secure a larger payout, an employment tribunal was told.” [London Times via ATL]
  • Did defensive medicine almost kill a patient when doctor worries more about potential lawsuit than whether nurse could save patient’s life? Heck if I know, but the underlying medicine is debated in the comments. [EM Physician blog]
  • Hair-stylist fined £4,000 for “hurt feelings” after refusing to hire a Muslim stylist who wouldn’t show her hair at work. [Daily Mail (h/t Slim); earlier on Overlawyered]
  • Disturbing turn in the Adam Reposa disciplinary hearing over his obscene gesture in court: state bar introduces satirical magazine as evidence because they “thought it was indicative of Reposa’s lack of respect for the law and the court system.” [Texas Lawyer/law.com] Mind you, this is the same Texas legal discipline system that refused to take action against Fred Baron and gave a slap on the wrist to the lawyers who tried to fake evidence in a product liability suit against Chrysler. As long as your priorities are straight.

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New Jersey high court: palimony without cohabitation OK

Courts up to now have maintained a bright-line rule of not entertaining palimony claims unless a couple has cohabited, such a rule significantly improving people’s degree of certainty about which former romantic partners might suddenly emerge with a financial claim. But of course when you have bright-line rules of this sort, not as many people get to sue, so the New Jersey high court has now made itself the first state high court to overthrow the rule, inviting claims where the totality of the facts and circumstances “would cause one of the partners to believe a relationship existed, that it was similar to a marriage,” to quote Chatham, N.J. lawyer Alan Zegas (Tom Hester, “Palimony ruling sets precedent in Jersey”, Star-Ledger; NJLJ; AP/Cherry Hill Courier-Post*). Earlier here.

* Okay, there you go, AP, I didn’t quote even the five words from your story. But you also notice I gave the Star-Ledger first billing.

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Kentucky fen-phen: we’d have been justified taking 85 percent

Perfectly jaw-dropping testimony at the ongoing Covington, Ky. trial:

Attorney William Gallion testified yesterday that he and his co-defendants would have been “legally justified” in taking as much as $170 million from Kentucky’s $200 million fen-phen settlement — because, he said, their clients’ cases were worth only $30 million.

“We were like an insurance company where the hurricane didn’t strike, so we got to keep the premium,” the suspended Lexington lawyer testified in his diet-drug fraud trial in U.S. District Court.

The lawyers, it seemed, had structured the settlement so as to reserve the gigantic helping of gravy in question for the supposed disposition of certain contingencies which then conveniently failed to materialize. Judge William Bertelsman immediately told the jury that Gallion’s interpretation of the law was wrong. (Andrew Wolfson, “Judge, lawyer clash at fen-phen trial”, Louisville Courier Journal, Jun. 14).

And on Monday, famed Cincinnati attorney Stan Chesley — who has been given immunity — testified, assailing the conduct of the three defendants and conveying his complete shock that they would structure the settlement so unfavorably to clients. (Jason Riley, “Chesley rakes diet-drug trio”, Courier-Journal, Jun. 17; Jim Hannah, “Chesley: Fen-phen role slim”, Cincinnati Enquirer, Jun. 17). For a different viewpoint, see Peter Bronson, “Where’s Chesley?”, Cincinnati Enquirer, Jun. 12. More: Herald-Leader.

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Loose-fitting clothes and food machinery

Industrial safety specialists have long warned of the hazards of letting employees wear baggy garments around assembly-line machinery, hence the snug uniform, including pants, prescribed for both sexes by Mission Foods at its tortilla-making plant in New Brighton, Minn. Fatuma Hassan, an employee of Somali descent, claims it’s religious discrimination not to let her wear traditional garb. Thanks in part to activist groups eager to provide backup, Minnesota has become a flashpoint for Muslim employees’ demands for religious accommodation on the job: the cab drivers who refused to transport arriving airline passengers carrying duty-free alcohol and the Target cashiers who declined to scan pork apparently never made it to court, but complainants in the state filed 45 other cases with the EEOC last year. A class action is in progress against circuit-board maker Celestica on behalf of 22 employees, many of whom “were fired or suspended for taking unauthorized breaks at sunset. The changing Islamic prayer schedule was a key reason.” (“Cultural traditions can lead to conflict on the job”, AP/Rochester (Minn.) Post-Bulletin, Jun. 17)(via Michelle Malkin).

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