Archive for March, 2009

Pre-emption: don’t be sick

Now that its settled that every jury should be a new regulator deciding in hindsight whether label warnings should have been stronger, some who worry about the future of the drug business are inclined to feel nauseous. Resist that feeling, points out emergency room blogger White Coat: should your condition grow so severe as to call for medical attention, the arsenal of antiemetic treatments available to doctors keeps dwindling under the legal pressure.

P.S. More: Throckmorton’s Other Signs. And, from before the decision, from Yale-affiliated neurologist Peter McAllister in the Providence Journal.

Wyeth v. Levine

After the Wyeth v. Levine argument, I worried that the Supreme Court might decide the case on such narrow grounds that it would do little good to confront the problem of trial-lawyer abuse. I now see I wasn’t nearly pessimistic enough.

We can put the nail in the coffin in the idea that this is a pro-business Supreme Court: the 6-3 Wyeth v. Levine decision is the worst anti-business decision since United States v. Von’s Grocery, 384 U.S. 270 (1966). Justice Thomas’s confused concurring opinion is especially disappointing, as it declares an abdication of the Supreme Court’s appropriate structural role to prevent individual states from expropriating the gains from interstate commerce.

Sell your pharmaceutical stocks now, because the Supreme Court just declared it open season on productive business. One should now fear the coming decision in the as-yet-to-be-briefed Clearinghouse v. Cuomo, and the effect that is going to have on an already battered banking economy, as well.

Beck and Herrmann have first thoughts, but are likely to be relatively quiet thereafter.

Update, as Walter points out in the comments, see also Andrew Grossman’s post at Point of Law, and the earlier coverage at that site by numerous authors, dating back to when the case first began making headlines.

Contrary to the suggestion of Justice Thomas, Dan Fisher, this is not a “victory for federalism” by any stretch of the imagination: federalism is a two-way street, and permitting states to impair interstate commerce through a litigation tax upsets the federalist structure of the Constitution. See, e.g., Epstein and Greve.

CPSIA chronicles, March 4

[Broken link on CPSC surveillance program fixed now.]

  • The internet is a-hum with reactions to a proposal by West Virginia state representative Jeff Eldridge (D-Big Ugly) to ban Barbie dolls “and other similar dolls that promote or influence girls to place an undue importance on physical beauty to the detriment of their intellectual and emotional development.” That idea is predictably going nowhere (at least in West Virginia: Montpelier, Vt. is said to have voted a Barbie ban*), but Eldridge can perhaps take consolation in that CPSIA has already (with virtually no media taking note of the fact) banned the sale of vast numbers of vintage Barbies that pose equal dangers of symbolic or psychological impairment, if not of actual physical dangers. This 1999 New York Times piece describes how Mattel was “beginning an effort to eliminate” the use of polyvinyl chloride (PVC) compounds in the dolls, and that environmental activist groups contended that PVC often included lead as well as (less surprisingly) the plastic softeners phthalates, some but not all of which are banned by the law. dollsanddollclothes As Denise Van Patten noted in an About.com write-up in January, it is not clear what old dolls are still going to be lawful to sell, distribute or give away under CPSIA, if they cannot be fit into the “adult collectible” exception that covers items so expensive they will be kept out of children’s hands. Soft plastic is only the beginning of the problem. Most older dolls have paint as a component — often only in the rendering of the eyes, but that’s enough to count as a resale red flag under the CPSC’s Feb. 9 guidelines. Hair and dyed fabric, both of unknown composition? Buttons or snaps in the garment, or worse yet, rhinestones? About the only such plaything a thrift shop would not advised to discard under the guidelines would be an unpainted and unvarnished rigid humanoid figurine of raw wood or cast aluminum. If your child does find one of those on a thrift store shelf, she’s welcome to cuddle it all she pleases.
  • Carol Baicker McKee is a children’s book author and illustrator who commented eloquently (more) on one of our earlier posts about books. Now she has a great post explaining why, although she “never used to think of myself as an activist,” she’s thrown herself into the fight to change this law. As she points out, some things changed, but other things didn’t change, when the CPSC announced a short safe list of presumptively lawful material for children’s products along with a one-year stay on many testing requirements (but not on the banning of goods that flunk the thresholds). She explains why “the stays provide only the illusion of relief,” and that “when the stay ends a year from now, the destructive testing provisions will still go into effect for all children’s products except the small percentage that have been given a reprieve – the costs of that testing will force the remaining small businesses that have limped along this year into oblivion (and the [requirement for] destructive testing will obviously signal the end of one of a kind products).” Read the whole thing.
  • In a classic 1850 pamphlet, Frederic Bastiat writes of “what is seen, and what is not seen” when people recommend government solution to a problem. Deputy Headmistress writes of “what Congress didn’t see“. More: Patrick Stephens on a similar theme last month.
  • A Georgia newspaper quotes CPSC spokeswoman Arlene Flecha as saying that “her agency will have inspectors make unannounced visits to stores throughout the country and will randomly conduct tests on products.” And if you’re wondering about the CPSC “Internet surveillance project”, in which agents of the commission pose as consumers in order to trap detect persons selling forbidden goods on eBay or Craigslist, you can find out more about that here (link fixed now).
  • At the Heritage Foundation’s InsiderOnline blog, Alex Adrianson has a detail-filled though not lengthy post that would make a good short introduction to the subject to send to (say) a lawmaker.
  • Allison Loudermilk at the How Stuff Works blogs takes a look at the law’s heavy impact on thrift stores (“the selection at your local thrift store just got a whole lot slimmer”), while the PTA Thrift Shop of Carrboro, N.C. regrets to inform its customers that it’s out of kids’ resale entirely due to the law; things are only a little better in Salem, Ore. Manager Lisa Sonnek of the York, Nebraska Goodwill has pulled all the children’s clothing, toys, furniture, and pre-1985 books, in accord with policy from above, but has put aside “some clean children’s clothing, in anticipation of the policy being modified in the near future”. Dunno – that might depend on Henry Waxman’s heart melting or something.

*Although numerous online sources report as fact a Montpelier Barbie “ban”, commenter Barb says it’s far from clear that the reports have much of a factual basis.

Water-bill refunds for Seattle residents

Aren’t class actions great? The only problem is that the money for the residents will have to come from, well, themselves:

“We are having an accounting game. It’s basically saying, ‘we’re sorry you paid it from this pocket, instead it should have come from this pocket,” said Seattle City Council member Richard Conlin. …

“The only party benefiting from this are the law firms,” said Conlin.

The attorneys who fought the city on the hydrants will get $4.2 million plus interest charges.

City water customers will get refunds averaging $45 but will be obliged to pay surcharges averaging $59 to cover the cost of the settlement [KOMO].

For readers on Twitter

A reminder: if you’re on Twitter, the ever more popular micromessaging and social media service, you can follow me at this link. You can also follow Overlawyered itself; its account mostly consists of a “feed” (in which each new post on the site results in a message), but I’ve also been experimenting with putting some original material on it, mostly short items destined for future roundups. I’ve also got Twitter identities for Point of Law and for my Secular Right site, and those likewise are primarily but not exclusively feeds.

Most new Twitter users are at first bewildered by the special jargon and conventions, such as “RT” (retweet, for passalong items), scrunched URLs, @ replies, #hashtags, and so forth. You can find a quick introduction at this link. These days I monitor the #CPSIA hashtag in particular, and often learn of new developments there first.

Blurbing of books possibly safe again (or not)

An update on the overreaching litigation of Dallas developer H. Walker Royall: “Prof. Richard Epstein Dismissed from Book-Blurb Libel Case, on Jurisdictional Grounds”. [Volokh, earlier here and here].

P.S. Commenter VMS points out that despite my choice of original headline, blurbing of books has by no means been made safe, since the judge dismissed Royall’s claim only on jurisdictional grounds that Epstein was not within the reach of the Texas courts. I’ve added to the post title accordingly.