Archive for 2016

November 16 roundup

Media law roundup

  • In latest of string of courtroom losses for media, Raleigh News & Observer hit with nearly $6 million libel verdict [Corey Hutchins, CJR] Profile of Charles Harder, newly prominent attorney in suits against media [Hollywood Reporter]
  • Following coverage of taco trademark dispute, lawyer demands takedown of image on news story [TechDirt] “California Supreme Court will decide: Can court order Yelp to take down defendant’s post, though Yelp wasn’t even a party to the lawsuit?” [Volokh]
  • Theodore Boutrous: “I will represent pro bono anyone Trump sues for exercising their free speech rights. Many other lawyers have offered to join me.” [Ronald K.L. Collins, related chronology of Trump’s record of legal conflict with press]
  • Familiar old war on porn re-outfits itself as new war on trafficking [Collins, Elizabeth Nolan Brown on so-called Justice for Victims of Trafficking Act (JVTA)]
  • Another where-are-they-now on copyright troll Prenda Law [Joe Mullin/ArsTechnica, see also on Hansmeier]
  • “The ‘freedom of the press’ doesn’t give the media any special privileges — but it’s also not a redundancy” [Eugene Volokh]

Don’t expect Trump to roll back gay rights

Of reasons to worry about the Donald Trump administration, so far as I can see, anti-gay policies aren’t in the top 25. Or so I argue in an opinion piece in today’s New York Post. It was written before, but includes an updating reference to, the airing of a “60 Minutes” interview last night in which Trump said, of the Supreme Court’s marriage cases, “They’ve been settled, and I’m fine with that.”

Environment roundup

“Law firm ‘bonuses’ tied to political donations”

After initially resisting, Sen. Elizabeth Warren (D-Mass.) has agreed to return nearly $130,000 in donations she and her PAC received from the Boston-based Thornton Law Firm, known for asbestos plaintiff’s litigation. An investigation found the law firm paid $1.4 million in bonuses in patterns strongly suggesting they were being used to cover “straw donations” nominally from partners [co-published Boston Globe/Open Secrets story; New York Post]

From 2010 through 2014, Strouss and Bradley along with founding partner Michael Thornton and his wife donated nearly $1.6 million to Democratic party fundraising committees and a parade of politicians from Senate minority leader Harry Reid of Nevada to Hawaii gubernatorial candidate David Ige to Sen. Elizabeth Warren of Massachusetts. Over the same span, the lawyers received $1.4 million listed as “bonuses” in Thornton Law Firm records; more than 280 of the contributions precisely matched bonuses that were paid within 10 days.

That payback system, which involved other partners as well, helped make Thornton the 11th-ranked law firm nationally for political contributions in 2014, according to data analyzed by the Center, even though the firm is not among the 100 biggest in Massachusetts, much less the U.S.

Capitol Hill recipients of Thornton money include many figures who have played a role in blocking asbestos litigation reform, including Sens. Chuck Schumer (D-N.Y.) and Lindsey Graham (R-S.C.), and then-Sen. Joe Biden (D-Del.).

“Courts Should Stop Approving Unfair Class Action Settlements”

A “claims-made” class action settlement

allows the defendant to make a large amount of money “available” to class members, but in order for the members to collect, they must jump through the hoops of correctly filing claims. Because of the low response rate in such settlements, the defendants will end up paying much less than the funds made available. Indeed, of the $8.5 million made available to the class members [in an action over gym membership fees], Global Fitness only paid $1.6 million — a payout of approximately 10 percent of the settlement funds. Despite this low payout to plaintiffs, class counsel are still paid a certain rate based on the funds that were made available — not the funds that were actually paid out — in some instances giving them attorney fees larger than the class members’ damages award!

The class counsel here were paid $2.4 million, nearly $1 million more than the class members collected.

Josh Blackman, a Cato adjunct scholar and law professor, is a member of the class and raised objections to the settlement. [Ilya Shapiro and Frank Garrison, Cato, on Blackman v. Gascho]

“CFPB seeks to silence investigation targets, drawing fire on free speech”

A proposal from the Consumer Financial Protection Bureau (CFPB) has drawn “unanimous fire from a broad coalition of financial companies, as well as from the American Bar Association and the American Civil Liberties Union, which called it unconstitutional. The plan would prohibit targets of civil investigative demands or notice and opportunity to respond and advise letters — CIDs and NORA letters — from disclosing the receipt of such notifications. Legal experts called the proposal a restraint on free speech and warned that it could run afoul of laws that require companies to disclose material information to shareholders.” A second element of the proposal would allow the CFPB to “share privileged information with any ‘federal, state, or foreign governmental authority, or an entity exercising governmental authority’ whenever ‘it is relevant to the exercise of the agency’s statutory or regulatory authority.'” The ABA has sharply criticized the provision as a weakening of attorney-client privilege. [Lorraine Woellert, Politico Pro, reprinted at House Financial Services Committee]