Operation “Staged Impact”

The FBI undercover crash-fraud investigation netted 35 defendants, including 31 patients faking injury supposedly arising from car crashes and three “runners”. It also caught lawyer Jordan Luber (Luber & Cataldi) of Philadelphia. Per the Philadelphia Business Journal:

The sting included a fake chiropractic clinic the FBI set up in Northeast Philadelphia called Injury Associates. Instead of providing care it generated paperwork to make it appear patients received treatment so they could file fake claims.

According to prosecutors: Two agents posing as cleaning women told Luber they went to Injury Associates and wanted to pursue claims. They admitted on audio and video recordings to Luber that they had not received any treatment and had created fake medical records. Luber still pursued the claims, telling an insurer they were in an accident and received treatment. He negotiated a settlement of $7,500 each.

Luber, who is reported to have kept $6,000 of the $15,000 or 40% as his fee, drew a sentence of two months plus a year of supervised release and 100 hours of community service. He is “also prohibited from practicing law for a year.” The Philadelphia Daily News account says he’s surrendered his license, although the only report I could find online is of a suspension (PDF). So it sounds as if, assuming equal luck in any bar disciplinary process, he might reapply for the license and be back practicing law before too long. Won’t that bolster confidence in our court system? (IFA Webnews via P&S weekly roundup).

Deep pocket files: The Great White shakedown winds down

Sealed Air makes polyethylene foam for packaging material. The Great White plaintiffs allege that polyethylene foam in the soundproofing was part of the reason the Rhode Island Station nightclub fire spread so fast, killing 100–though they have no evidence that Sealed Air manufactured the foam in the club, not to mention the fact that the packing foam was never intended to be used as building material. Not to worry: with joint and several liability in Rhode Island, Sealed Air faced billions of dollars of potential liability because all of the other deep pockets (dozens of defendants ranging from a radio station to four other foam manufacturers to Anheuser-Busch to the bus that transported the band to the concert to a television station that covered the fire) have settled, Sealed Air couldn’t risk being held even 1% liable, especially given that at a trial plaintiffs would have no incentive to blame empty-chair or empty-pocket or settling defendants. Sealed Air will pay $25 million in protection money. (AP; Providence Journal; TortsProf). The miscarriage of justice continues, but the remaining defendants are apparently judgment-proof.

Knology arbitration clause

Overlawyered favorite Justinian Lane thinks he’s discovered a smoking gun in the Knology arbitration clause:

All disputes arising out of or relating to this agreement (other than actions for the collections of debts you owe us) including, without limitation, any dispute based on any service or advertising of the services related thereto, shall be resolved by final and binding arbitration… (Emphasis added.)

Read On…

“He took the style and the delivery”

“Former heavyweight boxer Mitchell Rose has filed an $88 million dollar copyright lawsuit against Jay-Z in Brooklyn Federal Court, AllHipHop.com has learned.” Rose says he gave Jay-Z a demo tape in 2001 and that the musician took from it a style of rhyming, a “whispering” delivery, “and even certain lyrics” for which he should owe compensation. “Rose, 39, is also a personal injury lawyer who wrote a book called Mike Tyson Tried To Kill My Daddy.” (Nolan Strong, AllHipHop.com, Jun. 12). While we’re at it, my Manhattan Institute colleague John McWhorter has a new book out entitled “All About the Beat: Why Hip-Hop Can’t Save Black America“.

ACS Convention, June 14

(Bumping from original post on May 14. If I thought I had competition from Judge Kozinski before, I can only imagine what it will be like now.)

I’ll be one of the token libertarians speaking at the Sixth Annual ACS National Convention on June 14, on a 11-12:30 breakout panel with Paul Bland, John Amaya, and Eleanor Acer on “Right to Counsel in Civil and Immigration Cases.” If I were you, and I’d paid good money to attend the convention, I’d go to the simultaneously-scheduled Alex Kozinski-Stephen Reinhardt debate about religious liberty or the panel on post-9/11 privacy rights with Orin Kerr and Jeffrey Rosen, but my panel should have some interesting discussion as well.

More on Neely, “The Product Liability Mess”

I entered this as a comment on Ted’s earlier post, and figured it was worth giving separate post status:

I too have read The Product Liability Mess with minute attention, having written the Fortune magazine review of the book, which was among the more high-profile reviews it got. And Ted is right: the more context you supply for the quote from the rest of the book, the less doubt you will harbor that it was meant straight, not ironically.

Since Neely’s statements in the book were almost electrifyingly frank, I can’t say I am surprised that he would later find it expedient to back off from and indeed disavow them; aside from changing his mind on matters of policy (at least I assume he’s changed his mind), and the exigencies of his later practice as a plaintiff’s lawyer, we all assumed at the time that in his judicial role he would come under enormous pressure for seemingly having admitted to deciding cases in a way many would regard as illegitimate.

It is remarkable that he would now speak of wanting to sell books as a motivation while simultaneously maintaining that the passages in question were meant to be taken ironically. It was precisely because the statements were not presented as kidding around that they foreseeably called wide attention to the book. (This is also in tension with Thornburg’s theory that Neely was critically describing other judges’ thought processes but not his own. I have to wonder whether she, like others who have taken up this matter recently, sat down and read the book.)

After my Fortune review was published I met and got to know Neely; we appeared on panel discussions together and shared many conversations. Without breaking any confidences about the private talk, I will only observe that at the public appearances we did, he had ample opportunity to state that he had just been kidding or merely ironic in the passages at issue, which figured so prominently in my Fortune review, but I do not recall his taking any such opportunity. I do not know, by the way, whether I am the nameless reviewer he unkindly calls a simpleton, but I have reason to doubt it, since he subsequently gave an extraordinarily favorable blurb to my book The Litigation Explosion, for which I continue to be grateful.

The whole thing is regrettable on a number of levels. I continue to think the books Neely wrote in his early career (“How Courts Govern America”, etc.) have much to recommend them both in substance and in their clear, pungent style, and for many reasons regret the loss of the career as public intellectual on which he had seemed to be well launched.

Ohio Senate’s clever solution to ancient clergy abuse claims

Problem #1: children abused by clergy decades ago are demanding recognition from the civil justice system; it’s not about the money they say, but justice.

Problem #2: simply reviving 35-year-old tort claims that are otherwise barred by the statute of limitations, aside from the basic unfairness and loss of legal certainty to others, encourages fraud on and error by the judicial system.

Solution, in Ohio S.B. 17, passed in May 2006:

Read On…

June 13 roundup

  • High school graduation got rained out in Gilbert, Ariz., and a dad wants $400 from the school district for that [Arizona Republic]
  • Happens all the time in one-way fee shift awards, but still worth noting: lawyer in police-misconduct case “billed 22 hours at $480 an hour — a total of $10,560 — just to figure out how much his fees are going to be” [Seattle Times]
  • We get to decide and that’s that: New York judge orders that salaries of New York judges including his own be raised [PoL, Bader] Also at Point of Law: white-shoe Clifford Chance throws a party for New York lefties, should anyone be surprised? outsourcing of interrogation to profit-minded private contractors is bad when it’s Blackwater, good when it’s Motley Rice; tax break for trial lawyers said to be blocked for now.
  • One firefighter killed in Boston restaurant blaze had sky-high .27 blood alcohol level, the other traces of cocaine, which probably won’t impede the inevitable lawsuit against the restaurant and other defendants [Globe, background]
  • Writing again on U.S. exceptionalism, Adam Liptak contrasts our First Amendment with Canadian speech trials; James Taranto thinks he’s siding with the Canadians, but the piece looks pretty balanced to me [NYTimes, WSJ Best of the Web]
  • Milberg said to be on verge of deferred prosecution agreement deal with feds involving $75 million payment and admissions of wrongdoing [NLJ]
  • Courts in Australian state of Victoria, emulating a model tried in Canada, will resort more to mediation of intractable disputes [Victoria AG Rob Hulls/Melbourne Age]
  • Great moments in international human rights: KGB spy on the lam sues British government for confiscating royalties he was hoping to make from his autobiography [five years ago on Overlawyered]

Flax v. DaimlerChrysler seat back appeal

A very belated update to our earlier posts of 2004 and 2005. 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. And now the rest of the story:

Read On…

June 12 roundup

  • As I type this post, I’m listening to Andrew Frey argue Conrad Black’s appeal before Judge Posner and the Seventh Circuit. Posner seems to be confused over whether incorrect jury instructions can be prejudicial in a general verdict. [Bashman roundup; earlier]
  • “For years families bogged down in Harris County [Texas] probate courts have accused judges of bleeding estates of tens of thousands of dollars to pay high-priced lawyers for unnecessary work.” [Houston Chronicle; Alpert v. Riley (Tex. App. Jun. 5, 2008) (via)]
  • Company sets policy. Employee violates policy. Is corporation criminally responsible for employee’s act? [POL; FCPA blog; Podgor]
  • Merrill Lynch banker asks for investigation of Enron Task Force withholding of exculpatory evidence [Bloomberg]
  • When calculating the costs of medical malpractice suits, let’s not forget the noneconomic costs. “In the [John] Ritter case, the jury agreed with the defendant physicians and exonerated them of any liability. They were lucky. How lucky? They were able to spend four years with attorneys worrying about their future, including the potential that they would be ordered to pay tens of millions of dollars and be left penniless. So, they didn’t really win. They just lost less.” [EM News via Kevin MD via Dr. RW]
  • Nor should we forget the defensive medicine costs. [Kevin MD]
  • Legal reform = job creation. [American Courthouse]
  • According to Justinian Lane, if you’re reading this post, you’re a “spineless sycophant.” [Bizarro-Overlawyered]