Overlawyered: Chronicling The High Cost Of Our Legal System

Great moments in food labeling law

From Wales:

A spicy sausage known as the Welsh Dragon will have to be renamed after trading standards’ officers warned the manufacturers that they could face prosecution because it does not contain dragon.

The sausages will now have to be labelled Welsh Dragon Pork Sausages to avoid any confusion among customers.

Jon Carthew, 45, who makes the sausages, said yesterday that he had not received any complaints about the absence of real dragon meat.

(Simon de Bruxelles, “Sausages affected by draconian trade laws”, Times Online, Nov. 18).

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Update: Great 1998 Tobacco Robbery

Per Jacob Sullum (Nov. 14),

Yesterday a federal judge in Louisiana rejected a motion to dismiss [the Competitive Enterprise Institute’s] lawsuit challenging the Master Settlement Agreement that established a government-backed cigarette cartel for the benefit of state treasuries, trial lawyers, and the leading tobacco companies. The judge’s order is here [PDF]. CEI’s complaint and various other documents related to the case are here.

(see Aug. 4, 2005).

Also, Stanford economist Jeremy Bulow has published another in his series of always-excellent papers on the great tobacco robbery. As the Milken Institute’s Oct. 20 press release puts it, Bulow argues that

the public was conned: the tobacco companies passed on more than 100 percent of the cost to smokers, many states were locked into terrible financial settlements and billions in fees were set aside for trial lawyers.

“Few people trust tobacco companies, trial lawyers or politicians,” he writes. “But somehow when the three groups got together and spoke with one voice they were able to convince most people – particularly nonsmokers who benefit from higher cigarette tax revenue – that the settlement had achieved a noble public health goal. In reality, the settlement preserved tobacco companies’ profits, while it gave the trial lawyers an incredibly large ongoing source of income gouged from the hides of smokers, and handed state politicians bragging rights as Davids to Big Tobacco’s Goliath.”

(“The tobacco settlement: when trial lawyers meet tobacco execs”, Milken Institute Review, December)(reg). For more from Bulow, see PoL, Nov. 18, 2005, and Jan. 20 and May 18, 2006.

The 1998 multistate tobacco settlements were a central theme of my 2003 book The Rule of Lawyers and have been covered in depth on this site, including Aug. 4, 2005 and links from there, Sept. 11, 2005, and Jan. 3, 2006, as well as at Point of Law: May 17, Jul. 20 and Jul. 26, 2004, Oct. 6 and Oct. 14, 2005 and Mar. 20, Mar. 29 and Apr. 12, 2006.

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Update: “Brockovich’s Medicare-billing lawsuits tossed”

Glamor proved no substitute for legal merit as U.S. District Judge Thomas Whelan in San Diego dismissed two lawsuits by the highly publicized Brockovich against major hospital chains, alleging that the chains should refund to Medicare sums spent on treating injuries caused by earlier hospital negligence (see Jun. 22). The suits “made no specific claims of patient injury” but instead proffered studies estimating the nationwide incidence of negligent patient injury in hospitals. The judge termed the claims “speculative allegations” intended to allow Brockovich and the lawyers for whom she was fronting to “begin a fishing expedition”. “The judge also noted that Brockovich, 46, was not eligible to receive Medicare benefits, was never treated at any of the Scripps or Sharp hospitals, and was never injured by hospital staff misconduct.” (Keith Darcé, San Diego Union-Tribune, Nov. 16). For more on Brockovich’s activities generally, follow links from Nov. 3, 2005.

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Gas-dealer bonanza: middlemen unlawfully skimming the pot?

“Class members and class counsel Eugene Stearns are claiming that companies that process class action claims are illegally taking a large part of class members’ winnings in the $1.1 billion Exxon-Mobil breach-of-contract case. Stearns argues the recovery companies are engaging in the unlicensed practice of law and duplicating work already done by his law firm. Florida federal Judge Alan S. Gold has voided members’ contracts with one processing company and Stearns’ firm is challenging other contracts.” Stearns boasts (or is it complains?) that he is getting not “an additional dime” for his work protecting the gas station owners from the percentage-seeking middlemen, but he is probably not in too great need of dimes at the moment, his firm having been awarded an eye-popping $249 million in fees in the action itself. (Carl Jones, “Class Action Processors Accused of Illegally Pocketing Big Share of Awards in ExxonMobil Case”, Miami Daily Business Review, Nov. 16).

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The Alamo — and its orange stripe

Tourists from around the country descend on San Antonio to snap pictures of the famed Alamo, which looks pretty much as it must have looked in Texas’s pre-statehood days, with one big exception: the curb in front of the historic battle site and running the length of the building has been painted a garish orange, as an accident-prevention measure. TV station KSAT has a video clip of the controversy, and one local man’s efforts to get the decision reversed (“Bright Orange Curb Welcomes Visitors To the Alamo“).

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“In California Your Unlicensed Contractor May Really Be Your ‘Employee'”

For purposes of suing you, at least. That’s what happened to homeowner Glenn Brodeur, who hired his neighbor Ernesto Mendoza, an unlicensed roofing contractor, at a set fee to do the roofing work. “Mendoza arrived at Brodeur’s house with a gang of workmen, started on the project, and within a few hours fell off the roof and was seriously injured.” In the current state of California law, unlicensed contractors — but not licensed ones — have the right to sue homeowners in tort in such situations. (B. Scott Douglass, Mondaq.com, Nov. 1).

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Activists sue demanding N.Y. foie gras ban

Correspondent R.C. directs our attention to the curious claim of “harm” by the last-named plaintiff:

Animal rights activists have asked a state judge to stop foie gras production in New York, saying the ducks used are overfed to such an extent that they are diseased and unfit for sale under state law.

The lawsuit, if it succeeds, could spell the end of foie gras production in America, a goal animal rights groups have long sought. The two Sullivan county farms that are defendants in the suit are the only foie gras producers in the country, other than a Northern Californian foie gras farm that may shut down under a California state law banning the industry….

The first challenge the suit faces is to convince a judge that the animal-rights activists who filed the suit have suffered enough harm to allow them standing to sue. The plaintiffs in yesterday’s suit offered several ways that they had been harmed by the foie gras industry.

One plaintiff, Caroline Lee, claims that the state’s regulatory departments are misspending her tax dollars by inspecting birds raised for foie gras production without concluding they are diseased. Another plaintiff, an animal rescue organization, Farm Sanctuary, claims its employees have been “aesthetically and emotionally injured” by being exposed to the “suffering” of abandoned ducks that they rescue from foie gras production. Another plaintiff, a New York restaurateur, Joy Pierson, claims that her decision not to serve foie gras has caused her to lose customers at her two Manhattan restaurants, Candle 79 and Candle Café, according to the complaint.

(Joseph Goldstein, “In New Lawsuit, Activists Seek Ban On Production of Foie Gras in N.Y.”, New York Sun, Nov. 16). More: Nov. 10, Nov. 2, Aug. 18, Jun. 8, Apr. 27, etc.

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Smoke in Belmont, Calif.? Only in single-family detached houses

“Belmont is set to make history by becoming the first city in the nation to ban smoking on its streets and almost everywhere else. The Belmont City Council voted unanimously last night to pursue a strict law that will prohibit smoking anywhere in the city except for single-family detached residences. Smoking on the street, in a park and even in one’s car will become illegal and police would have the option of handing out tickets if they catch someone.” (Dana Yates, “Belmont to be first U.S. city to ban all smoking”, San Mateo County Daily Journal, Nov. 15). More: Jacob Sullum, Reason “Hit and Run”, Nov. 16.

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