Overlawyered: Chronicling The High Cost Of Our Legal System

1995 Washington Square sudden acceleration revisited

In 1992, Diana Maychick drove her mother’s Oldsmobile back to Washington Place in Greenwich Village, and got out. Her mother, the 74-year-old Stella Maychick, slid over from the passenger seat to the driver’s seat, readying herself to return to Yonkers. Maycheck, a shorter-than-average woman, suddenly took off in the car, which sped up, ran two stop signs, and tore through Washington Square Park, killing five and maiming several others.

Diana Maychick is now Diana Foote, a restaurant reviewer for a Palm Beach newspaper, and recently recounted the accident, claiming the recent Toyota troubles exonerated her mother.

Which I found fascinating, because I worked on that litigation—and the evidence that Maychick hit the gas instead of the brake was so strong that the plaintiffs’ lawyers abandoned the standard specious “mysterious gremlins caused the car to accelerate” theory and replaced it with a “General Motors knew that drivers were hitting the wrong pedal but didn’t do enough to warn them” theory. I took issue with Foote’s column in a letter to the newspaper.

As for the lawsuit itself, the judge excused everyone in the voir dire who expressed the remotest skepticism about plaintiffs’ theory, and GM settled shortly after the start of trial. One certainly marvels at the chutzpah of the theory of the case, given trial lawyers’ role in trying to persuade the public that driver error couldn’t possibly be to blame.

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Scary Stephen King text message worth $175 in class action settlement

Some 60,000 cell-phone users who had signed up to receive “promotional messages” from Nextones.com in order to get a free ringtone got just such a text message on January 18, 2006 advertising a cell-phone-related Stephen King book. This resulted in a class action that was thrown out on the grounds that plaintiffs had agreed to “terms and conditions” permitting such cell-phone advertising; moreover, the federal law prohibiting the use of an automatic telephone dialing system applied only to systems that dialed numbers randomly or sequentially, and the defendants were operating off of a list of opt-in telephone numbers.

The Ninth Circuit reversed. The issue, it said, was not whether phone numbers were sequentially dialed, but whether the equipment used could hypothetically sequentially dial telephone numbers. It also held that there was a disputed issue of fact whether King’s publisher, Simon & Schuster, counted as an “affiliate.”

Faced with the prospect of going to trial and the risk of $500 to $1500 damages assessed for each call (i.e., $30 to $90 million in damages) defendants have settled. There is a settlement fund of $10 million established, plaintiffs can submit claims that will pay $175 (or a pro rata amount if the fund is exhausted) and plaintiffs’ attorneys will ask for $2.725 million from that fund.

This is superficially all well and good, but if the claim response is the all-too-typical 1%, the attorneys may well collect 27 times as much as the class will get. Indeed, assuming that $1 million for notice and administration disappears from the fund, the full $10 million won’t be paid out unless over half the class signs up. There is also a mysterious $250,000 “cy pres” award whose destination is not specified in the notice or in the settlement.

If you’re a class member who received the text message in 2006, congratulations, you can get free money: fill out a claim form before September 20 (and kudos to the parties for allowing claimants to do it online); if you’re a class member who has concerns about the settlement, contact me.

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March 16 roundup

  • Are you a member of Tyson chicken or H&R Block Express IRA class action settlements?

  • Jim Copland on Harry Reid and the trial bar. [NRO]

  • Jim Copland on the Ground Zero settlement, which may pay lawyers $200 million—but the judge plans fee scrutiny. [NY Post; NY Daily News]

  • Kevin LaCroix interviews the Circle of Greed authors. [D&O Diary]

  • Judgeships: Rhode Island lead paint trial lawyer in despite mediocre rating, but Sri Srinivasan out because of his clients—not Al Qaeda, but, heaven forfend, eeeevil corporations like Hertz.

  • There’s no evidence that workers on automotive brakes (which sometimes contain asbestos) get mesothelioma at a greater rate than the rest of the population, but auto companies still get sued over it. Ford fought one in Madison County, rather than settle, and won. [Madison County Record]

  • Overview of defensive medicine at work. [AP]

  • Pantsless Rielle Hunter on John Edwards: “He’s very honest and truthful.” [GQ]

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Update: South Carolina $18M sudden acceleration verdict reversed

And in timely news, a specious $18M sudden acceleration verdict (see our August 2006 coverage) was unanimously reversed by the South Carolina Supreme Court after they threw out junk-science testimony theorizing that electromagnetic interference with the cruise control caused the sudden acceleration. Passengers in the crash that wore their seatbelts were uninjured, but the unbelted driver was paralyzed. The plaintiff has the option of a new trial. (Sonya Watson v. Ford Motor Company, h/t L Nettles comment).

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The retreat of Grand Theft Auto: Class Action

The case that started me on the path to founding the Center for Class Action Fairness is now over: plaintiffs voluntarily dismissed their appeal last week after voluntarily dismissing the court case February 22, giving up any shot at the $1 million in attorneys’ fees they had negotiated for themselves.

And if you’re on Facebook, do become a fan of the Center for Class Action Fairness so you can keep up with us and others can learn about it.

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Simulating a Toyota “smoking gun”

Rep. Edolphus Towns (D-N.Y.), who chairs the House Oversight and Government Reform Committee, posted documents purporting to show that Toyota held onto safety documents it was supposed to turn over to opponents in litigation. Turns out the documents had been shoddily snipped, edited and mischaracterized to advance the charges against the automaker. [Christine Tierney, Detroit News via Henry Payne, NRO; more background on whistleblower controversy, The Recorder last year]

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