Overlawyered: Chronicling The High Cost Of Our Legal System

Posts Tagged ‘class actions’

Heads I win, tails don’t count files: Ohio HMO suit

The US Supreme Court denied certiorari on United HealthCare’s attempt to enforce an arbitration agreement in its contracts with doctors who filed an Ohio class action over reimbursements. The underlying class action is essentially identical to one that a federal court threw out as meritless in July, though this isn’t mentioned in the television coverage, much less that from Bizarro-Overlawyered. The Class Action Fairness Act effectively ends this sort of Russian-roulette game where plaintiffs get multiple chances to win a gigantic class action by filing in multiple jurisdictions, but does not apply to class actions (like this one) filed before 2004.

The AMA has supported these lawsuits, which is disappointing, to be sure; as I noted on Point of Law in July, “Next time the AMA complains about the costs of excessive meritless litigation, they can perhaps look in the mirror.”

The plaintiffs’ attorney is Overlawyered favorite Stanley Chesley: see Jul. 4, Mar. 6, Aug. 24, 2005, et cetera.

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Update: Peach family lawsuits

On Apr. 10 of last year Ted introduced readers to the far-flung class actions and other lawsuits filed by mother-daughter team Armettia Peach and Ashley Peach of Madison County, Ill., as represented by the Lakin Law Firm of that celebrated county. Now Steve Korris reports in the Madison County Record that the various Peach family lawsuits have not been faring well of late — the details get so intricate that we won’t even try to summarize them, so just go check out the piece (“Dynamic suing duo fizzling in court”, Aug. 24).

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Wal-Mart sued for CDs’ naughty words

Speaking of class actions without cognizable causation: Wal-Mart refuses to sell albums that contain foul language, but a Tool CD that didn’t have the Tipper-Gore “Parental Advisory” label slipped through the cracks (as did another album with a song that had the phrase “menage-a-trois” in the lyrics). This is supposedly grounds for a class action lawsuit, but it’s really just a legalized extortion attempt, since if the court certifies the class, it will cost Wal-Mart about as much to defend the case as it would to just pay the plaintiffs’ attorneys a nuisance settlement. (I presume they’ve sued The plaintiffs will be disappointed because they failed to sue beneath the Class Action Fairness Act $5 million jurisdictional requirement to keep the case in judicial hellhole Cook County; the case is thus almost certain to be removed to federal court, and the federal appellate courts for Chicago scrutinize class action settlements too closely for the hit-and-run plaintiffs’ bar’s comfort.)

Even plaintiffs’ attorney David Fish is appalled at the blatant misuse of consumer fraud laws. Professor Childs isn’t impressed, either, and Peter Lattman comments.

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Junk fax law trips up lawyer

Manhattan solo practitioner Andrew Lavoott Bluestone claimed to be sending out informational advisories on legal issues, but a judge ruled that he was promoting his practice and implicitly proposing a commercial transaction. (Anthony Lin, “Judge Rules Attorney’s Faxes Are Prohibited Advertising”, New York Law Journal, Sept. 6). More on junk fax law: Jul. 31, etc.

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