Overlawyered: Chronicling The High Cost Of Our Legal System

Posts Tagged ‘deep pocket’

Deep Pockets File: Foradori v. Captain D’s II

As we reported in 2005:

On December 22, 2000, 15-year-old Michael Foradori Jr. walked into a Captain D’s seafood restaurant in Tupelo, Mississippi for dinner; while there, he started flirting with the girlfriend of one of the employees, which resulted in a shouting match. “‘This (employee) was kind of picking on him, he started threatening him, he even hit him with a wadded up paper,’ said Joey Langston, Foradori’s attorney.” (More on Langston at Point of Law, May 13.) A manager restored order by kicking everyone out of the restaurant; outside, a cook who clocked out for the evening got into an altercation with Foradori, and pushed him over a wall, breaking his neck and paralyzing him.

Langston has since pled guilty to bribing a state judge in a different case; he’ll have some money to comfort him when he leaves prison, as he obtained a $20.8 million verdict in the Foradori case on the theory that, if only the restaurant had better trained its cook not to sucker-punch customers half his size, Foradori wouldn’t have been paralyzed, presumably because the threat of being fired from a minimum-wage job would’ve done what criminal sanctions would not. (Captain D’s didn’t fire the cook, Garious Harris. It is unknown whether fear of race discrimination suits had anything to do with that. Captain D’s appears to have also suffered from some questionable tactical choices by their attorneys.) The Fifth Circuit has affirmed the verdict, its hands tied to some extent by ludicrous Mississippi state law and Erie. Folo commenters speculate on the means of Langston’s success.

We hadn’t previously mentioned that the parties also sued the contractor who built the wall.

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Deep pocket files: more settlements in Great White fire

“Three more parties sued by victims of the [West Warwick, R.I.] Station nightclub fire have offered tentative settlements in the civil cases now pending in U.S. District Court.” Audio maker JBL, accused of including flammable foam in its speakers and amplifiers, is offering $815,000. “The other two parties offering to settle are ABC Bus Inc., and Superstar Services LLC, which provided bus transportation for the rock band Great White to The Station for its concert, as well as more than 25 kilograms of explosive fireworks material that the band carried on its road trip. Together they are offering $500,000.” (Tracy Breton, “3 more companies offer settlements in Station fire case”, Providence Journal, Mar. 27). Earlier: Feb. 2, etc.

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Deep Pockets File: Bauer v. Nesbitt

On September 3, 2003, 19-year-old Frederick Nesbitt was underaged at “Wing Night” at the C View Inn in Cape May, New Jersey, so the waitress at the bar only served him soda while his companions drank pitchers of beer. (His 21-year-old companion James Hamby had a suspended license for drunk driving.) But Nesbitt had been drinking rum and drinking beer with the others before they got to the bar; and Hamby spiked Nesbitt’s drinks with rum under the table at the bar, which was presumably busy serving sixty other people and didn’t notice. So Nesbitt had a 0.199 blood-alcohol level when, speeding, he “lost control [of his car], careening back and forth across the road before striking a guard rail and landing on the driver’s side. He was thrown out the rear window while Hamby, who was found in the car, was pronounced dead at the scene.” Nesbitt is serving a five-year prison term for vehicular homicide, but Hamby’s estate is suing the bar. (It settled with Nesbitt for his $50,000 insurance coverage.)

The lower court threw out the case since the bar didn’t serve Nesbitt any alcohol, but a New Jersey appellate court ruled that the bar has a duty to arrange transportation for anyone who walks in who appears to be drunk “regardless of whether Nesbitt’s intoxication resulted from the service of alcohol by the inn or from other causes” (notwithstanding the absence of such a cause of action under the dramshop statute) so the bar will now have to hope the jury credits the witnesses who say that Nesbitt didn’t appear drunk. (Mary Pat Gallagher, “N.J. Court: Bar May Be Liable for Fatal Crash Even if It Didn’t Serve Patron Alcohol”, NJ Law J, Mar. 24; Tom Hester & Abby Green, “Court adds to taverns’ duty toward safe driving”, Newark Star-Ledger, Mar. 21; Insurance Journal, Mar. 21; AP, Mar. 20; NJLawman.com message board).

If your drinks appear more expensive in New Jersey, it’s because you’re paying for insurance for drunk drivers who might stop at the bar to use the restroom. Of course, why stop at bars? Why not convenience stores?

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Enron lawyers want $695 million; Texas objects

Class action lawyers who went after the various deep pockets in the Enron Corp. collapse — the team was led by now-disgraced William Lerach — want what may be a world record fee for an action of the sort. Highlight: Columbia lawprof John Coffee, whom lawyers often bring in to testify for fee requests, says courts’ eventual rejection of the lawyers’ claims against banks and investment companies — after some had paid fortunes to avoid the risk of trial — is actually a reason to pay the lawyers more, ’cause it shows that they were being creative and taking risks:

The Columbia professor, who was hired to submit a declaration supporting the award of legal fees, said it was a testament to Lerach’s skills that he convinced large corporations to pay billions in a case that turned out to be fatally flawed. “We now know it was an extraordinarily high-risk case because, ultimately, you lost it,” he said.

Texas Attorney General Greg Abbott is among those objecting to the fees as excessive. (Josh Gerstein, “Judge To Mull $695 Million Legal Fee”, New York Sun, Feb. 29; “Texas Objects To Enron Fees”, Mar. 13).

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McCain, thimerosal and autism

The Republican candidate sticks his foot in it in a major way on a topic extensively covered here over the years (as well as at my other site). Writes Mark Kleiman: “the thimerosal-autism theory is as dead as phlogiston in respectable company. I’m not surprised that ‘respectable company’ excludes a few ambulance-chasing lawyers looking for deep pockets and a some emotionally devastated parents looking for someone to blame. But it’s distressing — to use no stronger term — that the presumptive Republican nominee for President, rather than looking at the evidence, has chosen to side with the panic-spreaders and pander to the emotions of the panic victims.” More: Orac.

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March 1 roundup

  • Oregon Supreme Court plays chicken with SCOTUS over $79.5 million punitive damages award in Williams v. Philip Morris case. [Sebok @ Findlaw; Krauss @ IBD; POL Feb. 1]
  • Speaking of punitive damages, I did a podcast on Exxon Shipping v. Baker. I can’t bear to listen to it, so let me know how I did. [Frank @ Fed Soc]
  • Arkansas case alleged legal sale of pseudoephedrine was “nuisance” because meth-makers would buy it; case dismissed. [Beck/Herrmann]. This is why I’ve stockpiled Sudafed.
  • Lawyers advertise for refinery explosion victims before fire goes out. [Hou Chron/TLR]
  • Connecticut Supreme Court: cat-attack victim can sue without showing past history of violence by animal. [On Point] Looking forward to comments from all the anti-reformers who claim to oppose reform because they’re against the abrogation of the common law.
  • Op-ed on the Great White fire deep pockets phenomenon. [SE Texas Record; earlier: Feb. 2]
  • “FISA lawsuits come from Twilight Zone.” [Hillyer @ Examiner]
  • Legislative action on various medical malpractice tweaking in Colorado, Hawaii, and Wyoming. [TortsProf]
  • Request for unemployment benefits: why fire me just because I asked staffers for a prostitute? [Des Moines Register]
  • “So much for seduction and romance; bring in the MBAs and lawyers.” [Mac Donald @ City Journal; contra Belle Lettre; contra contra Dank]
  • Where is the Canadian Brandeis standing up for free speech? [Kay @ National Post]
  • In defense of lobbying. [Krauthammer @ WaPo]

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9/11 dust

Ramon Gilsanz, a structural engineer with a small office in Manhattan, showed up at the World Trade Center site to pitch in after the disaster; like many others, he started as a volunteer and found his role evolving into a subcontractor at the city’s request. Now, like about 130 other structural engineers, he is named in many of 8,000 lawsuits filed by the Paul Napoli firm and others over dust exposure to various bystanders. He and another structural engineer said they worked alongside the other rescue and cleanup workers and were never assigned responsibility for air quality. (Jim Dwyer, “For Engineer, a Cloud of Litigation After 9/11”, New York Times, Feb. 23).

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The Pop Tort: John Edwards and the Valerie Lakey case

For all the complaints about tort reformers supposedly relying upon urban legends to promote their cause, one more frequently sees trial lawyers promoting fictional versions of their victories. As Hillary Clinton and Barack Obama kowtow to John Edwards for his endorsement, it’s worth exploring the case on his record he refers to most frequently. Remarkably, not a single mainstream media organization has questioned Edwards’s self-serving version of the Valerie Lakey case. I correct this problem in today’s American:

Sta-Rite had already been putting warnings on its pool drain covers, and the 1993 case did nothing to change their product design or the warnings conveyed to buyers. The drain cover in the Lakey case was sold in February 1987 with a warning label; soon thereafter Sta-Rite began embossing the warnings on the cover. This safety innovation was used against them at trial, the argument being that they should have acted earlier. But no one could reasonably think that an additional warning to screw in the drain cover would have made an iota of difference. The cover already had holes for screws, county regulations already required the pool drain cover to be screwed down, the pool managers testified that they had done so several times in the year before Lakey’s accident—and Edwards had already recovered millions from the municipality for its failure to keep the cover screwed down.

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February 19 roundup

  • Raising ticket revenue seems more important to NYC authorities than actually recovering stolen cars [Arnold Diaz/MyFoxNY video via Coyote]
  • Subpoena your Facebook page? They just might [Beck/Herrmann]
  • Rhode Island nightclub fire deep pockets, cont’d: concert sponsor Clear Channel agrees to pay Station victims $22 million, adding to other big settlements [ProJo; earlier]
  • Manhattan federal judge says “madness” of hard-fought commercial suit “presents a cautionary tale about the potential for advocates to obscure the issues and impose needless burdens on busy courts” [NYLJ]
  • Wooing Edwards and his voters? Hillary and Obama both tacking left on economics [Reuters/WaPo, WSJ, Chapman/Reason, WaPo editorial]
  • Sad: if you tell your employer that you’re away for 144 days on jury duty, you actually need to be, like, away on jury duty [ABA Journal]
  • New at Point of Law: Florida “three-strikes” keeps the doctor away; court dismisses alien-hiring RICO suit against Tyson (and more); Novak on telecom FISA immunity; fortunes in asbestos law; Ted on Avandia and Vioxx litigation; new Levy/Mellor book nominates Supreme Court’s twelve worst decisions; and much more;
  • U.K.: “Lawyers forced to repay millions taken from sick miners’ compensation” [Times Online]
  • Outside law firm defends Seattle against police-misconduct claims: is critics’ beef that they bill a lot, or that they’re pretty good at beating suits? [Post-Intelligencer]
  • Cincinnati NAACP is campaigning against red-light cameras [Enquirer]
  • Omit a peripheral defendant, get sued for legal malpractice [six years ago on Overlawyered]

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$6.5 million to driver not wearing seatbelt

Ruben Zamora lost control of his Ford Explorer after a tread-tire separation, causing a rollover; because he was not wearing his seatbelt, he was ejected from the vehicle and suffered brain injuries. (His four passengers suffered only minor injuries.) This is, a LaSalle County, Texas state court jury decided, 65% the fault of Ford, putting them on the hook for $6.5 million in damages. Ford denies responsibility and will appeal. (Margaret Cronin Fisk, “Ford Loses $6.5 Million Verdict in Explorer Rollover”, Bloomberg, Feb. 4; “Auto news headlines,” Detroit Free Press, Feb. 5; Nick Sullivan, “Brain-Injured Man Awarded $6.5M in Texas Rollover Case”, Andrews Publications, Feb. 11). Until a 2003 tort reform, Ford would not even have been allowed to introduce evidence that Zamora was not wearing his seat belt.

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