Torte Reform Central

Philadelphia Inquirer | 08/24/2005 | Phoenixville contractor charged in asbestos scam

2005-08-29T07:35:00.000-07:00

Philadelphia Inquirer | 08/24/2005 | Phoenixville contractor charged in asbestos scam: "Phoenixville contractor charged in asbestos scam

A Phoenixville contractor was charged yesterday with improperly removing asbestos from homes and businesses and using fake air samples for testing.

Indoor Air Quality Inc. failed to use enough water during the process to keep the asbestos sufficiently wet on several jobs from 2001 and 2004, the indictment charged. The company cheated homeowners by regularly sending blank air-sample canisters to a laboratory for testing, authorities charged.

The 34-count indictment also names owner Wallace Heidelmark, 48, of Phoenixville, and supervisor Jason Scardecchio, 30, of Barto, as defendants."

AP Wire | 08/25/2005 | With deadline approaching, rush is on to file lawsuits

2005-08-29T07:34:00.000-07:00

AP Wire | 08/25/2005 | With deadline approaching, rush is on to file lawsuits: "With deadline approaching, rush is on to file lawsuits

Associated Press

ST. LOUIS - St. Louis circuit clerk office workers are struggling to keep pace with the rush of lawsuits being filed - personal injury cases, wrongful death and medical malpractice suits.

The Dog Days of August are normally slow, but not this year. Sunday is the last day before a new state law severely limits lawsuits. Starting Monday, restrictions are placed on where suits can be filed and how much can be awarded. The so-called tort reform measure was passed by lawmakers and signed by the governor earlier this year.

'Everybody I talk to is crazy busy right now,' said Sara Schuett, executive director of the Missouri Association of Trial Attorneys.

In St. Louis, a city with the reputation for having juries allowing generous lawsuit awards, lawsuits are up fourfold during the first three weeks of August this year compared to 2004. Nearly 1,000 new lawsuits were filed - 300 on Tuesday alone, the St. Louis Post-Dispatch reported Thursday.

In St. Louis County, major civil filings have doubled this month to more than 600. In Springfield, suits filed in Greene County are typically five a day. In the last week, there have been 50 to 60 per day.

But not every venue is seeing a similar spike. Courts in St. Charles County, Boone County and Jackson County, home to Kansas City, for example, have not seen significant increases, the Post-Dispatch said.

Attorneys are eager to file in courts considered more sympathetic to plaintiffs, such as the city of St. Louis. The new state law restricts where lawsuits can be filed to the jurisdiction where the alleged wrongdoing or injury occurred. The old law provided a range of options, including filing where the injury occurred, where the plaintiff resides or where the defendant resides or can be found. This would end what supporters of the law call 'venue"

Bloomberg.com: Top Worldwide

2005-08-29T07:33:00.000-07:00

Bloomberg.com: Top Worldwide: "Merck Says Vioxx Lawsuits Increased 15 Percent in Past Month

Aug. 25 (Bloomberg) -- Merck & Co., the third-largest U.S. drugmaker, now faces 4,951 lawsuits over the painkiller Vioxx in state and federal courts, or 15 percent more than a month ago, lawyers said.

The number of Vioxx suits filed has increased by more than 650 since mid-July, Merck's lawyers told U.S. District Judge Eldon Fallon in New Orleans. Fallon is overseeing all federal litigation over the drug, which Merck pulled off the market after it was linked to increased risk of heart attacks and strokes.

Juries may hear some of those cases next year. Fallon today set trial dates for Feb. 13, March 13 and April 3 and urged lawyers to group their Vioxx claims. That requires attorneys to separate users who had heart attacks from those who suffered strokes. Those groups will be further divided by long-term or short-term use."

Report: Merck Might Settle Some Lawsuits

2005-08-29T07:31:00.001-07:00

Report: Merck Might Settle Some Lawsuits: "Merck Might Settle Some Lawsuits
August 26, 2005

NEW YORK -- Merck & Co. might consider settling some lawsuits over its painkiller Vioxx, whose links to heart trouble have spawned thousands of lawsuits and a $253 million jury verdict, a spokesman for the company's legal team told the Associated Press Friday.

The company has previously said it would fight all personal-injury litigation over the drug's harmful side effects.

'Certainly we will make reasonable decisions about how to proceed in defending each one of those cases,' spokesman Kent Jarrell told The AP, adding that Merck has 'no intention of entering into any kind of global settlement.'
"

Newsday.com: About 1,000 lawsuits filed against manufacturer of OxyContin

2005-08-29T07:31:00.000-07:00

Newsday.com: About 1,000 lawsuits filed against manufacturer of OxyContin: "About 1,000 lawsuits filed against manufacturer of OxyContin

By PAT MILTON
Associated Press Writer

August 26, 2005, 4:46 PM EDT

NEW YORK -- About 1,000 people filed separate lawsuits on Staten Island against the manufacturer of the painkiller OxyContin on Friday, claiming they were victims of accidental addiction.

The plaintiffs are seeking damages from the Stamford, Conn.-based Purdue Pharma LP, claiming the company dishonestly marketed the pain pill by failing to tell doctors, pharmacists and patients about the morphine-like drug's addictive qualities, according to an attorney in the case, Tor Hoerman. "

CBC News: Merck may settle some Vioxx lawsuits

2005-08-29T07:30:00.000-07:00

CBC News: Merck may settle some Vioxx lawsuits: "Merck may settle some Vioxx lawsuits
Last Updated Fri, 26 Aug 2005 15:44:36 EDT
CBC News

The giant pharmaceutical, Merck and Co. says it may consider settling some lawsuits alleging harm from its pain and arthritis drug, Vioxx. The statement comes as the company gets ready for its second Vioxx court battle.

Merck previously said it would fight each of the thousands of Vioxx lawsuits one by one. However, a spokesman for the legal team, Kent Jarrell said Friday that the company will take a close look at the relatively small set of cases that involved patients who used Vioxx for over 18 months.

Merck withdrew the popular pain killer in September after it was shown to double the risk of heart attack and stroke among patients who took it for 18 months or longer.

A Texas jury last week awarded $253 million to the widow of a triathlete who died of heart arrhythmia after taking Vioxx for about eight months. Merck has said it will appeal this decision.

Its second court battle is scheduled to begin September 12 in Atlantic City, New Jersey. However, lawyers for Merck have asked the court to delay the start by 45 days to allow the bad publicity from the trial in Texas to subside."

Grand Forks Herald | 08/27/2005 | COURTS: Judge approves $10 million class action settlement

2005-08-29T07:28:00.001-07:00

Grand Forks Herald | 08/27/2005 | COURTS: Judge approves $10 million class action settlement: "COURTS: Judge approves $10 million class action settlement

Herald Staff Report

A Federal District Court Judge in Indiana approved a settlement Thursday in a class action lawsuit that will pay up to $10 million to consumers in North Dakota, Minnesota and Wisconsin who had purchased allegedly defective radiant heating cables used in floor based heating systems.

Mike Miller, a partner at Fargo's Solberg, Stewart, Miller and Tjon, represented Portland, N.D., resident Clarence Klabo, the lead plaintiff in the class action litigation.

The settlement resolves the claims made on behalf of consumers in Klabo v. Easy Heat Inc. Under the settlement, individual class members may receive lump sum payments up to $2,500 or be provided with an alternative heating system paid for by Easy Heat along with a heating subsidy and payment for the disruption to their home or business.

The class action settlement is 'unique' according to Miller because it includes only consumers who want to be in the settlement. People who want to continue to litigate their claims can do so through a separate class action in Minnesota that has not settled."

Often, lawsuits can't get females to the top

2005-08-29T07:28:00.000-07:00

Inside Bay Area - Oakland Tribune - Op-Ed: "Often, lawsuits can't get females to the top

HOW about those working women? Suing companies, lobbying bosses, networking nonstop with other women, taking on the workplaces that have kept them down. It seems the women of today will stop at nothing to try to get ahead in the workplace battle of the sexes.

And yet, where does it get them? Women comprise nearly half of full-time workers and half of managers, but they are only 16 percent of corporate officers and barely 1 percent of CEOs in the nation's richest 500 companies. Why can't they improve those rates?

After reporting on their maneuvers for several years now, I've concluded that these warriors are using the wrong weapons to get ahead. Suing for advancement may make a splash in the news, and women's networks might get women more resources from their employers, but these activities are often perceived as selfish by the very men with whom the women will have to work. To get into the executive suite, women have to show one critical thing — that they can lead men.

This reality was underscored by last month's ruling by an arbitration panel in a discrimination case against financial services giant Merrill Lynch. The panel ruled that the firm had to rehire a former financial analyst, Hydie Sumner, and send her through its management assessment program because it had denied her this opportunity more than a decade earlier.

If Sumner becomes a manager at Merrill, she might find that she's won the battle but lost the war for hearts and minds. Companies aren't terribly fond of employees who sue them. Merrill's lawyers argued in a public hearing that if Sumner were rehired, she might sue them again if she didn't get what she wanted. They have reason to wonder. In 1991, the year she started working for Merrill, Sumner sued her previous employer. Her quest for reinstatement at Merrill is part of a 1998 class-action lawsuit that was joined by 900 current and form"

1,000 Lawsuits Filed Against OxyContin Maker

2005-08-29T07:27:00.000-07:00

1,000 Lawsuits Filed Against OxyContin Maker: "1,000 Lawsuits Filed Against OxyContin Maker

Because a New York state judge refused to accept a class-action suit, about 1,000 individual lawsuits were filed Friday in New York City against the manufacturer of the controversial pain drug OxyContin.

The Associated Press reports that 14 cartons containing the legal papers were dropped off at the State court house in Staten Island, and that it took court employees four hours just to establish the processing procedure.

The reason that the cases have to be tried individually is that the hearing judge decided that too many of them had different injury claims and different evidence requirements. Oxycontin, which was approved by the U.S. Food and Drug Administration in 1995, is a powerful painkiller, often used in cancer cases.

But it is also powerfully addictive, something the plaintiffs claim the drug's manufacturer, Purdue Pharma of Stamford, Conn., failed to point out to patients and doctors when it marketed the drug.

These lawsuits are the latest in a series of thousands that have been filed against Purdue Pharma in the United States. According to AP, the company has never lost an OxyContin lawsuit, but there was a settlement with the West Virginia attorney general's office in November 2004."

Targeting 'white knights' - Editorials/Op-Ed - The Washington Times, America's Newspaper

2005-08-24T07:14:00.000-07:00

Targeting 'white knights' - Editorials/Op-Ed - The Washington Times, America's Newspaper: "Targeting 'white knights'

TODAY'S COLUMNIST
By Steven B. Hantler
August 23, 2005

During the first half of 2005, three states adopted substantive civil justice reform — three states, incidentally, that were at the bottom end of every national study analyzing business and legal climates (South Carolina, Georgia and Missouri). Two additional states, Oklahoma and Florida, are on the verge of much-needed reforms.
Seems easy, right? Get your lawmakers on board for reform, mix in support from the business community, make the case to the public and, voila, you've got tort reform.
The myth that legal reform will come easily is as dangerous to the forward progress of true legal reform as the twisted playbook utilized by the trial lawyers' bar over the past two decades. "

The Japan Times Online

2005-08-23T05:27:00.002-07:00

The Japan Times Online: "Low level of asbestos exposure proved fatal
Cancer linked to shop's stuffy storeroom

Blue asbestos fibers identical to that lining the walls of a stationery shop were found in the lungs of its former manager, who died of an asbestos-linked illness after working there for more than 30 years, it was learned Monday.

According to medical experts, it is the first case in Japan where someone has contracted a disease from asbestos exposure in a regular environment instead of at or around an industrial facility."

U.S. to pay $1.75M in asbestos lawsuit

2005-08-23T05:27:00.001-07:00

U.S. to pay $1.75M in asbestos lawsuit: "U.S. to pay $1.75M in asbestos lawsuit
Aug 22, 2005, 10:26 GMT
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YOKOSUKA, Japan (UPI) -- The U.S. military will pay about $1.75 million in damages to 26 Japanese who developed asbestos-related illnesses after working at a U.S. naval base.

In total, 41 Japanese claimants were awarded a total of $6.49 million in compensation in three lawsuits. The U.S. military agreed in July to pay about $1.75 million of that.

The remaining $4.74 million will be paid by the Japanese government, which had hired the claimants to work at the U.S. base, the Asahi Shimbun reported Monday.

Article 18 of the Japan-U.S. Status of Forces Agreement stipulates that both nations must pay compensation equally when both are found responsible for damage. The stipulation was added during revisions to the agreement made in 1966.

Japan asked the U.S. military to pay $1.75 million -- half of the settlement under Article 18, because 26 of the 41 plaintiffs were exposed to asbestos on the base after 1966."

Japan Today - News - Filipinos seek asbestos damages from U.S. - Japan's Leading International News Network

2005-08-23T05:27:00.000-07:00

Japan Today - News - Filipinos seek asbestos damages from U.S. - Japan's Leading International News Network: "Filipinos seek asbestos damages from U.S.
Tuesday, August 23, 2005 at 04:00 JST
MANILA — Nearly 1,000 Filipinos claiming to be victims of asbestos exposure are seeking millions of dollars in punitive damages from 24 U.S. asbestos companies for failing to warn them of the dangers of the lethal fibers, victims said Monday.

Teofilo Juatco of the Alliance for Bases Clean-up, a nongovernmental organization assisting the complainants, said the plan is to demand about $100,000 in compensation for each of the nearly 1,000 people who believe they suffer from years of asbestos exposure when they worked at former U.S. military bases in the Philippines prior to 1992, when the U.S. military presence here ended."

FT.com / Comment & analysis / Editorial comment - Suggested side-effects

2005-08-23T05:26:00.000-07:00

FT.com / Comment & analysis / Editorial comment - Suggested side-effects: "Suggested side-effects
Published: August 23 2005 03:00 | Last updated: August 23 2005 03:00

The Vioxx verdict handed out by a Texas court last Friday underscores the need for far-reaching tort reform in the US. President George W. Bush has made an overhaul of the system one of the pillars of his second-term legislative agenda. Yet the pace of reform has been sluggish and even the proposed measures would barely touch on cases such as this.

A jury in Texas found Merck liable for the death of Robert Ernst, who died of an irregular heartbeat after taking Merck's painkiller Vioxx for eight months. Mr Ernst's widow was awarded $253m (�141m), including $229m in punitive damages, one of the largest awards this year to a single plaintiff. For Merck, the verdict opens the floodgates. Although a Texas law capping punitive damages will reduce the award, the drug maker still faces at least 4,200 further lawsuits. It potentially faces billions of dollars in liability from claims that it did not disclose the heart risks posed by Vioxx.

Yet it is not the immediate costs to the company which are most damaging, but the crippling legal and financial uncertainty which is built into the system. Under the US's civil litigation system, companies and entire sectors can battle on for years, and indeed decades, as they defend suits case by case and state by state.

This prolonged uncertainty imposes huge costs on consumers and businesses, as well as shareholders. With the contours of liability uncertain, companies will tend to avoid risk, and with it investment. In the pharmaceutical industry's case, this may mean pulling back from research on drugs that are sold broadly to general practitioners and focusing on speciality areas like cancer drugs instead, where the public's tolerance for risk is higher.

The Vioxx verdict therefore underlines the need for more ambitious tort reform. On the "

asahi.com：U.S. to pay share in asbestos settlements - ENGLISH

2005-08-22T07:27:00.000-07:00

asahi.com：U.S. to pay share in asbestos settlements - ENGLISH: "U.S. to pay share in asbestos settlements

08/22/2005
The Asahi Shimbun

In a rare agreement over compensation, the U.S. military in Japan has agreed to shoulder about a half of a court-ordered payout to 26 plaintiffs who developed asbestos-related illnesses after working at a U.S. base, sources said.

All had become ill after years of working with asbestos in ship repairs done at the U.S. Yokosuka Naval Base in Kanagawa Prefecture.

In total, 41 Japanese claimants were awarded a total 716 million yen in compensation in three lawsuits.

The U.S. military agreed in July to pay about 194 million yen of that.

The remaining 522 million yen will be paid by the Japanese government, which hired the claimants to work at the U.S. base."

Herald Sun: Shame the shameless

2005-08-21T17:12:00.000-07:00

Herald Sun: Shame the shameless [21aug05]: "Shame the shameless

21aug05

BUILDING products company James Hardie Industries has again acted like it cares less for victims of asbestos than for its bottom line.

It has turned in another woeful public relations exercise – blaming delays in the finalisation of its compensation package on hiccups in negotiations with the NSW Government and a pending federal tax ruling.

In place of answers demanded by widows and fatherless children, Hardie has offered more excuses a year after promising a solution.

While announcing a big jump in profit, the company has fuelled perceptions of arrogance by flirting with the disposal of Australian assets because its domestic performance has been flat due to union bans and customer concerns over its asbestos policies.

Potential beneficiaries of compensation are entitled to be furious with frustration and indignation on the back of chairwoman Meredith Hellicar's assertion last year that an end to the anxiety was at hand. Now, in response to rumours about Hardie fleeing Australia, she says: 'I don't know if the sun will rise tomorrow morning.'

Chief executive Louis Gries had as much regard for asbestos victims, as opposed to Hardie shareholders, when he refused to rule out the 110-year-old company's exit from Australia. His limp response: 'Like any other CEO, I cannot tell you what may happen in 40 years.'

So much for victims of asbestos-related diseases in which death is an agonising process involving pain and panic. So much for their loved ones who are helpless to do more than share the torture."

Missoulian: Asbestos cleanup continues

2005-08-21T17:11:00.001-07:00

The threat of asbestos exposure - whatever the reality - has beset residents of neighborhoods near the burned-out Idaho Timber Products sawmill with concern and anxiety this week.

But health officials said Friday that, so far, nothing indicates the air is unsafe to breathe.
And while that doesn't mean no one was exposed to dangerous asbestos fibers, even the cleanup crews are shedding their white protective suits and gas masks.

When flames leveled an abandoned mill building early Tuesday morning, the blaze deposited hot slabs of asbestos-laden roofing material, ash and debris in yards and gardens as far west as Reserve Street.

The fire was hot enough that it burned up most of the asphalt in the roofing tiles.

What's left is an inert asbestos material.

Cleanup crews will continue working every day of the week to get rid of the asbestos, picking through and vacuuming the nooks and crannies of yards.

But, most importantly, they're dousing the material with water to keep it from breaking up and taking to the air.

Even though ash samples collected from around a 42-square-block area are testing positive for unsafe levels of asbestos, scientists and health officials say there is no risk unless the fibers become airborne.

'The concern with asbestos is breathing the fibers that become airborne,' Jim Carlson, director of environmental health at the City-County Health Department, said Friday. 'As long as people don't break it up and breathe the dust, the risks will be very, very low.'"

Killer pill sparks class action

2005-08-21T17:11:00.000-07:00

"Killer pill sparks class action
From: Sunday Herald Sun
By Mary Papadakis

August 21, 2005

The Ernsts
Closure ... Carol and Robert Ernst in 1997 / AP file

AUSTRALIAN lawyers are set to launch a class action against the manufacturers of dangerous anti-arthritis drug Vioxx after a $337 million damages verdict in the US.
In the first of thousands of lawsuits pending across the world, a Texas jury found pharmaceutical giant Merck & Co liable for the death of a former Vioxx user, awarding his widow $337 million in damages.

Slater and Gordon special counsel Richard Meeran welcomed the US verdict yesterday and said he felt confident of success in Australia.

The law firm is preparing to launch a class action on behalf of about 100 Australians later this year.

'The result is what we expected based on our own independent assessment. It is a strong case,' Mr Meeran said.

He said the Australian litigants - all of whom have had heart attacks and used the pain reliever for at least 18 months - had even stronger cases than that of the late Robert Ernst, whose widow Carol was behind the legal action in Texas."

Government lawyers ask Supreme Court to review key tobacco lawsuit decision

2005-07-20T05:00:00.000-07:00

U.S. Justice Department attorneys have asked the Supreme Court to overrule an appeals court decision that prevented them from asking for some $280 billion in damages in the government lawsuit against big tobacco, according to wire reports.

S. Fla. law firms to lead Teflon class action

2005-07-20T04:56:00.000-07:00

This is bizarre.
A couple of companies are suing one of the largest producors of consumer goods for using a chemical that the producer says they don't use.

Two South Florida law firms are spearheading a nationwide effort against E.I. Dupont De Nemours Co., alleging the chemical and manufacturing giant knew for more than 20 years that its Teflon product and chemical components had the potential to make people sick, but hid the fact from consumers.

"The class of potential plaintiffs could well contain almost every American that has purchased a pot or pan coated with DuPont's non-stick coating, popularly known as Teflon," Kluger, Peretz principal Alan Kluger said.

The lawsuits call on DuPont to pay damages to every member of the class and to compensate each for purchasing replacement cookware.

The lawsuit charges Dupont had a duty to warn consumers of any potential health hazards of Teflon before people purchased cookware made with Teflon.

In addition, the lawsuit asks for two funds to be created. The first fund would monitor the health of consumers who purchased cooking products containing Teflon. The second fund would pay for independent scientific researchers to further investigate the potential for adverse health effects to consumers who used cooking products containing Teflon.

DuPont spokesman Cliff Webb said the company will against defend itself against the allegations raised in the lawsuit.

"Consumers using products sold under the Teflon brand are safe," he said.

Webb further said cookware coated with DuPont Teflon non-stick coatings does not contain the industrial chemical known as perfluorooctanoic acid (PFOA). The chemical has turned up in human blood and the Environmental Protection Agency has said studies it has evaluated have raised a number of potential toxicity concerns. The agency has said it needs additional scientific information before determining if PFOA should be regulated.

WINE INDUSTRY: Wine industry watching Costco case

2005-07-06T07:38:00.000-07:00

The Wines & Spirits Association is Afraid!

WSWA has always been against direct shipping to the consumer on grounds that minors have access to alcohol. Come on, what kid is going to wait a few days for a buzz?
The real fear is loss of profits. Distributors do not pay commission to the sales reps that call on Club accounts. For that matter they do not pay commission to reps that call on most large chains. Typically they are salaried and spiffed. In many states, therer is case one pricing. What happens to that extra 2-6% that does not go to commission? Deep into the owners profit (pockets). Retailers can typically buy direct from manufacturers, but buy from distributors because of service concerns. If the clubs and large retailers bought direct, it would take a substantial amount of revenue out of the middelmans pockets. Initially, they would try to raise prices on other brands to make them pay the difference.
This will be interesting.

Challenge to distribution system could have greater impact than Supreme Court ruling

by Lindsay Riddell
Staff Reporter

NORTH BAY – The wine industry was happy with May’s favorable U.S. Supreme Court ruling on direct shipping, but a positive outcome in a Washington case involving retailer Costco could make it positively giddy.
Costco is challenging the three-tier system used by Washington and at least 30 other states to regulate the movement of alcohol.
The three-tier system requires retailers to purchase alcohol through a chain of wholesales and distributors. By the time a consumer buys a bottle of wine at a retail store, it’s typically marked up 30%-40%, experts said.
Costco, the nation’s No. 1 seller of wine, won’t put products on its shelves priced higher than 14% above wholesale and is challenging the legality of the three-tier system, saying it wants to buy directly from wineries.
Costco is suing the Washington State Liquor Control Board in U.S. District Court. If Costco is successful, attorneys said the case could have an even greater impact than the Supreme Court ruling on direct shipping in May. That’s because the justices allowed states to retain regulation under certain circumstances. A favorable decision for Costco would threaten virtually any controls, attorneys said.
Though California is not bound by three-tier, the state’s wine producers are affected because out-of-state retailers that are under the mandate can’t buy directly from them.
Costco said if it can successfully challenge the three-tier system, it can pass on better prices to its customers and potentially allow the retailer and others like it to buy more wine from California wineries.
“It will enable us to buy directly from California wineries that maybe right now we’re not buying from because right now the price is not competitive,” said Joel Benoliel, chief legal counsel at Costco’s Issaquah, Washington home office. Costco has 23 warehouses in Washington.

Longshot?

Meanwhile, an association of wholesalers said that the court’s May ruling on direct shipping made clear that the 21st Amendment protects a state’s right to regulate the way alcohol is sold and distributed within its borders.
The Web site for Wine & Spirits Wholesalers of America Inc. points out that Supreme Court Justice Anthony Kennedy, who wrote the majority opinion in the direct shipping case, called the three-tier system “unquestionably legitimate.”
The three-tier system was established to protect the retailer after prohibition.
Now those once-powerless retailers aren’t so powerless, said Jay Behmke, an attorney with Carle, Mackie, Power & Ross LLP.
“One of the fundamental issues here is that when the three-tier system was adopted after prohibition, the reason was that they were concerned that alcohol producers would have too much power over the retailers,” Mr. Behmke said. “Now we have the reverse, where the majority of the wine is sold by Costco and Wal-Mart and big supermarkets. The retailers are now much larger than the producers. The economic dynamics are completely different.”
Consumers may be paying higher prices for wine on retail shelves because of the three-tier system. But, the three-tier system has advantages, attorneys said.
For small wineries, wholesalers are a way to reach retailers they wouldn’t have been capable of reaching on their own. Distributors get wines into stores and restaurants that wouldn’t have had the resources to seek new brands out on their own.
In addition, because the three-tier system has been around so long, at least people in the industry know what to expect, said Wendell Lee, resident attorney for the Wine Institute in San Francisco.
“It’s kind of a devil you know vs. the devil you don’t know scenario,” he said.

Dismantling the system would likely be chaotic, and no one is sure what that would mean for wine prices or small wineries, wine officials said.
“That scares me a little bit,” said Tom Shelton, president of Joseph Phelps Vineyards, which produces 80,000 cases a year. “If you were to tell me the Costco case was done, and we were faced with the demand from Costco and other large retailers around the country right now, I’d have to look at my business model and decide how we were going to adapt.”
Mr. Shelton does sell some wines to Costco, but only a limited amount. The high-end independent wine retailers he sells to don’t like to compete with Costco’s low prices.
There’s also an issue with managing his brand image, because even though Costco has traditionally carried higher-end wines, people don’t associate big box retailers with the high-quality wines.
“If you look at the demographics of their [Costco’s] customers, they are precisely our customers,” Mr. Shelton said. “But there’s an image issue of large box retailers conflicting with the hand-crafted winery.
“You can buy a first-growth Bourdeaux at Costco,” he said. “You can buy Insignia at Costco. I sell those to Costco and every time I do, I get calls from independent retailers who say, ‘How can you do this?’”
Ultimately, he said if wineries sell more of their wines to big box retailers in bulk, that will limit how much wine distributors have to sell to independent retailers, which might also drive up costs for consumers here.
“It’s like the long distance carrier vs. the local phone call argument of the ’70s,” Mr. Shelton said. “If you take away maybe some of the volume, then the cost of doing local business is going to go up.”
Costco has survived a motion to dismiss. The case, “Costco Wholesale Corp. vs. Maleng,” filed in Federal Court in Seattle (District Court for the Western District of Washington), is expected to go to trial in March 2006.

Fraud suit over coin gets class-action status

2005-07-06T06:38:00.000-07:00

A federal judge in the Southern District of New York has given class action status to a lawsuit filed by a Burlington County man who claims he was defrauded and tricked into the purchase of "Freedom Tower Silver Dollar" coins.

In the lawsuit, attorney Stephen P. DeNittis claims National Collector's Mint Inc. misrepresented the composition of the commemorative coin, which sold for $23.45 plus shipping and handling.

In advertising, the $1 coin was described as made of pure silver recovered from ground zero at the World Trade Center. It also was described as "a legally authorized government issue silver dollar" that was legal tender in the U.S.

At least 1,000 copies of the coin were sold to New Jersey residents since it first was offered for sale on Sept. 1, 2004, according to the lawsuit.

The imitation coins are not marked copies.

The lawsuit describes the advertising campaign as "a shameless attempt to profit from a national tragedy."

Class action status is sought when it is impossible to determine at the time a lawsuit is filed the exact number of people who could be plaintiffs, but when all suffer the same potential damages. Because it is a consumer fraud case, if the lawsuit ends in favor of the plaintiffs, the defendant company would be responsible for payment of all legal costs.

In a ruling on Thursday, U.S. District Judge Colleen McMahon denied a motion by National Collector's Mint to dismiss the complaint.

Prescription medicine prices could spur civil lawsuits

2005-07-06T06:37:00.000-07:00

For the average Joe with health problems of his own, relatives to care for and health insurance coverage that stretches only so far, prescription drugs can break the bank.

Charles Lawson, a material transporter for Georgetown University Hospital, easily totals the costs in his head.

Mom's heart medicine - $150 a week. Dad's and grandma's diabetes drugs - $120 a week each.

"And some weeks, she wouldn't know where to get it," Lawson, 34, a member of Service Employees International Local 500, said of his grandmother.

He added: "Do I get that prescription filled or do I eat tonight? That's a terrible decision to have to make."

But under a bill to be considered today by the District City Council, during the last legislative meeting before a long summer break, those prescription drug prices could land pharmaceutical makers in court to face civil lawsuits and damages - all in an effort to bring the costs down.

Prescription medicine prices could spur civil lawsuits

2005-07-06T06:36:00.000-07:00

"And some weeks, she wouldn't know where to get it," Lawson, 34, a member of Service Employees International Local 500, said of his grandmother.

He added: "Do I get that prescription filled or do I eat tonight? That's a terrible decision to have to make."

RIAA Launches Lawsuits Against Hundreds of Illegal File Sharers

2005-07-06T06:34:00.000-07:00

Once again the RIAA continues their program of "Future through Fear".

On behalf of the major record companies, The Recording Industry Association of America (RIAA) recently announced a new set of copyright infringement lawsuits filed against 784 illegal file sharers. The lawsuits cite the file sharers for illegally distributing copyrighted music on the Internet using unauthorized peer-to-peer services such as KaZaa, LimeWire, Bearshare and Grokster. Recently the Supreme Court made the decision that networks such as Grokster and Streamcast could be sued for infringement acts taken in the course of marketing file sharing software.

Mitch Bainwol, chairman and CEO of the RIAA said in a recent statement, “the Supreme Court provided a real shot in the arm to legitimate online music services and unanimously injected moral clarity into this debate. If there was any doubt left, there should now be none: Individuals who download music without permission are breaking the law. Our efforts to defend the rights of record labels, musicians, songwriters and others in the music community from theft will certainly continue and likely be strengthened in the weeks and months ahead.”

This historical ruling comes at a time when a majority of music listeners have admitted to downloading music for free.

Lawsuits filed in U.S. GP fiasco

2005-06-23T05:55:00.000-07:00

One day after the U.S. Grand Prix fiasco, three lawsuits were filed in Indianapolis on behalf of fans seeking compensation.

The Indianapolis Star reports a class-action lawsuit was filed in U.S. District Court on behalf of Colorado resident Larry Bowers, who had five tickets to the race. He is seeking reimbursement plus travel expenses.

Two other lawsuits charge Formula One, FIA, Michelin, the seven F1 teams and the Speedway with not producing the type of event advertised.

It's possible that any fines levied against the teams at next week's meeting of the World Motor Sport Council could be used to fund ticket refunds to fans. The Star estimates that $10-million would be needed in order to compensate everyone who was at the event.

As well, there are hints the Speedway will seek the return of some of its $15-million sanctioning fee from F1 officials.

Contaminated Minneapolis park will get new topsoil

2005-06-23T05:54:00.000-07:00

Federal officials said Tuesday that they will spend $3.5 million to strip asbestos-contaminated soil from a small northeast Minneapolis park and replace it with clean topsoil.

The Environmental Protection Agency said neighbors of the 2.6-acre Gluek Park can expect to see construction equipment, dump trucks and workers wearing masks and other protective gear for the next several months.

The contaminated soil was used extensively for trails and landscaping at the park in the late 1960s and 1970s. It came from the former W.R. Grace & Co. plant about a dozen blocks away. Grace and its predecessor, Western Minerals Products Inc., manufactured insulation between 1936 and 1989 by processing vermiculite ore from Montana that contained asbestos fibers. Grace had a pile of waste rock at the plant that was free for the taking.

Asbestos lawsuits filed in Madison County declining

2005-06-23T05:53:00.000-07:00

Asbestos lawsuits filed in Madison County appear to be on the decline.

So far this year, 122 asbestos suits have been filed in the county. About 480 lawsuits were filed last year, which followed three years of more than 800 lawsuits.Sherman Joyce -- president of the American Tort Reform Association -- credits Circuit Judge Dan Stack as the reason for the decrease. Joyce says Stack has been making sure that asbestos lawsuits filed in Madison County have a connection to the county.But plaintiff attorney Barry Julian -- whose Alton law firm specializes in asbestos suits -- says an order issued two years ago by Circuit Judge Nicholas Byron may be the reason for the decline. The order allows a person with asbestos exposure to file a lawsuit, but a trial date isn't set unless the person has significant impairment.

Class Action Lawsuit Filed In Formula One Fiasco

2005-06-23T05:52:00.000-07:00

Three lawsuits have been filed in Superior Court by Formula One fans angry over the decision to run the U.S. Grand Prix with only six cars.
A class-action lawsuit was filed in Indianapolis on behalf of Larry Bowers, who wants a complete refund for his five tickets plus travel expenses from his home in Colorado Springs, Colorado, the Indianapolis Star reported Tuesday.

ConAgra Foods faces possible class-action suit

2005-06-23T05:51:00.000-07:00

The complaint also contends that ConAgra made misleading statements regarding the company's business, according to a press release Tuesday, resulting in financial restatements that dated back to fiscal 2002. ...

Emerson Poynter LLP Files Class Action Suit Against Cyberonics, Inc.

2005-06-23T05:50:00.000-07:00

Cyberonics engages in the design, development, and commercialization of medical devices, which claim to provide therapy, Vagus Nerve Stimulation (VNS), for the treatment of epilepsy and other debilitating neurological and psychiatric disorders. Plaintiff alleges that defendants violated the federal securities laws (Securities Exchange Act of 1934) during the Class Period, by failing to disclose and misrepresenting material adverse facts known to defendants or recklessly disregarded by them, including that defendants were engaged in serious violative manufacturing and quality practices that would have a serious negative impact on prospects for the Company's VNC product approval and that, while well aware of true nature of the serious issues facing FDA approval of the VNC system for the depression indication, Company insiders sold over $1.98 million of Company stock during the Class Period. As a result, the Complaint alleges, the value of the Company's stock was materially and artificially inflated during the Class Period.

Stull, Stull & Brody Announces Class Action Against Exide Technologies

2005-06-23T05:49:00.000-07:00

The complaint alleges that Exide violated federal securities laws. Under a $365 million senior secured credit facility, Exide was required to maintain a specified ratio of debt to equity ("Leverage Ratio Covenant"), and to maintain minimum consolidated earnings before income, taxes, depreciation, amortization ("EBITDA") ("EBITDA Covenant") (collectively, the "Covenants"). Defendants represented that Exide could maintain compliance with the Covenants; however, on February 14, 2005, defendants revealed that Exide was in violation of the Leverage Ratio Covenant. Defendants assured investors that Exide's lenders would waive the Leverage Ratio Covenant and emphasized that Exide was in compliance with the EBITDA Covenant, and was not at risk of default.

Workers Want Class-Action Status In Lawsuit Against Wal-Mart

2005-06-14T06:30:00.001-07:00

Attorneys representing hourly employees at Wal-Mart stores in Kentucky have asked a judge to grant class-action status to their lawsuit alleging the retail giant didn't allow them break periods and didn't pay them for work they performed while off the clock.

Similar lawsuits have been filed across the country. Wal-Mart attorney Weyman Johnson said the same legal theories have been used in each of them. Six cases have made it to state courts of appeal in Arizona, Florida, Indiana, North Carolina, Ohio and Texas. In all of them, class-action status was denied, Johnson said.

Wal-Mart attorney Leslie Dent said staffing decisions are made in local stores, with only recommendations made at Wal-Mart headquarters in Bentonville, Ark.

Dent said signs are posted in stores reminding employees to clock in because working off the clock is against company policy. If for some reason employees forget to clock in, they can report to their managers and get paid for the time they worked.

Deadly asbestos shock for residents

2005-06-14T06:30:00.000-07:00

City residents were shocked yesterday to discover they were living next door to one of Melbourne's most contaminated sites.

The former power station in Spencer Street was "riddled" with asbestos and other hazardous materials, according to a confidential report from environmental science group EnviroProtect.

IT consultant Kent Watson recently moved into a unit in the Stadium Apartments complex at 639 Little Bourke Street. His ninth-storey balcony directly overlooks the derelict station.

Mr Watson said the decaying building posed an unacceptable health risk.

"The place is full of asbestos and I really should have known better, but I didn't have a choice because I've just arrived back from Brisbane," Mr Watson said.

A rational way to solve asbestos litigation

2005-06-14T06:29:00.000-07:00

One of the biggest threats to the survival of American manufacturing isn't from overseas competition. It is from a wave of asbestos lawsuits here at home.

Today's asbestos cases are bankrupting companies, destroying jobs and leaving nothing for true victims. Runaway asbestos litigation has already cost $54 billion and put 75 companies out of business.

Outrageously, the vast majority of awards go to plaintiffs, who are not sick and probably will never become sick, and to their lawyers. Yet they leave economic destruction in their wake -- asbestos litigation has already destroyed 60,000 jobs in this country.

What's truly frightening is that trial lawyers are just getting started -- another 8,000 companies are currently being sued and hundreds of thousands more cases are coming. Even worse, this full-scale attack on American industry isn't even helping real asbestos victims. A RAND Institute for Civil Justice study found that 89 percent of people filing asbestos claims were unimpaired by any illness. Yet these claimants and their attorneys are destroying businesses, so when real victims seek redress the company is bankrupt.

Tort reform not a piece of cake

2005-06-13T06:10:00.000-07:00

Interesting read.
A college paper against a George Bush stand. Is this predictable or what?
I actually also happen to be against torte reform as it is presented.

Everyone loves a good torte from time to time, sometimes with ice cream and other times with a good cup of joe.

However, our society seems to hate torts, redresses for claims of injury caused by negligence or intentional misconduct. Images of sleazy lawyers and ambulance chasers fill our minds.

We complain about misguided juries, punishing honest businesses and awarding exorbitant amounts of money to people who are sue-happy.

The case we often discuss to support our claims is the one involving an elderly woman who spilled McDonald's coffee on herself and was awarded $160,000 when she took the fast-food giant to court. Therefore, we should break out the champagne and toast to the proposed tort reform of President George W. Bush by imposing a cap of $200,000 on certain personal injury awards. But before you pop the cork on that bottle and fill your glass, the misguided actions of Bush must be taken into account.

Citigroup settles class action suit in Enron case for $ 2 billion

2005-06-13T05:53:00.000-07:00

This is crazy that companies think that they can get away with fraud on this level.
If the settlement was 2 bil with more high dollar settlements on the way (read full article), why are these guys still in business, or the execs not in jail?

NEW YORK: Banking and investment major Citigroup will pay $2 billion to a group of investors in the bankrupt Enron Corporation in settlement of a class action suit that alleges Wall Street firms, including Citigroup, had abetted the energy company to cheat them. The firm, which faced charges that it helped Enron hide debts worth billions of dollars, said the payment will come from legal reserves it had provided for last year.

This settlement, observers feel, would force other investment firms like J.P. Morgan Chase, Credit Suisse First Boston and Merrill Lynch, which are facing similar class action suits amounting to $30 billion, also to reach deals.

Age Discrimination Lawsuits

2005-03-31T05:41:00.000-08:00

The Supreme Court made it easier Wednesday for any worker over 40 to allege age discrimination, ruling that employers can be held liable even if they never intended harm.

THE NUMBERS: About 75 million people -- roughly half the nation's work force -- are covered by the decision.

WHAT IT MEANS: Older workers now have less of a burden to raise their claim in court when suing under federal law, although ultimately it may still be hard for them to win. Justice John Paul Stevens wrote that in some cases employers are within their rights to treat workers differently because of age.

House Votes to Limit Medical Lawsuits

2005-03-31T05:40:00.001-08:00

The bill would give health care providers immunity if they followed federal guidelines on medications or devices.

Story by The Associated Press

Doctors, hospitals and other health care providers could not be sued for prescribing drugs or providing devices that harm or kill patients under a bill passed by the House of Delegates.

House Bill 2011 would immunize providers as long as they followed U-S Food and Drug Administration guidelines for the medication or device. The bill was sent to the Senate on a 71-28 vote with one absence.

House Judiciary Chairman Jon Amores argued that lawsuits filed over injuries from drugs or devices should target manufacturers, not providers.

Lawsuits seek $95 million in wreck that killed Virginia family

2005-03-31T05:40:00.000-08:00

Three lawsuits have been filed seeking total damages of 95 (m) million dollars in connection with a wreck that killed a Virginia family in Tennessee last year.

The crash last March killed a Waynesboro couple, Edward and Melissa Armstrong, and two children. The children were from Armstrong's first marriage.State troopers say a tractor-trailor hit a pickup truck and then crashed into the family's car on Interstate 81 near Bailytown, Tennessee, spinning it around and running over the top of it.Defendants in the federal lawsuits include the truck driver and the trucking company, World Trucking Incorporated.Two suits have been filed in the Armstrong deaths and a third by the family of a woman injured in the pickup.

Lawsuits could stifle innovation, court says

2005-03-31T05:39:00.000-08:00

Justices hear arguments in file-sharing case

By Jim Puzzanghera

Washington Bureau

1/83/8

WASHINGTON | The Supreme Court appeared skeptical Tuesday of letting entertainment companies sue distributors of the software that allows people to illegally download copyrighted songs and movies for free over the Internet.

Four of the nine justices expressed specific concerns during Tuesday's arguments in the copyright case that such suits could stifle technological innovation.

Justice Stephen Breyer cited the printing press, the photocopy machine and the videocassette recorder as initially controversial technologies whose later revolutionary effects might never have been realized if inventors had faced lawsuits over possible illegal uses. Justices Anthony Kennedy, David Souter and Antonin Scalia worried about a chilling effect on innovators if the court allowed companies such as Grokster, which provides such software, to be sued for how others used their inventions.

"What I worry about is the suit that just comes right out of the box as soon as a company starts," Scalia said.

The closely watched case, MGM v. Grokster, pits the titans of Hollywood against Silicon Valley and the high-tech industry. The Supreme Court's decision, which probably won't come until the end of June, could have broad implications for both sectors.

The entertainment industry said it is losing billions of dollars as programs such as Grokster surge in popularity as technological advances allow thousands of songs to be stored on portable players such as Apple's iPod. The industry said at least 90 percent of Grokster's downloads, about 2.6 billion a month, are of copyrighted songs and movies, which users obtain illegally for free. Donald Verrilli Jr., the attorney representing the entertainment industry, called the software "an intentionally built infringement machine."

Several justices on Tuesday questioned the entertainment industry's arguments, and five specifically raised the possibility of sending the case back to a lower court for trial on the core issues. There has been no trial yet as both sides sought to have judges resolve the case based on court filings.

The companies, Grokster and StreamCast Networks, dispute the industry's statistics and say there is enough legal use of their services to allow them to continue operating. Their attorney, Richard Taranto, asked the justices why peer-to-peer file sharing should be singled out when personal computers, modems and other technologies also facilitate the illegal duplication of copyrighted songs and movies. The entertainment industry is backed in the case by the federal government and the attorneys general of 39 states.

Technology firms such as Intel; their trade associations; and groups of computer scientists, venture capitalists and intellectual property experts have weighed in on the side of Grokster and StreamCast. They say suits against file-sharing-software distributors would discourage inventors.

They warned the court against altering guidelines it set in a narrowly decided 1984 case, Sony v. Universal City Studios, about the liability developers have for the potential misuse of their products.

Those rules have become known as "the Magna Carta of the technology age" because they laid the legal groundwork for the technology boom that began in the 1990s.

HP launches lawsuits over ink

2005-03-31T05:38:00.001-08:00

Re-fillers, copycats miff printer ink giant
INK MAKER Hewlett Packard has begun legal proceedings against two printer ink cartridge firms.

HP claims that a Kansas-based ink-cartridge re-filler, InkCycle, has infringed HP patents in some of the cartridges it uses.

In a separate suit, HP claims a Californian company, Rhinotek, has been misleading customers in to thinking its ink cartridges are new when in fact they aren’t, HP says.

The actions reflect HP’s concerns that printer ink refillers are eating into its profits in the lucrative ink business.

Appeals court hits redial on mobile phone lawsuits

2005-03-31T05:38:00.000-08:00

The mobile phone industry faces fresh challenges in the US after appeal judges on the fourth US Circuit Court of Appeals reinstated five class-action lawsuits claiming that manufacturers have failed to protect consumers from dangerous radiation.

The suits were originally filed in five state courts, before being referred as a group to federal court in Baltimore. The plaintiffs want to force the phone makers to provide headsets, and are seeking punitive damages. They allege that the mobile phone industry broke state laws on consumer protection, product liability, implied warranty, negligence, fraud and civil conspiracy, according to Associated Press reports.

Class-action lawsuit filed over brain collection program

2005-03-31T05:36:00.000-08:00

A lawsuit targeting a brain collection operation in Maine seeks class-action status against a Maryland research lab and other parties, contending they failed to obtain informed consent for the organ donations.

The U.S. District Court lawsuit seeks unspecified damages for the families of each of the 99 deceased Maine residents from whom brains were taken between 1999 and 2003.

It contends the Stanley Medical Research Institute of Bethesda, Md., engaged in a pattern of approaching survivors during a time of grief and requesting the donation of tissue samples. Instead, entire brains were shipped to Bethesda, the lawsuit contends.

"These families were consistently taken advantage of during a profound time of grief," said Greg Hansel, a Portland attorney who brought the lawsuit.

Insurer to settle $415 million in asbestos claims

2005-03-31T05:35:00.000-08:00

An insurance company has agreed to pay $415 million to settle asbestos claims against a unit of McDermott International Inc.
The agreement between McDermott's Babcock & Wilcox unit and Equitas Ltd., the reinsurer for Lloyd's insurance underwriters, was announced Tuesday. It must be approved by a judge supervising the federal bankruptcy case of Babcock & Wilcox and McDermott's board of directors, said John Nedder, McDermott's general counsel.

Babcock & Wilcox, which makes a steam generators, sought bankruptcy protection in February 2000 largely because of expenses related to asbestos injury lawsuits.

The unit won court approval in October for its plan to come out of bankruptcy by putting $1.75 billion of assets into a trust to pay more than 222,000 asbestos injury claims.

Equitas was set up in 1996 to deal with massive exposure faced by London-based Lloyd's that threatened to bankrupt the world's oldest insurance market.

Watseka investigates class action lawsuit options

2005-03-30T08:10:00.000-08:00

The Watseka city attorney is investigating the city's part in a class action lawsuit filed against the maker of body armor.

Watseka Police Chief Roger Lebeck told the city's Public Safety Committee last night.
Lebeck said the company has filed for Chapter 11 bankruptcy. In the meantime there is an allegation "and it is an allegation at this point", he said, that some fibers in some of the vests are not up to standards.

Some officers are wearing vests with those fibers, he said.

EA hit with shareholder lawsuits

2005-03-30T08:08:00.000-08:00

Leading video game publisher Electronic Arts was hit with a flock of shareholder lawsuits Tuesday stemming from the company's surprise profit warning last week.

The four class-actions suits charge that EA issued false and misleading public statements before the warning, which prompted a dramatic dip in EA's share price.

EA announced March 21 that it now expects to report net earnings of $1.62 to $1.64 per share for its 2005 fiscal year, which ends March 31. The company previously had forecast a per-share profit of $1.82 to $1.87.

EA blamed the shortfall on a number of factors, including unexpectedly strong competition at the end of 2004 from games such as "Halo 2," "Grand Theft Auto: San Andreas" and the online fantasy game "World of Warcraft."

Arthur Andersen class action suit begins

2005-03-30T08:06:00.000-08:00

A lawyer for a group of WorldCom Inc. stockholders and bondholders said former auditor Arthur Andersen LLP was more concerned with "lining its own pockets" than catching a massive accounting fraud at the telecommunications company.

As opening statements began in a class-action lawsuit here on Tuesday, Sean Coffey, who is representing the case's lead plaintiff New York State Common Retirement Fund, said auditors at Arthur Andersen were the only people in a position to catch the fraud and put a stop to it early.

Instead of asking tough questions of WorldCom's top executives or continuing to demand access to company records, Andersen shrugged its shoulders and acquiesced to a client that paid the firm more than $40 million in auditing and consulting fees in a three-year span, Coffey said.

Class action filed over Pitt's new hoops ticket policy

2005-03-30T08:05:00.000-08:00

An attorney filed a class-action lawsuit challenging the University of Pittsburgh's new basketball season ticket policy, which lets the school reassign some seats depending on how much a ticket holder donates to the school.

"Many hardworking people who have been loyal supporters of Pitt for decades could lose their seats or have their seats changed every year under this new plan," attorney and season ticket holder John Stember said Tuesday.

Securities Class Action Recovery Pool Tops $15 Billion

2005-03-30T08:03:00.000-08:00

In a recently completed
analysis of securities class action cases, Claims Compensation Bureau has
determined that the recovery pool of pending distributions now exceeds $15
billion. This figure includes all cases where investors' claims have not yet
been distributed whether the filing deadline has passed or not.
   "Investors don't realize that they can file claims up to the time a judge
approves distribution of the settlement funds," said Brad Heffler, chief
executive of Claims Compensation Bureau, the company that pioneered class
action filing services on behalf of institutional shareholders.

Blockbuster Video Settles "No Late Fees" Lawsuits

2005-03-30T07:22:00.000-08:00

The nation's largest movie-rental chain has agreed to pay $630,000 to stop a lawsuit by 47 states that say people were misled by the new "no late fee" policy.

Blockbuster Video also says it will provide more information about its "no late fee" policy to forgetful movie watchers.

From now on, receipts will show the amount customers would owe for failing to return a movie within a seven-day grace period. Stores will also post more signs and provide more detailed information.

After the new policy went into effect, customers were charged the full retail price of the movie -- minus rental charges -- if it was more than seven days late.

Blockbuster's CEO says customers will get refunds for those charges.

Consumers who feel entitled to a refund can obtain complaint forms at Blockbuster stores or by calling the state Consumer Protection office toll-free, 1-800-998-0700.

Requests for refunds must be made by April 27, 2005, or after April 27th, within seven days of first discovering that late fees were charged. No refund requests will be granted after September 27, 2005.

Texas Asbestos Bill Passage Likely

2005-03-23T06:07:00.000-08:00

A Texas bill aimed at curbing asbestos and silica injury lawsuits will likely see favorable action before the beginning of next month, said one insurance lobbyist.

Sen. Kyle Janek, R-Houston, introduced a measure last week that would permit only people who have a serious illness caused by the inhaling of asbestos or silica (a sand byproduct created by sandblasting) to sue companies involved with those materials.

The bill also eliminates time limitations on the filing of such lawsuits so that people who have been exposed to asbestos or silica fibers, but who are not yet sick, can sue if they contract a related illness.

John Marlow, assistant vice president for the American Insurance Association, said the bill introduced in the 2003 session used the so-called “inactive" court docket approach to curb suits in which potential claimants formally filed suit, but the action was left in limbo until symptoms developed.

That bill fell just two votes short of attaining the two-thirds majority to reach the Senate floor. “We feel this new approach of eliminating the statute of limitations has more support,” Mr. Marlow said. “We are hopeful that we could see favorable action in the early part of April.”

Republicans control both houses of the legislature, as well as all statewide elective offices, Mr. Marlow noted.

AIA spokesperson Brenda O'Connor said the measure is just one of several like proposals under consideration in statehouses across the country.

In addition to Texas, Florida, West Virginia, Maryland and Georgia have similar bills pending in their statehouses, Ms. O'Connor said. Ohio lawmakers have already approved such legislation.

“We are very encouraged by the movement of the states on this issue,” Ms. O'Connor said.

The Maryland House Judiciary Panel will hold a hearing tomorrow on a bill that would create a cause of action stemming from a latent disease when the symptoms occur, rather than when the exposure took place.

A January study by the Washington-based Environmental Working Group estimates that nearly 1,000 Texans a year will die from asbestos-related diseases between 2015 and 2020.

According to a RAND Institute study, more than 600,000 asbestos-related lawsuits have been filed in the U.S., which have resulted in estimated costs of $54 billion.

Ridgeway calls for equal treatment of asbestosis sufferers

2005-03-23T06:06:00.000-08:00

Australian Democrats Senator Aden Ridgeway says Aboriginal miners have as much right to claim for compensation as any other sufferers of asbestos-related illnesses.

Senator Ridgeway says James Hardie has as much legal and moral obligation to the people of Baryulgil in northern New South Wales as it does to other former workers of their asbestos operations.

In the past few weeks, the Dust Diseases Board and the Asbestos Diseases Foundation have tested people who came into contact with the James Hardie asbestos mine at Baryulgil.

Senator Ridgeway believes there will be legitimate claims for compensation and he hopes the New South Wales Government and the ACTU will support the Aboriginal people, as they have other ex-miners.

"Certainly what I'm calling for is equal treatment under the law," he said.

"If an Aboriginal man can go and work in the mines and end up with asbestosis, then he should be treated no different to any other person just because of the colour of his skin."

ABB to Reorganize Subsidiaries to Settle Asbestos Claims

2005-03-23T05:42:00.000-08:00

ABB said Monday that it has reached an agreement to reorganize Combustion Engineering (CE) and ABB Lummus Global to resolve the asbestos claims against both companies.

The amended agreement requires ABB to contribute an additional $232 million to the trust fund that will pay all outstanding asbestos claims. This contribution will be derived from the sale of ABB Lummus Global assets within two years of the plan's effective date or by a direct contribution from ABB, the company said in a statement.

"I am pleased that the cooperative efforts of the parties involved have resulted in a commonly agreed proposal for an amended plan in this short period of time," said Fred Kindle, ABB President and CEO. "This agreement is a vital step towards a final resolution of our asbestos issue."

ABB said the parties intend to cooperate to produce an amended plan of reorganization expeditiously, with a view to prompt confirmation by the bankruptcy court.

Builders Commend Swift Congressional Approval Of Class Action Tort Reform

2005-02-17T19:23:00.000-08:00

One more for.

The nation’s home builders today applauded House passage of legislation to rein in class action lawsuits in state courts, noting that the measure will curb the number of frivolous lawsuits that have needlessly cost the business community billions of dollars annually and harmed housing affordability.

“This bill addresses the ongoing abuses in multi-state class action cases, such as forum shopping, where lawyers actively seek out local judges and juries who have the reputation for handing out huge damage awards for plaintiffs,” said NAHB President David Wilson, a custom home builder from Ketchum, Idaho.

S. 5, the “Class Action Fairness Act of 2005,” cleared the House by a wide bipartisan margin, 279 to 149. The legislation is identical to the Senate version passed last week and President Bush is expected to sign the measure into law shortly.

Prior to today’s vote, NAHB sent a letter to every House member urging passage and stating that the association was designating this bill as a key vote because of its significance to the housing industry.

The legislation moves into federal court class action lawsuits when the total amount in dispute exceeds $5 million, and when any plaintiff and the defendant live in different states.

“Because class action cases usually are heard in sympathetic state courts, defendants who are fearful of losing the case and facing potentially large damage awards are likely to settle out of court rather than risk a trial. This means that most class action cases are usually settled before a court even hears the merits of the case,” said Wilson.

“This legislation resolves this problem by shifting class action cases to federal courts, which tend to be more objective in their decisions than state courts,” he added, noting that the measure protects defendants from undue pressure to settle while providing proper safeguards for plaintiffs.

Little Impact on Employment Law Cases

2005-02-17T19:22:00.000-08:00

Littler Mendelson Finds New Class Action Fairness Act Will Have Little Impact on Employment Law Cases

Attorneys at Littler Mendelson, the nation's largest employment and labor law firm, are advising their business clients across the country that they will see little if any change in the way employment-law class actions are litigated as a result of today's passage of the Class Action Fairness Act of 2005.

Still finding a way to make a buck.

Class-Action Bill Flies Through House

2005-02-17T19:20:00.000-08:00

Looks like one group for.

"It looks like we finally crossed the goal line," ACLI spokesman Jack Dolan says. "It appears as if we will finally get sensible reform. Life insurers applaud the House, Senate and the Bush administration for finally getting this bill through the Congress."

Louisiana court to handle initial phases of Vioxx lawsuits

2005-02-17T05:17:00.000-08:00

Can anyone say Ka Ching in LA? Big money coming.

Federal lawsuits alleging the recalled blockbuster arthritis drug Vioxx harmed patients will be transferred to a Louisiana judge experienced in major pharmaceutical litigation for coordinating discovery and other pretrial proceedings.

A panel of federal judges on Wednesday assigned all pending Vioxx product liability lawsuits against Whitehouse Station, N.J.-based manufacturer Merck & Co. Inc. to Judge Eldon E. Fallon of the U.S. District Court for the Eastern District of Louisiana in New Orleans.

"We're pleased with the case being transferred to New Orleans and to Judge Fallon," said lawyer Andy Birchfield.

His Montgomery, Ala., firm already has filed more than 100 Vioxx product liability suits and is evaluating about 20,000 others involving former Vioxx users who suffered strokes or heart attacks.

"The court clearly has the resources to move this litigation forward in an efficient manner, and that's what we're looking for," Birchfield said. "I would consider it a neutral court."

The judicial panel on multidistrict litigation in Fort Myers, Fla., last month heard arguments from Merck and plaintiffs' attorneys on possible locations to handle pretrial steps in the massive litigation. Those steps include overseeing depositions of witnesses, document collection and ruling on pretrial motions.

The panel announced its decision Wednesday.

Merck has said it faces at least 575 individual product liability and personal injury lawsuits over Vioxx, plus another 70 seeking class-action status. The litigation being transferred to Fallon so far includes 148 cases pending in 41 different federal courts.

Fallon has been handling pretrial proceedings since 2000 in thousands of lawsuits involving the former severe heartburn drug Propulsid, withdrawn from the market that year by Janssen Pharmaceutica Inc., part of Johnson & Johnson of New Brunswick, N.J.

A spokeswoman in Fallon's court who declined to be named said Wednesday afternoon that Fallon would issue an order within a few days setting dates for meetings with attorneys to schedule the next steps.

Merck pulled Vioxx from the market worldwide on Sept. 30, saying it was acting in patients' interests after its own research showed Vioxx sharply increased risk of heart attacks and strokes with long-term use. Analysts have since estimated that Merck's legal liability ranges from $4 billion to $30 billion.

"Merck intends to vigorously defend itself," the company said in a prepared statement Wednesday. "Merck acted responsibly every step of the way - from researching the drug prior to approval to monitoring the drug while it was on the market."

Numerous other studies since September also have brought into question the safety of other painkillers in the same class as Vioxx, a category known as Cox-2 inhibitors. They are preferred by many doctors and patients because the drugs don't cause the stomach and intestinal problems associated with other painkillers.

A Merck spokeswoman said Wednesday that the company was pleased with the judicial panel's decision, even though the New Orleans court wasn't one of the three preferred jurisdictions that it argued for back in January. Those included federal courts in Maryland, Chicago and Indianapolis, which spokeswoman Casey Stavropoulos said "have the best resources to handle these cases."

"We are pleased that the court decided to coordinate these various Vioxx cases in a single district court," Stavropoulos said.

Vernon Palmer, a law professor specializing in product liability issues at Tulane Law School in New Orleans, said it appears the judicial panel in Florida was complimenting Fallon in writing that it chose "a jurist experienced in complex multidistrict product liability litigation."

Palmer said Fallon has "a reputation for being fair-minded and balanced. He's a Clinton appointee with Yale and Tulane law degrees, with an even demeanor and, I think, an open mind."

Vioxx had been Merck's No. 2 drug, generating about $2.5 billion in annual revenues. About 2 million people worldwide used Vioxx, which debuted with great fanfare in 1999.

Many of the pending lawsuits were initiated before the recall. Plaintiffs' attorneys and some doctors and consumer advocates allege Merck officials knew of the drug's risks at least a few years ago and should have pulled it from the market sooner.

Plaintiffs allege use of Vioxx caused problems such as heart attacks, strokes, kidney damage and gastrointestinal bleeding. The first cases are likely to come to trial as early as May, probably in New Jersey, Texas, Alabama and California, Stavropoulos said.

Merck said it is still awaiting the panel's decision on which federal court will handle more than a dozen lawsuits filed by shareholders accusing company officers of making misleading statements about Vioxx.

Merck shares fell 33 cents, or 1.1 percent, to $29.02 in trading on the New York Stock Exchange.

Bill would keep food companies out of frying pan

2005-02-16T06:51:00.000-08:00

Minnesotans would have a fat chance of suing the food industry for making them obese under a proposed "Responsible Food Consumption Act," which began advancing Tuesday in the state House.

"It's true that no such lawsuits have been filed yet in Minnesota," chief sponsor Dean Urdahl, R-Grove City, said at a news conference staged in front of tables laden with cheeseburgers, French fries and milk shakes at a St. Paul burger joint. "It's only a matter of time."

Urdahl's bill, co-sponsored by 31 Republicans and three DFLers, would prohibit legal claims against food businesses based on weight gain, obesity or related health problems. Exceptions would be allowed in cases of tainted food or false claims of health benefits, such as if fattening victuals were labeled "zero calories," he said.

The measure is one of dozens like it introduced throughout the United States at the urging of the National Restaurant Association and other food trade groups. So far, 14 states have enacted them, while Wisconsin's Democratic governor, Jim Doyle, vetoed a version passed by that state's Republican-controlled Legislature.

All this legislative activity followed the filing of about 10 suits around the nation, the most notable in New York against the McDonald's fast-food chain. None of the plaintiffs has won in court yet and some of the suits have been dismissed, but Urdahl said that even the litigation piles unfair costs on an industry that employs 12 million people nationwide.

"When this kind of lawsuit succeeds, the ultimate victim is the small-business owner who gets forced out of business by having to pay for someone else's poor decision-making," he said. "The state must send a signal to attorneys who would take on these frivolous lawsuits that they are not welcome here."

Urdahl also said a Gallup Poll found that 89 percent of Americans believe restaurants should not be held liable for an individual's obesity.

The House Agriculture and Rural Development Committee approved Urdahl's bill on an undivided voice vote Tuesday. The next stop is the Civil Law Committee, which is expected to send it to the floor. A companion bill in the DFL-controlled Senate has only two Republican sponsors and has not been scheduled for a hearing.

Court Rejects $280 Billion Penalty Against Tobacco Industry

2005-02-15T06:37:00.000-08:00

I don't get the whole cigarette lawsuit thing.
It's a legal product, it works as intended.
The reality is that it should probably be outlawed.
Far to much money coming in to government coffers for that though.

Source: Philip Morris USA
Published: February 07, 2005

A federal appeals court ruled Friday that government cannot force the tobacco industry to surrender $280 billion in past profits that were allegedly earned by fraud from sales of cigarettes. The decision is a major setback for the government’s case, which is the largest civil racketeering trail in U.S. history.

The U.S. Court of Appeals for the District of Columbia ruled that the civil Racketeer Influenced Corrupt Organizations Act (RICO) does not permit the government to seek disgorgement of past revenues and profits as a remedy in its case against the six largest tobacco companies.

The 2-1 decision by the three-judge panel overturned a lower-court judge who agreed with the government that forcing the tobacco makers to give up $280 billion in past profits was a remedy under RICO, the law the Justice Department sued under.

"The specific civil RICO provision that the government has invoked does not allow for an award of disgorgement," William S. Ohlemeyer, Altria Group, vice president and associate general counsel, said. Ohlemeyer also noted that for the government to obtain any other remedy under the civil RICO statute, it must not only prove that the companies have engaged in fraudulent behavior in the past, but that they are likely to do so in the future.

The government alleges that chief executives from the defendant companies met on December 15, 1953 at the Plaza Hotel in Manhattan where they allegedly agreed to conduct false and misleading public relations and advertising campaigns to deceive consumers and others about the health effects of cigarettes in order to protect their profits.

Senate Approves So-Called 'Class Action Fairness Act'

2005-02-15T06:19:00.000-08:00

Once

The U.S. Senate approved a bill on Thursday that would make it harder for Americans to hold companies accountable that violate state consumer, health, civil rights and environmental protection laws.

The so-called “Class Action Fairness Act” would move most class action lawsuits from state into already overburdened federal courts. Opponents of the bill claim it will keep legitimate claims from being heard because federal judges tend to be less friendly towards such cases.

“Federal judges generally do not certify cases that are based on state consumer protection laws, which means the cases are blocked and can’t be considered on the merits,” Joan Claybrook, president of the consumer group Public Citizen, said. “The result will deny millions of Americans justice for marketplace fraud and deceptive practices.”

The House of Representatives, who already said they would pass the bill, will vote on it this week and then send to President Bush for signing into law.

“The class action bill is a strong step forward in our efforts to reform the litigation system and keep America the best place in the world to do business,” President Bush said in a statement.

The bill is a major victory for Republicans, Corporate America and President Bush that have been pushing for “legal reform” for many years now. It is opposed by more than 80 civil rights, senior, consumer and environmental organizations including AFL-CIO, AARP, ACLU, American Cancer Association, American Heart Association, American Lung Association, Environmental Working Group and Public Citizen.

Passage of the class action bill comes amid scandals of corporate wrongdoing in the auto, drug, health care, finance, insurance and securities industry.

Class action combines thousands of small claims against a common defendant into one lawsuits.

meaningful class action reform

2005-02-14T06:39:00.000-08:00

What it doesn't say is if this is a good dream or a bad dream.

WHAT SEEMED LIKE an impossible dream appears likely to become reality in the next few days.

That dream is meaningful class action reform, made possible by the Senate's overwhelming vote in favor of the Class Action Fairness Act last week. The measure now goes to the House, where approval is a virtual given.

There are lessons to be drawn from the successful effort to get class action reform through the Senate. Some are obvious-that a bill that doesn't enjoy bipartisan support goes nowhere. But some lessons might not be.

One is that the Class Action Fairness Act would deal with procedure rather than substantive law. In fact, it is more venue reform than tort reform. No one loses his or her right to a day in court; all the act does is specify in which court an action can be heard.

That's a lesson that could be applied to asbestos litigation as well. Rather than replace the current litigation-based system with a new and complex trust fund, look to docket reform instead. As has happened in Ohio and some smaller jurisdictions, lawmakers should require a claimant to meet specific medical criteria before pursuing a suit. Once again, no injured party loses the right to a day in court, but that day cannot arrive until an injury has been proved.

The other lesson is one that pro-tort reform forces have had to learn over and over: don't let the perfect be the enemy of the good. And, to be sure, the Class Action Fairness Act isn't as comprehensive as some tort reformers would like.

In fact, class action reform approved in the last session by the House went further than the bill that won Senate approval. But reformers have wisely chosen to stick with something that enjoys broad support. A reform can always be improved later-the hard part is getting it enacted.

Proponents of class action reform legislation suffered numerous bitter defeats before but refused to give up. That persistence, plus a good dose of realism about what could be acceptable to lawmakers on both sides of the aisle, proved to be just the right combination that appears likely to turn an impossible dream into a tangible reality.

CLASS-ACTION CURB: Senate votes to move suits from state to federal level

2005-02-14T06:33:00.000-08:00

The Tribs take on the recent Sentae bill.

Congress took a major step to overhaul the nation's legal system, as the Senate approved a measure long sought by business to clamp down on class-action lawsuits.

Republicans hailed the lopsided 72-26 vote as an important legislative victory.

"The class-action bill is a strong step forward in our efforts to reform the litigation system and keep America the best place in the world to do business," President Bush said.

Republican leaders said they hoped approval of the bill would build momentum for other measures on the GOP agenda, including new curbs on bankruptcy, asbestos litigation and medical malpractice.

Class-action suits allow plaintiffs with claims against the same defendant to combine their cases into one suit.

Under the legislation passed by the Senate, large multistate suits--such as the state governments' lawsuit against tobacco companies, which ended in a $246 billion settlement--would be moved from state to federal court, where judges tend to be more favorable to business and less likely to approve outsize damages.

Class-action lawsuits could be heard in state court only if the damages sought were less than $5 million and more than two-thirds of the plaintiffs were from the same state.

Proponents said the bill was necessary to curb abusesof the system, including "forum shopping," where lawyers file large suits in obscure local courts.

Watch for: Quick approval of this measure to take place in the House, followed by renewed efforts to curb other areas of controversial lawsuits, notably those involving medical malpractice.

Class action crackdown

2005-02-13T10:01:00.000-08:00

Of course the lawyers (as they aare quick to point out) take all of the risk.
Never mind the unkown risk that the victims took in the first place.

Over the years, class action lawsuits have netted consumers $13 rebates on computer monitors, coupons for free movie rentals, $30 discounts on cruise vacations, and free boxes of cereal. But the lawyers who spearheaded those cases were the real winners, typically walking away with millions of dollars in fees.
That's all about to change. The Senate last week approved a bill, expected to sail through the House, that would fundamentally alter the American way of seeking redress against big business and help fulfill one of President Bush's top domestic priorities. Proponents say the Class Action Fairness Act would curb lawyers' shopping for friendly courts as well as limit attorneys' fees in megacases that yield only pennies or worthless coupons for the injured or swindled. But critics say the measure would delay and, in many cases, prevent lawsuits by consumers harmed by dangerous drugs and other products or conned by corporate rip-offs. "Thousands of people who may well have suffered serious injury will come underneath this bill," says Todd Smith, president of the Association of Trial Lawyers of America.
...

Tell it to the feds. The new rules would require that many--if not most--cases involving more than 100 plaintiffs and $5 million be filed in federal rather than state courts. (The bill would not affect securities cases.) Supporters say it is more rational to have cases with nationwide implications heard by the federal bench, instead of by a few pro-plaintiff state courts around the country that have become magnets for litigation, such as Madison County, Ill., where a judge returned a $10.1 billion verdict in 2003 against Philip Morris in a lawsuit claiming its "light" cigarette label was deceptive. But trial lawyers and consumer, environmental, and civil rights groups all argue the changes will sound the death knell for most class action suits, as federal judges tend to move more slowly and are more skeptical of such cases.

A federal court, for example, refused to certify a class action suit alleging Masonite sold defective siding to more than 4.3 million homeowners between 1980 and 1998. But after an Alabama court gave the go-ahead, Masonite agreed to a $2 billion settlement in 1998. Nearly 200,000 homeowners have collected $500 million so far. But class action critics point out that not one of those homeowners reaped quite as much as the plaintiffs' lawyers, who earned $47.5 million.

Other examples of what critics call lopsided justice the bill would halt: Lawyers earned $22 million for suing Thomson Consumer Electronics over TV sets with snowy images, while consumers received $50 rebates on future purchases in a 2001 settlement. That same year, lawyers won $9.25 million for suing Blockbuster over its late-fee policy; class members received coupons for free or $1-off movie rentals. And in many cases, eligible consumers do not even claim a share of a settlement because they don't know about it, the forms are complicated, or they choose not to do business with the company anymore. Under the pending law, there would be tougher scrutiny of so-called coupon settlements, and attorneys' fees would be based on the value of coupons redeemed or the amount of time spent on the case.

...

As reviled as class action lawsuits have become, some argue that even the worst ones had a role in curbing wrongdoing. Democratic Sen. Joseph Biden of Delaware points to a notorious $458 million class action settlement in 1993 by major airlines accused of price fixing: Consumers were awarded flight coupons that had so many restrictions they were virtually worthless. "Guess what happened? The airlines stopped cheating people," he said during debate on the bill. "So I'll pay the bottom feeders their high fees to stop the wrongdoers from doing bad things." But for now, consumers will have to find another way to get at the big fish.

McDonald's Settles Trans Fats Lawsuits

2005-02-13T09:57:00.000-08:00

Once again, McDonalds makes the news. It seems they agree to sharply limit the amount of trans fat they use. End up only partially living up to that, and get sued for it.

By THE NEW YORK TIMES

Published: February 12, 2005

cDonald's agreed yesterday to pay $8.5 million to settle two lawsuits accusing it of misleading consumers about the levels of trans fat in its food.

McDonald's will pay $7 million to the American Heart Association to finance a campaign educating consumers about trans fats, which are considered major contributors to heart disease.

In October 2003, BanTransFat.com, based in Calif., sued McDonald's, prompted by a September 2002 statement by the company that said it was sharply cutting trans fat in its French fries.

Since that statement, the company has run into serious roadblocks in its attempts to find alternative cooking oils. McDonald's still fries its food in partially hydrogenated vegetable oil, which contains trans fat.

McDonald's has said that, while no progress has been made on fries, trans fat levels in its fried chicken products have gone down 15 percent because of changes made by its suppliers. But its 13,000 stores in the United States still use oil containing trans fat to cook chicken, fries and fish.

McDonald's will also spend $1.5 million publicizing the status of its efforts to remove trans fats.

Senate OKs Limit on Class Action Lawsuits

2005-02-10T20:15:00.000-08:00

Does this make sense? I don't think so. How can it be good for you and me to have one judge decide what is best? What happened to trial by jury? If our peers are not good enough, maybe something should be done about the jury system and exemptions given out.
Anyway, below is a snippet of the article posted.

WASHINGTON (AP) - The Senate approved a measure Thursday to help shield businesses from major class action lawsuits like the ones that have been brought against tobacco companies, giving President Bush the first legislative victory of his second term.

Under the legislation, long sought by big business, large multistate class action lawsuits could no longer be heard in small state courts. Such courts have handed out multimillion-dollar verdicts.

Instead, the cases would be heard by federal judges, who have not proven as open to those type of lawsuits.

The Senate passed the bill 72-26. It now goes to the House.

"We look forward to this legislation coming to the House floor next week so we can send it to President Bush, who has made its enactment a top priority," said a statement from House Majority Leader Tom DeLay, R-Texas, House Judiciary chairman James Sensenbrenner, R-Wis., and House Agriculture chairman Bob Goodlatte, R-Va.

"The Senate has taken a critical step toward granting families, consumers and employers relief from the heavy burden of lawsuit abuse," said Thomas Donohue, president of the U.S. Chamber of Commerce. "Now it's time for the House to finish the job and take back our civil justice system from plaintiffs' lawyers seeking jackpot justice."

The Association of Trial Lawyers of America said insurance, tobacco, drug, chemical and other companies had financed the push to get the legislation through the Senate. "Every American's legal rights are diminished by this anti-consumer legislation," said association president Todd A. Smith said.

In Defense of So-Called "Greedy Trial Lawyers"

2005-02-10T13:32:00.000-08:00

As posted on a lawyers web page. Seems a touch self serving, don't you think?
Nothing wrong with that of course.

by Richard M. Alderman
HoustonChronicle.com
October 27, 2002

It's that time of year. No, I don't mean football or hunting season, or concerns about who will win the World Series; I am referring to lawyer-bashing season. That time of year before an election when a group of politicians and editorialists find sport, and apparent political success, in placing the world's ills on the back of lawyers.

Lawyer bashing, more specifically trial lawyer bashing, particularly greedy trial lawyer bashing, is definitely in season. During the past few days I have heard or read something that blamed trial lawyers for everything from the shortage of doctors and the high cost of insurance, to goods that cost more than they should, the unavailability of drugs and other products, and the nursing home crisis. You have heard them, “I promise lower insurance rates, better medical care, more jobs and safer products. My opponent took money from a greedy trial lawyer.” It appears that almost everything, except the Astros' inability to get in the playoffs, seems to revolve around this one profession.

I should point out that I am not a trial lawyer, greedy or otherwise. I am a law professor. I guess I can take credit for teaching those trial lawyers how to mess up an otherwise well-organized, safe and efficient world. It is obvious that if we could just get rid of the lawyers, Firestone and Ford would have voluntarily recalled all of their unsafe tires, and given generous refunds to their customers. And I know for a fact that if there were no trial lawyers Enron and its officers would gladly be giving substantially more generous severance pay and bonuses to the average worker, and all of the securities firms would be returning money they took from investors they misled. If we could just get rid of the lawyers we could still buy cars like the Corvair, football helmets that cripple kids, three-wheeled ATVs, drugs such as fen-phen, polybutylene pipe for our homes and use the Dalkon Shield contraceptive. Without those meddling trial lawyers, cigarette companies could pay their shareholders much larger dividends by keeping the $13 billion they gave the state of Texas to help pay for the costs imposed by smoking. And, of course, the $2.7 billion recently offered by Libya to settle lawsuits would have been given even without a lawsuit. Greedy trial lawyers!

Like it or not, we need lawyers. All of us. We live in a country that regulates health and safety and resolves disputes through the civil justice system. Private trial lawyers make that system work. If your insurance company doesn't pay when it should, your car doesn't run as promised or your physician operates on the wrong leg, your recourse is to hire a lawyer and sue. We need lawyers, trial lawyers, sometimes even greedy trial lawyers. Just ask the doctors who have filed a class-action lawsuit against their HMOs.

True, a jury may sometimes award what sounds like a lot of money. But every juror that does so says the same thing: “We wanted to send a message not to do business that way.” We trust juries to determine the question of life or death; we should also trust their judgment about punishing a business that acts wrongfully.

Whether you have been defrauded by a stock broker, ripped off by a used-car dealer, injured as the result of a careless doctor, lost a parent to nursing home negligence or had medical problems because of a drug that didn't work as promised, trial lawyers are your only hope for compensation. And more importantly, lawsuits and the threat of lawsuits are the only way the marketplace will regulate and stop such practices.

I concede that some lawyers are overzealous in the pursuit of a defendant, and some juries act out of malice or revenge instead of justice, but such cases are the exception not the rule. In fact, most outrageous trial court judgments you have read about were quietly reversed on appeal. The system usually works, and works well.

The so-called abusive tactics used by lawyers, such as class actions, punitive damages, and damages for mental anguish and pain and suffering, are often necessary to make sure that companies do not find it economically beneficial to continue an undesirable practice, simply including the occasional lawsuit as a cost of doing business.

Lawyer bashing costs us all. The consequence of focusing on lawyers instead of issues, and placing blame on one party to a system that we all need, is to deny us the meaningful debate that is necessary to elect competent public officials. More importantly, lawyer bashing often results in the deterioration of rights so many of us often need. Next time a politician starts criticizing trial lawyers, ask what is proposed as an alternative.

Alderman is a professor and Dwight Olds Chair in Law at the University of Houston Law Center.

Everyone knows what you're talking about when you mention "the McDonald's lawsuit." Even though this case was decided in August of 1994, for many Amer

2005-02-10T13:22:00.000-08:00

I decided to do a search about this case.
Interesting reading, although it's still hard for me to come down on the plaintiff's side.
Although did it casuse McDonald's to change the way they do business?
There were apparantly 700 cases or reported burns before this lawsuit.
Any after?
Is their coffee any better? Apparently, the high temp brewing made it possible for them to increase cups per pound at the cost of flavor.

McDonald's Callousness Was Real Issue, Jurors Say, In Case of Burned Woman

How Hot Do You Like It?

ALBUQUERQUE, N.M. - When a law firm here found itself defending McDonald's Corp. in a suit last year that claimed the company served dangerously hot coffee, it hired a law student to take temperatures at other local restaurants for comparison.

After dutifully slipping a thermometer into steaming cups and mugs all over the city, Danny Jarrett found that none came closer than about 20 degrees to the temperature at which McDonald's coffee is poured, about 180 degrees.

It should have been a warning.

http://www.vanfirm.com/mcdonalds-coffee-lawsuit.htm

As posted on a lawyers web site.

President Participates in Class-Action Lawsuit Reform Conversation

2005-02-10T11:21:00.000-08:00

Direct from the Whitehouse.
Once you get past a few paragraphs of thank yous, it's a fairly interesting read on GW's position on lawsuit reform.

"I've called upon Congress to work with the administration on legal reform, whether it be to reform the asbestos litigation issue or medical liability reform to make sure medicine is cost-effective to our citizens, or whether it be class-action reform. Legal reform is part of a larger agenda to make sure this economy of ours continues to grow. "

With continued reading, it is amazing to me how politicians are so adept at hitting all their points, not just what they are talking about.

Senate Nears Vote on Class Action Lawsuits

2005-02-10T11:16:00.000-08:00

The Senate appears ready to give President Bush his first big win of the year by shifting many class action lawsuits from state courtrooms to more restrictive federal courts to curb multimillion-dollar verdicts.

By fighting off Democratic amendments, the GOP-controlled Senate has so far preserved an agreement with the Republican-controlled House to move the legislation through unchanged. Final Senate votes were planned as early as Thursday.

With the Senate having done its part, the House is expected to wrap up the legislation quickly next week and send it to the White House to be signed into law.

"We are, in fact, on the eve of passing class action reform that will restore fairness to the judicial system in this country," said Sen. John Thune, R-S.D., on Thursday. "Our tort system is broken. And without the necessary reforms beginning with class action lawsuits, we deny our nation not only fair and efficient access to justice, but we allow this problem to pull our economy downward."

"This bill, like most, is not perfect. But I believe that it represents the best that can be done to solve what is a real problem in our legal system," said Sen. Dianne Feinstein, D-Calif.

Opponents of the bill say it is aimed at helping businesses escape multimillion-dollar judgments for their wrongdoing and would hurt lawyers trying to litigate those cases.

It would be a shame if lawyers were unable to make their full cut. Perhaps they should get paid on a hourly basis? Perhaps on a "progressive" basis similar to the oh so efficient tax code?

Is Torte Reform Necessary?

2005-02-10T10:02:00.000-08:00

It seems that the last few election cycles, torte reform has become "critically important".
Me, I'm not so sure.
Don't we have some responsibility to look after ourselves?
If we put hot coffee between our legs in a moving car, do we deserve millions if we get wet?
Don't we deserve something if a company blatantly lies to us so it may continue to generate sales?
This won't be merely about asbestos lawsuits or coffee at McDonalds, but about the legal system in general.
Ride along as I post stories found in the press and comment as I see fit from a layman's point of view.
Enjoy.