Posts Tagged ‘asbestos’

Liability roundup

“The Story of Asbestos Litigation in Texas and Its National Consequences”

Texas was once the largest center of asbestos litigation in the U.S., with mass recruitment of workers claiming injury from past exposure although displaying no symptoms. Now, more than 40 years after the landmark Fifth Circuit Borel v. Fibreboard case which originated with a Beaumont worker’s complaint, Texas has enacted the nation’s most extensive legislation laying down rules for the conduct of asbestos litigation, much of it aimed at curtailing cases with poor evidence of causation or injury. A new report from Texans for Lawsuit Reform describes and defends the state’s actions.

Litigation reform moving fast through House of Representatives

With both Congress and White House now in Republican hands, the U.S. House of Representatives is moving with dispatch to consider a series of litigation reform measures, some stalled for years by Democratic opposition and others of relatively recent vintage. Bruce Kaufman at BNA Bloomberg has a three-part series (first, second, third) followed by an update today on the looming battle over the six main bills:

  • The Lawsuit Abuse Reduction Act (H.R. 720) “requires judges to impose mandatory sanctions on attorneys who file ‘meritless’ civil cases in federal courts.”
  • The Fairness in Class Action Litigation Act (H.R. 985) which “affects nearly all facets of class action practice” and in particular “class certification requirements, capping or delaying distribution of fees to class counsel, requiring the disclosure of litigation financing, and tying the reporting of settlement data to plaintiffs’ lawyers’ fees.” [More: various academic opponents weigh in here, Andrew Trask defends provisions of the bill here and here, and see earlier]
  • The Innocent Party Protection Act (H.R. 725) “targets what is known as fraudulent joinder—the improper addition of [local] defendants to suits in a bid to keep cases in more plaintiff-friendly state courts.”
  • The Furthering Asbestos Claims Transparency Act (H.R. 906) “mandates increased reporting of payments to plaintiffs by trusts that pay out asbestos exposure claims against bankrupt companies,” in hopes of preventing undisclosed duplicative collection of damages over the same injury.
  • The Stop Settlement Slush Funds Act (H.R. 732) which “seeks to bar the Department of Justice from entering into settlements that steer funds to favored third-party groups.”
  • The Sunshine for Regulatory Decrees and Settlements Act (H.R. 469) Goes after what have been called “sue-and-settle” processes at EPA in which the agency reaches concessionary terms with ostensibly adverse litigants who seek to expand its authority.

Trial lawyers and allies in the Litigation Lobby aren’t standing idly by: “opponents hope to gum up the works.” Even if many bills clear House passage, getting to 60 votes in the Senate in the face of filibuster threats could prove difficult, despite the departure of perennial trial lawyer ally Harry Reid (D-Nev.), and the views of President Trump are not entirely clear. More: Washington Examiner editorial on class action measures.

Asbestos roundup

“Smoker dies of lung cancer, family wins $12.5M after blaming asbestos”

“The family of a man who claimed his lung-cancer death was caused by asbestos exposure was awarded $12.5 million by a Manhattan jury — despite the fact that he smoked two packs of cigarettes a day.” Defendant Caterpillar Tractor probably won’t be on the hook for the full amount since the jury found the late George Cooney, a New Jersey resident, partly responsible for his own injury. [New York Post]

“Law firm ‘bonuses’ tied to political donations”

After initially resisting, Sen. Elizabeth Warren (D-Mass.) has agreed to return nearly $130,000 in donations she and her PAC received from the Boston-based Thornton Law Firm, known for asbestos plaintiff’s litigation. An investigation found the law firm paid $1.4 million in bonuses in patterns strongly suggesting they were being used to cover “straw donations” nominally from partners [co-published Boston Globe/Open Secrets story; New York Post]

From 2010 through 2014, Strouss and Bradley along with founding partner Michael Thornton and his wife donated nearly $1.6 million to Democratic party fundraising committees and a parade of politicians from Senate minority leader Harry Reid of Nevada to Hawaii gubernatorial candidate David Ige to Sen. Elizabeth Warren of Massachusetts. Over the same span, the lawyers received $1.4 million listed as “bonuses” in Thornton Law Firm records; more than 280 of the contributions precisely matched bonuses that were paid within 10 days.

That payback system, which involved other partners as well, helped make Thornton the 11th-ranked law firm nationally for political contributions in 2014, according to data analyzed by the Center, even though the firm is not among the 100 biggest in Massachusetts, much less the U.S.

Capitol Hill recipients of Thornton money include many figures who have played a role in blocking asbestos litigation reform, including Sens. Chuck Schumer (D-N.Y.) and Lindsey Graham (R-S.C.), and then-Sen. Joe Biden (D-Del.).

Litigation roundup

  • Settlement insurance, a new litigation-finance mechanism, can have the unintended result of casting light on just how little benefit some class actions provide to consumers [Ted Frank, CEI] Yet another new litigation finance mechanism: trial-expense insurance purchased by lawyers [Bloomberg/Insurance Journal]
  • South Carolina law firm sues 185 different defendants in the average asbestos case it files, and it’s still far from tops in that department [Palmetto Business Daily]
  • “Those terms and conditions (that nobody reads) could cost New Jersey retailers” [Tim Darragh, NJ.com on class actions under pre-Internet-era state consumer protection law]
  • Some federal courts, while paying lip service to the important Rule 26 discovery reforms that took effect Dec. 1, continue in their old ways, “effectively applying the old standard” [James Beck]
  • “Can Pokémon Go and Product Liability Coexist?” [Julie Steinberg, BNA/Product Safety & Liability Reporter, earlier]
  • “How does privatization affect liability?” [Sasha Volokh]

Liability roundup

Liability roundup

  • Cohen Milstein contracts with attorney general on opioid claims: “New Hampshire’s fleet of private pirate lawyers” [editorial, Manchester Union-Leader] Transparency in Private Attorney Contracting (TiPAC) legislation would help [Tiger Joyce] New Louisiana AG Jeff Landry cancels Buddy Caldwell contracts with outside law firms [Louisiana Record] States with governor-appointed AGs have seen fewer scandals than the majority in which the post is elected [Phil Goldberg, RCP]
  • Judge declines to dismiss Newtown families’ suit against rifle maker Remington Arms, PLCAA notwithstanding [Connecticut Post] Sandy Hook gun lawsuit “almost surely won’t succeed, nor should it.” [USA Today editorial] More: David French [extremely narrow ruling went to jurisdiction only, PLCAA as bar to recovery explicitly not at issue]
  • Sen. Dick Durbin, long a guardian of trial lawyer interests, leads opposition to federal bill on transparency in asbestos claims [Illinois Business Daily]
  • Judge tosses one wrongful death suit against Porsche over Paul Walker crash, another still pending [EOnline, earlier] GM ignition bellwether trials going exceptionally badly for plaintiffs as judge dismisses all but one claim in spun-out-on-black-ice case [Daniel Fisher]
  • Litigation destroys business confidentiality and that’s by design [Steve McConnell, Drug and Device Law]
  • “Justice Scalia’s Product Liability Legacy” [Anand Agneshwar and Emily M. May (Arnold & Porter), Lexology]
  • After State Farm defeats hailstorm claim, judge threatens to sanction Texas attorney Steve Mostyn [Southeast Texas Record]