In a rural corner of Alabama, four different mobile home manufacturers get sued for alleged defects and independently agree to accept arbitration of the lawsuits. Each of them then gets whacked by the arbitrator for an award ranging from $360,000 to $590,000, even though the plaintiff’s own expert didn’t claim damages to any of the mobile homes exceeding $5,000. After the companies learn of each other’s misfortune, they begin comparing notes. “What they found, according to court records, were startling similarities in the cases, including undisclosed connections between the arbitrator, Grove Hill lawyer Spencer Walker, and Butler lawyer Jeff Utsey, the plaintiff’s attorney in all four cases. … In a blistering affidavit cited prominently in the [Alabama] Supreme Court’s decision [a unanimous decision in February to reopen one of the cases], Birmingham lawyer Joel Williams laid out evidence to support his contention that the awards resulted from a secret deal between Walker and Utsey, and that the men received assistance from a third lawyer, David Jordan of Brewton. …’The facts strongly suggest that this general plot to “set up” manufacturers was hatched in early 1999,’ Williams stated in his affidavit.” Perhaps even more remarkable, it seems the state bar association blessed attorney Utsey’s questionable conduct beforehand in an opinion letter in that year. This one looks like it will be worth watching (Eddie Curran, “Arbitration awards raise questions”, Mobile Register, Sept. 21).
Archive for October, 2003
Murr to plead guilty in tobacco-fee case
Overlawyered gets results
On Aug. 27 we said we hoped Arnold Schwarzenegger would tell us where he stood on s. 17200, the state’s abuse-ridden business practices act. Now his campaign has published its official agenda, and not only is “End the Litigation Lottery” Plank #3 in “Arnold’s Five Point Plan for Economic Recovery”, but reform of s. 17200 is the first specific to be listed, along with reform of employment litigation and specifically age discrimination law (California accords more liberal treatment to such claims than does federal law). “California’s runaway litigation system has become a trial lawyer’s paradise — encouraging frivolous lawsuits and outrageous settlements that are bleeding money from businesses while driving the cost of virtually everything higher for average consumers.” (Californians for Schwarzenegger, “Agenda”, undated).
Hazards of being under arrest
The city of Greensboro, N.C. says it will probably appeal a jury’s award of $1.5 million to a man who was under arrest in the back of a police car when the officer driving the car slammed on the brakes to avoid an accident. John A. Clayton III filed a lawsuit claiming permanent back injuries; the city unsuccessfully cited the views of doctors that the impact could not have produced the complained-of injuries. (AP/Charlotte Observer, “Man hurt in police car awarded $1.5 million”, Sept. 28; Wilmington Star-News, Sept. 27).
Mississippi lame duck Supreme Court Justice troubles
Mississippi has an unusual system where not only do its state Supreme Court justices run for election (complete with full-scale television advertising), but the judges elected in November 2002 don’t take their seats until January 2004. Justice Chuck McRae (see Sep. 9, 2002) finished a distant third in 2002. (Robert Lenzner and Matthew Miller, “Buying Justice”, Forbes, Jul. 21). Now his fellow Justices have raised a complaint that he is acting petulantly as a lame duck, delaying cases and threatening violence. The unprecedented public hearing on whether to suspend Justice McRae will be held later this month. (Matt Volz, “Justices allege misconduct by McRae”, AP, Sep. 29; Jerry Mitchell, “Public to get rare glimpse of high court”, Hattiesburg American, Sep. 30; Eric Stringfellow, “McRae’s lame-duck term harmful to high court”, The Clarion-Ledger, Sep. 30). The Mississippi Supreme Court has had other troubles recently, as this site discussed on Aug. 19.
Update: (Jerry Mitchell, “2 justices must testify in McRae case”, The Clarion-Ledger, Oct. 3).