In the federal tobacco suit (Jun. 21, Jun. 13), the government has asked the Supreme Court to overrule the D.C. Circuit and give the government the legal authority to pursue $280 billion in a disgorgement remedy. There’s very little chance the Court will take the interlocutory appeal. (Eric Lichtblau, “U.S. Seeks Higher Damages in Tobacco Industry Suit”, NY Times, Jul. 19); SCOTUSblog, Jul. 18; certiorari petition). Meanwhile, Judge Gladys Kessler has taken the unusual (and questionable) step of permitting “public-interest” groups to intervene in the case and take over the government’s argument for damages, which is perhaps a clue where she stands on the litigation, leaving open the question of whether the D.C. Circuit will countenance the result. (Mark Kaufman, “A Late Twist in the Tobacco Case”, Washington Post, Jul. 23; motion to intervene).
Archive for July, 2005
Kids’ do-not-email registries
New laws that went into effect in Michigan and Utah at the beginning of the month could open up substantial and surprising areas of civil and criminal liability for entities that put out email newsletters, critics say. The laws authorize parents, guardians and others to enroll minors’ email addresses in new do-not-mail registries; after 30 days’ listing, it becomes illegal for anyone to send material unsuitable to minors to such addresses even at the account holder’s request. Among material that has in various contexts been tagged as unsuitable to minors are sites such as Salon.com and discussions of various controversial public issues. (Declan McCullagh, “Why ribaldry could earn you prison time”, News.com, Jun. 27). According to one commentator, an email may be unlawful if it merely contains a link to a third party site (such as a newspaper’s or magazine’s website) which in turn displays advertising for beer, wine, betting or other products and services that are off limits to minors. (Paul Collins, “New Michigan and Utah Child Protection Registry Laws”, spamfo.co.uk, Jun. 29). Already, libertarian feminist author and FoxNews.com commentator Wendy McElroy has suspended publication of her email newsletter, citing fear of liability under the new laws (“Suspension of Emailed Ifeminist Newsletter”, History News Network/Liberty & Power, Jul. 13)(via Tom Palmer). It is contemplated that maintainers of email newsletters that wish to retain the right to discuss or link to liquor/gambling/off-color content will purchase match/purge services on a monthly basis from the registrars of the do-not-mail lists, but such cross-checking will require the payment of fees as well as raising troubling privacy questions. For details of how entrepreneurial Utah law firms have seized on earlier anti-spam legislation to generate mass litigation against legitimate businesses in that state, see my Reason Online article, “You May Already Be a Loser”, Dec. 8, 2003.
Mississippi lawyer squabble
A reader characterizes:
I admit I get a perverse pleasure when I see the sharks feeding on each other. But this is just too good. Lawyer Luckey gets caught altering dates on asbestos claims, gets fired by Scruggs for altering the dates but then has the chutzpah to demand his cut of the contingency fee loot… and the judge gives it to him! I guess no one ever thought any disciplinary actions on anyone’s part was needed or indicated.
And it’s even sillier than that: the bulk of the damages appears to be for tobacco claims the partnership financed after Luckey was kicked out in 1993, triggering twelve years of litigation. Magistrate Judge Jerry Davis of the federal court in Oxford, Mississippi, awarded $13 million plus attorneys’ fees; the parties appear to have cut a deal so that there will be no appeal. (Leesha Faulkner (!), “Scruggs slapped with $13M settlement over partnership”, Northeast Mississippi Daily Journal, Jul. 22). More on Richard “Dickie” Scruggs: Jun. 15, Apr. 30. This appears to be the culmination of the fight that resulted in subpoenas to the Mississippi Supreme Court over Scruggs’s alleged influence there; at the time, Scruggs pooh-poohed the allegations, arguing that the dispute was only worth a few thousand dollars, and therefore not something worth risking improper influence over. (Jerry Mitchell, “Attorney testifies in justice probe”, Jackson Clarion-Ledger, May 17, 2003; “Lawyer, Former Colleagues Dispute Fees”, AP/Biloxi Herald, Mar. 27, 1998). Alwyn Luckey represents approximately 1500 Mississippi silicosis plaintiffs, so his troubles may not be over. (Updated from Jul. 23 post.)
Update: suing the goal post maker
Updating our Sept. 30, 2003 item: an attorney for Andrew Bourne of Liberty, Ind., says his client will appeal a recent court ruling that found that a manufacturer of goal posts, Connecticut-based Gilman Gear, is not responsible for injuries Bourne sustained when his fellow Ball State students toppled a goal post after a 2001 football victory. (Brian Zimmerman, “Paralyzed man will appeal ruling”, Richmond (Ind.) Palladium-Item, Jul. 23).
Update: Larry Klayman and respectability
Litigious gadfly Larry Klayman (Apr. 16-17, 2002), having cut a rare publicity swath filing mostly long-shot legal actions against both the Clinton and Bush administrations, is now setting up a Florida office on behalf of a more conventional-seeming law firm, Cleveland, Ohio-based Walter & Haverfield. (Jessica M. Walker, “Ohio Firm Taps Judicial Watch’s Klayman for Miami Launch”, Daily Business Review, Jul. 15). For more on Klayman, see Jacob Weisberg, “Nut Watch”, Slate, Jun. 6, 1998 (sues own mother), Curmudgeonly Clerk, Sept. 23, 2003 (similar). But at least Alan Keyes admires him (Timothy Noah, “Larry Klayman for Attorney General”, Slate, Jan. 24, 2000).
Wisc. high court opens paint-suit floodgates
After getting thrown out of court pretty much everywhere else, trial lawyers suing companies that long ago manufactured lead paints and pigments may have finally achieved their long-sought breakthrough. They are indebted for this benefaction to the Wisconsin Supreme Court, within days of the same court’s baldly activist decision (PoL Jul. 14) to strike down the state legislature’s limits on medical malpractice awards. By a 4-2 margin, the court agreed to apply the theory of market-share liability — widely rejected by courts except in the context of suits over the drug diethylstilbestrol (DES) — to hold liable any and all companies which made paints and pigments sold in Wisconsin, regardless of whether a plaintiff claiming injury can demonstrate whose product he or she was exposed to. The court did not apply any statute of limitations and impatiently brushed aside defendants’ objections that the conduct being sued over took place more than a century ago — the houses in which the teenage plaintiff had been exposed to lead paint were built in 1900 and 1905 — and was lawful according to the standards of that time. “It will be nearly impossible for paint companies to defend themselves or, frankly, for plaintiffs to lose” under the newly announced standard, predicts dissenting justice David Prosser. If he’s right, expect a gold rush by client-chasing lawyers in Wisconsin. (J.R. Ross, “Court Allows Teen to Sue Lead Paint Pigment Makers for Injuries”, AP/Law.com, Jul. 18). For more on paint litigation, see this set of links, Dec. 15, 2003, Jul. 2, 2005, etc.
Also at Point of Law
Along with a great deal of other discussion of the John Roberts nomination (for which see the site’s special Supreme Court nominations page), Point of Law has kicked off a featured discussion of the confirmation saga by two distinguished contributors, U. of Chicago lawprof Richard Epstein and Northwestern lawprof Stephen Presser (more).
Some other recent highlights at the site: Jim Copland and Jonathan Wilson on the Texas Merck trial, Wilson on Georgia’s new rule regarding “offers of judgment”, and posts from me on an expansion of ADA coverage, school finance suits, the retention by Oklahoma’s attorney general of private tort lawyers to sue chicken farmers in nearby Arkansas, an appeals court approves RICO suits against employers of illegal aliens, health care qui tam actions, the “cab-rank” principle in legal ethics (observed more in Britain than here), and Astroturf in the liability wars.
Corporate governance at Point of Law
White-collar prosecutions, securities and accounting law and corporate governance in general have come in for much attention of late at our sister site. Lyle Roberts (no relation to John that we know of), who puts out the excellent securities law blog 10b-5 Daily, dropped by as a guest the other week to contribute posts on, inter alia, the record of the PSLRA and the Supreme Court’s history of dodging questions in this area. Ted Frank discusses the Bernie Ebbers sentence as well as a new NERA study on securities lawsuits, while Martin Grace, Jonathan Wilson and I all post on different aspects of the Sarbanes-Oxley law. I’ve also got brief items on Chris Cox as Bill Lerach’s nightmare nominee and on the much-discussed Larry Thompson memo laying out ground rules for corporate prosecutions at DOJ.
Update: Alabama Vioxx judge
Updating our Apr. 28 item on Rogers v. Merck: the Washington Legal Foundation has filed a judicial misconduct complaint (Jun. 21, PDF) against Alabama Circuit Judge John Rochester, saying he should have disqualified himself from hearing the suit brought by the firm of Beasley Allen, which according to an April AP report had last October donated $60,000 to his unsuccessful campaign for a seat on the state’s high court. Judge Rochester characterized the complaint as meritless, saying “attorneys for Vioxx’s manufacturer, Merck & Co., had not complained about the donations and had not asked him to step aside from the case.” (“Complaint Filed Against Vioxx Case Judge”, AP/Forbes.com, Jun. 21).
NY schools drug counselor caught with cocaine can be fired
And it only took three years of litigation to reach that result. Michael Campbell and the New York State United Teachers Union sued to get Campbell his job back at Intermediate School 72 after he was caught in his car with ten aluminum bags of cocaine, and a hearing officer and a trial court agreed before the appellate court reversed. There might be still another appeal. Taxpayers can thank Campbell’s lawyer, James R. Sandner, and lower court judge Debra A. James. (Samuel Maull, “Appeals court says teacher arrested as drug suspect should lose job”, AP/Newsday, Jul. 7 (via EdWatch); opinion).