Archive for March, 2006

Suing Craigslist — with your money

The federal taxpayer, by way of the Department of Housing and Urban Development, funnels substantial sums to private “fair housing” advocacy groups for purposes of suing landlords, newspapers, and other likely suspects over alleged housing discrimination; raising consciousness among potential claimants and others; and generally promoting expansive readings of housing-bias law. For example, in this listing of $20 million worth of fiscal 2002 grants, HUD boasts of bestowing $242,339 on the Chicago Lawyers’ Committee for Civil Rights Under Law, Inc. for something called its Private Enforcement Initiative (PEI), described as follows:

While addressing the needs of minorities in the metropolitan Chicago area, the Chicago Lawyers’ Committee for Civil Rights will increase awareness of fair housing rights; empower victims to report incidents of discrimination; develop credible, legitimate evidence to support discrimination complaints; increase the number of complaints referred to HUD for enforcement; and provide relief to discrimination victims. Utilizing access to pro bono attorneys from Chicago’s most prominent law firms, as well as their resources, the Chicago Lawyers’ Committee will receive, document, and investigate individual complaints of discrimination.

If the Chicago Lawyers’ Committee sounds vaguely familiar, it’s probably because it’s the group that last month filed a widely criticized lawsuit against Craigslist (Feb. 9, Feb. 20) seeking to force the online service to pre-censor users’ postings of roommate and other housing classifieds (rather than just pull them off after complaints, as now).

Even if the Chicago Lawyers’ Committee suit fails in court — as is widely expected — the controversy is likely to continue. In yesterday’s New York Times, Adam Liptak says the activists are likely to push for federal legislation stripping website operators of their current protection against being held liable for users’ postings. (“The Ads Discriminate, but Does the Web?”, Mar. 5). Don’t assume that “fair housing” advocates are powerless on Capitol Hill these days, either: at one set of hearings last week, all the witnesses called (including this one (PDF), quoted in the Times piece) were there to speak up for expansive enforcement of the law, with nary a dissenting word about any possible competing values at stake. More: Maggie’s Farm.

Judge resigns in Ky. fen-phen scandal

Last May 10 we reported on the questions that were being asked about a sealed settlement of Kentucky fen-phen claims which had included (along with vast sums in legal fees) the quiet diversion of $20 million into a mysterious new charitable entity called the Kentucky Fund for Healthy Living. Now the mystery has turned to scandal: the judge who approved the settlement, Joseph F. (“Jay”) Bamberger has resigned after allegations surfaced that he was serving as a director of the fund, receiving $5,000 a month (three of the plaintiff’s lawyers were also paid directors). The state’s Judicial Conduct Commission said Bamberger’s actions “shock the conscience” and he faced possible removal had he not resigned. Particular attention is being focused on Bamberger’s close ties to Mark Modlin, a trial consultant in the fen-phen case who has had co-investments with the judge. The alleged closeness between Bamberger and Modlin had led to protests from litigants in a number of earlier cases, including a high-profile priest-abuse case against the Catholic Diocese of Covington.

The commission’s reprimand (PDF) revealed a startling fact. “The attorney fees approved were at least $86 million and perhaps as much as $104 million” — well exceeding the $74 million that was split among the 431 claimants in settlement. A lawsuit continues on behalf of some allegedly victimized clients against four plaintiff’s lawyers involved in the settlement, including big-league Cincinnati operator Stanley Chesley. (Beth Musgrave, “Fen-phen lawsuit judge resigns”, Lexington Herald-Leader, Feb. 28; Jim Hannah, “Judge quits amid allegations”, Cincinnati Enquirer, Feb. 28; “Investigation of Bamberger warranted” (editorial), Cincinnati Enquirer, Mar. 1; “A blistering rebuke” (editorial), Cincinnati Post, Mar. 1; Peter Bronson, “Hold this judge in contempt”, Cincinnati Enquirer, Mar. 2)(cross-posted from Point of Law).

Calif. court reinstates counties’ lead-paint suit

Close on the heels of the verdict in the Rhode Island paint retrial (Feb. 23; PoL Feb. 17) comes more bad news for companies that once manufactured lead paint: an appeals court has reinstated the lawsuit against them filed by various California counties and local governments. The suit seeks money for, among other things, the removal of lead paint in government buildings and low-income housing. (“Suit Against Makers of Lead Paint Is Reinstated”, Reuters/Los Angeles Times, Mar 4)(opinion in PDF format)(hat tip: Jane Genova).

Update: Grand Theft Auto suits

Now the shareholder lawyers are piling on: class-actioneers Milberg Weiss and Stull, Stull & Brody would like to represent “people who owned Take-Two shares between Oct. 25, 2004, the launch of ‘Grand Theft Auto: San Andreas,’ and Jan. 27, 2006, the day that Los Angeles’ city attorney sued Take-Two for selling pornographic video games to children.” (“More legal woes for ‘Grand Theft Auto’ maker”, Reuters, Feb. 15). Earlier coverage: Jan. 28, Jul. 27, etc.

Update: Mississippi judicial corruption retrial

The retrial of the judicial bribery case against prominent attorney Paul Minor and two former state judges has now been set for Aug. 14, following delays requested by Minor’s attorneys (Anita Lee, “Judicial trial set Aug. 14”, Biloxi Sun-Herald, Feb. 11). And the federal tax evasion trial of Mississippi Supreme Court Justice Oliver Diaz Jr. is now scheduled for Apr. 3 (“Diaz tax trial delayed”, Feb. 21). For more, see Dec. 10 and our many previous links.

Sammenhold

It means “solidarity” in Danish, and specifically solidarity with the endangered liberties of Denmark, where some of the “Mohammed” cartoonists live in hiding after threats to their lives. (Michelle Malkin, Mar. 3, complete with “Lego My Free Speech” rally sign; Flemming Rose, “Why I Published Those Cartoons”, Washington Post, Feb. 19). More here and here. SupportDenmarkSmall3EN.png

BlackBerry dispute settles for $612M

“Although the U.S. Patent Office recently invalidated most of the patents at issue in the dispute, NTP still had the right to appeal. However, RIM was put in a tough position because [Judge] Spencer didn’t have to wait for a final decision on the validity of the patents before making his decision on the injunction. As a result, RIM was forced to pay up, said Ken Dulaney, a vice president and analyst with Gartner, while NTP was inclined to take what it could get.” (Ryan Kim, “BlackBerry users emerge from the legal briar patch”, San Francisco Chronicle, Mar. 4). Earlier coverage on this site: May 2, Oct. 11, Nov. 30, 2005, and Feb. 8, Feb. 25, 2006.

Ohio high court OKs wrongful-birth cases

By a 4-3 margin, the Ohio Supreme Court has approved (PDF) a “wrongful birth” suit against doctors by parents who say they would have aborted their child had they not been given inaccurate genetic counseling. The court did reject the views of Justices Paul Pfeifer and Alice Resnick (as well as that of a lower court judge) who thought the damages payable should include the cost of raising the child through adulthood, plus pain and suffering. (Andrew Welsh-Huggins, “Supreme Court allows lawsuits over missed genetic disorders”, AP/Akron Beacon Journal, Mar. 3). However, some Ohio legislators are proposing to enact a law precluding wrongful-birth lawsuits; a bill to that effect passed the state senate this past week, but has not yet been considered by the house (Jim Provence, “Bill would protect doctors from ‘wrongful birth’ suits”, Toledo Blade, Mar. 1). More on wrongful-birth suits: Sept. 16, 2004 and links from there; May 1 (Australia) and Jun. 14, 2005. More: WizBang takes an extremely dim view of the parents in the case (Mar. 3).