Archive for June, 2007

Damned if you do, damned if you don’t files: Cynthia Haddad v. Wal-Mart

Pharmacist Cynthia Haddad, when she left the pharmacy unattended, allowed a technician to use her computer security code to issue prescriptions, including a fraudulent prescription for a painkiller, something that could have exposed Wal-Mart to enormous liability if someone had been injured by the illegally dispensed drugs. So Wal-Mart fired Haddad. Haddad sued, claiming that the real reason Wal-Mart fired her was because she had asked for a raise to a manager-level salary, though she did not perform manager-level duties such as budgeting, and that it was thus sex discrimination. (Haddad claims that Wal-Mart “never” fired a male manager for her infraction, which seems implausible at best; Wal-Mart says it did fire male pharmacists for this. Why is this even a factual dispute for decision for a jury? This seems like a matter that merits a partial summary disposition to prevent one side from out-and-out lying.) This somehow got to a jury, which awarded $2 million, including $1 million in punitive damages. Among the questionable procedures used to railroad Wal-Mart at trial was permitting Haddad to present an attorney to testify as an expert witness on human resources procedures. Wal-Mart indicated it disagrees with the jury’s decision and is studying whether an appeal is worthwhile. Massachusetts courts are not a friendly place for defendants. Wal-Mart’s attorney did not comment to the press, permitting the plaintiffs’ lawyer to generate rather one-sided press coverage. [Berkshire Eagle June 19; Berkshire Eagle June 20; Reuters/USA Today; Massachusetts Lawyers Weekly]

Updates – June 20

Updating a few earlier stories we’ve discussed here…

  • Two weeks ago we noted that a new online attorney rating site, Avvo.com, was being threatened with a lawsuit by John Henry Browne, a disgruntled Seattle criminal defense attorney. (Jun. 10). Well, whatever the merits or weaknesses of Browne as an attorney, one thing you can say about him is that he doesn’t make idle threats; last week, he filed suit against Avvo. The suit, designated a class action, contends that Avvo’s ratings are flawed. From all accounts, that’s almost certainly true, but as I mentioned in my previous post, it’s not clear that this presents a valid cause of action; Avvo is entitled to rank lawyers differently than John Henry Browne wants them to. In an attempt to get around this problem, the complaint trots out various “consumer protection” arguments using notoriously vague and broad statutes that don’t require that the plaintiffs identify any consumers who have been harmed. (Illustrating perfectly the phenomenon Ted discussed on Jun. 18).

    Oh yes, and Browne also claims in the complaint that “at least two clients” of his fired him (in less than a week!) because of his “average” rating on Avvo. Let’s just say I’m rather skeptical of Mr. Browne’s ability to prove such a claim.

    The law firm handling this class action case? Overlawyered multiple repeat offender Hagens Berman. (Many links.)

  • Remember that lawsuit where Illinois Chief Justice Robert Thomas sued the Kane County Chronicle for defamation? (Apr. 2, Nov. 2006) Well, when last we heard, the libel award — originally an absurd $7 million — had been reduced to $4 million by the trial judge. Not surprisingly, the Chronicle still is unsatisfied, and does not feel it can get a fair shake from the very Illinois court system headed by Thomas; it has now filed a federal lawsuit claiming its constitutional rights have been violated. Named in the suit are Thomas, the trial judge who heard the case, and the rest of Thomas’s colleagues on the state Supreme Court.
  • Kellogg’s bows to threats of frivolous litigation coming from the Center for “Science” in the “Public Interest”; agrees to limit advertising of its cereals to children.

    Of course, this is portrayed as an issue of advertising, but as Michael Jacobson of CSPI admits, this litigation strategy is simply an attempt to drive products he disapproves of from the market. And now that Kellogg’s has capitulated, certain politicians are trying to force other companies to do the same.

    Originally: Jan. 2006.

  • We had previously reported (May 17) that the unfair competition lawsuit between Equal and Splenda had settled. Turns out that the two sides are still fighting, with each side accusing the other of reneging on the deal. (LI)

“Builders, Contractors Hammer Consumer Sites”

In two separate New Jersey cases, building contractors RSA Enterprises and WBG Builders are suing websites that carried consumer complaints about them; in a third case in Maryland, a suit by SCS Contracting Group names as defendant the well-known site Angie’s List, which compiles user reviews of home-improvement services. (Truman Lewis, ConsumerAffairs.com, May 4). More: John Kelly, “Homeowner’s Web Gripe Draws Contractor Lawsuit”, Washington Post, Mar. 13 (SCS Contracting versus Angie’s List); Eric Goldman, Apr. 25 (RSA Enterprises versus Rip-Off Report, and Google). P.S. Eric Goldman adds further details.

Oz: “Gambler loses, sues casino”

Behrouz Foroughi, 43, says he volunteered for the exclusion list at the Star City casino and was told he would be denied entry, but was admitted anyway and lost large sums due to his gambling compulsion. (Gemma Jones, Daily Telegraph, Jun. 19). Similar claims have been tried a number of times in the U.S. but without much success: see Apr. 28, 2004, Apr. 19, 2005, Nov. 22, 2005 (France), etc.

Flashback: the tort system in action in the case of Curtis Campbell

In 1981, Curtis Campbell (Campbell) was driving with his wife, Inez Preece Campbell, in Cache County, Utah. He decided to pass six vans traveling ahead of them on a two-lane highway. Todd Ospital was driving a small car approaching from the opposite direction. To avoid a head-on collision with Campbell, who by then was driving on the wrong side of the highway and toward oncoming traffic, Ospital swerved onto the shoulder, lost control of his automobile, and collided with a vehicle driven by Robert G. Slusher. Ospital was killed, and Slusher was rendered permanently disabled. The Campbells escaped unscathed.

Guess quickly: which plaintiff in the resulting twenty years of litigation won the biggest jury verdict?

How many of you say Ospital?

How many of you say Slusher?

You’re both wrong. The plaintiff with the biggest jury verdict was Curtis Campbell, whom a jury awarded an incredible $147.6 million.

Read On…

Update: Kia Franklin and Roy Pearson and the $67 million pants

I’d like to make a correction. In my earlier post, I suggested that Milberg Weiss Justice Fellow Kia Franklin thought that Judge Roy Pearson’s $67 million lawsuit over a pair of pants was frivolous. I appear to have been mistaken in attributing such a common-sense view to her. Franklin has a lengthy post protesting that, while she thinks Pearson’s lawsuit is “ridiculous” and “crazy” (she has also called it “obscene”), she does not think it is “frivolous.” We regret the error.

But it is a useful illustration: when those who oppose civil justice reform say they don’t think frivolous litigation is a problem, it is because they define “frivolous litigation” so narrowly that even Roy Pearson’s lawsuit is not frivolous in their eyes. Well, that’s one way to make problems go away, by using doublespeak or narrow technical legal definitions to pretend they don’t exist instead of suggesting that there is a problem with the narrow technical legal definition.

Read On…

Oz high court: restaurant review was defamatory

Now it’s Australia where food writers are getting nervous: the country’s High Court decided that Sydney Morning Herald critic Matthew Evans had defamed the Coco Roco restaurant in 2003 in a review:

The flavours of the limoncello oysters “jangled like a car crash”, he wrote, while the sherry-scented apricot white sauce on a steak was a “wretched garnish”.

Overall, he concluded that “more than half the dishes I’ve tried at Coco Roco are simply unpalatable”.

The ruling does not however preclude the defendants from offering defenses as proceedings continue in the case. (Deborah Cameron and Helen Westerman, “Ruling leaves sour taste for food critics”, Melbourne Age, Jun. 15; Barbara McMahon, “Review of meal that ‘jangled like a car crash’ deemed defamatory”, The Guardian, Jun. 16). Eoin O’Dell at the Irish law site Cearta.ie has assembled a substantial links list on this and earlier restaurant-review lawsuits from various countries (Jun. 16). Previously at this site: Mar. 10, etc.

Avandia-suit spam

Unsolicited email is beginning to arrive in people’s inboxes soliciting clients to sue over the Glaxo SmithKline diabetes drug, Avandia. Bill Childs has more, as does Eric Turkewitz, who observes that no law firm is named in the ad, and proposes a course of action:

Figuring out which law firms have hired the spammer should be easy for an enterprising citizen-journalist, simply by filling out the form at the website that TortsProf linked to and waiting to see who calls or emails in response. Then publish the names online for the world to see.

Things might not be that simple, however. As earlier cases of spam of this sort indicate, such emails are typically sent by a middleman who assembles “leads” and then offers them for sale to actual law firms. The middleman, not being a lawyer, will claim not to be bound by bar rules against solicitation, while the law firms that buy the leads (if confronted on the matter) may or may not disclaim any knowledge of how the leads were generated. They’ll probably deny having hired an agent with instructions to send spam; but if someone happened to run a spam campaign just before selling them names, well, that’s not their doing, is it? So the New York bar-ethics rules are circumvented in perfect safety by all concerned, or so it would seem. Earlier: Jan. 8, 2006, Jan. 5, 2005, Mar. 29-31, 2002.