Archive for January, 2011

“Fighting Suits Saves Money for Chicago”

Vowing no longer to be Mister Nice City (assuming it ever qualified as such), Chicago is now willing to pay $50,000 to fight (successfully) a police-misconduct case it could have settled for $10,000:

Even though the city stands to lose money litigating every case under $100,000, a spokeswoman for the law department said that recently compiled figures showed the strategy seemed to be saving taxpayer money by dissuading lawyers from suing the police unless they are confident of victory.

(& welcome Coyote readers).

Financial Crisis Inquiry Commission

Along with its formal report, the commission probing the financial crisis of 2008 has done an online archival dump of internal company documents that some hope, and others fear, will be of great help to litigators — even perhaps a “Wikileaks for the class action bar,” which with its allies was well represented on the commission and staff. [BLT; earlier]

More: David Frum has been doing a series of blog posts on the report’s substance.

Update: California high court narrows Proposition 64

During the successful campaign for Proposition 64 in California, reformers cited as an example of the sort of the “shakedown lawsuit” they hoped to eliminate a suit in which Bill Lerach’s class action firm demanded money from lock maker Kwikset because its product was marked “Made in U.S.A.” but included screws made in Taiwan. Nonetheless, the California Supreme Court has now ruled 5-2 that the proposition does not ban such suits after all, because consumers can claim to be injured by the arguable mislabeling, even though nothing was defective about the lock. Dissenting Justice Ming Chin, joined by Carol Corrigan, pointed out that to get around the Proposition 64 limit all that consumers “now have to allege is that they would not have bought the mislabeled product,” and that this “cannot be what the electorate intended” in voting for the measure. [L.A. Times, CJAC, earlier here, here, etc.]

Relatedly or otherwise: Glenn Reynolds interviews University of Tennessee law professor Ben Barton about his new book The Lawyer-Judge Bias in the American Legal System (“Virtually all American judges are former lawyers. This book argues that these lawyer-judges instinctively favor the legal profession in their decisions and that this bias has far-reaching and deleterious effects on American law.”)