Archive for October, 2013

Stephanie Mencimer on “Hot Coffee” and the Jamie Leigh Jones case

Having been at times lacking in enthusiasm for the work of journalist Stephanie Mencimer, it’s only fair we credit her again with considerable courage for returning to the failed Jamie Leigh Jones case in a new article in Washington Monthly. (Jones alleged a brutal rape in Iraq for which her lawyers said employer Halliburton/Kellogg Brown & Root (KBR) should have been held responsible; the case served as a springboard for numerous misleading attacks on pre-dispute arbitration). Following the evidence wherever it leads against the likely inclinations of many Washington Monthly readers, Mencimer leaves Jones’ credibility in tatters and the various liberal and trial-lawyer sources that ballyhooed her case — including Sen. Al Franken (D-Minn.) and TV talker Rachel Maddow — looking highly gullible, to go with the kindest interpretation.

Most damning of all, as readers of posts in this space (especially those by Ted Frank) will recall, Jones was given center stage in Susan Saladoff’s film “Hot Coffee,” which periodically airs on HBO and on college campuses and has established itself as one of the litigation industry’s most durable and successful propaganda vehicles. All future discussion of “Hot Coffee” — and certainly any cable/broadcast airings or public screenings whose sponsors care about accuracy and fairness — will need to warn audiences that the Jones case can now be seen in retrospect as almost unrecognizably different from the picture of it presented in that trial-lawyer-produced “documentary.” If this is what becomes of one of Saladoff’s central cases, how reliable ought we to consider the rest of her film?

Banking and finance roundup

  • “Dodd-Frank and The Regulatory Burden on Smaller Banks” [Todd Zywicki]
  • Side-stepping Morrison: way found for foreign-cubed claims to get into federal court? [D&O Diary]
  • “Alice in Wonderland Has Nothing on Section 518 of the New York General Business Law” [Eugene Volokh, swipe fees]
  • “Financial Reform in 12 Minutes” [John Cochrane]
  • Why the state-owned Bank of North Dakota isn’t a model for much of anything [Mark Calabria, New York Times “Room for Debate”]
  • Regulated lenders have many reasons to watch SCOTUS’s upcoming Mount Holly case on housing disparate impact [Kevin Funnell]
  • Cert petition: “Time to undo fraud-on-the-market presumption in securities class actions?” [Alison Frankel]

New guest column: “SEC Unveils Expensive Rule on CEO Pay Ratio”

I’ve now got a guest column at PointOfLaw.com on the Securities and Exchange Commission’s proposed rule (earlier) requiring public companies to calculate and make public the ratio between chief executive officer (CEO) pay and the pay of a median worker. For companies with international operations in particular, the calculation may be quite difficult (it might depend on assumed exchange rates, for example, to say nothing of noncash benefits) and it might also depend on the ability to gather in one place certain types of data whose export is forbidden by some privacy-sensitive foreign laws. And all for what, aside from stoking demagogy? Or was that the point of the Dodd-Frank mandate that the SEC is now implementing?

I have fond memories of launching Point of Law during my years at the Manhattan Institute, and I was its primary writer for many years, so it is especially rewarding to contribute a guest column there. Under the leadership of MI’s Jim Copland, the site (and MI in general) has become especially active in corporate governance, shareholder and SEC controversies.

“Drop the food, lady, it’s the Alberta Health Service”

Apparently following a complaint from a local restaurateur, provincial authorities have cracked down on a pay-what-you-can informal supper club organized by High River resident Paula Elliot. “AHS shut her down … informing her they don’t approve of people sharing food. They were equally heavy handed when she tried to give away edibles to stranded flood refugees at evacuation centers.” [Jen Gerson, National Post]

YouTube goblin-toppler said to have been “debilitated” by ’09 crash

A YouTube clip went viral last week of three men in Utah’s Goblin Valley State Park toppling over an ancient “goblin” sandstone rock formation that they considered it a safety hazard, then laughing and high-fiving afterward. It might seem surprising that the one who gave the shove, Glenn Taylor, was up for such vigorous activities, since he suffered what were described as “debilitating” back injuries (according to his legal claims) in a road accident four years ago. According to the father of the defendant in that still-unresolved case, neither Taylor nor others involved visited the hospital after that rear-ending. “Taylor’s attorney Mark Stubbs says just because his client is beginning to recover from his injured back doesn’t mean he hasn’t suffered from pain in the past, and he says Taylor’s medical bills in the wake of the accident could continue for years.” [CNN, NYDN, KUTV (auto-plays video)] More: NY Post. More: Lenore Skenazy (but it’s to make kids safer!).

Going to the press with an employment dispute = “retaliation”?

“Did the law firm [Ropes & Gray] retaliate against John Ray III by providing information about his Equal Employment Opportunity Commission race-discrimination complaint to the Above the Law blog?” That is among the questions a federal court in Boston will consider in a trial beginning next month. Specifically, the firm sent a copy of the EEOC’s determination letter in Ray’s case to the popular blog. Since no law bars “retaliation” by employees against employers, we might arrive at a situation in which an employee is free to try his case in the press, while an employer’s hands are tied against responding in kind. [ABA Journal; earlier]

“Mr. Abbas has used the threat of defamation litigation to counter bad press”

“A federal judge has thrown out a libel lawsuit a son of Palestinian Authority President Mahmoud Abbas filed last year against Foreign Policy magazine, charging that a commentary the journal published leveled unfounded allegations of corruption. … The piece was written by Jonathan Schanzer of the Foundation for the Defense of Democracies.” [Josh Gerstein/Politico, McClatchy]