Archive for March, 2014

Business Week: judges blowing whistle on more corrupt litigation

Only three days after Judge Kaplan’s spectacular ruling in the Chevron/Ecuador case, notes Paul Barrett at Business Week, “a state appellate court in California upheld a trial judge’s finding that what had been billed as a watershed liability verdict against Dole Food over pesticide use in Nicaragua was actually the product of a corrupt conspiracy by plaintiffs’ lawyers.”

The case at issue in the March 7 ruling, known as Tellez, went to trial in 2008 and produced a multimillion-dollar verdict for workers. That verdict was thrown out when Dole’s attorneys proved that many of the plaintiffs never worked for the company and weren’t, in fact, sterile. Witnesses and investigators were intimidated in Nicaragua, and plaintiffs were coached to concoct false stories.

Barrett has related pieces here and here. He notes the string of high-profile plaintiff’s lawyers tripped up by unethical conduct — Dickie Scruggs, Bill Lerach, Mel Weiss, Stan Chesley — and observes that the jackpots obtained by the mass tort bar in the 1990s incentivized, when they were not themselves the result of, ethical problems that have taken years to play themselves out. I’ve been on these themes since (and before) my book The Rule of Lawyers, and began tracking the banana pesticide litigation five years ago.

“The NY Times has a very bad article on Tesla…”

…but Alex Tabarrok offers some corrective regarding the structure of the auto dealership business, including the rent-seeking dealership protection laws that have snagged the startup automaker [Marginal Revolution, drawing on Francine Lafontaine and Fiona Scott Morton, “State Franchise Laws, Dealer Terminations, and the Auto Crisis”, Journal of Economic Perspectives, 2010).

March 20 roundup

  • Sue the NYC welfare department enough, and Mayor De Blasio might make you its chief [Heather Mac Donald, City Journal] Cozy relations between nonprofits and Gotham administration dodge accountability [Steven Malanga, same]
  • Consumer objects to Muscle Milk class action settlement, and there’s a Ted Frank angle [Above the Law]
  • Asking employees whether they’re disabled suddenly mandatory rather than forbidden [WSJ, earlier]
  • “…not trying to tell you how to live your life, I’m just suggesting that it’s a bad idea to put sharp or explosive objects in your…” [Lowering the Bar]
  • “Carnival cruise passengers sue seeking $5,000 a month for life” [Reuters]
  • Husbands could sue noncompliant wives: “UAE law requires mothers to breastfeed for first two years” [Guardian]
  • New symposium on “The State, The Clan, and Individual Liberty” with Mark S. Weiner, Arnold Kling, Daniel McCarthy, and John Fabian Witt [Cato Unbound]

Can forbidden grounds be rational grounds? Ask Prof. Chemerinsky

Suppose an enterprise has an 81-year-old executive who’s currently able to perform well, but has had recent health problems and faces a significant actuarial risk of disablement or worse within a few years. Suppose the continued tenure of this executive complicates the enterprise’s future, through sheer uncertainty (since an unforeseen departure crisis might come at just the wrong time) and because certain high-quality potential successors available to step in now might not be available two or three years hence.

Is it somehow illegitimate or invidious even to think through considerations like these, because the absolutely only relevant factor is how well the person can perform the job right now?

If you say, “yes, it’s totally illegitimate and invidious, you should be ashamed of thinking this way” then congratulations: current federal workplace law is on your side. Disabled-rights law makes it legally hazardous for an employer, in the course of pretty much any action — say, career counseling of existing employees — to consider the risk of future recurrence of a disabling condition now in remission. Age-discrimination law makes it unlawful to treat an 81-year-old as lacking any advantage that a 46-year-old might bring to an enterprise with long time horizons — and again, just evidence that an employer has been thinking along these lines is a lawsuit risk whether or not it actually proceeds to send hints to an individual employee about passing on the torch. In the Mad Men era, employers routinely had policies expecting their executives to retire at a certain age; now the law bans such policies, whether the age in question be 65, 75, or 85.

If on the other hand you say, “no, it’s not illegitimate, it’s just common sense to acknowledge factors associated with age and disability as part of life and we all take them into account whether we admit it or not,” then come on over and join the unlikely duo of me and, more importantly, the distinguished Prof. Erwin Chemerinsky, who applies all this logic to the situation of Justice Ruth Bader Ginsburg. Now as it happens, on the particulars of this one case, I don’t go along with Chemerinsky’s conclusion; I find myself more swayed by Prof. Garrett Epps’s rather more gracious argument that Ginsburg has good reason to stay, especially as the intellectual firepower of the Court’s left wing might well take a hit if she leaves.

It’s great to know, though, that Prof. Chemerinsky sees through the flimsy rationale that underlies these sectors of discrimination law. I was afraid he was going to turn out to be some kind of big liberal.

On the vexatious-litigants list — and suing busily

Getting placed on the vexatious-litigants list might not actually slow you down all that much in the pace of your suit-filing. A frequent Sacramento litigant has been on the list since 2003 but nonetheless obtains fee waivers by pleading poverty even as property is held in trust or in his wife’s name, uses variations of his name that throw adversaries off the track, and, according to an opponent, gets around a ban on pro se filing by using a lawyer to file and then substituting himself as counsel. [KXTV (auto-plays), ABA Journal]

Med-mal: the unreformable Northeast?

The charts in this Washington Post article get steadily more interesting as they go along, and the most informative is the last: the top nine states or state-equivalents for per-capita medical malpractice outlays are, in order, New York, Pennsylvania, New Jersey, Massachusetts, Connecticut, the District of Columbia, Maryland, Rhode Island, and New Hampshire. Basically, that describes the Boston-Washington corridor with the exception of Delaware (Vermont makes for an even more notable break in the pattern because its outlays are among the lowest.) Most states outside the Northeast have reformed their malpractice law; most states in the Northeast have too powerful a trial lawyers’ lobby to let that happen.

Fortunately for residents of the rest of the country, the inconveniences of an unreformed high-litigiousness system — things like $100,000 premiums for doctors with good records who practice high-risk specialties — seem mostly to be borne by residents of the states in question. Overall, incidentally, as the chart previous to that shows, national payouts went through a decade-long decline but now have resumed climbing.

Until recently, Florida would have been a likely pick when enumerating states with the highest medical malpractice exposure, but the Sunshine State legislature finally got tired of being a target of the derision of the national medical profession and reformed its malpractice system. Or perhaps the better phrase would be, “thought it reformed”; the Florida Supreme Court, dominated by justices cozily allied with the plaintiff’s bar in re-election campaigns, just annihilated that reform. No one will be particularly surprised if Florida vaults up to top-ten status in future payout lists.

NFL wants “restitution” over performer’s middle finger gesture

The National Football League had already been seeking $1.5 million in arbitration for alleged contractual breach against rap singer M.I.A. for extending her middle finger during a performance at the 2012 Super Bowl. “Now the NFL has added an additional claim, seeking $15.1 million more in ‘restitution’ as the alleged value of public exposure she received by appearing for an approximately two minute segment during Madonna’s performance. The figure is based on what advertisers would have paid for ads during this time.” [Hollywood Esq.]

“Choosing What to Photograph Is a Form of Speech”

New WSJ op-ed by Eugene Volokh and my colleague Ilya Shapiro, with which I agree 100%: “We support the extension of marriage to same-sex couples. Yet too many who agree with us on that issue think little of subverting the liberties of those who oppose gay marriage. Increasingly, legislative and judicial actions sacrifice individual rights at the altar of antidiscrimination law.” Existing precedent affords a handy if narrow way to reverse New Mexico’s wrong-headed Elane Photography decision: “The Supreme Court’s ruling in Wooley guarantees the right of photographers, writers, actors, painters, actors, and singers to decide which commissions, roles or gigs they take, and which they reject.”

Related on bake-my-cake laws: in the absence of more robust rights to freedom of association, could we at least narrow what’s a public accommodation? [Scott Shackford, Reason; David Link, Independent Gay Forum (on precedent of landlord reluctance to rent to cohabitors] Earlier on photography and cake cases here, here, here, here, here, here, here, here, etc.

P.S. Cato podcast with Caleb Brown interviewing Ilya Shapiro on the topic.