Archive for March, 2016

Jury agrees: crashes of cars into stores are stores’ fault

For some time trial lawyers have been promoting the theory that when runaway cars smash into convenience stores and other retail locations, it is the stores’ fault for not installing protective bollards. This theory has now taken a big leap forward in a case in which a Western Massachusetts jury has told Cumberland Farms to pay $32 million over a crash in which a motorist who’d had a stroke careened off a road and into a Chicopee store. [Springfield Republican; more at Fair Warning, which as is its wont takes the plaintiff’s-bar side]

Labor roundup

  • Feared Philadelphia union boss launches program to use drones to surveill non-union worksites [William Bender, Philly.com (“got into a fistfight with a nonunion electrical contractor – and broke his nose – at a construction site at Third and Reed.”)]
  • “We know where you live” continued: U.S. Secretary of Labor Thomas Perez’s “persuader rule” exposes lawyers and other professionals to intimidation, creates legal minefield for employers expressing opinion [The Hill, Jon Hyman, earlier]
  • Richard Epstein on labor unions [Libertarianism.org podcast discussion with Aaron Ross Powell and Trevor Burrus]
  • Actions protected as “concerted” by labor law include some taken by individual employee entirely alone, according to National Labor Relations Board, as it declares unlawful company policy against secretly taping conversations at the workplace [Jon Hyman, Whole Foods case]
  • “Brace for more litigation based on feds’ new joint employment guidance, labor lawyers tell companies” [ABA Journal; Insurance Journal on Browning-Ferris; Daniel Schwartz; earlier] Applying NLRB joint employer notion to company like McDonald’s could blow up franchise business model, which some union advocates might not mind [Diana Furchtgott-Roth]
  • Judge Merrick Garland shows great deference to NLRB, except in cases where it has ruled for an employer [Bill McMorris, Free Beacon]

Illinois: unconstitutional to curb public employee pensions

“In yesterday’s decision, the [Illinois Supreme Court] — as it did in a 2015 case dealing with state workers—relied on a clause in the Illinois Constitution that treats government pensions as ‘an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.'” It wasn’t relevant that Chicago’s pension scheme was $8 billion in the hole, or that most of the city’s public unions had agreed to a deal with Mayor Rahm Emanuel under which the city would step up its funding in exchange for lower COLAs and higher employee contributions. “The bottom line …is that, having just been whacked with a record $543 million property tax hike to pay for old city pension debt, taxpayers are going to have to dig deep again — at least $168 million more over five years, by 2020, and rising from there.” [Chicago Business] Chicago now confronts population loss, aging of resident base [Chicago Magazine, Illinois Policy, Aaron Renn, City Journal] More: “While the US Constitution is famously “not a suicide pact,” the Illinois constitution apparently is.” [Jack Henneman on Twitter]

Behind that “scientists’ letter” on climate denial as legal offense

Remember that “scientists’ letter” in which twenty or so credentialed scientists signed their names to a letter asking that so-called climate deniers be investigated, as Sen. Sheldon Whitehouse (D-R.I.) had been demanding? On inquiry, however, some of the signatories did not seem to know much about the letter or to be particularly committed to the idea. According to David Rifkin and Andrew Grossman’s new Wall Street Journal piece (ungated here), open records requests have now established that the letter was coordinated by Sen. Whitehouse himself. Background here, here, etc.

Rifkin and Grossman also announce the formation of a new, and badly needed, Free Speech in Science Project. “The project will fund legal advice and defense to those who need it, while executing an offense to turn the tables on abusive officials.”

Class action: too much air in that Starbucks latte cup

Coffee giant Starbucks is said to use too low a “fill-to” line in latte cups and a class action filed in federal court in California wants money over that [Nation’s Restaurant News via Ira Stoll, Future of Capitalism]

More, Nick Farr/Abnormal Use:

Regardless of the merits of the short-pouring allegations, one particular allegation in the suit gave us pause. The plaintiffs allege that “Starbucks refuses to fill any hot beverage to the brim of the cup. Thus, under no circumstances will Starbucks ever serve a Grande Latte that actually meets the fluid ounces represented on the menu.” If we read that correctly, it sounds like the plaintiffs are actually suggesting that hot coffee should be filled to the brim of the cup to ensure that they are getting the full bang for their buck. We are guessing that had Starbucks done so, there would be a whole other class of plaintiffs clamoring for some massive hot coffee burn litigation. Maybe the plaintiffs should demand Starbucks use bigger cups and let the not filling to the brim policy stand for those who value safety.

Suit seeks to make tech firms pay for campaign against distracted driving

“In the lawsuit, the Coalition Against Distracted Driving and Stephen L. Joseph, as an individual, seek an injunction against Apple, Samsung, Google, and Microsoft, requiring those companies to pay $1 billion annually to fund an ‘effective and ongoing national public education campaign’ to educate drivers on the dangers of using smart phones and smart watches while driving.” The suit seeks to define the behavior at issue as a nuisance under California law. [Jared McClain, Washington Legal Foundation]

Police and prosecution roundup

  • Amid multiple scandals, why won’t office of Orange County, Calif. District Attorney Tony Rackauckas confirm name of county investigator alleged to have beaten defense attorney in courtroom hallway? [R. Scott Moxley/OC Weekly via Radley Balko, Voice of OC]
  • And from February: “former Los Angeles sheriff Lee Baca announced that he would plead guilty to criminal charges related to systemic misconduct in his department, specifically to a charge of lying to investigators in an effort to cover up that wrongdoing.” [Kevin Williamson]
  • Post-Ferguson investigation: problems with small-town municipal courts go way beyond North St. Louis County into outstate Missouri [St. Louis Post-Dispatch]
  • Judge throws out mountain of tickets from Chicago traffic and speed cameras [TimeOut, Timothy Geigner/TechDirt, earlier]
  • Britain: following collapse of lengthy Operation Midland law enforcement inquiry into a fantasist’s wild tales of abuse (did senior Tories murder rentboys for fun?) vindicated officials and their families wonder where to turn to get their reputations back [Dan Hodges/Telegraph (citing Metropolitan Police commissioner Bernard Hogan-Howe’s favorable reference to a second official’s statement that “The presumption that a victim should always be believed should be institutionalized”); Matthew Scott/Barrister Blogger, Richard Bartholomew]
  • Supreme Court nominee: “In Criminal Rulings, [Chief Judge Merrick] Garland Has Usually Sided With Law Enforcement” [New York Times; more on Garland’s D.C. Circuit rulings]

Economics, not competitor resentments, should guide FTC

George Mason lawprof and former Federal Trade Commission commissioner Joshua Wright, who specializes in antitrust, guestblogging at Daniel Fisher’s on FTC v. McWane:

Proving antitrust harm with rigorous economic evidence is hard. The FTC would prefer to avoid that route and instead favor an approach where lower courts would just defer to its “expert” judgment and conclude that whatever business practices the agency says are anticompetitive are in fact so. This outcome is unsurprising given that the FTC has ruled for itself in 100 percent of its cases over the past three decades – though it is reversed more often than the decisions of federal court judges. So much for unbiased rigor and expertise. But the Supreme Court has consistently rejected the view that the FTC or any antitrust plaintiff can make out a case with a stack of complaints from disgruntled rivals. Instead, the Supreme Court has made clear that the antitrust rules applied to the behavior of a single firm acting alone – that is, a firm alleged to have monopolized an industry on its own rather than joined a cartel with rivals – are to be governed by economic thinking and economic evidence instead of hand-waving and complaints from rivals alone.

Colleges and the overtime edict

The damage from one of President Obama’s worst unilateral edicts, overtime for junior managers and other workers with middling salaries, is going to radiate through every sector of the productive economy. That includes academia: “The University of California school system, for instance, faces a $39 million-a-year tab for raises to avoid paying overtime to thousands of postdoctoral scholars, librarians and specialists. The University of Iowa says it would limit work hours of staff. And a state university in Missouri could cut some employee benefits.” [WSJ]