Author Archive

Mississippi: “Feds expand bribery investigation”

* “The FBI is expanding its probe into Mississippi’s judicial bribery scandal to examine other cases involving Hinds County Circuit Judge Bobby DeLaughter and his former boss, longtime District Attorney Ed Peters.” The pair surfaced in the Scruggs annals not long ago when Joey Langston pleaded guilty to involvement in a 2006 scheme to get DeLaughter to rule in Scruggs’s favor in a fee lawsuit, which allegedly included the funneling of $1 million of Scruggs’s money to Peters, who was viewed as close to the judge. (Jerry Mitchell, Jackson Clarion Ledger, Jan. 28). Rumors have been rife that Peters, DeLaughter or both may be cooperating with authorities, which might strengthen prosecutors’ hand in securing further evidence of the scheme.

* Perhaps relatedly, to quote Folo’s contributor NMC, “In the case against Dickie Scruggs over allegations of bribing Judge Lackey, the prosecution has filed a Notice of Intent to Introduce ‘similar acts evidence pursuant to Rule 404(b), Fed. R. Evid., at the trial’”. See Patsy R. Brumfield, “Prosecutors ready to say bribery attempts aren’t anything new”, Northeast Mississippi Daily Journal, Jan. 28.

* With what might seem like startlingly bad timing, Scruggs chum/novelist (and campaign donation co-bundler, if that’s the right term) John Grisham is just out with a new fiction entitled The Appeal, whose thesis, to judge by Janet Maslin’s oddly favorable review in the Times, is that the real problem with the Mississippi judicial system is that salt-of-the-earth plaintiff’s lawyers are hopelessly outgunned in the task of trying to get friendly figures elected to judgeships to sustain the large jury verdicts they win. One wonders whether any of Maslin’s editors warned her about recent news events — she doesn’t seem aware of them — that suggest that the direst immediate problems of the Mississippi judiciary might not relate to populist plaintiff’s lawyers’ being unfairly shut out of influence. Of course it’s possible she’s not accurately conveying the moral of Grisham’s book, and if so I’m not likely to be the first to find out about it, since I’ve never succeeded in reading more than a few pages of that popular author’s work. By the way, if you’re wondering which character in the novel Grisham presents as the “hothead with a massive ego who hated to lose,” yep, it’s the out-of-state defendant.

The battle for Edwards’s funders

Aides to candidates Clinton and Obama feverishly work an AAJ/ATLA trial lawyers’ conclave down Puerto Rico way, sensing that the money behind the flagging John Edwards candidacy may be “looking for a new candidate to get behind”. It’s “a testament to the crucial role played by the legal profession in Democratic fundraising. Trial lawyers have proved to be the financial mainstay for Edwards’s two presidential bids, as well as for the Democratic Party in general.” Quotes longtime Overlawyered favorites Fred Baron, Thomas Girardi and Robert Montgomery (Matthew Mosk, “Top Candidates’ Teams Look to the Lawyers”, Washington Post, Jan. 28).

Mustang club calendars

Initial reports had it that the car company’s lawyers were objecting to fans’ putting out a calendar adorned with pictures they’d taken themselves of their beloved Mustangs. Later, the company said it was fine with the fans’ publishing the photos and calendars so long as they didn’t use the Ford logo. (AdRants, Jan. 14; Culture Garage, Jan. 11).

“Court Says You Can Copyright A Cease-And-Desist Letter”

We and many others criticized a law firm in October for taking the position that its cease and desist letters, also known as nastygrams, were copyrighted and thus could not be posted intact on the web by its targets. However, if a press release from that law firm is correct, a federal court in Idaho has just indeed taken the position that cease and desist letters may be covered by copyright law. Such a ruling, if upheld, would make it more difficult for the targets of bullying tactics by lawyers to rally online support for their cause. (TechDirt, Jan. 25; Slashdot, Jan. 26; Dozier Internet Law press release, PRWeb, Jan. 24).

More: “if a press release from the law firm is correct” turns out to be a big if: according to Ron Coleman at Likelihood of Confusion, as well as our own commenters, the Idaho federal court ruling falls far short of establishing any such proposition about these letters’ being copyrightable. See also: Victoria Pynchon, IP ADR blog, TechDirt later post, Paul Alan Levy @ CL&P. And yet more: Marc Randazza, Eugene Volokh.

Redwoods vs. solar panels

Richard Treanor and Carolynn Bissett face criminal charges for not cutting redwoods that have grown to block a neighbor’s panels. (Paul Rogers, “Sunnyvale homeowners told to cut redwoods that block solar panels”, San Jose Mercury News, Jan. 24)(h/t: Karen Myers).

More: Kevin at Truck and Barter thinks the local statute, which includes elements of first-in-time first-in-right, does a relatively good job at drawing bright-line rules to protect the competing legitimate interests of the property owners. For arguably relevant history, check out the old English doctrine of “ancient lights“.

Big teaching-hospital cuts after Oregon high court ruling

But they told us the malpractice crisis was just a myth dept. (Associated Press):

Oregon Health & Science University plans to cut at least 200 jobs and raise tuition by at least 10 percent to free the money needed for higher insurance costs following an Oregon Supreme Court ruling.

The December ruling cleared the way for the family of a brain-damaged child to pursue malpractice damages from the university. It effectively eliminated a liability cap of $200,000 designed to protect state agencies from major damage awards.

The cutbacks, expected to be announced Friday, were first reported by The Oregonian newspaper. Besides trimming jobs and hiking tuition, OHSU expects to restructure or close clinical, research and education programs, and scale back construction on Portland’s South Waterfront.

OHSU said the court ruling will add $30 million a year in insurance and administrative expenses. Though that’s only 2 percent of OHSU’s annual operating budget of about $1.5 billion, it amounts to more than 60 percent of its annual support from the state’s general fund. …

OHSU is Portland’s largest private employer with about 12,000 staff.

More: Victoria Taft (cross-posted from Point of Law).

“IBM responds to overtime lawsuits with 15% salary cuts”

The fastest-growing area of employment litigation in recent years has been wage-and-hour class actions, perhaps the biggest subset of which are lawsuits charging that white-collar employees have been misclassified as exempt from hourly wage and overtime calculations. Like many big employers, IBM has been hit with such suits from lawyers seeking to represent thousands of its employees. Information Week:

The good news for those workers is that IBM now plans to grant them so-called “non-exempt” status so they can collect overtime pay. The bad news: IBM will cut their base salaries by 15% to make up the difference, InformationWeek has learned.

The plan has been greeted with howls of protest from affected workers.

The payroll restructuring goes into effect Feb. 16 and applies to about 8,000 IBM employees classified as technical services and IT specialists, according to internal IBM documents reviewed by InformationWeek and sources at the computer maker.

The plan calls for a “15% base salary adjustment down across all units with eligibility for overtime,” the documents state. The move is a direct response to the employee lawsuits — at least one of which has apparently been settled.

“To avoid protracted litigation in an area of law widely seen as ambiguous, IBM chose to settle the case — and to conduct a detailed review of the jobs in question,” the documents state.

The giant tech company also intends to lobby for modernization of New Deal era wage-and-hour laws which might allow it to restore the previous compensation methods. Good luck with that — even if it can show that most of the workers involved would themselves favor salaried rather than hourly status, the political clout of unions and trial lawyers has stymied efforts at legislative reform in the past. (Paul McDougall, Information Week/EETimes.com, Jan. 23).