Posts Tagged ‘ADA filing mills’

On C-SPAN tonight: “Protecting Main Street From Lawsuit Abuse”

Today I testified before the Senate Republican Conference about the effect on the economy of excessive litigation. A podcast is available on-line and, for the insomniacs among you, the hearing will be broadcast on C-SPAN tonight at 10:56 PM Eastern and again at 2:09 AM Eastern. Also testifying was Life Without Lawyers author Philip Howard; Crystal Chodes, who lost her job because of the expense of a meritless ADA filing mill suit; Texas doctor David Teuscher; and arbitration expert and University of Kansas law professor Christopher Drahozal.

If you just prefer reading what I have to say, my written testimony is on-line also:

The total loss to the economy from excessive tort litigation above and beyond a baseline of an employment at will regime and an average industrialized tort system can be estimated at between over $600 billion and over $900 billion a year, 4.3% to 6.5% of GNP, or a tort tax of between $8,000 and $12,000/year for an average family of four. And this is very much a conservative estimate, as other economists find much stronger effects than I have estimated here, as I have not tried to estimate a number of identifiable secondary and tertiary effects of excessive tort litigation on allocation of economic resources, and as I have not tried to estimate the likely effect of recent Congressional expansions of tort liability in the last twelve months.

I was pleased to hear from multiple Congressional staffers who are regular Overlawyered readers: one even surreptitiously added the website into my official biography. Carter Wood talks about the hearing and Senator Cornyn’s remarks over at Point of Law.

Update: video on-line at C-SPAN; my segment begins at 43:15 or so. And C-SPAN2 is rebroadcasting at 4:16 pm Eastern on Tuesday, March 17, which suggests that my appearance will be at about 5 pm Eastern.

February 1 roundup

  • A “retired Reserve captain is threatening to sue her local California school board if the board’s members do not address her by her military title” [Navy Times, Popehat]
  • Members revolt at Florida bar’s selling their email addresses to marketers; general counsel of bar suggests they maintain multiple email addresses [Daily Business Review]
  • “Panel Upholds $17M Attorney Fee Award, Cites Bad-Faith Patent Litigation by Drug Companies” [NLJ; fees awarded to Takeda Chemical Industries against Mylan Laboratories and Alphapharm Pty. Ltd.]
  • Much of what you think you know about the Lilly Ledbetter Fair Pay Act is wrong [Stuart Taylor, Jr./National Journal; Point of Law, more]
  • Not only prejudicial, but a whiskery urban legend to boot: fictional “Winnebago tale” (man thinks cruise control function will drive RV for him, sues after crash) makes its way into an Australian lawyer’s courtroom argument [Rees v. Bailey Aluminium Products]
  • Posner was scathing about the class action lawyers’ conflicts of interest in the Mirfasihi v. Fleet Mortgage Co. case, but Max Kennerly thinks the judge got the case wrong [Litigation and Trial, earlier]
  • Fight erupts over fee split in Blue Cross eating-disorder class action settlement [NJLJ, earlier]
  • “Many attorneys from both parties also marvel at the sheer number of lawyers Obama has picked so far” in staffing White House [Washington Post]

Microblog 2008-01-04

  • Must stores let in “social support” goats? Hot ADA issue we’ve often covered makes it into NYTimes mag [Rebecca Skloot] And Time mag tackles scandal of ADA-suit mass filing for $$, long familiar to our readers [Alison Stateman]

  • Can you guess mechanism by which snow globes turned out to cause fire hazard? (Then check link.) [K.C. Business Journal]

  • “Do Not Track” legislation could torpedo online-advertising models [ReadWriteWeb h/t @lilyhill]

  • What if plea-bargaining defendants could give D.A.s eBay-style feedback? [Greenfield]

  • UK cabinet minister wants govt to regulate Net with aim of child safety, Brit blogger says – hell, no! [Perry de Havilland, Samizdata]

  • As lawyer-driven mummeries go, which is worse, coffee machine overwarning or medical “informed consent”? [Happy Hospitalist]

  • Bogus memoirs nowadays spawn real lawsuits, as we remember from James Frey case [Elefant]

  • Is health care prohibition in our future? [KevinMD]

  • Massachusetts child support guidelines said to be highly onerous for dads already and getting worse [Bader, CEI]

  • Kid gloves from some local media for Connecticut Sen. Chris Dodd & his magic mortgages [Christopher Fountain and again]

  • Had Robertson v. Princeton donor-intent suit gone to trial, lawyers might have billed $120 million hourly fees. How’d the number get that high? [Kennerly, Litigation & Trial and again]

  • A reminder: these microblog posts are based on a selection of my contributions to Twitter, which you can “follow” here.

December 5 roundup

  • You are cordially invited to a fishing expedition for lawsuits over energy drink/alcohol mixes. RSVP: Center for Science in the Public Interest [Balko, Reason “Hit and Run”]
  • Recent Overlawyered guestblogger Victoria Pynchon mediates an ADA claim against a Long Beach motel owner. Extortion? Fair compromise? Both? Neither? [Settle It Now, scroll]
  • 19-year-old Ciara Sauro of Pittsburgh is disabled, in medical debt, and waiting for transplant, crowning touch is the $8,000 default judgment RIAA got against her for downloading 10 songs [Ambrogi]
  • “It does not take a graduate degree to understand that it is unacceptable to hide evidence and lie in a deposition” — Seventh Circuit sanctions Amtrak worker for dodgery in workplace-injury suit [Ohio Employers’ Law; Negrete v. Nat’l Railroad Pass, PDF]
  • New Richard Nixon tapes: “I can’t have a high-minded lawyer … I want a son-of-a-b—-.” [Althouse]
  • Aramark suit documents unsealed: girl paralyzed by drunk driver got $25 million in suit against New York Giants stadium beer vendor [AP/Vineland, N.J. Daily Journal, earlier]
  • New York high court bounces Alice Lawrence/Graubard Miller fee suit back to lower courts, says more info needed [NYLJ, earlier]
  • Couple claims retention of $1,075 rental security deposit was racially motivated, seeks $20 million [WV Record; Martinsburg, W.Va.]

San Francisco’s North Beach, curbed

Many small businesses in the historic and much-visited neighborhood have been hit with ADA complaints, often from the law offices of famed serial ADA filer Thomas Frankovich. (Carol Lloyd, “Surreal estate: ADA accessibility lawsuits causing headaches for small business owners”, San Francisco Chronicle, Jun. 13). “I’ve seen the ADA racket threaten businesses in other towns, and they ended up closing. The owner [of a small chocolate shop that has now laid off three workers] has never gotten a formal complaint from a wheelchair-bound person, except for this suit.” (“SF_Anna”, “North Beach Block Threatened by ADA Suits”, MetBlogs, Aug. 20).

ADA: Sure, call him a “professional plaintiff”

“I have no problem being accused of being a professional whatever,” says Allen Fox, who’s filed 139 disabled-accessibility lawsuits over six years in concert with attorney Samuel Aurelio, as many as eight of the similarly worded complaints in a day. Most of the complaints result in the payment of legal fees and Fox, of West Palm Beach, Fla., pays nothing on the rare occasions he loses.

Aurilio, who has filed 274 ADA cases in Florida, including Fox’s, laments that a few lawyers have given all of those who fight for the disabled a bad name. The poster child is a North Miami lawyer who in 2003 was sanctioned by U.S. District Judge Donald Middlebrooks for filing 13 lawsuits on behalf of a man he claimed was a quadriplegic who later walked in to give his deposition in one of the cases.

Not only was the man not disabled, he “did not know what a quadriplegic was, and when the term was explained to him, he was repulsed by the thought of being so incapacitated,” Middlebrooks wrote in a blistering 18-page order sanctioning lawyer Lawrence Fuller.

Fuller was also admonished by the Florida Bar; by one estimate, he’d taken in $3 million in his ADA practice by that point. (Jane Musgrave, “‘Pro Plaintiff’ Crusades for Disabled Access”, Palm Beach Post/Lakeland Ledger, May 12).

Schwartz Zweben and the Ms. Wheelchair pageant, cont’d

Three years ago we noted (following reporting by Ed Lowe and J.E. Espino of the Appleton, Wis. Post-Crescent) (more) that

Representatives of the Hollywood, Fla.-based law firm of Schwartz Zweben & Associates have played a substantial role behind the scenes in helping organize, promote and support the Ms. Wheelchair America pageant and some of its state affiliates. And lawyers with the firm have filed more than 200 lawsuits in at least seven states and the District of Columbia on behalf of at least 13 pageant participants, “including state and national titleholders, state coordinators and pageant judges”.

Now the Birmingham, Ala. News follows up on the case of Colleen Macort, Ms. Wheelchair Florida 2002, who has filed more than 73 disabled-accessibility actions in Alabama “but has never spent a day in court because of settlements”. Local law provides that Macort cannot be compensated for filing the lawsuits, but the Wisconsin paper reported that the firm of Schwartz Zweben had engaged her as a consultant on other cases. The reporter is kind enough to quote me and mention this site (Liz Ellaby, “Bessemer woman crusades to address disability act violations, provoking critics”, Birmingham News, Jul. 3).

In the state of Washington, Ms. Wheelchair Washington 2005, Michelle Beardshear, has teamed up with the Florida firm to file 15 lawsuits, of which twelve have been settled, against enterprises in Clark County (Kathie Durbin, “Advocate for disabled not hesitant to sue for access”, The Columbian, May 27 courtesy Chamber ILR). And in March, Schwartz Zweben & Slingbaum (as it is now called) swooped down to sue twelve defendants in the Tucson area, including a number of well-known restaurants, alleging ADA violations. (Josh Brodesky, “12 Tucson businesses facing suits alleging Disabilities Act problems”, Arizona Daily Star, Mar. 28).

ADA litigation closes another Calif. restaurant

Even rural Northern California affords no refuge from the filing mills:

Eureka’s Arctic Circle franchise has closed its doors after the restaurant was sued for noncompliance with the Americans with Disabilities Act.

Jack Williams, who has owned the franchise with his wife, Peggy, since 1989, said the couple decided to close the business last Tuesday because they cannot afford the renovations required by the lawsuit.

The suit was filed by local attorney Jason K. Singleton, who in recent years has filed ADA-related suits against a number of local establishments, including Village Pantry, Broadway Cinema, Fortuna Theatre, Cafe Waterfront and College of the Redwoods, among others. …

“Here we had a business that was serving all kinds of customers and now is serving no one,” Hockaday [J Warren Hockaday, executive director of the Greater Eureka Chamber of Commerce] said.

(Ryan Burns, “Arctic Circle closes due to ADA lawsuit”, The Times-Standard, May 6; earlier).

Californian vexatious-litigant roundup

It looks as if, barring intervention by the U.S. Supreme Court, serial ADA litigant Jarek Molski and his lawyer Thomas Frankovich, longtime Overlawyered favorites both, won’t be filing any more accessibility lawsuits in California’s populous Central District. The Ninth Circuit’s decision not to disturb an order to that effect by the late Judge Edward Rafeedie, however, came by a surprisingly narrow margin, with nine judges dissenting. Among them, Judge Marsha Berzon said Rafeedie should not have acted unilaterally to bar the two from suing throughout the district, while Alex Kozinski went so far as to maintain that Rafeedie had failed to offer evidence in suggesting “that Molski is a liar and a bit of a thief”. The majority of judges, however — and the Ninth is among the last circuits anyone would accuse of an excessive wish to shut down litigation — disagreed. (Dan Levine, “9th Circuit Judges Blast Order Barring ADA Lawyer”, The Recorder, Apr. 9). One final bit from the account in the Recorder might cause the reader’s jaw to drop open, as it did mine:

Rafeedie died of cancer late last month, but Frankovich still holds a grudge.

“What he did is morally reprehensible,” the attorney said Monday. “Acting morally reprehensible creates bad karma, and sometimes you have to pay the piper for bad karma.”

In other news of vexatious California litigants:

For years, self-described public-interest litigator Burton Wolfe has bragged that he was one of the few people to get off the state’s so-called vexatious litigant list for self-represented plaintiffs who file frivolous lawsuits. Those who are put on the list can file “pro per,” or do-it-yourself, lawsuits only with a judge’s permission. But after enjoying a few years off the blacklist, the 75-year-old Wolfe has sued his way back onto the roster. … [His name was restored to the list after] he sued the San Francisco Food Bank and America’s Second Harvest for setting up what he calls a food “racket” in the privately owned low-income senior-housing Eastern Park Apartments where he lives.

(Lauren Smiley, “Vexatious Litigant Burton Wolfe Fighting Eviction After Threatening More Lawsuits”, San Francisco Weekly, Feb. 20). Perhaps the most celebrated of modern San Francisco’s vexatious litigants is Patricia A. McColm, who has been profiled in a number of news stories including Ken Garcia, “Woman who sues at drop of hat may get hers”, San Francisco Chronicle, June 6, 2000, reprinted at Forensic Psychiatric Associates site. Incidentally, the British court system is thoughtful enough to post its list of vexatious litigants online, an obvious aid to persons who might find themselves the target of threatened suits by persons on the list. But although the California courts have a webpage discussing the fact of their having a list, I could find no sign that they had posted the list itself online. Have any U.S. states (or Canadian provinces, etc.) done so?

Update: Stephen Yagman draws three-year sentence

The high-profile Los Angeles attorney, who’s made frequent appearances in these pages, is headed to federal prison following his conviction for tax evasion, money laundering and bankruptcy fraud (see Jun. 24). U.S. District Judge Stephen V. Wilson chided Yagman for testimony “so transparently untrue in so many areas.” (Scott Glover, “Attorney Yagman sentenced to 3 years for tax evasion, fraud”, Los Angeles Times, Nov. 28). Best known for his lawsuits against police departments, the much-criticized Yagman has also represented the principals in a famous Americans with Disabilities Act filing mill that launches mass complaints against small businesses and settles them for cash (Mar. 18, 2005; Nov. 4, 2006). According to the L.A. Times account, he “twice was suspended by the state bar for charging clients ‘unconscionable’ fees.” When a retired police sergeant sent him a letter expressing “glee” over his indictment, Yagman promptly sued him (Jan. 5, 2006). Norm Pattis (Nov. 29) reflects: “I wonder whether Yagman became a Leona Helmsley-type figure. The law is for little people, he appears to have thought.”