Posts Tagged ‘Detroit’

Flint’s mayor retreats

On Jan. 21 Mayor Don Williamson of Flint, Mich., issued an executive order directing the city not to do business with any enterprise or person who had sued the city during the previous five years. Last week he announced a retreat from that policy, his spokesman saying a record of having sued the city would henceforth be considered as one factor among others rather than as an automatic bar to doing business.

Williamson’s original order had been criticized on various grounds, and the local ACLU chapter had threatened — what else? — to sue the city over the policy. Now, it should be noted that a municipality’s blanket refusal to do business with lawsuit-filers very likely might run afoul of various laws: employment discrimination statutes, to take one notable example, typically include provisions banning employers from “retaliating” against persons who sue under them. Other state laws on topics such as procurement might also be plausibly implicated, and perhaps constitutional doctrines as well. On the other hand, news accounts portray the ACLU chapter as adventurously asserting some sort of universal if heretofore unenumerated right not to be retaliated against by any official body on the grounds of a record of litigiousness — so that an asphalt contractor, for example, with a record of getting into repeated wrangles with the city over the terms of past contracts might have a constitutional right not to have that held against it in future competition for business. Given Flint’s announced policy of continuing to consider proneness to litigation as one factor among others, it may be predicted that the controversy has not been finally put to rest. (Christofer Machniak, “Flint’s no-sue policy modified”, Flint Journal, Feb. 25; “Flint rescinds policy barring business with companies who have sued city”, AP/Detroit Free Press, Feb. 24).

Judge slashes “figurehead” class fee

“New York’s Bernstein Litowitz Berger & Grossman and Boston’s Berman DeValerio Pease Tabacco Burt & Pucillo had asked for 7.5 percent of the settlement amount, or around $22 million, for serving as co-lead plaintiffs’ counsel in a suit against pharmaceutical giant Bristol-Myers over its $2 billion investment in biotechnology company ImClone” and over a 2002 earnings restatement (see “Won Its Case, Still Paid $300M To Settle”, Aug. 2). But federal judge Loretta Preska of the Southern District of New York cut the allowed fee to $12 million, observing that the case piggybacked on an SEC enforcement action and on statements already in the public record: “Among securities class actions, this case as a whole was neither unique nor complex.” Moreover, it “is not thirty times more difficult to settle a thirty million dollar case as it is to settle a one million dollar case.” And in a footnote, Judge Preska wrote that the 7.5 percent fee negotiated between the lawyers and their clients should not be accorded a presumption of fairness because the lead plaintiffs — which included the Teachers’ Retirement System of Louisiana, the Louisiana State Employees’ Retirement System, the General Retirement System of the City of Detroit and the Fresno County Employees’ Retirement Association — had acted as “mere figureheads” for fee-seeking lawyers. Bernstein Litowitz partner Erik Sandstedt said the intimation that the pension funds served as mere figureheads “is completely untrue”. (Anthony Lin, “Judge Halves Fees Sought in Bristol-Myers Securities Class Action”, New York Law Journal, Feb. 28).

Arf! Arf! Arf! Arf! Arf! Arf! Arf! Arf!….

A federal jury in Detroit has awarded $300,000 in punitive damages and $14,209 in actual damages to Joyce Grad, saying the Royalwood cooperative apartment association in suburban Royal Oak violated her rights under the federal Fair Housing Act when it declined to waive its no-pets policy to permit her to bring in an emotional-assistance dog. Grad suffers from mental and emotional ailments that include severe depression. One of the services on which Ms. Grad has come to rely on the dog is in making sure she gets up in the morning: “I’ve trained her that if I don’t get up by 7, she is to go to [the] door and bark until help arrives.” Perfect for the neighbors! (David Ashenfelter, “Disabled woman’s dog has its day”, Detroit Free Press, Feb. 23). For more on the steady expansion of demands that legally protected status be accorded to “emotional-assistance” animals, see Oct. 25 and Dec. 2, 2004. For more cases in which disabled-rights-in-housing have led to noisy results, see Aug. 21-22, 2000 and Apr. 5-7, 2002.

Drypen v. Oakland County, Michigan

On June 22, 2003, the Drypen family asked their sixteen-year-old son, Christopher, to turn his rap music down; instead, he pulled a nine-inch serrated steak knife. They called 911, and asked for assistance subduing him. They told dispatchers that he had psychiatric problems and was not taking his medication, and told arriving police that he was “violent,” having a “psychotic episode,” and armed with a serrated steak knife. Moreover, the Drypens said, last time Christopher was like this, it took four people to subdue him.

For over an hour, several deputies tried to talk Christopher out of the basement, surrounding him at the stairs to the basement and at the outside walk-out doors. At one point, Drypen came towards deputies with the knife raised; they responded by retreating, and holding the door closed until the inside door-handle broke off in Christopher’s hand. Christopher was yelling “Die” with an obscenity. Deputies say (and the family disputes that) Drypen charged deputies up the stairs with the knife raised; he was shot from a mere twelve feet away in self-defense, and killed. Prosecutors called the killing justified self-defense and did not press charges after a three-month investigation, but the Drypen family sued–and now Oakland County taxpayers are out $4 million ($1.42 million to attorney Jules Olsman) because the County settled without admitting wrongdoing. (Mike Martindale, “$4 million won’t end grief for family”, Detroit News, Feb. 18; Marsha Low, “Family struggles to move on after son killed by deputies”, Detroit Free Press, Feb. 19; Korie Wilkins, “County to pay $4M in death of 16-year-old”, Daily Oakland Press, Feb. 18; Kate Phillips, “Drypen suit settled”, Milford Times, Feb. 17; Oakland County press release, Sep. 12, 2003; Marsha Low, “Grieving family blames police”, Detroit Free Press, Sep. 13, 2003; Bill Laitner, “Family sues over police shooting of ill teenager”, Detroit Free Press, Oct. 16, 2003; Drypen v. Oakland County, Case No. 2:03-cv-74151-AC (E.D. Mich.)).

Update, Feb. 27: The press finally gets around to reporting the defense side of the story. Often the press repeats the fact that officers fired many times as evidence that excessive force was used, when, in fact, officers are trained to keep firing until a threat is stopped. (Korie Wilkins, “Son’s death remains mystery”, Daily Oakland Press, Feb. 27; Kate Phillips, “Sides still dispute shooting details”, Milford Times, Feb. 24).

Sugar industry vs. Splenda

Alarmed by the sweetener Splenda’s steady rise in consumer popularity and market share, organized sugar producers in December filed a California false-advertising suit against distributor McNeil Nutritionals, a unit of Johnson & Johnson. The lawsuit challenges the artificial sweetener’s slogan “made from sugar, so it tastes like sugar”, on the grounds that sucralose, the active ingredient in Splenda, is produced using chemical processes, even if sugar does happen to go into it. A number of private lawyers are pursuing similar theories in consumer lawsuits pursuing class-action status. In turn, J&J has struck back with a lawsuit against the Sugar Association and other defendants alleging a “malicious smear campaign” aimed at undercutting consumer confidence in the sweetener’s safety. (Patrick Walters, “Splenda’s maker sues sugar producers”, AP/Detroit Free Press, Feb. 9; Laura Petrecca and Holly M. Sanders, “Sweet and Low”, New York Post, Feb. 13; Claire Cummings, “Splenda sugar substitute receives praise, lawsuits from consumers”, State News (Michigan State U.), Feb. 16). Update: National Law Journal coverage of controversy (Apr. 8).

“$1.2 million? Thanks but no thanks”

At least 30 residents of the Downriver section of Wayne County, Mich., south of Detroit, “have rejected up to $550 per family member, which is their share of a $1.2 million settlement prompted when about 2,500 residents evacuated their homes during a July 2001 chemical leak. To be eligible, all they had to do was sign a form that said they been home in the affected areas of Grosse Ile, Wyandotte, Riverview or Trenton at the time of the leak. While some acknowledged that they weren’t home, several others said they didn’t support the lawsuit or deserve the money.” Trenton retiree Thelma Diemer says she wasn’t hurt and went shopping during the evacuation: “I didn’t feel I was being honest accepting the money and you have to think about the hereafter, especially when you’re 86.” (David Shepherdson, Detroit News, Feb. 4)(via National Review Online)

Basketbrawl lawsuits begin

Fark would mark this entry with an “Obvious”: Fans at the now-infamous Detroit-Indiana basketball game Friday night have started filing lawsuits. According to the Detroit Free Press, video shows season ticket holder William Paulson dousing Indiana Pacer Ron Artest with a drink after Artest charged the stands and pummeled an innocent bystander, but he’s suing three players, the Pacers, and the arena over a concussion he allegedly suffered in the brawl. John Ackerman also claims to have suffered a concussion; he’s told different reporters that he was hit by a chair and hit by Jermaine O’Neal. The lawyer is your friend and mine, Geoffrey Fieger (Aug. 31 and links therein). (Ben Schmitt and Frank Witsil, “Victims? Suspect? Prosecutor identifies fan who started brawl”, Detroit Free Press, Nov. 23; Mike Martindale, “Find chair-tosser, get cash”, Detroit News, Nov. 24; Daniel Howes, “Lawsuits over Palace fight show a culture of litigation”, Detroit News, Nov. 24; Bisi Onile-Ere, “Lawsuits come in Palace brawl”, ABC-12, Nov. 23).

“Ford wins cop-car suit”

In Belleville, Ill., a St. Clair County jury has ruled that the Ford Motor Co.’s Crown Victoria police cruiser is not defective and not unreasonably susceptible to fuel-fed fires after high-speed rear-end collisions. A class action on behalf of Illinois police departments had been filed in the famously pro-plaintiff county. The verdict represents a rebuke to trial lawyers who’ve been campaigning nationally for some time against the vehicle: see Nov. 5, 2003 and Sept. 29, 2004. (Bloomberg/Detroit Free Press, Oct. 16; Beth Hundsdorfer, “Ford earns victory in police car suit”, Belleville News-Democrat, Oct. 16).

Michigan malpractice

Striking numbers: “Despite statewide reforms designed to lower the cost of medical malpractice insurance, the most expensive annual premium for a general surgeon in Wayne County [Detroit] reached $194,000 for $1 million of coverage — a 60 percent increase over last year, according to a survey released last week by Medical Liability Monitor, a trade journal. A doctor in Grand Rapids would pay $63,000 for the same coverage.” Both are doing better than general surgeons in Dade County, Fla., where the comparable figure is $277,000. (Sheri Hall, “Malpractice rates drive off doctors”, Detroit News, Oct. 25). More: MichMedMal blog, Oct. 25.

Terrorism legal risk: see no evil…

“A year after the Sept. 11 attacks, the Justice Department obtained video surveillance tapes suggesting terrorists were targeting Las Vegas casinos, but authorities never alerted the public as they discussed whether a warning might hurt tourism or increase the casinos’ legal liability, internal memos show. …Another memo states the casinos didn’t want to see the footage for fear it would make them more likely to be held liable in civil court if an attack occurred.” Most local law enforcement authorities also declined an opportunity to view the tape. (John Solomon, “U.S. Didn’t Warn Las Vegas of Threats”, AP/Washington Post, Aug. 9). On the other hand, MGM Mirage spokeswoman Yvette Monet said her company did see the tapes and cooperated with authorities. An anonymous casino executive also tells the Las Vegas paper that the casinos kept their distance from a Detroit terrorism trial in which surveillance tapes were a factor because they feared having to reveal their security plans in sworn testimony, to the advantage of future terrorism attempts. (“Terrorism threats: city accused of inaction”, Las Vegas Review-Journal (with AP coverage), Aug. 10). More: Eugene Volokh comments as does Radley Balko.