Dan Seligman writes an intriguing piece about at-will employment, the value it presents to an economy, attempts to have exceptions swallow the rule, and the irony of the New York Times invoking it in a recent employment dispute. (“The Right to Fire”, Forbes, Nov. 10 (registration required)). One of Governor Gray Davis’s departing gifts to California taxpayers was his signing of SB 578, an end to at-will employment for government contractors (on pain of criminal prosecution), which will manifest itself in increased litigation expenses and transaction costs. (Kathy Robertson, “New laws reshape workplace”, Sacramento Business Journal, Oct. 20).
Posts Tagged ‘governors’
Calif.: here comes labor-law bounty hunting
Outgoing Calif. Gov. Gray Davis has quietly signed S. 796, a first-of-its-kind bill that authorizes lawyers to file private damage suits over labor code violations. Business leaders “argue it could have far-reaching financial consequences to employers across the state and be more costly than the landmark employee health bill, SB 2, signed by the governor earlier this month. … The legislation would allow a worker to sue on behalf of other employees for wage and labor code violations. Moreover, it permits a judge to force employers to pay attorney’s fees and penalties.” (Gilbert Chan, “Sue-your-boss bill becomes law”, Sacramento Bee, Oct. 20). “This is probably the worst bill I’ve seen in my three years in the State Legislature. Senate Bill 796 is the ‘Son of 17200’ ? California?s much-maligned and highly abused Unfair Competition Law,” said Assemblymember Tom Harman, R-Huntington Beach. “Large employers in California will now be a cash cow for trial lawyers thanks to SB 796,” said Harman. “A minor one-year Labor Code violation at the business employing 3,000 workers will generate civil penalties totaling more than $31 million”. (California Assembly Republicans press release, Sept. 11) (& welcome Employer’s Lawyer readers)
“Arnold’s agenda”
The governor-elect said many of the right things about litigation reform, though both friends and foes are still guessing as to how serious his commitment is. “Before the recall, the influential trial lawyers lobbying group, the Consumer Attorneys of California, had warned of judicial doom under Schwarzenegger … [CAOC president Bruce] Brusavich] worked hard to keep Schwarzenegger out of office, raising nearly $2 million from trial lawyers for Davis and Lt. Gov. Cruz Bustamante. … Brusavich expects Davis will sign three more plaintiffs-supported bills — one modifying the statute of limitations in toxic torts, one prohibiting pre-dispute arbitration in labor contracts, and one allowing causes of action for labor code violations — before he leaves office.” The litigation lobby also wants Davis, who’s been filling judicial vacancies at a feverish clip, to fill all the rest before leaving. Not if Arnold has his way: “Schwarzenegger Wants Davis to Stop Filling Posts and Signing Bills” reads a Friday morning headline (John M. Broder, New York Times, Oct. 10) (Jeff Chorney, The Recorder, Oct. 9).
It’s raining money for Mo. governor
Against a backdrop of growing political difficulties for Missouri Governor Robert Holden, “how did Holden’s campaign pile up an impressive $623,245 in contributions? Who are the governor’s backers and why are they opening their wallets? … Reports filed last week show that the biggest identifiable chunks of money the last three months came from two groups: trial lawyers and labor unions.” Holden just vetoed a bill that would have limited damages in lawsuits. Besides giving more than $80,000 to his campaign in the last quarter, lawyers also gave $240,000 to the Missouri Democratic Party. (Virginia Young, “Lawyers, unions give big to Holden war chest”, St. Louis Post-Dispatch, Jul. 21.)
Car-lease liability crisis continues in N.Y., R.I.
Following heavy lobbying by trial lawyers, the lower houses of the New York and Rhode Island legislatures have refused to act to limit auto leasing companies’ currently unlimited “vicarious liability” for their lessees’ crashes, thus apparently ensuring that Ford, Honda and other major automakers will continue fleeing from the two states. We covered the controversy in a Jun. 9 op-ed as well as in earlier posts. New coverage: Ed Garsten, “Firms halt N.Y. vehicle leases”, Detroit News, Jul. 6; Matt Smith, “Auto leasing companies fleeing state”, Ottaway/Middletown Times-Herald Record, Jul. 2; Jeremy Boyer, “Dealers steer way past loss of leasing”, Albany Times-Union, Jul. 3; “Bill Limiting Accident Liability Appears Doomed”, TurnTo10.com (WJAR-TV Providence), Jun. 30 (R.I.). Update Aug. 3: Reform not doomed in R.I. after all, major automakers agree to stay after governor signs one-year fix limiting liability to $300K, leaving N.Y. as only state with unlimited liability.
Archived politics items, pre-July 2003
“A tangled Mississippi web“, Jun. 16-17, 2003; “Mississippi investigation heats up“, May 7, 2003; “‘High court judge had use of condo owned by group that includes trial lawyer’“, Oct. 11-13, 2002; “Rumblings in Mississippi“, Oct. 9-10, 2002.
Sen. Edwards, 2003: “More on Edwards’ law-firm donations“, May 8; “Edwards leads in fund raising“, Apr. 7-8; “‘Edwards doesn’t tell whole story’“, Mar. 4 (& letter to the editor, Mar. 31). 2002: “‘Bush urges malpractice damage limits’“, Jul. 29; “‘Edwards’ fund raising a strong suit’“, Jul. 18 (& Sept. 3-4); “‘The trials of John Edwards’“, May 20-21; “What big teeth you have, Sen. Edwards“, May 1-2; “Trial lawyer smackdown!”, Feb. 20-21. 2001: “Trial lawyer president?“, Mar. 9-11. 2000: The Veep that got away”, Aug. 15.
Politicians’ ATM, 2003: “‘Lawyers find gold mine in Phila. pension cases’“, Mar. 21-23; “ATLA’s hidden influence“, Jan. 21-22. 2002: “Some election results“, Nov. 7; “Campaign roundup“, Nov. 4-5; “Pa. statehouse race: either way, Big Law wins“, Oct. 24; “Trial lawyers and politics: Michigan, Texas“, Oct. 9-10; “Last-minute friends in Texas politics“, Jul. 22-23; “Trial lawyer smackdown!” (Scruggs vs. Sen. Edwards), Feb. 20-21. 2001: “Third Circuit cuts class action fees“, Sept. 25-26; “‘Trial lawyers derail Maryland small claims reform’” (Gov. Parris Glendening), July 25; “Villaraigosa and the litigation lobby” (Calif. assembly speaker), June 18; “Ness monster sighted in Narragansett Bay” (Rhode Island contributions by Ness Motley), June 7; “‘Nursing homes a gold mine for lawyers’” (Fla. lawyer said he probably gave $1 million to politicians last election cycle), Mar. 13-14; “‘Angelos made rare donation to GOP’” (Sen. Hatch’s campaign), Feb. 16-19; “Sen. Kennedy flies the trial-lawyer skies“, Jan. 8. 2000: “O’Quinn a top Gore recount angel“, Dec. 15-17; “California’s lucrative smog refunds” (Lerach and Gov. Gray Davis), Dec. 5; “Friend to the famous” (Williams Bailey), Oct. 12; “‘Money to burn’” (Ness Motley), Oct. 6-9; “I know [you] will give $100K when the president vetoes tort reform, but we really need it now“, Sept. 14, 2000 (& more coverage: Sept. 15-17, Sept. 19); “Clinton’s trial-lawyer speech, cont’d“, Aug. 1; “Trial lawyers give $500,000 as legislation heads to Senate floor“, Jun. 14-15; “Texas tobacco fees” (recycling into party politics), May 22; “Gore among friendly crowd (again)“, April 12; “Al Gore among friendly crowd“, Mar. 30; “‘Trial Lawyers Pour Money Into Democrats’ Chests“, Mar. 24-26; “Bill Clinton among friendly crowd“, Feb. 14; “‘Tracking the trial lawyers’: a contributions database“, Jan. 21-23 (& Sept. 25-26). 1999: “Hurry with those checks“, Dec. 1; “Give, and receive“, Sept. 25-26.
Judicial elections, 2002: “Some election results“, Nov. 7; “Campaign roundup“, Nov. 4-5; “Mudslinging in Ohio high court races“, Nov. 1-3 (& Nov. 4-5); “Ohio’s high-stakes court race“, Oct. 16-17; “Judicial selection, the Gotham way“, Oct. 15; “Rumblings in Mississippi“, Oct. 9-10. 2001: “Don’t try rating our judges, or else” (Phila.), Oct. 24-25; “‘Philadelphia judicial elections still linked to cash’“, Oct. 12-14; “‘Reflections of a Survivor of State Judicial Election Warfare’” (Justice Robert Young, Mich.), July 3-4. 2000: “More election results” (Mich., Ohio), Nov. 9; “Michigan high court races” (and earlier coverage Aug. 23-25, May 15, May 9, Jan. 31, 2000; Aug. 6, 1999); “Just had to donate” (Mississippi), Nov. 3-5; “Ohio high court races“, Oct. 30 (and earlier coverage Aug. 18, Aug. 6, 1999); “Campaign consultants for judges“, Aug. 28.
Lobbying clout: “Florida: ‘New clout of trial lawyers unnerves legislators’“, Mar. 20, 2003; “Let’s go to the tape” (ATLA lobbies Sen. Grams), Apr. 27, 2000; “House passes liability reforms“, Feb. 24, 2000; “Sixth most powerful” (Only sixth? Trial lawyers among Washington lobbies), Dec. 10, 1999; “Calif. state bar improperly spent dues on politicking“, Aug. 25, 1999.
RN, 2003: “‘Public deceit protects lawsuit abuse’“, Mar. 15-16; “ATLA’s hidden influence“, Jan. 21-22. 2002: “Nader credibility watch” (calls fast-food restaurants “weapons of mass destruction”), May 24-26. 2001: “Channeling Chomsky” (Trade Center attacks), Oct. 22 (& Oct. 1); “Trial lawyers (some of them) yank Nader funding“, Feb. 16-19. 2000: “Election special: Nader non grata“, Nov. 10-12; “Coercive capitalism?“, Nov. 6; “Election roundup” (Nader “dashboard saint” to trial lawyers), Oct. 23; “RN’s illusions“, Sept. 22-24; “Bush-Lieberman vs. Gore-Nader?“, Aug. 14; “Nader cartoon of the year“, Jul. 31; “Nader, controversial at last“, Jun. 13.
“Friends in high places, cont’d” (Kansas governor), May 5, 2003.
“Politico’s law associate suspended over ‘runner’ use” (Louisiana), Feb. 14-16, 2003.
“Trial lawyer’s purchase of Alabama governor’s house said to be ‘arm’s-length’“, Jan. 7-8, 2003.
“Friends in high places, cont’d“, May 5, 2003; “Gotham’s trial lawyer-legislators“, Dec. 13-15, 2002; “Trial lawyers’ clout in Albany“, Oct. 4, 2000.
Lawyers as candidates: “To tame Madison County, pass the Class Action Fairness Act” (Ill. Senate seat), Jun. 12-15, 2003; “Some election results“, Nov. 7, 2002; “Campaign roundup“, Nov. 4-5; “‘Wealthy candidates give Democrats hope’“, Oct. 11-13, 2002; “Trial lawyer candidates“, Jul. 6, 2000 (& update Sept. 15-17: Ciresi defeated in primary bid); “Tort fortune fuels $3M primary win” (House race in W.V.), May 11, 2000 (& updates Oct. 23, Nov. 9 (lawyer defeated); “‘Lawyer’ label hurts at polls“, Dec. 8, 1999.
“‘Morales’ $1 Million Tobacco Fee Under Fire’” (Texas), Jul. 15, 2002; “Texas tobacco fees: Cornyn’s battle“, Sept. 1-3 (& May 22, 2000, June 21, 2001, Aug. 29-30, 2001, Nov. 12, 2001).
Congress, 2003: “To tame Madison County, pass the Class Action Fairness Act” (Ill. Senate seat), Jun. 12-15. 2002: “Some election results“, Nov. 7; “Campaign roundup“, Nov. 4-5; “Durbin’s electability“, Apr. 25. 2001: “‘Angelos made rare donation to GOP’” (Hatch), Feb. 16-19; “Philadelphia juries pummel doctors” (Sen. Arlen Specter), Jan. 24-25; “Sen. Kennedy flies the trial-lawyer skies“, Jan. 8. 2000: “Litigation reform: what a Democratic Congress would mean” (comments of Rep. Patrick Kennedy (D-R.I.)), Nov. 7; “Friend to the famous” (Williams Bailey), Oct. 12; “Owens Corning bankrupt” (House Judiciary Democrats), Oct. 6-9; “Veeps ATLA could love” (Durbin, D-Ill., and Cohen, R-Me.); “Trial lawyers give $500,000 as legislation heads to Senate floor“, June 14-15.
Pres. & Sen. Clinton, 2001: “Humiliation by litigators as turning point in Clinton affair“, May 24; “Push him into a bedroom, hand him a script” (Bill’s testimonial for tobacco lawyers), March 9-11. 2000: “Friend to the famous” (Williams Bailey & HRC), Oct. 12; “I know [you] will give $100K when the president vetoes tort reform, but we really need it now“, Sept. 14, 2000 (& more coverage: Sept. 15-17, Sept. 19); “Clinton’s trial-lawyer speech, cont’d“, Aug. 1 (& “a footnote”, Aug. 2); “Clinton’s date with ATLA“, Jul. 31; “Bill Clinton among friendly crowd“, Feb. 14. 1999: “Gun litigation: a helpful in-law” (Hugh Rodham surfaces as middleman in gun cases), Oct. 25; and see 2000 campaign.
State attorneys general, 2002: “Some election results“, Nov. 7; “Campaign roundup“, Nov. 4-5; “Spitzer riding high” (N.Y.), Jun. 17-18; “Microsoft case and AG contributions“, Apr. 3-4; “Like father, like daughter?” (Lisa Madigan, Ill.), Jan. 7-8. 2001: “Vast new surveillance powers for state AGs?” (“biggest showboaters in American politics”), Sept. 25-26. 2000: “Ness Motley’s aide-Gregoire, July 17; “Rewarded with the bench” (Connecticut AG Blumenthal), June 12. 1999: “Illinois tobacco fees“, Oct. 16-17; “My dear old tobacco-fee friends” (Kansas attorney general picks her old law firm for lucrative contract suing tobacco firms), Oct. 11; and see state tobacco fees.
“Judicializing politics (cont’d)“, Jun. 19-20, 2002; “Unlikely critic of litigation” (Larry Klayman, Judicial Watch), Apr. 16-17, 2002.
“‘”Little” done for firm, Rendell says’” (law firms provide no-show jobs for politicians), May 9, 2002.
“Texas trial lawyers back GOP PAC“, Mar. 12, 2002.
“Third Circuit cuts class action fees“, Sept. 25-26, 2001; “ABA thinks it can discourage pay-to-play“, Aug. 11, 1999.
“Update: Alabama high court reverses convction in campaign-tactics case“, Jul. 7, 2001; “Update: Alabama campaign-tactics case“, Aug. 31, 2000; “‘Bama bucks“, Nov. 16, 1999; “Alabama story goes national“, Sept. 1; “Playing rough in Alabama“, Aug. 26, 1999.
“Chapman, Broder, Kinsley on patients’ rights” (Kinsley: “pretty true” that Democratic Party in lawyers’ pocket), Jun. 28.
“‘Lender hit with $71M verdict’” (Mississippi legislators), Jun. 15-17, 2001.
“‘The last tycoon’” (Peter Angelos), April 12, 2001; “Czar of Annapolis, and buddy of Fidel“, Dec. 9, 1999; “Maryland’s kingmaker“, Oct. 19, 1999.
“Trial lawyer heads Family Research Council“, Mar. 2-4, 2001.
Archived entries on the 2000 presidential race and recount can be found here.
“Monitor vote fraud, get sued for ‘intimidation’“, Oct. 24, 2000.
“New page on Overlawyered.com: trial lawyers and politics” (this page launched), Jul. 28-30, 2000.
“Lenzner: ‘I think what we do is practice law’” (private investigator’s tactics), Jul. 28-30, 2000.
“Trial lawyers’ political clout“, May 8, 2000.
“Progressives’ betrayal” (Jonathan Rauch), Apr. 4, 2000; “Trial lawyers on trial” (Reader’s Digest), Dec. 23-26, 1999; “The reign of the tort kings“, Oct. 26; “Arbitrary confiscation, from Pskov to Pascagoula” (Michael Barone), Jul. 24, 1999.
“Pro-litigation measures on California ballot“, March 6, 2000 (update Mar. 8: measures defeated).
“From the Spin-To-English Guide” (“access to justice” rhetoric), Oct. 25, 1999.
Archived auto items, pre-July 2003
Leasing liability: “‘Silver’s wreck’“, Jun. 9, 2003; “Auto-lease liability: deeper into crisis“, May 21; “‘Automakers may stop leasing vehicles in N.Y.’“, Mar. 12-14, 2003; “R.I.: No more cheap car leases?“, Aug. 26, 2002.
Romo v. Ford Motor Co.: “Update“, Jun. 2, 2003; “‘California Court Upholds $290 Million Injury Jury Award Against Ford’“, Oct. 24, 2002; “You read it here first“, Aug. 27, 2002; “Tainted by ’60 Minutes’“, Sept. 17-19, 1999; “The dream verdict” (California Bronco award), Aug. 24, 1999.
“Steering the evidence” (DaimlerChrysler gets sanctions against lawyers for evidence and witness tampering), May 23, 2000 (& updates Jun. 26, 2000, Mar. 17, 2003).
“‘The Lawyers Are Lurking Over S.U.V.’s’“, Jan. 9, 2003.
Tires: “Blaming murder on flat tire“, Jun. 4-5, 2003; “Hey, no fair talking about the pot” (rollover), Apr. 12-14, 2002; “‘Plaintiff’s lawyers going on defense’” (Reaud represents Bridgestone Firestone), Oct. 9, 2001; “‘Lawyers put profit before lives’“, June 28; “Trial lawyers knew of tire failures, didn’t inform safety regulators“, June 25 (& letter to the editor, July 6); “Big numbers” (Continental General Tire, Cooper Tire), April 16, 2001; “Product liability criminalized?“, Oct. 20-22, 2000; “Hasty tire judgments“, Oct. 16-17; “Who caught the tire problem?“, Sept. 15-17; “‘Feeding frenzy over Firestone’“, Sept. 11, 2000.
“Ford didn’t push pedal extenders, suit says“, Feb. 27-28, 2002 (& letter to the editor, Apr. 11).
“‘Drunken Driver’s Widow Wins Court’s OK To Sue Carmaker’” (VW), Feb. 25-26, 2002.
“Chrysler dodges a $250 million dart“, Dec. 7-9, 2001; “Miami jury to Ford: pay $15 million after beltless crash“, Sept. 24, 2001.
“Disclaimer rage?” (GPS software), Oct. 15, 2001.
“When trial lawyers help redesign cars” (Thornburgh on GM trucks), Aug. 6, 2001.
Airbags: “‘Airbag chemical on trial’“, Aug. 14, 2000; “Deflated“, May 16, 2000; and see Oct. 20-22, 2000 (Henry Payne cartoon).
“Drive 60K miles, collect $273K“, Jan. 9, 2001; “Tales from the tow zone” (verdict against Chrysler), Oct. 31, 2000.
“Highway responsibility” (GM sued in Derrick Thomas speeding-on-ice crash), Nov. 28, 2000.
“Product liability criminalized?“, Oct. 20-22, 2000.
“Target Detroit” (mass litigation; S.U.V.’s; class action firm countersues DaimlerChrysler and exec personally), Jul. 19-20, 2000; “Turning the tables” (DaimlerChrysler sues class action lawyers), Nov. 12, 1999.
“Nader on the Corvair“, July 13, 2000; “Nader, controversial at last“, June 13, 2000; “Deflated“, May 16, 2000.
“Sudden deceleration” (NHTSA rejects petition for sudden-acceleration probe), Jun. 6, 2000.
“‘Saints, sinners and the Isuzu Trooper’“, April 14-16, 2000; “Verdict on Consumer Reports: false, but not damaging” (Isuzu v. Consumers Union), Apr. 10, 2000.
“$65 million Texas verdict: driver at twice the legal blood limit” (drunk driver’s estate sues Honda over seat belt), Mar. 28, 2000.
“‘Motorists speed more, but fewer die’“, Feb. 19-21, 2000.
“GM verdict roundup” (Anderson v. General Motors fallout continues), Dec. 16, 1999; “L.A. judge cuts award against GM to $1.2 billion“, Aug. 27, 1999; “In L.A., redesigning the Chevy” ($5 billion Malibu gas tank verdict), Jul. 10, 1999 (& see update Aug. 3, 2003, case settled on undisclosed terms).
“Toshiba and Ford, in the same boat“, Dec. 2, 1999.
“‘Wretched excesses of liability lawsuits’” (David Boldt, Philadelphia Inquirer), Nov. 29, 1999.
“Responsibility, RIP” (columnist Mona Charen), Nov. 2, 1999.
“Zone of blame” (policeman shot in his cruiser, automaker sued), Oct. 27, 1999.
“Rhode Island A.G.: let’s do latex gloves next” (speed governors on cars), Oct. 26, 1999.
“The art of blame” (Ford sued after child left in parked van in sun dies of overheating), Oct. 20, 1999.
“Demolition derby for consumer budgets” (class action against State Farm over generic crash parts), Oct. 8, 1999.
“Yes, it is personal” (automotive engineers take design-defect suits as personal accusations), Oct. 7, 1999.
“Too many games at GM?” (Atlanta ruling on Ivey memo controversy), September 10, 1999.
“Do as we say (II): gun-suit hypocrisy in Detroit” (gun- and automakers both sued after criminal misuse of their products), Aug. 30, 1999.
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[additional essay on auto design liability here]