Posts Tagged ‘politics’

NY Times sends nastygram to satirical website

The Corzine Times, a website of the Republican Governors Association publicizing negative news stories about the politically vulnerable New Jersey governor, received a cease and desist letter from The New York Times, which so far doesn’t seem to have seen fit to include that fact for its readers, though other papers have at least blogged about it. [WaPo; USA Today]

Trial lawyer earmarks: ending deductions for punitive damage payments

One can certainly see why ending tax deductions for punitive damages is a superficially appealing idea.

But the main effect will be to increase settlement pressure in cases where there are unjust punitive damages awards. Because settlements can be characterized as “compensatory” and tax-deductible while court-ordered judgments cannot, trial lawyers will be able to use the tax differential to discourage defendants from seeking appellate review. So one cannot expect very much tax revenue from this: “punitive damages” will drop precipitously, but money going to trial lawyers will go up. Moreover, appellate courts will have fewer opportunities to correct bad decisions by trial courts, creating more uncertainty in litigation, which raises litigation expenses because it will be harder to predict outcomes.

Note that taxpayers are not subsidizing punitive damages award deductions by businesses: the income “lost” because a defendant deducted the punitive damages award will be income realized by the plaintiff and his or her attorney. If the deduction is forbidden, the government will be, in effect, double-taxing the same money.

The Obama administration makes much of its claim of being pragmatic, rather than ideological, but this looks like an indirect giveaway to the trial bar rather than a source of government revenue. More: Walter at Point of Law; and my shining mug quoted at the Southeast Texas Record.

New at Point of Law

If you’re not reading my other legal site, Point of Law, here’s some of what you’re missing:

“Hat” theory of public office

Scott Greenfield:

A buddy of mine who holds elected office has the “hat” theory. As soon as elected officials put on the “hat” of office, it squeezes their heads so tight that they can no longer think. They forget all they knew before, of the wrongs and the remedies, of why somebody decided to vote for them in the first place, and assume the position dictated by the hat. He says they can’t help themselves because it’s the hat.

Texas Senate considers asbestos reform rollback

In 2007, the Texas Supreme Court unanimously decided Borg-Warner v. Flores, holding that a defendant in an asbestos case was not liable unless its product was a “substantial factor” in causing injury.

But there are now bills in the Texas House and Senate, SB 1123 (recently reported out of Senate committee) and HB 1811, that seek to undo this by defining “substantial factor” to merely mean that a product “contributed to the [plaintiff’s] cumulative exposure”—whether or not other defendants’ products were far more responsible for a plaintiff’s injury. The effect of this rollback would be to return Texas to the role of asbestos magnet, since it could conceivably create indiscriminate liability for hundreds of innocent businesses in any given case. The effect will be very similar to the infamous Lipke rule in Madison County, Illinois that extracted billions of dollars from the innocent this decade.

Texans for Lawsuit Reform has a fact-sheet, as does the Texas Civil Justice League.

Alan Keyes sues Barack Obama

From the farther shores of political lawsuit-filing, from a farther-shores kinda guy: “On November 13, Alan Keyes and his vice-presidential running mate in California, Reverend Wiley Drake, and other members of the American Independent Party, filed a new lawsuit over Barack Obama’s eligibility to be president. … All the other cases have been dismissed because the plaintiffs were said to lack standing. This is the first case with a presidential candidate-plaintiff.” (“Alan Keyes Files Lawsuit Over Obama Eligibility”, Richard Winger Ballot Access News, Nov. 16; Keyes v. Bowen, PDF; Scott Moss, Concurring Opinions, Nov. 17).