Posts Tagged ‘Richard Epstein’

Asbestos litigation: foundations

Asbestos litigation has been around a long time. Early on, nothing like modern product liability law existed (see Richard Epstein’s discussion here); lawsuits resided in workplace injury law when filed in the 1920s and 30s, and were soon subsumed in workers compensation reforms.

Modern asbestos litigation began after the Selikoff study was published in 1964. In December 1965, Texas attorney Ward Stephenson filed a case on behalf of Claude Tomplait, who had worked as an asbestos insulator. Four years later, Stephenson extracted a settlement for $75,000 from seven defendants.

Notwithstanding this meager beginning, Stephenson persisted in asbestos litigation and won a major victory in Borel v. Fibreboard Paper Products Corp., 493 F.2d 1076 (1973), in which the Fifth Circuit Court of Appeals found asbestos manufacturers strictly liable for their workers’ injuries. The Borel court rejected statute of limitations, contributory negligence, and assumption of risk defenses; and modern asbestos product liability litigation was born.

The litigation got another shot in the arm when New Jersey attorney Karl Asch uncovered the “Sumner-Simpson papers,” which “described in great detail the efforts of Raybestos, Johns-Manville, and other manufacturers to find out about the hazards of asbestos, develop strategies to deal with them, and–most important–to keep that knowledge from the public and workers.” These documents were put to great effect by South Carolina lawyer Ron Motley, who actually used the papers to convince a South Carolina circuit judge to grant a new trial after a jury had ruled in favor of asbestos defendants. Motley of course went on to become an asbestos super-lawyer and an architect of the multibillion-dollar multistate tobacco settlement; his antics are well-known to long-time readers of this site.

Two more foundational cases are worthy of mention. In 1981, the D.C. Circuit ruled that insurers who had written asbestos policies were liable for the maximum insured between exposure and diagnosis, rather than only in the year of diagnosis. See Keene Corp. v Insurance Co. of North America, 667 F.2d 1034 (D.C. Cir. 1981). Given the long latency between asbestos exposure and ultimate illness, the level of insurance exposure was suddenly massive. Circuit Judge Patricia Wald warned that the court’s decision “requires a leap of logic from existing precedent, for it concerns diseases about which there is no medical certainty as to precisely how or when they occur.”

In 1982, the New Jersey Supreme Court threw out the “state of the art” defense for asbestos manufacturers, in essence holding that it mattered not whether business practice was the best available to the industry at the time the injury occurred. See Beshada v. Johns-Manville Products Corp., 442 A.2d 539 (N.J. 1982). The court opined, “The burden of illness from dangerous products such as asbestos should be placed upon those who profit from its production and, more generally, upon society at large which reaps the benefits of the various products our economy manufactures. ”

Thus, in less than a decade, the law was radically shifted, and asbestos litigation was born: “The decade after Borel saw 25,000 asbestos cases filed. By 1981, more than 200 companies and insurers had been sued; by 1982, defendants’ costs had topped $1 billion.” But these early years were just the beginning…

December 10 roundup

Bipartisan group of SEC chairs, law professors, speak out against “scheme liability”

The trial bar’s efforts to broadly expand the securities laws through judicial fiat is challenged in an amicus brief filed in Stoneridge v. Scientific-Atlanta (earlier: Jul. 31, etc.), including former SEC chairs Roderick Hills, Harvey Pitt and Harold Williams; and law professors Richard Epstein, Joseph Grundfest, Stephen Bainbridge, and Larry Ribstein.

Update: Not only has the Department of Justice come out in favor of affirmance (despite extensive lobbying by the plaintiffs’ bar), but both major stock exchanges—who interests unquestionably parallel the interests of investors as a group—filed amicus briefs seeking affirmance. But watch the press portray this as “businesses versus investors” instead of “businesses and investors versus trial lawyers and government officials seeking donations from trial lawyers.”

Update: Oral argument is October 9. AEI will hold a panel discussing the case October 5.

The rule of law: Why is predictability important?

As if to demonstrate that their website is simply reflexively anti-reform rather than anything to do with the justice they supposedly aspire to, one of their trolling bloggers attacks the American Justice Partnership for seeking predictability in the law (and does so by quoting a positively deranged anonymous blogger). Of course, predictability—that like cases are treated alike—is a fundamental component of the definition of justice. The social benefits of the rule of law are so obvious that it should hardly be necessary to list them, but, aside from issues of fundamental fairness enshrined in our Constitution in the ex post facto clause among other places, predictability has other advantages. If a result is predictable, settlement is easier: there’s little point in continuing to litigate on either side, because additional money spent on lawyers cannot change the result. If a result is predictable, one can more easily conform conduct to be law-abiding. Corporations aren’t incentivized to break contracts with one another to see whether they can get a better deal in the courts; individuals and corporations know where the line is in dealing with the public and won’t step over it. And as I noted last year,

In banana republics across the globe, economies come to a standstill because the risk of confiscation or corruption keeps many investments from ever happening. The same danger occurs when the expropriation is conducted by lawyers in the name of “justice.” If businessmen and entrepreneurs—be they insurers, manufacturers of lifesaving pharmaceuticals, or the small businesses that deliver your packages—have to account for the risk that their contractual arrangements will be disregarded by courts, they have to raise prices to account for that risk. Such increased prices mean fewer contracts are signed and fewer businesses are started. Consumers are worse off, not just because they now have fewer options, but because the economy is smaller as jobs and opportunities are lost. The only beneficiaries are the lawyers.

The poster knows darn well that the idea of predictability in justice hardly originates with Dan Pero and reformers. As I once noted to the same poster in a comment thread:

Since when is predictability a component of justice?

Since at least Aristotle, and arguably even further back to Mosaic law and the Code of Hammurabi.

If a desire for predictability in law makes one a reformer, then one can certainly add Plato, Thomas Aquinas, Montesquieu, Justice Holmes, and Lord Chief Justice Bingham of Cornhill to the list of reformers. More recently, one can read Richard Epstein on the subject. Justinian Lane would serve himself better by reading more books and fewer anonymous blogs before he asks such silly questions.

March 26 roundup

  • More fen-phen scandals: Possible smoking-gun email in Kentucky case (see Walter’s post today) came from Chesley firm computer; Vicksburg lawyer first attorney convicted in Mississippi fen-phen scam. [Courier-Journal via Lattman; Clarion-Ledger (h/t S.B.)] (Updated with correct Courier-Journal link.)
  • Allegheny College found not liable by jury for student’s suicide; school raised issue of student privacy concerns. Earlier on OL: May 30; Dec. 7, 2004. [WSJ]
  • Update on the tempered glass versus laminated issue earlier discussed in Overlawyered (Feb. 15, 2006; May 16, 2005; May 13, 2005, etc.) [LA Times]
  • Massachusetts court rejects quack sudden acceleration theory. (See also Dec. 20, Aug. 7, etc.) [Prince]
  • California bill would bar carpenters from school campuses. [Overcriminalized]
  • New book: Antitrust Consent Decrees in Theory and Practice [Richard Epstein @ AEI]
  • To be fair, I went to school with “young Mr Sussman, the boyish charmer”, and I don’t know how to pronounce “calumnies” either—it’s one of those words I’ve only seen written, and never heard spoken [Steyn; MSNBC]

November 7 roundup

  • My informal debate with Professor Silver over the effect of reform on physician supply continues. [Point of Law; Silver]
  • If you’ve been intrigued by Professor E. Volokh’s idea of medical self-defense (and thus payment for organs) as a constitutional right, he’ll be discussing it with Richard Epstein and Jeffrey Rosen at AEI. [Volokh; Harvard Law Review @ SSRN; AEI]
  • Peter Wallison on how over-regulation and over-litigation is killing American competitiveness in the capital markets. [Wall Street Journal @ AEI]
  • Press coverage is finally starting to break through in the Milberg Weiss scandal with a lengthy Fortune profile. [Point of Law]
  • Economists and scholars file Supreme Court amicus brief calling for federal preemption of state “anti-predatory lending laws” in important Watters v. Wachovia case. [Zywicki @ Volokh; CEI]
  • One-sided coverage by the New York Times on the issue of web accessibility for the blind. Earlier: Oct. 27; Feb. 8. [New York Times]
  • Deep Pocket Files update: MADD tries to intervene in stadium vendor case where appellate court tossed $105 million verdict because of unfair trial. See Aug. 4 and links therein. [New Jersey Law Journal]
  • Lawsuit: my dead father’s baseball card mischaracterizes his nickname. [Lattman]
  • Lawsuit: I have legal right to the letter W. [Times Record News via Bashman]
  • Samuel Abady and Harvey Silverglate on libel tourism. [Boston Globe via Bashman]
  • Another roundup of Justice Robert Thomas libel lawsuit stories. [Bashman]
  • $15M Minnesota verdict blaming a delayed delivery for cerebral palsy, despite evidence it was caused by an unrelated infection. [Pioneer Press]

October 24 roundup

  • I’m speaking at the National Press Club today on the Philip Morris v. Williams case. [Point of Law; Medill summary; Bashman analysis]
  • How much skin color discrimination is there? [Somin @ Volokh]
  • Latest in the Ninth Circuit follies. [Above the Law]
  • Difficulty of making causal link between lung disease and 9/11 dust. [NY Times; TortsProf]
  • Kirkendall on the Skilling sentence. [Kirkendall]
  • Quelle surprise: ATLA dishonestly attacks me. [Point of Law]
  • Ford seems to have settled, instead of fighting, the ludicrous Texas Garcia decision where they got blamed for a drunk-driving accident with unbelted passengers. [Point of Law; CFIF]
  • Scalia: “The more your courts become policy-makers, the less sense it makes to have them entirely independent.” [AP]
  • Richard Epstein on legislators v. Wal-Mart [EconTalk Podcast]
  • Environmentalists v. private property rights. [CEI blog]
  • Litigious Pennsylvania judge Joan Orie Melvin sues for a pay-cut. [Bashman]
  • Why law firm associates work so hard. [Marginal Revolution]

PFAW vs. John Roberts

A People for the American Way report attacking the Supreme Court nominee is “something of a bore”, “lacks any nuance that would make it credible”, “scattershot”, a “less than compelling document” based on “utter dogmatism”, opines Richard Epstein. Ah, but don’t underestimate the group’s powers to stir up media trouble for Roberts, replies Stephen Presser as the two continue their featured discussion of the Supreme Court vacancy at Point of Law.