South Texas jury awards $281 million is a post from Overlawyered - Chronicling the high cost of our legal system

Of interest is a new revelation in the infamous Toshiba class action:

After few consumers availed themselves of a $2 billion settlement over supposedly defective laptop computers in 2000, for example, Toshiba America handed $353 million to a Beaumont charity whose chairman was plaintiff attorney Wayne Reaud, the lawyer on the case. Six years later the charity was still sitting on $250 million and the Texas attorney general sued for breach of fiduciary duty, including paying its president, W. Frank Newton, $560,000 in 2004. Newton is the former president of the State Bar of Texas.

“A Lawyer Who Tries to Block Settlements” is a post from Overlawyered - Chronicling the high cost of our legal system

Swine farms and fishing expeditions is a post from Overlawyered - Chronicling the high cost of our legal system

Thomas also objects to Ulizio’s characterization of the victory as “luck,” but luck definitely played a huge role. The scandal came to light solely because Judge Janis Jack held mass Daubert hearings at an abnormally early stage in the litigation. In fact (and I seem to be the only person who has ever made this point), Jack’s ruling was especially abnormal, because she made the Daubert ruling before she made a jurisdictional ruling—and her jurisdictional ruling found that 99% of the cases in front of her lacked complete diversity and needed to be remanded. In other words, Judge Jack’s famous condemnation of plaintiffs’ experts was largely an ultra vires advisory opinion (which is why her sanctions order was for only a couple of thousand dollars).

The luck of the MDL draw had everything to do with that result. Another judge might not have held Daubert hearings at such an early stage; another judge might not have actually applied Daubert even if she had held the hearings; another judge might have preferred to empty her docket immediately, rather than stalling on the eventual remand.

And these aren’t purely hypothetical musings: in the welding fumes MDL in Ohio, there has been plenty of evidence of mass tort fraud, yet the judge has refused to throw out cases, so they slowly continue to proceed to trial.

In that sense, Ulizio is absolutely right: “When you have an entire system that condones these lawsuits, that does nothing to police its own, where there are no consequences, right or wrong has nothing to do with it. It’s a coin flip.” The lawyers who brought these fraudulent cases are still practicing law; thousands of fraudulent mass tort lawsuits continue to be brought since Judge Jack’s ruling without consequence to the unethical lawyers who bring them.

U.S. Silica in the blogosphere is a post from Overlawyered - Chronicling the high cost of our legal system

“The first time we ever lost a case in trial, it was 2001. We tried it in Beaumont, Texas, and lost $7.5 million. . . . The judge sat there through the trial reading a newspaper. At one point an objection was made, the bailiff taps him on the shoulder and says ‘judge, objection is being made.’ He looks at our lawyer and says ‘overruled.’ The plaintiffs’ lawyer raises his hand and says ‘no, judge, it was me.’ He says ‘sustained’ and goes back to reading the paper.” …

[U.S. Silica CEO John A.] Ulizio shares a memo that plaintiffs’ lawyer Joe Gibson sent to silica defendants in 2004 with a blunt offer: Settle our 9,000 cases for $900 million, or pay $1.5 billion in pretrial discovery alone, plus an even bigger verdict. “That’s the genius of the economics of litigation from the plaintiffs’ perspective. Sue a lot of people, sue on behalf of a lot of plaintiffs, get into an adverse jurisdiction, and then don’t make too big of a demand, so you can settle it for a relatively small percentage of the cost of defending the case,” Mr. Ulizio says.

Kim Strassel has a must-read account of how U.S. Silica beat a mass-tort fraud attempting to steal its solvency—and did so almost entirely by the luck of the MDL draw, as a different judge might have refused to conduct the hearings that exposed the wrongdoing. (See also Michael Krauss at Point of Law.)

Note that that $900 million proposal for 9000 bogus cases works out to $100,000/case—which is exactly what the Vioxx litigation settled for.

Beaumont justice and the silicosis mass torts is a post from Overlawyered - Chronicling the high cost of our legal system

This was, said the lawsuit of Pearl Iris Garza, Montez’s mother, the fault of Port Isabel taxpayers. (Montez’s estranged girlfriend, Belinda Leigh Camacho, the unwed mother of his child, also sued.) An Overlawyered reader can expect that. What surprised even me was that the plaintiffs also sued the manufacturer of the phone. (Isn’t it nice that through five years of blogging on the subject, the plaintiffs’ bar still has the capacity to cause outrage? Or maybe I’d be a happier person if I were more cynical.)

Port Isabel is in the south part of South Texas, so you won’t be terribly surprised that a jury found that Montez was only 60% responsible for his death, with the city 25% responsible and JCW Electronics 15% responsible. (Or maybe you’ll be pleasantly surprised that the jury ascribed that much responsibility to Montez.)

Fortunately for Port Isabel taxpayers, the Texas legislature modified its joint and several liability and comparative fault rules to bar any recovery to plaintiffs who are more than 50% responsible for their mishap. Tex. Civ. Prac. & Rem. Code § 33.002(a)(1). Nevertheless, lower courts (including the notorious Corpus Christi appellate court, see 176 S.W.3d 618) bought Montez’s trial lawyers’ argument that JCW was still on the hook because Chapter 33 only applied to torts, and they were ostensibly suing under “implied warranty.” Final judgment was issued against JCW of $140,000 to Garza and $376,200 to Montez’s son. (Camacho got nothing.)

But the Texas Supreme Court sensibly noted (citing decades of precedent) that such lawsuit allegations sound in tort, correctly applied the law, and threw out the case. (JCW Electronics, Inc. v. Garza, No. 05-1042 (Tex. Jun. 27, 2008) (via Steenson); Jail Suicide/Mental Health Update, Winter 2003 (pdf)).

Note cases like this when you see leftist Texas groups count up “business victories” in the Texas Supreme Court and falsely argue that the Court is in the pockets of business interests when the real problem is lower courts making bogus rulings to favor the trial lawyers. And note that had the jury found Montez 49% responsible instead of 60% responsible, JCW and taxpayers would still be on the hook.

Rolando Montez’s fatal phone call: JCW Electronics, Inc. v. Garza is a post from Overlawyered - Chronicling the high cost of our legal system

As we stated in January 2006,

Rose Marie Munoz wasn’t wearing her seatbelt in 2002 when the spare tire on the 1992 Mazda Navajo (a rebadged Ford Explorer) failed and driver Derek Saenz rolled over the SUV; the other three occupants of the vehicle were uninjured. Munoz was ejected and temporarily paralyzed, has lost use of her right hand, and now walks with a limp. A Nueces County, Texas jury held Ford 75% (and Mazda another 10%) responsible for $29 million in damages, on the grounds that Ford should have done more to warn consumers about the dangers of ten-year-old tires—even though the tires in question were the notorious Bridgestone/Firestone tires that had actually been recalled in 2000, but had been left on the SUV. Jurors said they were influenced by the fact that Ford has since added a warning in their owners’ manual about replacing tires more than six years old. Firestone settled the case, allowing the plaintiffs to focus blame on Ford at trial. Ford blames the accident on driver error, and will appeal. (Sean M. Wood, “Ford hit with big judgment in Nueces”, San Antonio Express-News, Jan. 28; Karen Lundegaard, “Texas Jury Slaps Ford With $29 Million Verdict”, Wall Street Journal, Jan. 27; AP, Jan. 27; plaintiffs’ lawyer press release).

Alas, I could find no record of an appeal, which suggests that Ford was pressured into settling. (I’m happy to be corrected by our Texas readers if I’ve searched the databases wrong.) But I learned something else about the case that we hadn’t previously commented on. I found the accident report (page 30-31 of this PDF). The accident occurred in Atascosa County, just south of Bexar County, the home of San Antonio, where the driver and the plaintiff were from. But the lawsuit was brought in Neuces County in Corpus Christi–117 miles away from the accident, and further from San Antonio. Add forum shopping to the many sins of this litigation.

Update: Rose Marie Munoz v. Ford is a post from Overlawyered - Chronicling the high cost of our legal system

This was, said Villareal’s family, the hospital’s fault; since it’s South Texas, a Hildalgo County jury, after a three-week trial, awarded $9 million in March (which looks to be reduced at least to $1.64 million under Texas law capping damages). Ironically, the opening line of the Texas Lawyer story says “It was a suicide no one saw coming,” but doesn’t question the resulting jury verdict.

Somehow, the trial lawyer, Raymond L. Thomas, a close friend of Villarreal’s, interjected himself into the closing argument, telling an emotional story of a Rolex Villarreal had given him as a gift that left the jury in tears; the press coverage doesn’t acknowledge the blatant violation of ethical rules (see also Texas Rule 3.04(c)(3)), much less indicate whether he got away with it because of the failure of the defense to object or a judge’s failure to oversee her courtroom. (Jenny B. Davis, “Attorney, Interrupted: Seeking Meaning, Recovery for a Legal Life Lost,” May 5 via ABA Journal).

Villarreal v. Rio Grande Regional Hospital Inc. is a post from Overlawyered - Chronicling the high cost of our legal system

$6.5 million to driver not wearing seatbelt is a post from Overlawyered - Chronicling the high cost of our legal system

Imagine what a credible journalist could do with this story! Sixty Minutes? Houston Press? Dallas Observer? Corpus Christi Caller-Times? Texas Monthly? Anyone out there?

El Defenzor on the Watts Law Firm is a post from Overlawyered - Chronicling the high cost of our legal system