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Leading the NewsSenate panel votes to lift offshore spill liability cap.The Wall Street Journal (7/1, Tracy, Hughes) reports the Senate Environment and Public Works Committee voted to remove the existing $75 million offshore oil spill liability cap. According to the Journal, the panel's move faces bipartisan opposition and is not assured of passage by the full Senate. The Independent Petroleum Association of America argues that the absence of a cap would benefit only the largest transnational oil companies. IPAA chair Bruce Vincent, president of Swift Energy, is quoted as saying, "This is unreasonable from an economic and business standpoint and will have a devastating impact on job losses and possible increased reliance on foreign oil." The New York Times (7/1, Broder, Robbins) notes that the committee "voted to remove the liability cap altogether, brushing aside a Republican amendment that would allow the president to set varying caps for individual accidents." The House Transportation and Infrastructure Committee "will take up its own version of a liability limits law on Thursday." Bloomberg News (7/1, Chipman) reports, "President Barack Obama supports raising the ceiling and has faulted Republicans for blocking efforts to make BP more fully liable for damages tied to the worst US oil spill. BP Chief Executive Officer Tony Hayward has said he expects the liability limit to be increased." BP's liability assessed. In a lengthy special report entitled "BP Oil Spill A Gusher For Lawyers," Reuters (6/30, Stempel) reported on BP's potential liability. David Uhlmann, a University of Michigan law professor, said, "We're looking at multibillion dollar criminal and civil penalties against BP, certainly record amounts under US environmental laws." Uhlmann added, "The real fight will be between BP, Anadarko, Mitsui, Transocean and Halliburton." Cruise lines fighting SPILL Act. In a blog at Mother Jones (6/30), Stephanie Mencimer wrote, "Late Tuesday, the Cruise Lines International Association (CLIA) sent a letter to members of the Florida congressional delegation 'strongly' opposing the" proposed SPILL Act, which would reform the Death on the High Seas Act, "because it would allow cruise ship victims to sue the companies for noneconomic damages. That would open the industry up to real liability for all the crime and other bad stuff that happens to hapless passengers." Lobbying "on the other side along with the BP workers' families are the Parents of Murdered Children, the National Center for Victims of Crime, and the International Cruise Victims Association, which is made up of lots of families of people who went on cruises and never came back." BP escrow fund could be big loss for plaintiffs' bar. The Wall Street Journal (7/1, Searcey), in an article titled, "Lawyers Scramble For BP Claim Funds," reports that the plaintiffs' bar is working to retain clients with claims related to the Gulf spill as many of them have dropped their representation after the establishment of a $20 billion escrow fund by BP. The Journal notes that the fund's administrator, Kenneth Feinberg, has touted the benefits of accepting a settlement without having to pay steep attorney fees. Louisiana attorney Daniel Becnel is quoted as saying, "People are firing their lawyers left and right." Michael Rozen, Feinberg's partner at Feinberg Rozen LLP, met Tuesday with 150 plaintiffs' lawyers. According to the Journal, Rozen told them, "I've been involved in mass torts a while, and one thing is sure: you all spread misinformation unbelievably well." The Wall Street Journal (7/1, King) reports that Feinberg intends to rapidly make larger payments form the fund in order to sustain small businesses. House bill would deny BP drilling leases for seven years. The Hill (7/1, Geman) reports Rep. George Miller (D-CA) is "drafting legislation to deny BP new offshore oil-and-gas leases for up to seven years due to the oil giant's pattern of safety and environmental problems." Miller "hopes to offer his plan as an amendment to drilling safety legislation under construction in the House Natural Resources Committee." According to the Hill, "Miller's plan is one of multiple proposals to deny new leases to companies that run afoul of environmental and safety rules," including a Senate Energy and Natural Resources Committee bill that would "toughen offshore drilling oversight and safeguards." Miller is quoted as saying, "British Petroleum has a flagrant history of taking risks to boost profits that has resulted in deaths of workers, destruction of the environment, and economic chaos in local communities." The Wall Street Journal (7/1, Tracy, Hughes) also reports on Miller's proposal. Proposed bill would track impact of Gulf Coast spill, chemicals on health. Mike Lillis, writing in The Hill's (7/1, Lillis) "Healthwatch" blog, says that "House Democrats on Thursday will mark up legislation to track the health of those exposed to oil and chemicals along the Gulf Coast." The new proposal would require HHS "to track and register the health of clean-up workers and local residents affected by spill." The proposal includes $21 million to launch the registry in 2011, with $4 million more each year through 2015. Clean-up workers housed in notorious FEMA trailers. The New York Times (7/1, Urbina) reports, "In the wake of Hurricane Katrina, they became a symbol of the government's inept response to that disaster: the 120,000 or so trailers provided by the Federal Emergency Management Agency to people who had lost their homes. The trailers were discovered to have such high levels of formaldehyde that the government banned them from ever being used for long-term housing again. Some of the trailers, though, are getting a second life amid the latest disaster here - as living quarters for workers involved with the cleanup of the oil spill." Stronger protections for workers urged. At the Huffington Post (6/30), Eve Tahmincioglu discussed the spill, commenting, "The fines for worker deaths are pathetic. Turns out they are more severe if you kill a turtle." What if "company managers faced felony charges for willful actions that lead to a worker's death?" The Protecting America's Workers Act, "introduced by the late Sen. Edward Kennedy, called for felony charges for executives and also upped fines when employees are killed." BP's spill response plan did not include hurricane scenario. ABC World News (6/30, story 2, 1:55, Sawyer) reported, "Today we learned that BP and other oil companies in the Gulf on the eastern side are not required to file hurricane plans when digging wells, as impossible as that seems." The CBS Evening News (6/30, story 2, 3:20, Strassmann) also reported that BP's "containment and cleanup plan that never even took hurricanes into account." Rep. Edward Markey: "If you look for the word 'hurricane' in their response plan, you won't find it in the BP's contingency plans." Former FEMA director Witt assisting with BP's internal review. USA Today (7/1, Hall), in an article titled, "BP Enlists Washington Elite To Help Image," reports that former FEMA director James Lee Witt "is poised to become the latest big name on a team of Washington insiders," including "several prominent Democrats," that BP "has amassed to help it...rescue its reputation and protect itself from lawsuits." Winds could push oil further inland towards marshes. The CBS Evening News (6/30, lead story, 1:35, Pelley) reported, "Rough seas are pushing more oil toward the shoreline and keeping the cleanup on hold." ABC World News (6/30, lead story, 2:10, Sawyer) also reported, "Hundreds of miles from the center of the storm, big oil-streaked waves are rolling onto the beach." NBC Nightly News (6/30, story 2, 2:45, Thompson) added, "Alex is holding the cleanup process hostage. The seas are not expected to return to normal for a week, and those counterclockwise winds, they could drive the oil deeper into Louisiana's precious marshes." World's largest skimmer arrives in the Gulf. The AP (7/1, Breen, Reeves) reports, "The government pinned its latest cleanup hopes Wednesday on a huge new piece of equipment: the world's largest oil-skimming vessel. The Taiwanese-flagged former tanker named the 'A Whale' is the length of 3 1/2 football fields and stands 10 stories high. It just emerged from an extensive retrofitting to prepare it specifically for the Gulf, where officials hope it will be able to suck up as much as 21 million gallons of oil-fouled water per day." Relief well reportedly "very close" to completion. Diane Sawyer said on ABC World News (6/30, story 2, 1:55) that there has been "real progress...on the relief well." We "learned today that there are two relief wells being drilled. The lead well is now just 16 feet away from the blown-out well." According to the New York Times (7/1, Broder, Robbins), "Perhaps the only positive news for officials was that" hurricane Alex "was not expected to delay efforts on the drilling of the two relief wells." Environmentalists sue BP over alleged sea turtle deaths. Bloomberg News (7/1, Calkins) reports that the Animal Welfare Institute is suing BP, claiming that its "controlled burns" are "killing endangered sea turtles trapped inside the booms the company uses to collect spilled oil, wildlife activists said in a lawsuit. ... The plaintiffs seek a temporary order restraining BP from any activities in the Gulf of Mexico that could risk killing or injuring endangered and threatened sea turtles, William Eubanks and Jason Burge, lawyers for the environmentalists, said in papers filed in New Orleans federal court today." Tests find dispersants are less toxic than oil. NBC Nightly News (6/30, story 2, 2:45, Thompson) reported on "news...that initial tests on dispersants show they are less toxic than oil. including the controversial Corexit 9500. BP sprayed more than a million gallons in the Gulf to break up the crude. Officials add there is no indication dispersant settled on the ocean floor."
Civil Justice SystemCalifornia suit alleges church protected abusive priest.The AP (6/30) reported, "A California man who alleges he was abused in the 1960s by a priest who belonged to the Salesian order of the Roman Catholic church filed a lawsuit Wednesday against the order and the Vatican, claiming officials covered for the cleric by shuffling him between three continents over three decades. The lawsuit filed in Superior Court claims the Rev. Titian 'Jim' Miani abused children in Italy, Canada and California, including at least 12 alleged victims at a Catholic high school in Bellflower, a suburb of Los Angeles." Plaintiff's lawyer Jeff Anderson said, "The reason Miani has been allowed to remain as a priest and was moved from continent to continent, from country to country, and parish to parish...is because the Vatican and the Vatican officials have chosen to protect him and their reputation." Kentucky plaintiffs hope Vatican will "reconnect" with US victims. In a separate article, the AP (6/30) reported on "three men who filed a US lawsuit regarded as having the best chance of discovering whether the Vatican holds any liability in sexual abuse by American priests. He and others not involved with the suit also see an opportunity for Rome to reconnect with American victims who lost their faith after being abused." Louisville attorney William McMurry, "who reached [a] $25 million settlement with the Louisville archdiocese, also filed [this] Kentucky suit against the Vatican." Legal experts "say the Kentucky suit faces several obstacles, including how to demonstrate that US bishops are employees and official representatives of the Vatican, which is considered both a church and a sovereign nation." Courts more likely to dismiss suits in wake of Twombly, Iqbal rulings, say attorneys.In an op-ed in the Legal Intelligencer (7/1), Christopher H. Casey and David M. Laigaie of Dilworth Paxson write, "Testifying at a congressional hearing last fall on federal court pleading standards, Arthur R. Miller of NYU Law School, a leading authority on American civil procedure, recounted the steady movement of case disposition earlier and earlier in a case, concluding that the only step left is to 'shoot plaintiffs before they come into the courthouse.' While he may have been exaggerating, there is no doubt that plaintiffs have a harder time surviving a motion to dismiss these days." The authors assess the impact of the Supreme Court's Twombly and Iqbal rulings, finding that "the early evidence suggests that courts are more inclined to grant motions to dismiss than they used to be." Some plaintiffs, "anticipating litigation over the adequacy of the complaint that they may end up losing, may decide not to sue at all." Connecticut has paid almost $100M in lawsuit settlements over last seven years.The Hartford Courant (7/1) reports on over "80 cases with payouts over $100,000 that Attorney General Richard Blumenthal's office has settled in the last seven years, according to a Courant analysis of state records. Overall, records from the comptroller's and attorney general's offices show that the state has paid out nearly $100 million in that period." Apple sued over iPhone 4 reception.Bloomberg News (7/1, Pettersson) reports, "Apple Inc. was sued over reception problems with its new iPhone 4 by consumers who accused the company of unfair business practices and false and misleading advertising. New Jersey resident and a Massachusetts resident who had bought the new mobile phone filed separate complaints yesterday in federal court in San Francisco, each seeking to represent other iPhone buyers in a class action, or group, lawsuit." CongressKucinich to introduce bill to monitor health effects of cell phone use.In The Hill's (7/1) "Healthwatch" blog, Mike Lillis writes, "Rep. Dennis Kucinich (D-OH) on Wednesday said he'll soon introduce legislation to monitor the health effects of cell phone use." The bill would "launch a national research program to study any such effects." Kucinich, who chairs the House Oversight Committee's subpanel on domestic policy, said that "the research to find clearer answers shouldn't be left in the hands of the phone companies themselves." Drug SafetyAvandia controversy shines light on FDA's murky drug approval guidelines.The AP (7/1, Marchione) reports that the FDA "has no firm rules" for deciding when a drug is too risky to stay on the market. "Each drug has its own complex story," said Dr. Joshua Sharfstein, the FDA's principal deputy commissioner. With regards to the debate surrounding the GlaxoSmithKline diabetes pill Avandia [rosiglitazone], Sharfstein says the case "won't be decided in reference to Vioxx [rofecoxib]," but rather "will stand on its own." The agency has also "asked a group of outside scientists, the Institute of Medicine, to give advice" on the matter, and "has called the special meeting in July to hear from experts on its endocrinology and drug safety panels." Sharfstein added that "the internal staff analyses of risks have not been released yet, and will shed more light on the situation." FDA says pharmaceutical company overstated benefits of its AD/HD medication.Bloomberg News (6/30, Peterson) reported that, according to a June 22 letter (pdf) posted to its website, the Food and Drug Administration says that "Shire Plc overstates" in its promotional materials "the benefits of Intuniv" (guanfacine hydrochloride), its medication for attention-deficit/hyperactivity disorder in children. The letter charged that "brochures in a patient starter kit for the drug make 'unsubstantiated effectiveness claims' and 'omit and minimize important risk information.'" The FDA said that "clinical studies don't support the company's claims that the drug improves 'individual behavioral problems,' such as 'bedtime blowups,' 'homework hassles,' and 'mall meltdowns.'" Avastin may cause significant kidney damage in some patients.The Los Angeles Times (7/1, Rick) reports that Avastin (bevacizumab) "can cause significant kidney damage in some patients," according to a new study. Researchers, "reporting in this month's issue of the Journal of the American Society of Nephrology...wrote that patients on Avastin were at increased risk of severe protein loss from the kidneys, which can lead to permanent damage." Altogether, "patients on Avastin were at a fourfold risk for protein loss and kidney damage, depending on dosage and the type of cancer." Employment/Workplace SafetyAge discrimination suit against Boeing, Spirit dismissed.The AP (6/30) reported, "A federal judge has tossed out an age discrimination lawsuit against The Boeing Co. and Spirit AeroSystems filed in the wake of Boeing's 2005 sale of commercial airplane operations in Kansas and Oklahoma." US District Judge Eric Melgren on Wednesday ruled that "the evidence was insufficient to establish a pattern of discrimination during the divestiture." Ninety "former Boeing workers had sued in December 2005 claiming they lost their jobs because of their age." Grassley probes drugmakers on treatment of whistleblowers.Bloomberg News (7/1, Voreacos) reports, "US Senator Charles Grassley (R-Iowa) asked 16 drugmakers, including Pfizer Inc., AstraZeneca Plc and Eli Lilly & Co., to reveal how they treat whistleblowers who file complaints under the False Claims Act." Grassley is seeking information on "how companies notify employees of the law, how they treat whistleblowers, and what changes they have made in response to a 2009 law extending anti-retaliation protections." Grassley stated, "There can never be too many taxpayer watchdogs, so I see this letter as an opportunity to foster a mindset that recognizes the value of whistleblowers and the duty these companies have to act honestly when seeking taxpayer dollars." Franken raises mandatory arbitration issue in Kagan hearings.The Minneapolis Star Tribune (7/1) reports on US Supreme Court nominee Elena Kagan's testimony before the House Judiciary Committee. The Tribune notes that Sen. Al Franken "pursued an issue he championed in the Senate: Barring federal contracts to defense companies that force workers to resolve disputes through mandatory arbitration rather than the open court, a measure inspired by the Jamie Leigh Jones rape case." Said Franken, "Chances are, if you have a cell phone, a credit card, or you work, you're likely to have signed a contract with a mandatory arbitration clause," adding, "These clauses basically say 'if we violate your rights, you can't take us to court." With "varying degrees of success, Franken sought to elicit Kagan's agreement with his views on the law, challenging several Supreme Court decisions that limited or overturned federal statutes in employment and election law." Medical Errors/HealthcareReport urges teaching colleges to set policies on conflict of interest disclosure.CQ HealthBeat (7/1, Norman) reports that "the Association of American Medical Colleges on Wednesday recommended that more teaching colleges set policies on how to disclose and manage financial conflicts of interest in relationships between physicians." This "report follows two others by the association on conflicts of interest, as the medical profession and lawmakers engage in a wide-ranging debate over the best way to ensure that financial ties to medicine are revealed and reported." CQ adds, "Royalties, consulting relationships and ownership interests in related companies ought to be covered, says the report, 'In the Interest of Patients: Recommendations for Physician Financial Relationships and Clinical Decision Making.'" Product SafetyHabitat for Humanity establishes Chinese drywall task force.The Sarasota (FL) Herald-Tribune (7/1, Kessler) reports, "Habitat for Humanity International has established an internal task force to research Chinese drywall after the Herald-Tribune and ProPublica reported that a New Orleans branch of the nonprofit built more than 200 homes with the drywall and then ignored homeowners' complaints about it." Habitat headquarters "in Atlanta released a one-paragraph statement saying the task force is designed 'for the purposes of researching the situation, tracking the latest guidance and data published by local, state and federal government agencies investigating the matter, and sharing that information with New Orleans Area Habitat for Humanity.'" Strickland tells first meeting of NAS acceleration panel NHTSA has found no electronic fault.The AP (7/1, Thomas) reports that at the inaugural meeting of a National Academy of Sciences panel formed to study unintended acceleration in the wake of Toyota's recall crisis, NHTSA Administrator David Strickland said that NHTSA's "Toyota investigation was ongoing but had not determined any electronic connection to the problems." Noting that the panel is to release its findings late next year, the AP reports that Congress has criticized NHTSA "for lacking the expertise to understand the role that electronics play in vehicles, an issue at the heart of the mystery of Toyota's recalls. ... NHTSA engineers have been conducting a separate review of Toyota's electronics, working with NASA scientists to try to determine what caused the acceleration issues. The teams hope to complete the study by late August." Bloomberg News (7/1, Keane) also covered the story. Toyota recalling 17K Lexus sedans over NHTSA fuel tank test fail. Bloomberg News (7/1) reports that Toyota is stopping sales of the Lexus HS250h hybrid sedan "because too much fuel spilled in government crash tests, posing a fire risk, the company said yesterday." Toyota has informed NHTSA "that about 17,000 of the HS250h sedans for the 2010 model year were being recalled." More cadmium trinkets recalled.The AP (6/30) reported, "Federal regulators said Wednesday they have found high levels of the toxic metal cadmium in trinkets that were distributed for free to children at some doctor and dentist offices over the past five years. The news came as the Consumer Product Safety Commission announced a recall of nearly 70,000 charm bracelets and rings - the fourth time this year that the federal government has said cheap Chinese-made jewelry was being pulled from shelves because of cadmium, a known carcinogen." Sony recalling Vaio laptops for overheating issues.The AP (7/1) reports, "Sony said Wednesday that it had started providing free software updates to more than half a million users worldwide to fix a problem that could cause its popular Vaio laptops to overheat. The company said it had received 39 problem reports, including 26 in the United States, of users complaining about the heat and distortion of the shape of their computers." The AP notes, "The overheating could occur when a user plugs in an adapter to charge the battery when the power is nearly used up, Sony said." Also in the NewsMinnesotans face debt lawsuits based on inaccurate information.The Minneapolis Star-Tribune (6/30, Serres, Howatt) reported, "The National Consumer Law Center, an advocacy group for low-income Americans, estimates that one in 10 debt-buyer lawsuits nationwide is based on inaccurate information. Bank accounts have been tapped, wages seized and people threatened with arrest for debts they don't owe or for inflated amounts." The Star-Tribune discusses the state of debt collection in "creditor-friendly" Minnesota. Sam Glover, a consumer rights attorney in Minneapolis, said, "When consumers make small mistakes, such as failing to answer a lawsuit, the full power of the courts comes down on them," adding, "But when a debt buyer flouts the law, it rarely experiences any consequences and keeps collecting as if nothing happened." New tort law takes effect in China.The Financial Times (7/1, Waldmeir) reports that beginning on Thursday, Chinese citizens will be able to sue companies under a new personal injury and product liability law. | |||
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AAJ News Brief is a digest of the most important news selected from thousands of sources by the editors of Custom Briefings. The presence of advertising does not endorse, or imply endorsement of, any products or services by the American Association for Justice. This complimentary copy of AAJ News Brief was sent to haytham@puckettfaraj.com as part of your American Association for Justice membership. View Custom Briefings' privacy policy. Neither Custom Briefings nor the American Association for Justice is liable for the use of or reliance on any information contained in this briefing. For information about other member benefits, please contact American Association for Justice Member Service Center at (800) 424-2727. American Association for Justice | 777 6th Street, NW | Washington, DC 20001 Copyright © 2010 by Custom Briefings | 11190 Sunrise Valley Drive, Suite 130 | Reston, VA 20191 |