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Leading the NewsWhite House backs increased pollution damages cap.The White House has come out in favor of a Democratic plan to increase the caps on damages faced by energy companies for pollution. AFP (5/6) reports the White House "said Wednesday it backed 'significantly' raising the cap on damages faced by energy firms that pollute the environment, as it demands BP pays in full for the Gulf oil spill." Officials also "hit out at fresh complaints by Republicans that it had not acted quickly enough in the immediate aftermath of an explosion on a rig in the Gulf of Mexico last month, which triggered the huge slick." USA Today (5/6, Wolf) reports the spill "could lead to a flow of laws and regulations aimed at protecting the nation's waters, coastal communities and marine-based economies," as President Obama, "members of Congress and environmental leaders are considering measures to reduce accidents, increase oversight and compensate victims." For now, Obama "is standing by his plan to allow drilling off the Atlantic Coast, eastern Gulf and north coast of Alaska, announced just weeks before the BP explosion. But it will be several years before the policy leads to new exploration, giving opponents time to make their case." Interior Secretary Ken Salazar said, "We have a program in place, but obviously this is a lesson that we have to learn from." Politico (5/6, Raju) reports Sen. Mary Landrieu "suggested Wednesday that her fellow Democratic colleague, New Jersey Sen. Robert Menendez, is trying to put oil companies 'out of business' by increasing the amount of money they'd be forced to pay for catastrophic leaks." Landrieu, a "long-time ally of the energy industry, said that British Petroleum 'is going to pay' for the costs associated with the catastrophic oil spill at one of its leased rigs in the Gulf of Mexico." But she said "the method sought by Menendez could have unintended and devastating consequences to smaller operators in the region." In his Wall Street Journal (5/6) column, Daniel Henniger says criticism of President Obama for the oil spill may be unfair, but should be expected because the public's expectations for government's ability to handle major crises remain high even though government's competence to deal with such events is very limited. The Washington Post (5/6, Farhi) reports media accounts "have referred to" the disaster "as 'the Gulf oil spill,' 'the Deepwater Horizon spill' and the 'Gulf Coast disaster.'" President Obama, "leaving little doubt about whom he considers responsible for the epic mess, put a brand name on it in remarks in Louisiana on Sunday. The president dubbed it 'the BP oil spill,' after the company (formerly British Petroleum) that leased the now-damaged drilling platform." The Post adds the "name of a disaster can be critical, both as a historic matter and the more immediate matters of image, public relations and legal liability." The Washington Post (5/6, Farhi) notes that what "you call a gigantic man-made disaster that is threatening to despoil the ecosystems and wreck the economies of the Gulf Coast...is important, if you happen to be one of the companies responsible for it." Lawsuits over health impact of spill being prepared. USA Today (5/6, Weise) reports, "Lawsuits are already being prepared alleging harm to people who are living near or working to clean up the Deepwater Horizon oil spill off the coast of Louisiana." Attorney Stuart Smith "says he's been in touch with people in Alaska who say they were hurt during the Exxon Valdez spill in 1989 by chemicals in the oil and dispersants used to keep it from reaching shore 'which are also toxic.'" Therefore, "he says he's concerned about the potential health effects on the thousands of out-of-work fishermen, shrimpers and oystermen who will be taking part in the cleanup in the Gulf." While some experts disagree about the potential health effects of the spill, "a marine biologist and activist from Cordova, Alaska, who has written two books about the Exxon Valdez spill, says there were 6,722 cases of upper-respiratory illness among workers who helped clean up." The AP (5/6, Kahn) reports Transocean has "said it will lose more than a half billion dollars in revenue, and its finances will be hampered by hefty fees from a growing pile of lawsuits." The company, which "also revealed Wednesday in a 73-page regulatory filing that the Justice Department has requested that it preserve information about the explosion," said it's also "bracing for negative publicity and new regulations because of the incident." While they are "currently unable to estimate the full impact of the disaster," Transocean "expects it to have a 'material effect' on its future financial results." Congress probing role of safety device maker in rig accident. The Wall Street Journal (5/6, Power, Emshwiller) reports Congressional investigators probing causes of the accident are looking at Cameron International Corp., the maker of the blowout preventer, which failed to block the well as designed. Earlier this week, two senior House Democrats wrote to Cameron asking for documents related to "the causes or potential causes" of the accident, to the testing of the safety device, and "any maintenance or testing instructions or alerts provided to purchasers or lessees" of the blowout preventer. The request is part of a larger investigation the legislators are conducting into the accident. Cameron said it is "working to answer their questions." Reports showed problems with wells' safety mechanisms. McClatchy (5/6, Blumenthal) reports Sen. Maria Cantwell's office has uncovered a 2003 report, delivered at an industry conference, warned that the offshore oil drilling industry "wasn't taking time to find and fix the problems that commonly plagued blowout preventers -- the supposedly failsafe mechanisms designed to stop oil spills such as the one now threatening the gulf coast." The report was co-authored by Earl Shanks, "the then-director of technology development for Transocean, the company that owned the Deepwater Horizon rig," who told McClatchy in an interview "that there've been improvements over the past seven years." However, "a more recent 2008 report authored by officials of BP America and Transocean and published by the Society of Petroleum Engineers raised new questions about whether the blowout preventers on deepwater wells...could have a new problem." The AP (5/6, Bohrer) reports that Reps. Henry Waxman and Bart Stupak "raised concerns about BP PLC's operations on Alaska's North Slope months before" the oil rig explosion, citing "at least four 'significant' incidents in Alaska in 2008 and 2009, including a pressure valve problem they said could have caused an explosion." The lawmakers, in a January letter to the president of BP Exploration Alaska, "also referred to 'a number of personnel incidents involving serious injury or death' and questioned whether proposed BP budget cuts might threaten the company's ability to maintain safe operations." Disaster plan regulation waived for Deepwater rig. The AP (5/6) reports, "Petrochemical giant BP didn't file a plan to specifically handle a major oil spill from an uncontrolled blowout at its Deepwater Horizon project because the federal agency that regulates offshore rigs changed its rules two years ago to exempt certain projects in the central Gulf region, according to an Associated Press review of official records. The Minerals Management Service, an arm of the Interior Department known for its cozy relationship with major oil companies, says it issued the rule relief because some of the industrywide mandates weren't practical for all of the exploratory and production projects operating in the Gulf region." One leak sealed in preparation for containment dome. The CBS Evening News (5/5, story 3, 9:15, Couric) reported, "Today, progress from 5,000 feet below the surface of the gulf, after engineers used remote-controlled robots to seal off the smallest of three leaks. That is not expected to decrease the amount of oil spilling, but it could make things easier for these massive containment domes one of which BP put on a barge today with plans to lower it to the ocean floor possibly by the weekend." Alaskan communities still dealing with consequences of Valdez spill. The New York Times (5/6, A22 Yardley) reports, "As the oil spill spreads ominously in the Gulf of Mexico, its impact uncertain, communities" beside Prince William Sound in Alaska "are still confronting the consequences of March 24, 1989, the day of the wreck of the Exxon Valdez." The Times discusses the communities' ongoing recovery.
AAJ in the NewsLipsen succeeds Henderson as AAJ CEO.In continuing coverage in the "Under the Influence" blog at the National Journal (5/4), Sara Jerome wrote, "The American Association for Justice has tapped Linda Lipsen as its new chief executive officer. She succeeds the current CEO Tom Henderson, who has held the position on an interim basis since last May. Lipsen has served as the executive vice president for public affairs at AAJ since 1993." Roll Call (5/5, Murray) reported, "A longtime executive at the organization, Lipsen replaces interim CEO Tom Henderson. In an interview, she said the group's mission will be more aggressive under her tenure. 'Over the past 17 years, in which I've been part of this organization, we've really been more on defense,' she said. 'As we go into this next decade of accountability, I think rather than just being on defense, we'll be promoting the justice system and telling the story of a system that isn't rigged.'"
Civil Justice SystemPlaintiffs' attorney says Congress can't change terms of Indian trust settlement.The AP (5/5) reported, "The plaintiffs' attorney in a proposed $3.4 billion settlement against the government for mismanaging Indian trust funds says Congress can't change the terms of the agreement. Dennis Gingold says the proposed settlement will be terminated and the case will go back to litigation if Congress doesn't approve the agreement by May 28 or attempts to change any part of it. Gingold was responding to comments last week by Sen. John Barrasso, R-Wyo., who says he thinks attorney fees in the case should be capped at $50 million." Cardinal Levada said to have mixed record on adjudicating abuse cases.In a front-page story, the New York Times (5/6, A1, Luo) reports that an examination of the record of Cardinal William J. Levada, who is "in charge of adjudicating sexual abuse cases involving priests worldwide," shows that he has "generally followed the prevailing practice of the church hierarchy, often giving accused priests the benefit of the doubt and being reluctant to remove them from ministry." Levada "was ahead of other church officials on the issue at times, setting up an independent committee to vet abuse cases and calling for greater accountability from church leaders." But "several recent cases that have become public have raised questions about whether the Vatican is even now acting aggressively enough." Personal injury suits against New York City police on the rise.The Wall Street Journal (5/6, Stonington, Mcginty) reports that since 2001, personal injury suits against New York City police officers have nearly doubled, and that the cost of resolving such cases has increased. New Jersey bill would create civil cause of action for victims of those practicing law without a license.The New Jersey Law Journal (4/5, Booth) reported, "Legislation on a fast track in the state Assembly would increase the level of criminality of practicing law without a license in New Jersey and create a civil cause of action for victimized clients. The bill, A-1050, backed by the State Bar Association and with no vocal opponents, would upgrade the unauthorized practice of law to a third-degree crime, punishable by a prison term of between three and five years and a $15,000 fine." The sponsors "amended the bill on March 22, at the suggestion of Assemblyman Louis Greenwald, D-Camden, to create a civil action for anyone who suffers an ascertainable loss of money or property, real or personal, as a result of action or inaction by a person in violation of either statute concerning the unauthorized practice of law."
US joins kickbacks suit against KBR.Bloomberg News (5/6, Capaccio) reports, "KBR Inc., the Army's largest contractor in Iraq, was picked for a no-bid contract worth as much as $568 million through 2011 for military support services in Iraq, according to Army officials. The Army announced the new work order only hours after the Justice Department said it will pursue a lawsuit accusing the Houston-based company of taking kickbacks from two subcontractors on Iraq-related work. The Army also awarded the work to KBR over objections from members of Congress, who have pushed the Pentagon to seek bids for further logistics contracts." The Justice Department "said the government will join a lawsuit filed by whistleblowers alleging that two freight- forwarding firms gave KBR transportation department employees kickbacks in the form of meals, drinks, sports tickets and golf outings." California SC likely to allow private litigators to work on public nuisance suits.The Recorder (5/6, McKee) reports, "Cities and counties that retain private attorneys to handle public nuisance suits against cash-flush companies might get the green light to keep doing so - but with tight restrictions. During oral arguments Wednesday in San Francisco, the California Supreme Court gave indications it will OK such contractual agreements as long as public entities ensure their own lawyers retain complete control over the litigation." Plaintiffs' lawyers compete for lead in Toyota litigation.In continuing coverage in the "Law Blog" at the Wall Street Journal (5/5), Dionne Searcey discussed the jockeying amongst plaintiffs' lawyers for lead counsel position in the Toyota litigation.
CongressLawmakers take on SCOTUS age discrimination ruling.The National Law Journal (5/6, Ingram) reports, "Congressional Democrats are taking a whack at overriding another recent decision by the US Supreme Court, looking this time at a 2009 ruling about age discrimination." The decision in Gross v. FBL Financial Services Inc. "changed the standard of proof for workers who sue under the Age Discrimination in Employment Act of 1967. Under the Court's 5-4 opinion, a worker must prove that the employer would not have taken a certain action, such as a demotion, 'but for' the worker's age, even if there's evidence that age was a factor in the decision. Plaintiffs lawyers say the decision has made it more difficult to bring age discrimination claims, and Democrats are taking up their argument, just as they did after the 2007 decision in Ledbetter v. Goodyear Tire & Rubber Co. about gender discrimination." Specter pursuing amendment to allow private civil actions against those assisting securities violators.In the "Law Blog" at the Wall Street Journal (5/5), Nathan Koppel wrote that Pennsylvania Senator Arlen Specter has proposed amending the financial reform bill currently before the Senate so that anyone who "knowingly provides substantial assistance" to a primary violator of a securities law may be the target of a private civil action. InsuranceObama administration urges states to increase scrutiny of WellPoint rate hikes.The Washington Post (5/6, Hilzenrath) reports, "The Obama administration escalated a long-running battle with one of the nation's largest health insurers Tuesday night, calling on state governments to scrutinize any rate increase sought by WellPoint." And, "in a broader effort to combat 'unjustified' premium increases, the administration also asked states to ensure their regulators have the authority to review rate hikes before they take effect." Notably, HHS Secretary Kathleen Sebelius "made the request after WellPoint withdrew a proposal to raise rates by as much as 39 percent for Californians with individual policies. California regulators determined that the proposed increase was based on erroneous assumptions." Drug SafetyHouse committee to investigate FDA, J&J actions leading to recall of children's medicines.The Washington Post (5/6, Layton) reports, "A congressional committee has launched an investigation into the problems that led to a massive recall of children's and infants' Tylenol [acetaminophen] and other widely used over-the-counter pediatric medicines, with lawmakers pledging to scrutinize the performances of both the drugmaker and federal regulators." Reps. Edolphus Towns (D-NY) and Darrell Issa (R-CA), who lead "the House Committee on Oversight and Government Reform, said in a joint statement that they are 'deeply concerned' about the recall, which affects an estimated 70 percent of the market for over-the-counter pediatric liquid medicines. It involves such brand names as Motrin [ibuprofen], Benadryl [diphenhydramine] and Zyrtec [cetirizine], in addition to Tylenol." Jury rules in favor of Merck in Fosamax case.The AP (5/6) reports, "Merck & Co. says a federal court jury has ruled in its favor in the second trial over whether its osteoporosis drug made teeth and jawbones deteriorate." The plaintiff "blamed her dental problems on Fosamax [alendronate], a widely used osteoporosis pill she took for about eight years." Bloomberg News (5/5, Weidlich) reported that the plaintiff "said she developed osteonecrosis of the jaw, or ONJ." But, Merck "argued in court papers that [she] didn't offer any evidence Fosamax causes ONJ or that it caused her jaw condition. She was never diagnosed with ONJ, it said." Rather, the plaintiff "was diagnosed in 2005 with a different condition, neuralgia-inducing cavitational osteonecrosis, or Nico, the company said." Reuters (5/6) also covers the story. Utah AG suing three pharmaceutical makers for off-label marketing of psychiatric drugs.The Salt Lake Tribune (5/5, Harvey) reported that in a suit filed May 4 in 3rd District Court, "the Utah Attorney General's Office is suing three pharmaceutical companies on behalf of the state's Medicaid program for allegedly selling drugs for uses that are not approved." The suit contends that Janssen Ortho and Ortho-McNeil-Janssen Pharmaceuticals Inc., marketers of Risperdal (risperidone) and AstraZeneca Pharmaceuticals, the maker of Seroquel (quetiapine), "misled the state, doctors, and consumers by not disclosing that the use of" these medications is "associated with development of diabetes and...other 'life threatening' medical conditions." The lawsuit alleges that the medicines, which are approved for the treatment of schizophrenia and bipolar disorder, were marketed off-label for the treatment of elderly patients with dementia and children with depression and anxiety. Employment/Workplace SafetyDOJ cracking down on discrimination against veterans.The National Law Journal (5/6, Baldas) reports, "The US Department of Justice is cracking down on employers that discriminate against returning injured soldiers, who are having a hard time getting their old jobs back, either being demoted, or denied work altogether. DOJ is suing employers nationwide - almost on a weekly basis - for failing to promptly re-employ returning service men and women, in violation of the Uniformed Services Employment and Reemployment Rights Act (USERRA). Most recently, a USERRA lawsuit was filed on May 5 against the California Department of Corrections and Rehabilitation (CDCR), alleging that it failed to promptly re-employ US Air Force reservist Dany Felix." Massachusetts SC rules employees may not be entitled to disability benefits if accommodated with lighter job.The National Law Journal (5/6, Baldas) reports, "Employees in Massachusetts who injure themselves at work may not be entitled to disability retirement benefits if their employer accommodates them with a lighter job. That was the conclusion of a recent Massachusetts Supreme Judicial Court ruling, which held that employers can change an injured worker's duties to keep him on the job and prevent him from going into retirement and collecting disability. Foresta. v. Contributory Retirement Appeal Board, No. SJC-10288 (Mass)." Medical Errors/HealthcareNevada jury finds drug companies liable in hepatitis C case.The Las Vegas Review-Journal (5/5, Haynes) reported that Baxter Healthcare Services and Teva Parenteral Medicine "must pay a Henderson man and his wife more than $5 million after a jury found them liable in the first civil trial stemming from Southern Nevada's hepatitis C outbreak." Following three days of deliberations, the jury found that the companies that "made and sold the sedative propofol failed to label drug vials with appropriate warnings and should not have provided large vials of the anesthetic to endoscopy centers," awarding "$3.25 million to Henry Chanin and $1.85 million to Lorraine Chanin." The Chanins "sued the companies on several product liability claims related to propofol, the sedative used when he received a colonoscopy in 2006 at the Desert Shadow Endoscopy Center during which he was infected with hepatitis C." Former NFL player wins $11.5M in med-mal suit.The AP (5/5) reported, "A jury has awarded former Miami Dolphins wide receiver O.J. McDuffie $11.5 million in his lawsuit against a prominent physician over a career-ending toe injury." Dr. John Uribe, "a former Dolphins team doctor, called the decision a travesty and an appeal is likely." McDuffie "sued for negligence and malpractice over treatment for the toe injury he originally suffered in 1999." Number of Massachusetts med-mal filings falls.The National Law Journal (5/6, Qualters) reports, "Massachusetts medical malpractice lawsuit filings continued their downward trajectory last year, with cases falling below the 500 mark for the first time this decade, according to Massachusetts state court data. According to the data recently released by Barbara J. Rouse, the chief justice of the Superior Court, and first reported by Massachusetts Lawyers Weekly, 485 cases were filed last year, down by about 4% from 504 new cases filed in 2007." Lawyers "attribute the decrease in filings in most years since 2000 to the low percentage of plaintiffs' verdicts, hospitals' efforts to communicate more effectively with patients and families after an adverse medical outcome and a 2004 Massachusetts law change that decreased interest payments on legal judgments." Product SafetyReport from President's cancer panel warns of dangers of environmental toxins.USA Today (5/6, Szabo) reports that "widespread exposure to environmental toxins poses a serious threat to Americans, causing 'grievous harm' that government agencies have not adequately addressed, according to a strongly worded report released today by the President's Cancer Panel, a body of experts that reports directly to President Obama." A great deal "of the suffering faced by people diagnosed with toxin-related cancer 'could have been prevented through appropriate national action,' according to the 240-page report." USA Today adds, "The report was produced by cancer specialists LaSalle Lefall and Margaret Kripke, both of whom were appointed by President Bush and who heard from dozens of experts over the past two years." CPSC to simplify lead testing regulations for children's products.The AP (5/5) reported that on Wednesday, the CPSC "voted to begin writing a rule to allow manufacturers, big and small, to essentially break the required testing process for lead, lead paint and other potential dangers into parts. Under the proposed rule, a manufacturer could rely on safety testing performed for the suppliers of buttons, zippers, plastics or other parts of toys, clothing and other products for youngsters - to make sure they meet federal safety limits." The commission "and Congress have been hearing for almost two years now from handmade craft companies, small businesses and others who argue their products are safe and the expensive third-party testing required could shutter their shops." | ||||||||||
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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 |