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Leading the NewsObama says BP "will be paying the bill" for oil spill.Media coverage of the President's trip to the Gulf of Mexico area to survey the oil spill damage cast him (and top Administration officials) as seeking to minimize potential political fallout from the accident. NBC Nightly News (5/2, story 3, 3:00, Potter) reported that the President "came to Louisiana to see for himself the efforts to clean up the oil spill and also to underscore the Administration's resolve to tackle that issue." Obama was shown saying, "So let me be clear. BP is responsible for this leak. BP will be paying the bill. But as President of the United States, I'm going to spare no effort to respond to this crisis for as long as it continues. And we will spare no resource to clean up whatever damages cost." Footage of the same Obama statement ran on ABC World News (5/2, story 3, 3:310, Muir) and the CBS Evening News (5/2, story 3, 3:00, Strassman). ABC also noted that the President said "in the Gulf...this could turn out to be an 'unprecedented environmental disaster,'" and CBS said Obama is "on the defensive because earlier this year he announced plans to increase oil drilling in coast waters, opening more territories here in the Gulf a vast area of the Atlantic, as well as northern accident Alaska. This accident has put all that in question." The New York Times (5/3, Robertson, Fountain) also reports, "For Mr. Obama, the widening environmental calamity in the Gulf is made even more complicated, politically, by the fact that the spill occurred just a month after the president announced he was expanding offshore drilling." Obama "now says that no new leases will be approved until a thorough review on the causes of the BP leak is complete." The AP (5/3) notes that NBC's Meet the Press, Interior Secretary Ken Salazar also said "the potential environmental outlook for the Gulf Coast oil spill is 'a very grave scenario.'" BP faces large clean-up bill, damage to reputation. The Washington Post (5/3, A6, Mufson) also reports on the "corporate crisis for one of the world's biggest oil giants," noting that "the price tag for the disaster increases day by day." BP "says it is spending $6 million a day on response efforts," and "drilling a relief well will probably cost more than $100 million. The Defense Department says it will hand BP the bill for paying Louisiana National Guard troops, and the Environmental Protection Agency says it will charge BP for air monitoring. Covering damages to coastal fishermen, tourism businesses and residents could cost billions more," of which "BP will pay 65 percent." In a front page story, the Wall Street Journal (5/3, A1, Chazan) reports that the explosion and resulting spill could undermine the efforts of BP CEO Tony Hayward to improve the company's reputation, as he took over three years ago this week following such high profile events as the fatal explosion at its Texas City refinery. It may also jeopardize BP's ground-breaking exploration projects, as governments may be fearful of a similar accident. AGs seek assurances from BP. Meanwhile, the AP (5/3, Nelson) reports, "The attorneys general from Alabama, Florida, Mississippi, Louisiana and Texas want BP PLC to sign an agreement spelling out exactly what 'legitimate expenses' they'll cover from the spill." They said they "aren't going to file a lawsuit yet, but they say they want Gulf Coast residents to know that they will work together to hold BP and other responsible parties accountable." $1 billion from oil spill liability trust fund available. The New York Times (5/2, Wald) notes that the federal government "has a large rainy day fund on hand," the Oil Spill Liability Trust Fund, to "help mitigate the expanding damage on the Gulf Coast, generated by a tax on oil for use in cases like the Deepwater Horizon spill. Up to $1 billion of the $1.6 billion reserve could be used to compensate for losses from the accident, as much as half of it for what is sometimes a major category of costs: damage to natural resources like fisheries and other wildlife habitats." The Times also notes that "under the law that established the reserve...the operators of the offshore rig face no more than $75 million in liability for the damages that might be claimed by individuals, companies or the government, although they are responsible for the cost of containing and cleaning up the spill." BP, Transocean facing at least 36 lawsuits. Bloomberg News (5/1) reported, "BP Plc and Transocean Ltd. face at least 36 lawsuits, including group cases with potentially thousands of plaintiffs, over environmental damage and personal injuries caused by the oil spill in the Gulf of Mexico." The suits "are multiplying as the companies struggle to cap a damaged undersea well leaking 5,000 barrels of crude oil a day since the Deepwater Horizon drilling rig exploded April 20." The AP (5/1) reported, "Attorneys say there could be hundreds of thousands of plaintiffs from Texas to Florida seeking damages. Plaintiffs so far include commercial fishermen, charter boat captains, resort management companies and individual property owners." In the "Greenpeace" blog at the Los Angeles Times (4/30), Margot Roosevelt wrote, "Drill, baby, drill is turning into sue, baby, sue. Class-action lawsuits against operators of the exploded Gulf of Mexico oil rig multiplied Friday as the oil began washing onto Louisiana shores." Reuters (4/30) also covered the story. Halliburton's role questioned. The Los Angeles Times (5/1, Roosevelt) reported, "Investigators delving into the causes of the massive gulf oil spill are examining the role of Houston-based Halliburton Co., the giant energy services company that was responsible for cementing the deepwater drill hole, as well as the possible failure of equipment leased to British Petroleum. Two members of Congress, Reps. Henry A. Waxman (D-Beverly Hills) and Bart Stupak (D-Mich.), called on Halliburton on Friday to provide all documents relating to 'the possibility or risk of an explosion or blowout at the Deepwater Horizon rig and the status, adequacy, quality, monitoring, and inspection of the cementing work' by May 7." Halliburton "has been accused of performing a poor cement job in the case of a major blowout in the Timor Sea off Australia last August."
Civil Justice SystemOver $200M awarded in Los Angeles asbestos case.The AP (4/30) reported, "A Los Angeles jury has awarded more than $200 million to the wife of a retired Department of Water and Power worker who was diagnosed with a rare form of cancer apparently caused by washing her husband's asbestos-contaminated work clothes. The jury found [last] week that Rhoda Evans' mesothelioma was caused by exposure to asbestos dust from CertainTeed asbestos cement water pipes." The Recorder (5/3, Moser) reports that the award "looks likely to be reduced," as Los Angeles County Superior Court Judge Conrad Aragon "asked attorneys from both sides to write briefs on what an appropriate punitive damages award would be. The judge 'refused to enter the judgment' until he evaluates the legal basis for the award, said an attorney for defendant CertainTeed Corp., a building materials manufacturer the jury hit with 70 percent of the liability." Hellerstein's rejection of 9/11 settlement vexes lawyers.The New York Times (5/3, A17, Navarro) reports, "Many who have appeared before" Judge Alvin K. Hellerstein of the US District Court in Manhattan say that "as the federal judge who has overseen the wrongful death, property damage and personal injury lawsuits arising from 9/11," Hellerstein has "grown determined to put his own stamp on financial settlements reached between a plaintiff and defendant." On March 19, Hellerstein "stunned lawyers on both sides by rejecting a $657.5 million settlement reached in individual suits brought against New York City by more than 10,000 rescue and cleanup workers who say their health was damaged at ground zero." The "struggle over control of the settlement has underscored two different, but not necessarily contradictory views of the judge: the compassionate jurist driven by a sense of social responsibility and with a wealth of experience with victims' suffering, and the aggressive judge unwilling to cede ground on cases he has shepherded for years."
Vatican slow to act on Maciel abuses.In a front-page story, the New York Times (5/3, A1, Wakin, McKinley Jr.) reports, "It took Cardinal Ratzinger - by then Pope Benedict - until 2006, eight years after the case went before him, to address" Father Marcial Maciel Degollado's abuses "by removing him from priestly duties and banishing him to a life of prayer and penitence, though without publicly acknowledging his wrongs or the suffering of his victims. And on Saturday, four years after that, the Vatican announced that Benedict would appoint a special delegate to run the powerful worldwide order that Father Maciel founded, the Legionaries of Christ, and establish a commission to examine its constitution." Advocates "for Father Maciel's victims say that the Vatican's eventual investigation and reckoning in the case were too little, too late." Connecticut bill to extend child sex abuse statute of limitations is withdrawn.The Hartford Courant (5/1, Keating) reported, "A controversial bill that would have extended the statute of limitations in child sexual abuse cases was officially withdrawn Friday, ending an emotional debate at the state Capitol for this year. The measure's chief proponents couldn't get enough support in the House of Representatives and the Senate for the second straight year, although they promised that they will try again next year. The measure was directly related to the heavily publicized allegations of child sexual abuse against the late Dr. George Reardon, who worked at St. Francis Hospital and Medical Center in Hartford from 1963 to 1993." CongressSome experts question Democrats' financial regulations overhaul.The New York Times (5/3, Appelbaum, Chan) reports as Democrats "close in on their goal of overhauling the nation's financial regulations, several prominent experts say that the legislation does not even address the right problems, leaving the financial system vulnerable to another major crisis." Some of the experts "point to specific issues left largely untouched, like the instability of capital markets that provide money for lenders, or the government's role in the housing market, including the future of the housing finance companies Fannie Mae and Freddie Mac." Others "simply argue that it is premature to pass sweeping legislation while so much about the crisis remains unclear and so many inquiries are in progress."
Insurance
NYTimes: Insurers "wise" to end rescissions to forestall further criticism.The New York Times (5/3, A24) editorializes, "Americans are already starting to see the benefits of health care reform. The new law requires health insurance companies -- starting in September -- to end their most indefensible practice: rescinding coverage after a policyholder gets sick." And, "in recent days, insurers and their trade association have rushed to announce that they will end rescissions immediately." Notably, "insurers decided to act quickly after they were whacked by some very bad publicity. An investigative report by Reuters said that one of the nation's biggest insurers, WellPoint, was targeting women with breast cancer for fraud investigations that could lead to rescissions." According to the Times, "The insurers were wise to short-circuit the criticisms and end rescissions now." Drug SafetyJ&J recalls children's OTC medicines.The CBS Evening News (5/1, story 8, Glor) reported, "The FDA...is advising consumers to avoid more than 40 liquid medications for children that are being recalled by the manufacturer because of quality problems. The products include children's and infants' Tylenol, children's and infants' Motrin, as well as children's Zyrtec [cetirizine] and Benadryl [diphenhydramine]." The Washington Post (5/2, Layton) reported, "A division of Johnson & Johnson is recalling 43 over-the-counter medicines made for infants and children...after federal regulators identified what they called deficiencies at the company's manufacturing facility." McNeil Consumer Healthcare announced "the voluntary recall," which "affects hundreds of thousands of bottles of medicine" that make up "a vast portion of the children's medicine market." The New York Times (5/2, A21, Singer) reported, "The deficiencies may affect the potency, purity or quality of the products, the agency said." The FDA also "said it was investigating the plant where the products were made to make sure there were no other problems." The recall includes pediatric formulations of Tylenol, Motrin and Zyrtec, the Wall Street Journal (4/3, Rockoff) reports. A spokeswoman for McNeil indicated that the active ingredient in some products may be at a higher concentration than it should, while inactive ingredients in other products may be at levels the company says are inappropriate. Employment/Workplace SafetyOSHA increases penalties for serious safety violations.The Milwaukee Business Journal (4/30, Hoover) reported, "The Occupational Safety and Health Administration is increasing penalties for serious safety violations, contending current fines are too low to have a deterrent effect. OSHA's average penalty for a serious violation has been around $1,000. Under the agency's new policy, the average fine for a serious violation - one that could cause death or serious injury - will increase to between $3,000 and $4,000." California bill would ban arbitration agreements which waive parties' rights to sue over hate crimes.The Recorder (5/3, Miller) reports that California Assembly Bill 1680 "would ban arbitration agreements that force parties to give up their rights to sue over a hate crime. The bill, sponsored by the gay rights group Equality California, passed out of the Assembly on Thursday." Plaintiff lawyers "have tried in recent years to chip away at state laws enabling mandatory arbitration in employment and consumer contracts. But their efforts have been repeatedly blocked by Gov. Arnold Schwarzenegger." Medical Errors/HealthcareVerdict in medical malpractice case shocks victim's family.The New York Times (5/1, A15, Eligon, Moynihan) reported that the family of an Irish woman who died of cardiac arrest following plastic surgery sued the plastic surgeon, "as well as an anesthesiologist and a nurse who were part of the medical team, for malpractice in State Supreme Court in Manhattan. The malpractice, the plaintiffs claimed, led to" the patient's wrongful death. Last month, the surgeon's "case was settled for $2.1 million," while on Friday, the case against the "nurse...was settled for $1 million." However, on Friday afternoon, a jury cleared the anesthesiologist of responsibility in the case. The jurors also "did not know of" the nurse's "settlement, so they delivered verdicts exonerating her of responsibility, as well," even though the settlement will still stand. Attorneys for the family expressed incredulity at the verdict. Deliberations begin in hepatitis C outbreak case.The Las Vegas Review Journal (4/30, Haynes) reported that pharmaceutical companies "that produced and sold the sedative linked to Southern Nevada's hepatitis C outbreak provided large vials of medication to endoscopy centers despite their risk to public safety, a lawyer charged Friday." During closing arguments, attorney Robert Eglet stated, "These drug companies knew that these were weapons of mass infection. They knew what was going on in these endoscopy centers. ... They knew it for years and years and years, and they did nothing to stop it." Eglet's client is "Henry Chanin, 62, who was infected with hepatitis C during a 2006 colonoscopy at the Desert Shadow Endoscopy Center, one of two clinics linked to Southern Nevada's hepatitis C outbreak." The Las Vegas Sun (5/1, McCoy) reported that Eglet "asked jurors during his closing arguments Friday to award $8.5 million in damages." Eglet "wants jurors to find Teva Parenteral Medicines Inc. and Baxter Healthcare Corp. liable on several product defect claims. The two companies made and distributed, respectively, the anesthetic propofol used at Desert Shadow Endoscopy Center, where Chanin was infected with hepatitis C during a routine procedure in 2006." Jury deliberations began on Friday and will resume again on Monday. Georgia medical malpractice attorneys profiled.The Atlanta Journal-Constitution (5/3, Torpy) profiles medical malpractice attorneys Thomas and Adam Malone. "Tommy Malone is considered by many to be the state's best medical malpractice lawyer." His son, Adam, "helped overturn a state law capping 'pain and suffering' verdicts at $350,000." Both "Malones argue damage limits are unfair." NYTimes critiques medical societies' code of conduct.The New York Times (5/1, A18), in an editorial, said, "Professional medical societies play an enormously influential role in determining how medicine is practiced, but their activities and financing are a mystery. ... So it was welcome news that the umbrella organization for specialty groups has adopted a new code of conduct that seeks to limit industry's ability to influence professional judgments. But it was disappointing that it does not make a clean break from industry money." Product SafetyToyota facing over 320 lawsuits.The AP (5/1) reported, "Toyota Motor Corp. now faces more than 320 lawsuits in federal and state court related to its sudden acceleration problems. In a report filed Friday with U.S. District Judge James Selna, attorneys for the plaintiffs and Toyota listed 228 federal cases and 99 related cases in state courts." Attorneys "estimate that if Toyota were to settle the cases for even a modest payout to affected motorists, it could cost the company at least $3 billion and possibly much more." The National Law Journal (5/3, Bronstad) reports, "Toyota Motor Corp.'s legal problems aren't limited to the federal multidistrict litigation over unintended acceleration of its vehicles. Scores of lawsuits are working their way through state courts across the nation, and some of those cases could pave the road for the MDL." Many "of the state court suits were filed more than a year ago and, having progressed farther in the court system, might provide some guidance on discovery issues and depositions of Toyota executives that could prove helpful in the MDL or in other cases." Knauf initiates settlement talks with US homebuilders.The Sarasota (FL) Herald Tribune (5/3, Kessler) reports that Knauf Plasterboard Tianjin Co. "has begun settlement talks with as many as 10 U.S. homebuilders in recent weeks." The Herald-Tribune "has confirmed that a letter KPT's attorneys sent to a Florida builder last month offered less than $18 per square foot." Judge Eldred Fallon, "in his findings last week, determined a figure of $81 per square foot would be needed to remediate the Louisiana home of Tatum and Charlene Hernandez." Several attorneys "interviewed by the Herald-Tribune said a figure like $18 per square foot is so low it may simply be a way for Knauf to test the waters." Florida expected to pass bill reducing property tax for Chinese drywall homeowners.The Bradenton (FL) Herald (4/30, Marsteller) reported, "Floridians with corrosive Chinese drywall in their homes soon could be paying significantly less in local property taxes under a bill heading toward Gov. Charlie Crist's desk. The state Senate on Thursday unanimously passed the bill, which would require local property appraisers to declare certain homes with the corrosive wallboard as worthless for tax purposes. The House unanimously approved the measure earlier [last] week, and Crist is expected to sign it into law." SecuritiesGoldman faces "vexing dilemma" with DOJ probe.USA Today (5/3, Lieberman) reports that Goldman Sachs "faces a vexing dilemma, legal experts say, as the Justice Department conducts a criminal investigation into whether the financial services giant duped buyers of its securities." Goldman "could lose its vaunted reputation for integrity if it admits to wrongdoing as part of a deal to avoid criminal prosecution," but "if Goldman insists that it did nothing wrong -- the position it has taken since April 16, when the Securities and Exchange Commission filed a civil lawsuit alleging securities fraud -- then investors may fear that it will grow increasingly distracted by legal matters." USA adds that a "federal law enforcement official briefed on the matter says the investigation predates the SEC referral that went to Justice a couple of weeks ago." Legal experts "say they doubt the Justice Department will sue Goldman," but believe "prosecutors might sue key executives or, more likely, propose a deal." CNNMoney (5/3, Ellis) reports, "Unfortunately for Goldman...the number of potential litigants looking to take a swipe at the firm is poised to grow, as pension funds and other activist investors cry foul over the drop in the company's stock." Also in the NewsFBI investigating possible bribery by Massey.Bloomberg News (5/3, Stratton, Fisk) reports that the FBI investigating "possible bribery of state and federal inspectors" by Massey, "a person familiar with the probe said." Bloomberg notes, "The mine and its operators could be held criminally responsible for the explosion if there were any 'overt acts,' such as falsification of inspection documents or evidence of tampering with monitors and recording devices, said Bruce Stanley, a Pittsburgh attorney who represents the widows of two miners killed in an earlier incident. Should the FBI interview turn up evidence of criminal conduct, the matter would be referred to the US Attorney in the Southern District of West Virginia, the first person said." WPost urges tighter rules on judicial conflicts, recusals.The Washington Post (5/3) editorializes about a case last year where the Supreme Court "ruled that a judge's refusal to step aside from cases in which he or she has a conflict of interest could raise questions about impartiality and undermine the Constitution's guarantee of due process." The Post argues that abolishing judicial elections "would go a long way toward eliminating these kinds of problems, while insulating judges from the corrosive effects of money and politics," but "even appointed judges face conflicts, including those triggered by financial holdings or relationships with parties or lawyers who appear before them." The Post adds that a "proposal by the American Academy of Appellate Lawyers offers improvements," by calling on courts "to make available with sufficient lead time the names of the judges scheduled to hear an appeal." The Post also argues that courts should "adopt rules that require judges in most instances to explain why they have recused themselves." | ||||||||||
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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 |