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AAJ News Brief for Haytham Faraj | Thursday, April 15, 2010 |
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Leading the News
Toyota suspends sales of Lexus SUV after Consumer Reports' "don't buy" rating.
The latest chapter of Toyota's safety crisis began yesterday with Consumer
Reports' announcement that it was giving a rare "Don't Buy" rating to the Lexus
GX-460, which Toyota manufactures. Coverage of this and the resultant halt in
production of the model generated significant coverage. NBC Nightly News
(4/13, story 2, 2:40, Williams) reported that "Lexus is temporarily suspending
sales" of the SUV "after Consumer Reports issued a warning that it could tip
over in certain situations, posing what Consumer Reports calls a safety risk."
Consumer Reports engineers faulted the vehicle's electronic stability control.
"Despite the GX-460 meeting all Federal safety standards, Lexus issued a
statement late today" announcing the sales
pause.
ABC World News (4/13, story 5, 1:30, Sawyer) called the rating "an
extremely rare safety move by a major watchdog group," noting that "for the
first time in almost ten years, Consumer Reports is telling people not to buy a"
vehicle. Jake Fisher, Senior Automotive Engineer, Consumer Reports: "I've been
here at Consumer Reports for 11 years. I have never seen an SUV do anything
this
bad."
The AP
(4/14, 9:33 PM, Strumpf, Thomas) reported that the "rare 'Don't Buy' warning"
came "amid concerns the large SUV has handling problems that could cause it to
roll over during sharp turns." Toyota announced that it is conducting its own
tests, the AP notes, adding, "The decision to stop selling the SUV is the latest
blow to Toyota's tarnished safety reputation after the recall of millions of
cars and trucks over gas pedals that are too slow to retract or that can become
stuck under floor mats." This decision is seen as an "attempt to respond more
quickly to safety concerns" on Toyota's
part.
The New
York Times (4/14, B1, Jensen) reported that after Consumer Reports
announced the rating, "Toyota quickly suspended sales...just hours" later. "'We
are taking the situation with the GX 460 very seriously and are determined to
identify and correct the issue Consumer Reports identified,' Mark S. Templin,
the Lexus group vice president and general manager said in a statement." In lieu
of a full recall, Lexus dealers are offering loaner cars to impacted drivers.
Meanwhile, NHTSA "said in a statement on Tuesday that it was in communication
with Consumer Reports and Lexus. The agency's files, as of Tuesday, showed no
record of consumer complaints related to the 2010 Lexus GX 460." The "don't buy"
rating was issued after engineers considered whether they "would want their
families in the
vehicle."
Bloomberg
News (4/14, Ohnsman) reported that the situation "complicates" Toyota's
damage control efforts, as it faces "congressional hearings and a rebuke by"
Secretary LaHood over its response to its sticky accelerator
issues.
NHTSA has logged 37 complaints of hesitant acceleration in Lexus models.
The New
York Times (4/14, Maynard) reported that in addition to reports in
Canada of Lexus models that-instead of accelerating suddenly-have "hesitated or
slowed" when the gas pedal is pressed, NHTSA's "defects data base shows 37
consumer complaints of similar problems on the 2004 ES 330 and 26 complaints on
the 2005 model. Repeatedly, drivers said that after they noticed the problem
they were told by their dealers that the situation was normal and that the car,
one of a number of Lexus models that introduced electronic acceleration
controls, was simply learning to recognize a driver's
habits."
More Toyota drivers report post-recall sudden acceleration.
USA
Today (4/14, O'Donnell, Huggins) reports that some 131 Toyota drivers
have "daily" logged NHTSA complaints of "unintended acceleration after their
recalled vehicles were repaired at dealerships." The piece notes that these
complaints "come as Toyota continues to contend mechanical, and not electronics,
issues are to blame. ... NHTSA and Toyota are analyzing data and vehicles to
'assess whether the recall remedies are being applied correctly and whether they
are able to prevent the problems they were designed to address,' NHTSA said in a
statement Tuesday. In two cases, NHTSA says, it appears improper repairs were
made, but it is trying to determine whether the problem was human error or the
fix
itself."
From the American Association for
Justice |
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Nominations due by April 26: Steven J. Sharp Public Service Award
The Steven J. Sharp Public Service Award is presented annually to those
attorneys and clients whose cases tell the story of American civil
justice. These courageous people and their advocates have helped
educate state and national policy makers and the public about the importance of
consumers' rights. Nominate someone now and view all annual
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Civil Justice System
New York lawyers appeal judge's authority to block 9/11 settlement.
The New York
Times (4/15, A21, Navarro) reports lawyers for New York City and its
contractors filed a notice Wednesday with the United States Court of Appeals for
the Second Circuit challenging "a judge's authority to block" a $657.5 million
settlement reached last month with about 10,000 people who say their health was
impacted in the 9/11 recovery effort. Judge Alvin K. Hellerstein of United
States District Court in Manhattan "stunned both the city and the plaintiffs at
a hearing on March 19 by saying that the compensation was inadequate and that he
was taking control." Lead lawyer James E. Tyrrell Jr. said in an interview that
Wednesday's action was to ask "the Court of Appeals to confirm that
[Hellerstein] has no authority to determine the terms of a private
settlement."
The New
York Law Journal (4/15, Hamblett) reports that Tyrrell said, "The
parties had arrived at a settlement that we think was fair through very
difficult circumstances and provided the best possible chance for immediate
compensation to those who were injured. And the judge, by blocking that
settlement agreement, has exceeded his authority." Plaintiffs liaison counsel
Paul Napoli of Worby Groner & Napoli Bern, "whose interests are for once aligned
with those of the city's, said he would weigh in at the circuit either as a
respondent or with an amicus brief backing the appeal." Hellerstein "said at a
hearing on Monday that he was 'in the dark' on whether any progress has been
made on the renewed effort to fashion an acceptable
settlement."
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Kerry Lewis showed courage in pursuing Boy Scouts abuse case, says Oregonian.
The Oregonian
(4/14) editorialized that because former boy scout Kerry Lewis "persisted in
his lawsuit against the Boy Scouts over the abuse he suffered at the hands of an
assistant Scoutmaster, organizations that work with children are rethinking the
ways they manage threats against those they aim to serve." Now that "a jury has
heard him and delivered the verdict he sought, he can know that it is not his
fault that he was a victim. And he has done a considerable favor to the next
generation of families who seek enrichment for their children, not
shame."
AP profiles priests who were transferred abroad after abuse claims.
The AP
(4/14) profiled 30 "Roman Catholic priests accused of abuse who were
transferred or moved
abroad."
New Mexico firm sued over failure to cremate bodies.
The AP
(4/14) reported that Philip Fajardo of New Mexico and Farrah Fasold of Texas
are suing Albuquerque firm Bio Care, "alleging it gave them ashes it represented
as the remains of their loved ones. They say authorities later told them at
least parts of the bodies had never been cremated." Fajardo and Fasold "filed
the lawsuit Tuesday in state district court in Albuquerque seeking unspecified
damages against Bio Care and two Bernalillo County companies, New Mexico
Mortuary Service Inc. and Director's Choice LLC. They allege negligence by all
three companies; fraud, intentional infliction of emotional distress and
violation of the Unfair Practices Act by Bio Care; and conspiracy by the other
two
companies."
Third Circuit may revive class-action signal-taping suit against New England Patriots.
The Legal
Intelligencer (4/15, Duffy) reports, "The New England Patriots may face
even more punishment for surreptitiously filming the signals of their opponents
if a federal appeals court revives a class action consumer fraud suit brought by
a fan of the New York Jets who says he was cheated out of seeing fair games." A
lower court judge "tossed the suit out after declaring that the fans had
suffered no 'cognizable injury' since they essentially got what they paid for --
a seat in the stadium to watch a game. But in an oral argument on Wednesday
before a three-judge panel of the 3rd US Circuit Court of Appeals, the lawyers
for the Patriots and the NFL were given a serious grilling that suggested the
appellate court didn't take as dim a view of the
suit."
The AP
(4/15) reports, "Carl Mayer, a lawyer and a Jets season-ticket holder, argued
in a United States appeals court that fans spent money to see games that were
essentially rigged. His suit...seeks $185 million in damages for Jets
fans."
Congress
Bill would ban employment discrimination against gay, transgender workers.
Roll
Call (4/15, Newmyer) reports, "Fresh off their victory on a
controversial health care overhaul, House Democrats are preparing to wade into a
potentially divisive social debate over whether to ban employment discrimination
based on sexual orientation and gender identity." The initiative is being led
by House Financial Services Chairman Barney Frank, "one of three openly gay
Members." Supporters "are already surveying their ranks to determine support
for the measure, with the aim of approving it by the end of May." Roll Call
adds that "the House cleared a version of the legislation in 2007," but "that
bill did not extend employment protections to transgender
people."
Lautenberg to introduce chemical regulation bill.
The Washington
Post (4/15, Layton) reports, "After a year of working with
environmental groups, government regulators and the chemical industry," Sen.
Frank Lautenberg, "a leading advocate for chemical regulation, has devised a
plan to remake the nation's chemical laws -- a 34-year-old set of regulations
that all players agree is outmoded and ineffective." A bill the senator plans
to file Thursday contains a plan that "would require manufacturers to prove the
safety of chemicals before they enter the marketplace," which "would be a
significant departure from current laws, which allow chemicals to be used unless
the federal government can prove they cause harm to health or the environment."
Said Lautenberg, "We're saying those who make the chemicals...ought to be
responsible for testing them first before they're released to the public,
instead of having the EPA play detective to search and try to find problems."
EPA Administrator Lisa P. Jackson "called the legislation a major 'step
forward.'"
White House, Republicans clash on financial reform bill.
With the financial reform debate in Washington breaking into sharply-drawn
partisan lines yesterday, media analysts describe the White House and Democratic
leaders as eager to do battle with the GOP on this issue. Democrats, say
commentators, expect to win a showdown on Wall Street regulations and win
passage of the legislation sponsored by Sen. Chris Dodd. Moreover, Democrats
believe the issue could energize their ranks going into the midterm campaigns.
ABC World News (4/14, story 2, 2:35, Sawyer), the only network newscast
to report on the debate, referred to "a duel" in Washington "over how America
should police the big banks after the financial crisis." ABC (Tapper) added
that the President said yesterday that "the new financial regulations Democrats
are pushing would prevent" a crisis like the one in 2008 "from happening again,"
but "Republicans are branding that bill with what's become a nasty word in
American politics – bailout." Senate GOP leader Mitch McConnell was shown
saying, "It's a bill that actually guarantees future bailouts of Wall Street
banks. ... Back door bailouts." Added ABC, "In response, Democrats have a word
of their own." Dodd was shown saying, "It's just
poppycock."
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Drug Safety
Antitrust lawsuit against AztraZeneca allowed to proceed.
The AP
(4/14) reported, "A federal judge in Delaware has refused to dismiss a lawsuit
accusing AstraZeneca of anticompetitive practices involving the heart drug
Toprol-XL. Tuesday's ruling involves consolidated antitrust complaints filed in
2006 by drug wholesalers and pharmacies, and by health and welfare plans,
self-insured employers and others. The plaintiffs allege among other things that
AstraZeneca engaged in monopoly practices that forced them to pay higher prices
for
Toprol."
Employment/Workplace Safety
Miller releases list of mines that could face greater scrutiny.
The AP
(4/15, Hananel) reports that Rep. George Miller (D-CA), chairman of the House
Education and Labor Committee, "on Wednesday released a list of 48 mines that
could face greater scrutiny if not for delays in assessing the safety violations
filed against them." Nearly half of those on the list are coal mines in West
Virginia. All of the mines cited by Miller "have been cited for a large number
of serious safety violations." However, the violations have been contested by
the mine operators and are not yet resolved. "Miller, the chairman of the House
Education and Labor Committee, and other Democrats have accused mine operators
of challenging more fines just to delay stronger penalties that would result if
they are found to show a pattern of violations. Mine companies say they have a
legal right to contest penalties if they think they are
unfair."
West Virginia Governor orders immediate inspection of underground coal mines.
ABC World News (4/14, story 9, 0:20, Sawyer) reported, "West Virginia's
governor issued a sweeping order today in the wake of last week's explosion that
killed 29 miners. Governor Joe Manchin is ordering the immediate inspection of
more than 200 coal mines to check for combustion risk, telling inspectors to
evacuate or close mines with
violations."
The New York
Times (4/15, A17, Urbina) reports, "Mr. Manchin also called for all
coal companies in the state to stop production on Friday to use the day for a
review of their safety procedures." An official with West Virginia's State
Office of Miners' Health, Safety and Training added that "state inspectors would
begin looking at the most problematic mines on Friday, focusing especially on
ventilation systems and methane and coal dust controls." The order comes as
mine operators face greater overall scrutiny. Unlike the AP story, which
reports Rep. Miller released a list of 48 mines, the Times reports that Miller
"released a list of 32 coal mines that had been identified by the federal
government as deserving closer scrutiny, but 'were not targeted due to
unresolved appeals by mine operators.'" The Times notes, "Massey Energy and its
subsidiaries led the list, accounting for 6 of the 32
mines."
Plaintiffs win one of three asbestos cases tried jointly in Philadelphia.
In continuing coverage, the Legal
Intelligencer (4/15, Passarella) reports, "Three asbestos cases tried
jointly in Philadelphia this month had welding rod manufacturers as their sole
defendants at trial - a proposition that has proven daunting to plaintiffs
attorneys across the country, lawyers have said. Ultimately the verdicts were
split, with two in favor of the defense and one in favor of the plaintiff for
about $1.3 million." Plaintiffs' attorney Riki R. Redente of Brookman Rosenberg
Brown & Sandler said that in the case decided for the plaintiffs, Campbell v.
A.W. Chesterton, "evidence of exposure to asbestos-containing dust from the
welding rods was stronger" than in the other
cases.
Product Safety
Chinese president will "look into" tainted drywall, says Sen. Nelson.
Scripps News (4/14,
Wolf) reported, "The president of China will launch an investigation into toxic
drywall, according to a US senator who buttonholed the head of state at an
international conference this week. Asked about the toxic Chinese drywall that
has plagued thousands of American homes, Chinese President Hu Jintao said
through an interpreter Tuesday that his nation would 'look into it,' according
to US Sen. Bill Nelson, D-Fla. The remark carries extra significance because of
uncertainty about what, if anything, China will do to investigate why drywall
produced there in 2004 and 2005 later was found to release high levels of a
rotten-egg smelling
gas."
The South
Florida Business Journal (4/14) reported, "The senator said he brought
up the findings of the US Consumer Product Safety Commission that Chinese
manufacturers sent tainted drywall to the US that is now making homes
uninhabitable, leaving thousands of homeowners looking for answers and help. 'If
we can get the top government official of China working on this, then that's
where we're going to get the money to make these homeowners whole,' Nelson
said." The Sarasota
(FL) Herald Tribune (4/15) also covered the
story.
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