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AAJ News Brief for April 15, 2010



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AAJ News Brief for Haytham FarajThursday, April 15, 2010
Leading the News
Civil Justice System
Congress
Drug Safety
Employment/Workplace Safety
Product Safety

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

AAJ's annual Jazz Fest Seminar: Litigating Auto Collision Cases, April 29-May 1, at the Hotel Monteleone in New Orleans,  combines an all new agenda, a highly skilled faculty, and a convenient program format to ensure you get the most out of your investment. The faculty of experienced trial lawyers will cover important emerging topics in collision cases-including automobile, motorcycle, trucking, and railroad crossing-and provide you with court-room litigation strategies for winning your clients' cases. The program features of three days of morning sessions, allowing you to enjoy the New Orleans Jazz Festival in the a­fternoons and evenings. Don't miss this exciting weekend! To view the agenda and register, visit Continuing Legal Education.

Radius of Influence: Growing Practices Through Relationships, May 13-14 in Tampa, FL The Radius of Influence Conference is about the power of marketing persuasion gained by creating genuine relationships with your clients, your community, the media, and industry leaders. Leading authorities on marketing and public relations will discuss what advertising techniques work and how you can set yourself apart from the competition in plaintiff personal injury law. To view the agenda and register, visit Radius of Influence Conference.

The AAJ Exchange recently updated the Interstate Trucking: Regulations, Discovery, and Damages Litigation Packet.  The packet offers discussion, guidance, and up-to-date rules and regulations for the hours-of-service-of-drivers rule, cargo securement rule, alcohol and drug regulations, and texting ban.  Court documents, including sample complaints and written discovery, and deposition outlines, transcripts, and summaries are also included.  To order or view the table of contents for this or the more than 130 other Litigation Packets, visit the AAJ Exchange or call 1-800-344-3023.

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 awards.

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."

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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."

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Congress

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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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