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Leading the NewsSen. Nelson says Chinese government should pay for drywall damage.NBC Nightly News (3/29, story 7, 2:20, Potter) reported, "Forty-seven homes and perhaps tens of thousands more around the country were built with drywall made in China, which the Consumer Product Safety Commission says emits pungent fumes that corrodes wires, heating coils, and appliances." Families "now forced to move elsewhere but still paying their mortgages are hurting." A "major concern for the homeowners is even if they win" multidistrict litigation underway in New Orleans "and a judgment is granted, there is no guarantee the Chinese will actually pay to fix damaged homes in the US. While health effects of Chinese drywall are still being studied Florida Senator Bill Nelson says he is convinced there is a health problem for which the Chinese must pay." Said Nelson, "At the end of the day, the deep pockets of the Chinese government are going to have to make all of these poor homeowners whole." Builders, homeowners await Fallon's ruling on drywall remediation. Dolan Media Newswires (3/29, LaRose) reported that builders and homeowners are waiting for US District Judge Eldon Fallon to "determine if Tatum and Charlene Hernandez, homeowners from Mandeville [LA], can recoup damages from Knauf, a German building materials company that owns drywall plants in China. With a per-square-foot dollar value determined, cases involving more than 2,100 families with claims pending before Fallon's court could move forward. When, however, is unknown." Homeowners can file drywall claims against Engle Homes. In the "House Keys" blog at the South Florida Sun-Sentinel (3/29), Paul Owers wrote, "Homeowners with tainted Chinese drywall can file claims against Engle Homes, a division of Hollywood-based Tousa Inc," until May 14. "Tousa filed for bankruptcy in early 2008 and has since announced plans to wind down operations. Plaintiffs' attorneys are trying to set up a trust similar to the one established by WCI Communities, the Bonita Springs-based builder that emerged from bankruptcy last year."
AAJ in the NewsHealthcare bill said to have dealt blow to tort reformers.The Wall Street Journal (3/27, Jones) reported that the new healthcare bill has dealt a blow to proponents of tort reform. In the seventh paragraph, AAJ President Anthony Tarricone is quoted as saying, "Our position throughout the health-care debate was no secret: The rights of injured patients could not be used as bargaining chips. Health care is about patients, and when 98,000 people die every year from preventable medical errors, we worked to make sure their voices were heard loud and clear." US Chamber's Institute For Legal Reform grades states by "legal climate."In continuing coverage, the Phoenix Business Journal (3/26, Hoover) reported, "West Virginia has the worst legal climate in the U.S., followed by Louisiana, Mississippi, Alabama and California, according to" a survey by the U.S. Chamber of Commerce's Institute for Legal Reform. Trial lawyers "dismissed the rankings as unscientific and contended the chamber only wants to protect corporations from oversight and accountability. 'The chamber's report is just another attempt to weaken the civil justice system to help its Wall Street and big-business financers,' said Ray De Lorenzi, a spokesman for the American Association for Justice. 'The American people have seen what happens when the chamber's largest clients -- like AIG, insurance and drug companies -- are not held accountable. This is just one more call from the corporate lobby to bail out negligent corporations while everyday Americans are left holding the bag.'"
Civil Justice SystemEarthLink settles early termination fee class action.The Fulton County Daily Report (3/30, Land) reports, "Atlanta-based Internet service provider EarthLink has settled a long-running class action suit alleging that it improperly levied early termination fees against its customers. Among the settlement conditions, EarthLink agreed to lower its current fees, refund half of the fees to as many as 850,000 potential class members, and drop any efforts to collect outstanding fees or report customers owing such fees to credit reporting bureaus. The settlement also promises to pay $3.7 million in attorney fees and expenses, and three class representatives will each receive $7,500 in 'incentive awards.'" Gay teenager settles bullying suit with New York school district.The AP (3/29) reported, "A gay teenager in upstate New York who had claimed he was relentlessly bullied by classmates while school administrators stood by settled his lawsuit Monday against the school district. Jacob -- who is identified as 'J.L" in the lawsuit and doesn't want his name revealed -- sued the Mohawk Central School District in federal court last summer with help from the New York Civil Liberties Union." The district "agreed to implement changes to protect students from harassment" and will "pay $50,000 to Jacob's family and to reimburse them for counseling service." Jury rejects New Orleans man's FEMA trailer claims.The AP (3/29, Poag) reported, "A federal jury on Monday rejected a New Orleans man's claims that government contractors provided him with a trailer after Hurricane Katrina that exposed him to dangerous fumes, dealing another blow to those suing the trailer makers." The jury "unanimously decided that a trailer made by Forest River Inc. of Goshen, Ind., and occupied by Lyndon Wright, 39, after the August 2005 storm was not 'unreasonably dangerous' in its construction or design." The jury "also found that Shaw Environmental Inc. of Baton Rouge was not negligent in installing Wright's trailer." AP noted, "the case is the second of several 'bellwether' trials designed to test the merits of and possibly resolve other claims over formaldehyde exposure in Federal Emergency Management Agency trailers." A brief version of this story was published on the New York Times' website.
Minnesota lawyer Anderson pursuing lawsuits against Catholic Church.In the "Law Blog" at the Wall Street Journal (3/29), Ashby Jones discussed Jeff Anderson, a Minnesota lawyer who throughout his career has pursued thousands of abuse lawsuits against the Catholic Church. Pennsylvania SC issues order to expunge records of Luzerne County juveniles.The Legal Intelligencer (3/30, Elliott-Engel) reports that the Pennsylvania Supreme Court "has issued an order approving the final steps to expunge the records of all juveniles who appeared before former Luzerne County Judge Mark A. Ciavarella Jr. between 2003 and 2008. Ciavarella and fellow former Luzerne County Judge Michael T. Conahan have been charged by federal prosecutors with taking $2.8 million in payments from one of the former co-owners and the builder of PA Child Care and Western PA Child Care, two private, for-profit juvenile detention centers." Connecticut proposal to extend statute of limitations for child sex abuse civil lawsuits clears judiciary committee.The Hartford Courant (3/30, Becker) reports, "A proposal to change the statute of limitations for civil lawsuits in child sexual abuse cases cleared the judiciary committee by a 23-20 vote Monday but only after lawmakers revised it to maintain some restrictions on those currently barred from suing." The original proposal, "inspired in part by pending sexual abuse lawsuits involving St. Francis Hospital and Medical Center, would have eliminated the statute of limitations for civil cases involving child sexual abuse, assault or exploitation. But after a public hearing during which victims of sexual abuse supported the change and representatives of the Roman Catholic Church opposed it, lawmakers changed the proposal, allowing victims 48 and older to sue only if they can clear certain hurdles." InsuranceSebelius to issue regulations requiring insurers to cover children's preexisting conditions.The CBS Evening News (3/29, story 6, 2:35, Couric) reported, "Just four days ago, President Obama said the new healthcare reform law would prevent insurance companies from denying coverage to children with pre-existing condition. And here's the key phrase 'starting this year.' Well, maybe not." Apparently, "some insurance companies believe they have already found a loophole." But, Kathleen Sebelius, Secretary of Health and Human Services, said, "We don't want to leave any ambiguity. This won't be up to insurance companies to interpret. Parents can rest assured." ABC (Tracy) added, "The Insurance Industry Association says 'We will implement any revisions that are made.'" Health overhaul prohibits sex discrimination in health coverage.The New York Times (3/30, Grady) reports, "Being a woman is no longer a pre-existing condition. That's the new mantra, repeated triumphantly by House Speaker Nancy Pelosi, Senator Barbara A. Mikulski and other advocates for women's health." This means that "the new healthcare law forbids sex discrimination in health insurance. Previously, there was no such ban, and insurance companies took full advantage of the void." This practice has been used for individual insurance policies, as well as for "group coverage, but laws against sex discrimination in the workplace prevent employers from passing along the higher costs to their employees based on sex. Gender rating has taken a particular toll on smaller or midsize businesses with many women, like home-healthcare, child care and nonprofits." Employment/Workplace Safety
New Jersey judge rules "deliberative process" privilege does not apply to employment discrimination cases.The New Jersey Law Journal (3/30, Booth) reports, "A judge has ordered NJ Transit to turn over, in a job bias suit, documents related to its discipline of transit police, finding the 'deliberative process' privilege coined by the state Supreme Court a decade ago does not apply. Denying a protective order, Essex County Superior Court Judge Thomas Vena ruled that the privilege - which permits a government agency to withhold documents that reflect advisory opinions, recommendations, and deliberations comprising part of a process by which decisions and policies are formulated - cannot be asserted in employment discrimination cases." Kathleen Shanahan "alleges in the suit that former NJT Police Chief Joseph Bober and another officer, Capt. John Riccardi, engaged in a pattern of discrimination by not promoting her to captain in 2008 and created a hostile work environment because of her gender and sexual orientation, in violation of the Law Against Discrimination." Houston Metro employees seek class-action status in overtime pay suit.The Houston Chronicle (3/30, Sixel) reports, "Two employees who sued Metro for back overtime wages earlier this year are seeking class-action status, contending in federal court documents Monday that the transit agency makes them and hundreds of other administrative employees work off-the-clock." The lawsuit "seeks damages equal to the total of the back wages and legal fees, according to the pleadings." KBR withdraws appeal asking SCOTUS to block rape lawsuit.In continuing coverage, in a column in The Nation. (3/29), Karen Houpert wrote, "On Wednesday, after fighting tooth-and-nail in the lower courts to keep the case from going to trial, KBR announced that it was dropping its Supreme Court appeal in the case" of employee Jamie Leigh Jones, who alleges "that she was gang-raped in Iraq." Jones had been "hit with a double-whammy of obstruction. First, there was the contractual requirement that Jones pursue her complaint in an extralegal Halliburton dispute-resolution program implemented in 1997 under then-CEO Dick Cheney." Second, "the US Justice Department is charged with pursuing criminal investigation of US defense contractor employees in Iraq, but seems disinclined to do so." Product SafetyDOT turning to NASA, NAS for answers in runaway Toyota investigation.The Washington Post (3/30, Whoriskey) reports that DOT investigators have designated nine NASA experts to help solve the "scientific mystery" surrounding unintended acceleration in Toyotas. Moreover, "a separate panel from the National Academy of Sciences" will investigate unintended acceleration and on-board electronics "across the industry." The Post notes the lack of consensus among automotive experts over whether there could be an electronic fault causing unintended acceleration in Toyotas. "The increasing complexity of engines, which run on multiple microprocessors and lots of software, has complicated the discussion." The Post adds that DOT is expected to announce today that its Inspector General "has been asked to review whether federal safety regulators at the National Highway Traffic Safety Administration have the personnel to adequately handle the complex engineering questions that arise in such investigations." The Los Angeles Times (3/30, Vartabedian, Bensinger) also covers this story, noting that the "two investigations follow pressure from Congress on federal safety regulators to address persistent questions about the causes of unintended acceleration, and whether the problems stem from faulty computer-controlled electronic throttle systems." FDA's new advisory committee to begin evaluating menthol cigarettes.On the front page of its Business Day section, the New York Times (3/30, B1, Wilson) reports that on Tuesday, the FDA's "new Tobacco Products Scientific Advisory Committee" will convene to discuss, among other things, "one of the most contentious, and racially charged, health issues" -- menthol-flavored cigarettes. "Opponents of smoking, seven former secretaries of health and many members of Congress argued for an outright ban of menthol in the tobacco law last year." They maintained that the "flavoring, which cools and masks the harsh taste of cigarettes, was used as a lure for young smokers while also being marketed to black smokers, who have the highest rates of smoking-related disease." Yet, beyond certain "glaring demographic facts, there's a lot of uncertainty about the role of menthol in cigarettes," according to the Los Angeles Times (3/29, Healy) "Booster Shots" blog. "Does it make it harder for those who smoke them to quit? Does the frosty flavoring prompt those who smoke menthols to drag harder or inhale more deeply," and are they "any more cancer-causing than unmentholated cigarettes?" Current research "varies on menthol's health impacts," leading "those in the industry" to say "a ban is improbable," the AP (3/30, Feldberbaum) reports. The "FDA could, instead, could order a reduction of menthol levels, bigger or more descriptive warning labels or higher mandated prices for menthol cigarettes." It could also curb sales and marketing, according to the Wall Street Journal (3/30, Favole). Nevertheless, the panel's proceeding will be of interest to cigarette manufacturers like Reynolds American, Lorillard, and Altria, and the FDA will elucidate its conclusions in a report expected before year's end. EPA to investigate BPA's impact on the environment.The Washington Post (3/30, Fahrenthold) reports, "The Environmental Protection Agency announced Monday that it is formally listing Bisphenol A...as a 'chemical of concern.'" Used in "plastics to harden them," BPA "is so widespread that 90 percent of Americans show traces of it in their urine," however, recent "studies have linked BPA to heart disease and cancer." The FDA "previously concluded in 2008 that the trace amounts of the chemical that leach out of food containers are safe," the AP (3/30, Perrone) reports. But in January, the FDA "changed its position on the chemical's safety, voicing 'some concern' about its effects on children and infants." Now, federal regulators, "at the behest of scientists," Sen. Charles Schumer (D-NY), "and activists who say it can interfere with infant growth and development," are "ramping up their scrutiny." The FDA "said in January it would study the potential health impacts of BPA and ways to reduce exposure to the chemical in food packaging," Bloomberg News (3/30, Efstathiou) reported. Likewise, the EPA "will require new studies of concentrations of the plastic in surface water, groundwater and drinking water to determine where it exists in levels requiring action," the New York Times (3/30, A15, Broder) reports. The "environmental agency will also require manufacturers that use BPA to provide test data to help evaluate effects on growth, reproduction and development in aquatic organisms and wildlife." Notably, the "moves by the two agencies are part of the Obama administration's effort to regulate health, food safety and environmental matters more forcefully." Boston scientific defibrillator recall under investigation.The Wall Street Journal (3/30, Rockoff) reports that Boston Scientific Corp.'s recent recall of its implantable heart defibrillators is under investigation by the Department of Justice and the Securities and Exchange Commission. The company halted sales of the defibrillators and recalled unsold devices after failing to seek approval for two manufacturing changes. Now, investigators have requested company documents about Boston Scientific's discovery that the FDA had not approved the changes, as well as any reports of injuries from the devices. Boston Scientific awaits FDA review to resume shipments. The Minneapolis Business Journal (3/30) reports, "Federal regulators won't expedite their review of paperwork Boston Scientific Corp. needs approved before it can resume shipping heart defibrillators to customers, the company said." The company halted shipments "after it failed to notify" the FDA "of changes the company made to its manufacturing processes." The agency "hasn't agreed to make a decision any faster than" 30 days, "CEO Ray Elliot said."
SecuritiesSCOTUS skeptical on f-cubed securities case jurisdiction.The AP (3/29) reported, "The Supreme Court has indicated it could prohibit foreign investors from using U.S. securities law and American courts to sue a foreign bank for fraud. The court heard argument Monday in a challenge from Australian investors who want to sue the Melbourne-based National Australia Bank for securities fraud in U.S. federal court. The investors say they should have access to American courts because the claim of fraud relies on the actions of a bank-owned mortgage servicing company in Florida. But none of the justices appeared to accept the investors' argument." The Recorder (3/30, Mauro) reports, "Speaking of the case before the court, Justice Ruth Bader Ginsburg said at one point, 'It has Australia written all over it.' She added, 'Isn't the most appropriate choice the law of Australia rather than the law of the United States?'" Justice Samuel Alito asked, "What United States interest is there?" International companies "and foreign governments including France, the United Kingdom and Australia filed briefs in the case arguing against jurisdiction for US courts." The case is Morrison v. National Australia Bank. In the "Law Blog" at the Wall Street Journal (3/29), Ashby Jones also covered the story. Judge approves zero-dollar settlement in investor lawsuit over Merck, Schering-Plough merger.The New Jersey Law Journal (3/30, Gallagher) reports, "A class-action suit over the merger of drug giants Merck and Schering-Plough has ended in a settlement that pays nothing to the class but $3.5 million in fees to class counsel. But a federal judge approved it nevertheless, finding counsel provided a substantial benefit to the class because the suit, alleging 'material deficiencies' in the proxy statement sent to shareholders before the merger vote, triggered the disclosure of additional information." Objections "to the settlement were lodged by five members out of an estimated class of 450,000 who held Schering common stock, between March 8, 2009, and Nov. 3, 2009, the date the merger was completed." Also in the NewsNational Law Journal selects "Decade's Most Influential Lawyers."The National Law Journal (3/29, Brown) has released its list of "The Decade's Most Influential Lawyers." The editors of The National Law Journal "have selected 40 attorneys in a dozen key legal areas whose work between Jan. 1, 2000, and Dec. 31, 2009, was so consequential that it helped to push the profession, an industry or a practice area substantially forward." The list includes Mark Lanier of the Lanier Law Firm, Brendan Sullivan Jr. of Williams & Connolly, and Theodore Wells Jr. of Paul, Weiss, Rifkind, Wharton & Garrison. New Jersey attorney Stockman found liable for malpractice.The New Jersey Law Journal (3/30, Gottlieb) reports, "A Mercer County, N.J., jury on March 22 found veteran litigator Gerald Stockman liable for legal malpractice for failing to convey a $400,000 offer to clients in a personal injury case, which ended in a verdict substantially lower. Stockman, a former state senator, testified that he told clients Karen Oliver and her husband Gary about the offer and they rejected it, just before a jury returned with a disappointing verdict worth $75,000." Connecticut attorney suspected of misappropriating funds found in rehab center.The Connecticut Law Tribune (3/30, Malan) reports, "An Avon, Conn., attorney who is suspected of absconding with clients' funds turned up at a Florida rehabilitation center last week and apparently checked himself in. Deron S. Drumm, 38, had operated a two-lawyer real estate and bankruptcy practice up until a few weeks ago. Connecticut grievance officials have been trying to locate him after funds were discovered missing from his client trust account." NYTimes lauds ruling in favor of lesbian girl barred from prom.The New York Times (3/30, A24) writes in an editorial, "A Mississippi school board was grossly discriminatory and mean-spirited when it told Constance McMillen that she could not attend her high school prom with her girlfriend." A federal judge's ruling "that Ms. McMillen's constitutional rights had been violated is a welcome sign that gay people are continuing to make progress toward equality. It should also be a warning to school districts nationwide about the cost of discrimination." The Times notes that as a result of the ruling, "the school district may be liable for damages for violating Ms. McMillen's rights, and for attorneys' fees. The school's treatment of Ms. McMillen was horrible, but she and gay and lesbian students everywhere have emerged from this battle as the clear winners." Investigation calls pricing of frozen seafood into question.The Chicago Tribune (3/30, Wernau) reports that an investigation conducted by the National Conference on Weights and Measures has determined that seafood shoppers are paying "for large amounts of ice that are not supposed to be included in the price." In some cases, ice accounted for "up to 40 percent" of the product's weight. "You're paying up to $23 a pound, according to the products that were tested by these states, and you shouldn't be paying for water," said Don Onwiler, executive director of the group. | ||||||||||||||
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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 |