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AAJ News Brief for March 26, 2010



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AAJ News Brief for Haytham FarajFriday, March 26, 2010
Leading the News
AAJ in the News
Center For Constitutional Litigation
Civil Justice System
Congress
Drug Safety
Employment/Workplace Safety
Product Safety
Also in the News

Leading the News

Toyota, plaintiffs' attorneys seek consolidation.

Bloomberg News (3/26, Fisk, Callahan) reports that Toyota and lawyers for plaintiffs suing ht firm for "consumer and personal injury" complaints have "asked a panel of judges to consolidate all federal claims in one court. Toyota's attorney agreed with many of the 23 plaintiffs' lawyers speaking at the hearing today that the lawsuits should be combined in a multidistrict litigation, or MDL." The panel was asked to send the cases to California, to be near Toyota's "US sales headquarters in Torrance, California. A judge overseeing the litigation would decide issues such as evidence-gathering and allowable legal arguments."

        The AP (3/26, Anderson) reports that "Toyota's lead lawyer, Cari Dawson of Atlanta, told the U.S. Judicial Panel on Multidistrict Litigation that the company favors combining all personal injury and wrongful death cases before the California court" citing the "significant overlap" from case to case. Plaintiffs' attorneys noted that many documents and witnesses will be based in Torrance.

        The Wall Street Journal (3/26, Searcey) reports on the individual requests by various lawyers, noting that many, in two-minute appeals before the panel, sought to have the cases heard in their home areas.

        The National Law Journal (3/26, Bronstad) reports, "In all, 24 lawyers made brief statements before a panel, arguing for courts and judges in California, Louisiana, Kentucky, Ohio, Minnesota, Florida, South Carolina, West Virginia and New Jersey." Meanwhile, "Lieff Cabraser now has 20 personal injury claims pending against Toyota, more than any other firm in the nation."

        Reuters (3/26) also reports this story, and in a separate piece Reuters (3/26) runs a feature on various waypoints in the investigation that led to Toyota's accelerator recalls.

        Toyota exec named to safety panel. Bloomberg News (3/26, Ohnsman) reports that Toyota has named Steve St. Angelo, its executive VP for North American manufacturing, to be its "first vehicle-quality chief for the region." He will serve on "a global panel President Akio Toyoda is assembling, the company said in a statement today. Toyoda, who said last month he will lead the group, is to discuss the quality team in Japan on March 30." Bloomberg notes that the panel is part of Toyota's efforts to revitalize its image in the wake of its recall crisis. "St. Angelo, 54, said in the statement that 'in keeping with Akio Toyoda's mandate, North America will have greater autonomy and play a critical role in decision-making on recalls and other safety issues.'"

        NHTSA records, police reports put deaths linked to Toyota sudden acceleration over 100. The Los Angeles Times (3/26, Pfeifer) reports that according to data from NHTSA and, various lawsuits, and police reports, "more than 100 deaths have now been blamed on sudden acceleration of Toyota Motor Corp. vehicles, nearly twice the number that had been reported two months ago." The piece cites a "recent surge" in NHTSA reports. "'It is normal to see an increase in complaints following the kind of publicity that this issue has taken on,' Toyota spokesman John Hanson said Thursday. 'We are diligently going to investigate all of these claims. We are doing it with more people and we are doing it as quickly as we can."

        NHTSA data shows Toyota has highest percentage of speed control complaints. USA Today (3/26, Healey, Debarros) reports that according to its analysis of NHTSA data, since 2004, "speed control problems are a higher proportion of Toyota's driver complaint filings than they are for other big automakers. ... The analysis showed 11.7% of the vehicle components named in driver complaints to NHTSA about Toyota-made vehicles in that period were in the safety agency's 'vehicle speed control' category. ... The five others among the top six automakers in the US market ranged from General Motors' 2.2% to Ford's 4.8% over the decade."

        NHTSA faulted for not keeping up with burgeoning automotive electronic systems. Bloomberg News (3/26, Green, Keane) reports that recalls of cars over electronic faults have tripled in the past 30 years, while according to lawmakers and safety advocates, NHTSA "has failed to keep pace with the technology. At least 27 individual lawsuits assert that electronics systems are responsible for deaths or injuries in crashes of Toyota vehicles. 'The proliferation of features in cars has really passed NHTSA by and caught them somewhat unprepared,' said David Champion, director of testing at Consumer Reports magazine." Bloomberg notes that Secretary LaHood said last month that at NHTSA, "two engineers out of 125 specialize in electronics." Moreover, "The agency lacks regulations for auto electronics, and rules governing accelerators were written in 1973 and last updated in 1995. The agency may hire one more electronics specialist and can tap outside help if it needs additional expertise, LaHood said at a US congressional hearing on Toyota's global recalls of more than 8 million vehicles. That doesn't satisfy congressional critics."

        Columnist blames trial lawyers for surge in reports of sudden acceleration. In a Wall Street Journal (3/26) column, Holman W. Jenkins, Jr., writes that many other makes besides Toyotas are involved in crashes after cases of unintended acceleration in which the drivers admit to having pressed the wrong pedal. He suggests that more Toyotas are involved in reports of vehicle faults because trial lawyers are promoting it.

        Calls for accelerator override continue. The Chicago Tribune (3/26, Puzzanghera, Bensinger) reports, "Momentum is building for a rule requiring automakers to install brake-override systems so drivers can stop their cars during incidents of sudden acceleration," noting that West Virginia Jay Rockefeller and Secretary LaHood discussed the issue at a recent Senate Commerce Committee hearing. However, "Shinichi Sasaki, Toyota Motor Corp.'s executive vice president in charge of quality assurance and customer service, suggested that sudden acceleration was caused by driver error, such as improperly placed floor mats."

From the American Association for Justice

Save $150 - Register by March 26 for AAJ's Annual Convention
July 10-14 in Vancouver, British Columbia
Join the largest gathering of trial lawyers this summer. Take advantage of more than 45 education programs as well as numerous networking opportunities at Section, Litigation Group, Committee, and Caucus meetings and events. View the schedule and register now >

AAJ Education's Litigating Medical Negligence and Injured Infant Cases Seminar, April 9-10 in Las Vegas, is packed with the latest medical developments and trial techniques you need to successfully litigate medical negligence and injured infant cases. You'll get direct access to AAJ's experienced faculty which includes lawyers in this practice area and prominent medical experts. They will share proven strategies that will help you obtain justice for your clients. To view the agenda and register, visit Continuing Legal Education.

AAJ has introduced two new monthly electronic newsletters! The Class Action Law Reporter and the Motor Vehicle Law Reporter contain news, verdicts and settlements, court opinions, links to recent journal articles, and more. They are available by subscription to members of certain sections and litigation groups in those practice areas. Subscribe now.

The AAJ Exchange's recently updated Avandia Litigation Packet provides an overview of Avandia and its link to heart attacks and other cardiovascular events, pending state court actions, multidistrict litigation, and congressional hearings.  Sample court documents include client intake materials, questionnaires, and complaints.  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.

The Motor Vehicle Collision, Highway, and Premises Liability Section focuses on auto collision cases, truck safety, highway design, and premises liability. The Section also provides discussion of federal no-fault issues. In addition, the Section offers a list server, quarterly newsletter, networking, referral opportunities, and much more. To learn about our 18 Sections and join, visit Sections.

 

AAJ in the News

University of Wisconsin Law School wins National Student Trial Advocacy Competition.

The Madison (WI) Cap Times (3/24, Finkelmeyer) reported, "The University of Wisconsin Law School's mock trial team defeated Georgetown Sunday to win the championship at the National Student Trial Advocacy Competition, which was held in New Orleans." Team members "each earned a $2,500 scholarship from the American Association for Justice, which sponsored the championship. The AAJ also is sending the team to Vancouver, British Columbia, July 10-14 for that organization's annual national convention." WTAQ-FM Glenmore, WI (3/24) on its website also covered the story, noting AAJ's sponsorship.


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Center For Constitutional Litigation

KBR withdraws appeal asking SCOTUS to block rape lawsuit.

In continuing coverage at the BLT: Blog of Legal Times (3/23), Tony Mauro wrote, "The high-profile case of Jamie Leigh Jones, a Halliburton/KBR employee who claims she was raped by co-workers in a barracks in Iraq in 2005, won't be considered by the Supreme Court -- at least for now. Lawyers for KBR, who had sought to force her complaint into arbitration as called for by her employment contract rather than being resolved in federal court, withdrew the company's petition for high court review on March 11." But John Vail, "lawyer for Jones, said today, 'There is not a settlement,' and he expects some of her claims to go to trial in federal court May 2011." Vail, the vice president and senior litigation counsel at the Center for Constitutional Litigation in DC, "said he believes the case was withdrawn because of the so-called Franken Amendment."

Civil Justice System

Florida Senate approves bills restricting lawsuits for slip-and-fall injuries, inherent risks.

The AP (3/25) reported that two measures passed by the Florida Senate "would make it harder to win lawsuits against businesses for 'slip-and-fall' accidents and for injuries children suffer in risky activities such as theme park or carnival rides, go-cart racing, bungee jumping and horseback riding. Both measures that cleared the Senate on Thursday would undo Florida Supreme Court rulings." The Senate "also unanimously passed a bill that would increase the size of liability verdicts or settlements the state and local governments can pay without getting the Legislature's approval."

Protestors may sue former Miami police chief, judge rules.

The Daily Business Review (3/26, Pacenti) reports, "A federal appellate court has ruled peaceful protesters at the 2003 Free Trade Area of the Americas conference in Miami can proceed with their First Amendment claims against former Miami Police Chief John Timoney. The 11th U.S. Circuit Court of Appeals in Atlanta upheld a ruling by U.S. District Judge Jose Martinez that Timoney cannot claim he is protected by qualified immunity for his actions as a public servant. Judge Charles R. Wilson, writing for the three-judge panel, ruled this month that Timoney and two of his top chiefs must face allegations they violated the protesters' rights "by directing and failing to stop subordinate officers to use less-than-lethal weapons to disperse a crowd.""

Congress

As GOP threatens to seek healthcare repeal, Obama urges them to "go for it."

President Obama's trip to Iowa City received extensive -- and largely positive -- media reviews, including stories on all three broadcast network newscasts that portrayed him as buoyant and poking fun at his Republican opponents. Most print reports on the President's remarks highlighted his "go for it" dare to Republicans threatening to campaign on repealing his recently passed healthcare plan. That Obama statement, which the Los Angeles Times (3/26, Nicholas) terms "a gust of election-year bravado," is featured in the headlines of a number of newspaper accounts of Obama's trip. Out of the three networks, however, only NBC Nightly News (3/25, lead story, 2:40, Williams) ran footage of his words, "They're actually going to run on a platform of repeal in November. You've been hearing that. And my attitude is: Go for it." NBC referred to Obama's appearance as "something of a victory lap speech in Iowa, where it all started for him on the road to the White House," and NBC's Savannah Guthrie noted that Iowa City was where "candidate Obama first unveiled his healthcare plan." NBC's Mike Viquiera added that though Obama faced "a largely receptive crowd...still one man in the crowd kept shouting incessantly, 'What about the public option?'" Obama: "That's not in it." Unidentified speaker: "Why not?" Obama: "Because we couldn't get it through Congress. That's why. Let's -- there is no need to shout, young man."

        Republicans make case for repeal. Several Republicans wrote op-eds calling for repeal of the bill, many appearing in the Wall Street Journal. As an example, in a New York Times (3/26, A27) op-ed, Rep. Paul Ryan (R-WI) writes, "A serious fix for what ails health care in America will entail far more than merely tweaking the new law of the land; we will need to repeal the entire faulty architecture of the government behemoth and replace it with real reform. ... It is not sufficient for those of us in the opposition to await a reversal of political fortune months or years from now before we advance action on health care reform. Costs will continue their ascent as the debt burden squeezes life out of our economy. We are unapologetic advocates for the repeal of this costly misstep." Healthcare experts "across the political spectrum acknowledge that a fundamental driver of health inflation is the regressive tax preference for employer-based health insurance."

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Drug Safety

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Pfizer must pay $142 million in Neurontin racketeering case.

The AP (3/26) reports that "a federal jury has found that Pfizer Inc. violated anti-racketeering laws in promoting its epilepsy drug Neurontin [gabapentin] for unapproved uses and must pay at least $142 million in damages." The case stems from a claim from Kaiser Foundation Health Plan Inc. that "it was misled into believing Neurontin was effective for off-label treatment of migraines, bipolar disorder and other conditions. Pfizer argued that Kaiser physicians still recommend the drug for those uses."

        Bloomberg News (3/26, Voris, Lawrence) adds that "during the trial, Pfizer argued that Kaiser doctors continued to prescribe the drug even after the health insurer sued Pfizer in 2005. The insurer's website also still lists Neurontin as a drug for neuropathic pain, Pfizer lawyers said in closing argument." After their deliberation, "several jurors said they were strongly influenced by the testimony of former FDA Commissioner David Kessler and Kay Dickerson, a Johns Hopkins epidemiologist whose article casting doubt on clinical studies of Neurontin appeared in the New England Journal of Medicine last year."

        The Wall Street Journal (3/26, Kamp) notes that Pfizer spokesman Christopher Loder said, "We are disappointed with the verdict and will pursue post-trial motions and an appeal."

        "The verdict and the judge's rulings are not consistent with the facts and the law," he added, according to Reuters (3/26, Berkrot).

Two charged with importing counterfeit weight-loss drugs.

The Wall Street Journal (3/26, Favole) reports that the Justice Department has charged two people with importing counterfeit weight-loss drugs from China. "The two have been charged with a number of crimes, including the introduction and delivery into interstate commerce of unapproved new drugs," the AP (3/26) notes. One man who had taken the counterfeit weight-loss drugs sold by the men "began to have heart palpitations, numbness in his left arm, severe anxiety, headaches and profuse sweating and chills. The man thought he was having a heart attack and feared for his life." Spokesman for the US District Attorney, Jeff Dorschner said, "If people feel, or they have reason to believe that they are taking this counterfeit diet pill and that it's made them ill, I'd encourage them to contact the FDA."

Employment/Workplace Safety

Three more women join discrimination lawsuit against Bloomberg LP.

The New York Times (3/26, A23, Chen) reports, "Three more women have been permitted to join a class-action lawsuit that accuses Bloomberg L.P., the financial services and media company founded by Mayor Michael R. Bloomberg, of discriminating against pregnant employees, a federal judge said Thursday. The three, who only came forward in the past couple of weeks, bring to 79 the number of plaintiffs in the case. But Judge Loretta A. Preska of Federal District Court in Manhattan, clearly eager to pick up the pace of the long-running case, declared that they would be the last three."

Product Safety

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Parkland, FL, property values falling because of Chinese drywall.

The South Florida Sun-Sentinel (3/25, Sivasankaran) reports, "Chinese drywall problems in Parkland could soon lead to even lower property values for homes in the city. The Broward Property Appraiser's Office has received applications for property value reduction from 115 homeowners in Parkland dealing with Chinese drywall. If all the homeowners get the reduction they are looking for - 89 have already had their building value reduced 50 percent - the total value of the homes will go down more than $30 million."

Louisiana bills target drywall-related insurance cancellations.

In continuing coverage, the AP (3/25) reported, "Property insurance companies would not be allowed to cancel policies or raise rates on homeowners who make damage claims stemming from corrosive Chinese drywall, under two proposed state laws." AP noted the laws "would provide a degree of protection to Louisiana homeowners who are among about 3,000 nationwide complaining of damage from the drywall. Both bills also would prohibit rate increases or cancellations of coverage if a house is found by an insurer to have Chinese drywall – regardless of whether a claim is filed or not." One of the bills, introduced by state Sen. Julie Quinn, "goes a step further by offering the same protection to commercial property owners."

FDA panel agrees on increased restrictions on tanning bed use for people under 18.

ABC World News (3/25, story 9, 1:20 Muir) reported, "Tonight, there is late word from federal safety officials who are poised to crack down on indoor tanning beds. Twenty-eight million Americans tan indoors every year, and now a panel of experts is so alarmed by the dangers of skin cancer, it's making some pretty bold warnings." ABC senior medical editor Richard Besser, MD, explained that "a panel of experts put together by the Food and Drug Administration...reached broad agreement that there need to be increased restrictions on the use of these tanning beds for everyone under 18."

        The CBS Evening News (3/25, story 7, 0:15, Rodriguez) reported that panel's proposed new restrictions range "from requiring parental consent forms to banning the machines outright."

        But, because tanning beds themselves are not medical devices, the agency can only put restrictions on the lamps the beds use, the Wall Street Journal (3/26, Dooren) reports. In order to do that, the FDA could reclassify the lamps. That would force tanning bed manufacturers to get agency marketing approval of the beds.

        According to the AP (3/26, Perrone), "The FDA has regulated sunlamps for more than 20 years, but a recent report by the World Health Organization tied the devices to skin cancer, prompting a call for tougher rules." In fact, "the WHO analysis showed that" melanoma, "the deadliest form of skin cancer increases 75 percent in people who use tanning beds in their teens and 20s."

Reynolds asked to provide FDA with data on their dissolvable tobacco products.

Amid declining cigarette sales and the controversy surrounding regulating oral forms of tobacco, the Wall Street Journal (3/26, Kesmodel) reports on one manufacturer's effort to stay afloat. Reynolds American Inc. is working on developing and marketing a variety of smokeless products, which critics say are vastly appealing to children because they are easy to conceal and packaged in bright colors. Such criticism prompted the FDA to ask the company for data on the dissolvable products, information that would also reveal how they are perceived by those younger than 25.

Evenflo recalls 150K baby gates.

The AP (3/25) reported, "Evenflo is recalling 150,000 wooden gates that block stairways from young children. The Consumer Product Safety Commission says the slats on Evenflo Top-of-Stair Plus gates can break or detach, allowing children to access the stairs. The company has received 142 reports of broken or detached slats, including three reports of children who breached the gate and gained access to the stairs."

Maine House rejects "watered-down" bill on cell phone cancer warnings.

The AP (3/26) reports, "The Maine House of Representatives has rejected a watered-down version of a bill to require cancer warnings on cell phones." Initially, the measure would have "required warnings on mobile phones and their packaging that electromagnetic radiation from the devices can cause brain cancer, especially in children." In a move to placate industry and Gov. John Baldacci, the "bill was scaled back to direct state health officials to add links on their Website to existing federal cell phone advisories," while calling for more research and "consumer education."

Also in the News

White House quietly preparing for SCOTUS vacancy.

The New York Times (3/26, Baker) reports that the "widely anticipated retirement of Justice John Paul Stevens in coming weeks has the White House, Senate and lobbying groups bracing for an election-year confrontation over the future of the Supreme Court." Although Justice Stevens "has not disclosed his intentions, he has suggested he may announce as soon as next month plans to step down after 35 years on the bench, providing President Obama his second opportunity to shape the nation's highest court." The Times notes that the White house while wary "of appearing presumptuous," has "long dossiers on a host of candidates after last year's nomination of Sonia Sotomayor." Democrats "close to the White House said, the leading contenders will be three runners-up from last year: Elena Kagan, the solicitor general; Diane P. Wood, an appeals court judge in Chicago; and Merrick B. Garland, an appeals court judge in Washington."

Fifth Circuit rebukes judge for delaying judgment for over six years in civil case.

The AP (3/26) reports, "A federal appeals court has scolded Chief U.S. District Judge Henry Wingate for taking more than six years to enter a final judgment in a civil case. The Clarion-Ledger reports that a three-judge panel of the 5th U.S. Circuit Court of Appeals commented about Wingate in its decision affirming the 2002 jury award of more than $1.3 million to Jimmy Ford of Brandon, Miss., in a lawsuit filed against his then-employer, Diversified Technology Inc. In a footnote to its decision released earlier this month, the panel said, 'the district court sat on the verdict for six and one half years before it entered a judgment. It is truly regrettable that the plaintiff has been denied his just recovery for these several years by the lack of judicial diligence.'" Wingate apologized, but commented that he was unaware the judgment had not been previously entered.

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