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AAJ News Brief for March 25, 2010



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AAJ News Brief for Haytham FarajThursday, March 25, 2010
Leading the News
AAJ in the News
Center For Constitutional Litigation
Civil Justice System
Congress
Insurance
Drug Safety
Employment/Workplace Safety
Medical Errors/Healthcare
Product Safety
Securities
Also in the News

Leading the News

Attorneys hold conference on Toyota litigation tactics.

The AP (3/25) reports that over 150 attorneys "gathered to sharpen their legal tools Wednesday on the eve of a major federal court hearing on whether dozens of cases" against Toyota "will be consolidated before a single judge. The seminar, entitled 'Toyota Recall Litigation Conference,' was organized by legal publisher HarrisMartin and looked ahead to Thursday's scheduled hearing before a panel of federal judges in San Diego. The judges will choose whether to combine more than 100 Toyota lawsuits and where to send them." The AP notes that "Los Angeles attorney Mark Geragos, best known for representing celebrities including Michael Jackson and Winona Ryder, said the Toyota lawsuits could set a new standard for corporate litigation."

        The Los Angeles Times (3/25, Perry) also covers the "all-day event to discuss litigation strategy over claims of deaths and injuries in accidents as well as the loss of resale value of used Toyota vehicles. Those attending, including veterans of class-action litigation, didn't shy away from portraying the situation as an opportunity of historic proportions. ... How much money is involved? 'A hell of a lot,' said San Diego lawyer Kerry Steigerwalt, whose firm already has Toyota clients." Some attorneys in attendance are "hoping to attract" clients suing Toyota, which "declined to comment on the lawyer event." Reuters (3/25) also reports on the conference.

        Michigan AG seeking Toyota recall documents. In a separate article, Reuters (3/25) reports that Michigan Attorney General Mike Cox has subpoenaed Toyota for information about its safety recalls. The piece quotes a statement he released, "Michigan drivers concerned about the safety deserve answers from Toyota."

From the American Association for Justice

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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.

 

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AAJ in the News

Tarricone: Tort reform proponents eager to sue when advantageous.

In a blog at the Huffington Post (3/24), AAJ president Anthony Tarricone wrote, "It's awfully hypocritical for lawmakers to curtail Americans' access to the civil justice system, and at the same time, file lawsuits to push their own self-serving agenda." This "certainly is not the first time we've seen 'tort reform hypocrisy' in action, and won't be the last. The U.S. Chamber of Commerce - which has a whole arm that lobbies for laws to give negligent corporations immunity - also has a group dedicated to pursuing litigation on behalf of these very same corporations." If "opponents of the current health care bills want to use the courts to undermine the bill, America thankfully has a more-than-capable judiciary that can settle the dispute. But next time these same lawmakers demand tort reform - a ploy to protect big corporations at the expense of the American people - don't fall for their old credo: 'do as I say, not as I sue.'"

Tarricone says alternate dispute-resolution demonstration projects should stress patient safety.

In the "Law Blog" at the Wall Street Journal (3/23), Ashby Jones discussed a provision in the healthcare bill providing $50 million for states wishing to run demonstration projects to test alternatives to tort litigation. In an interview, AAJ president Anthony Tarricone suggested that states implement programs emphasizing patient safety, such as hand-washing programs. Said Tarricone, "We think patient safety is the way to go," adding, "If there's no medical error to begin with, then there aren't lawsuits." Jones comments that tort reform proponents disapprove of a provision allowing plaintiffs to opt-out of any alternate dispute-resolution program.

AAJ confident passage of healthcare legislation will allow progress on other bills.

Dolan Media Newswires (3/22, Atkins) reported, "Now that the debate over health care reform legislation that has dominated the attention of Washington lawmakers appears to be coming to a conclusion, advocates for attorney-related legislation say they hope lawmakers restart the engines on the bills that have stalled in the process. Despite heavy efforts by attorney groups to push for passage of a host of measures that would affect everything from pleading standards in federal courts to the types of discrimination claims workers can bring to the taxation of pain and suffering damage awards, those bills have languished as lawmakers engaged in the increasingly bitter battle over health care reform. 'We have encountered the same roadblock that every other group has encountered this year,' said Ray De Lorenzi, spokesman for the American Association for Justice (AAJ), the nation's largest group of trial lawyers. 'Health care has sucked up a lot of the oxygen.'" De Lorenzi "said he was confident that the end of the health care debate will mean positive action on the AAJ-backed legislation in Congress. 'There is a real feeling that we need increased accountability,' he said. 'The issues that we are working on fit that mold.'"

US Chamber's Institute For Legal Reform grades states by "lawsuit climate."

In continuing coverage in a column in the Tampa Tribune (3/24), Michael Sasso writes, "It's not an impartial source, but the U.S. Chamber of Commerce says Florida's court system is one of the least friendly toward businesses. A survey of corporate lawyers and executives by the chamber's Institute for Legal Reform ranks Florida 42nd among the 50 states in legal fairness." Not everyone "agrees with the survey. The American Association for Justice, formerly known as the Association of Trial Lawyers of America, had this to say: 'The survey relies on the opinions of corporate defense attorneys that profit when they shield their corporations after injuring American consumers, and is bankrolled by companies like AIG, which gave nearly $25 million to the Chamber in the last decade to sit on its board of directors.'"


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Center For Constitutional Litigation

KBR withdraws appeal asking SCOTUS to block rape lawsuit.

In continuing coverage, the Minneapolis Star Tribune (3/23, Diaz) reported, "In a victory for Minnesota Democrat Al Franken, military contractor KBR has decided to drop a Supreme Court appeal in the case of a former company clerk who alleges she was raped by co-workers in Iraq. KBR's decision represents the first significant legal fallout from the 'Franken amendment,' which protects defense workers from being forced to accept arbitration after suffering sexual assault, battery or discrimination." Jamie Leigh Jones' attorney, "John Vail of the Center for Constitutional Litigation in Washington, said he agreed to the dismissal, even as it could leave open the question of the reach of the Franken amendment. 'Regardless of why, we're just happy to be in court,' Vail said. 'That's where we've wanted to be all along.'"

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Missouri SC rules med-mal caps not retroactive.

In continuing coverage, the St. Louis Business Journal (3/23) reported, "The Missouri Supreme Court unanimously ruled Tuesday that state caps on noneconomic damages in medical malpractice cases can't be applied retroactively." In its findings Tuesday, "the state Supreme Court said that the Missouri Constitution prohibits laws that are retrospective in operation." The case was James Klotz and Mary Klotz v. St. Anthony's Medical Center. The Klotzes "were represented by Louis Bograd and Andre Mura of the Center for Constitutional Litigation in Washington, D.C.; and Mary Coffey and Genevieve Nichols of Coffey & Nichols LLC in St. Louis."

Civil Justice System

Hellerstein's rejection of 9/11 settlement stirs debate.

The AP (3/24) reported that US District Judge Alvin Hellerstein "pushed the limits of his legal authority when he rejected a settlement that would have paid at least $575 million to thousands of people who fell ill after working in the toxic ash of the World Trade Center, legal experts say. The decision touched off a debate about whether the ruling would set a new trend or went too far." Legal experts "said the case was among just a handful in recent years where a judge had claimed a power to approve or reject a settlement between warring parties in similar types of legal disputes."

        The New York Law Journal (3/25, Hamblett) reports, "One problem confronting the attorneys as they resume settlement negotiations that already have stretched over almost two years is the judge's concern about plaintiff and defense fees. Hellerstein said Friday he would insist that plaintiffs' attorneys be paid by the third-party insurance fund established to indemnify New York City and its contractors who responded to the tragedy and cleaned up the site." Hellerstein also "said he planned to reject the contracted contingency fee of 33 percent for the lawyers and assign them a lower share, as he did in the Sept. 11, 2001, wrongful death cases, where he reduced the request to 15 percent of recovery."

Boy Scouts put youths at risk, abuse expert testifies.

The AP (3/24) reported, "The Boy Scouts of America showed reckless indifference to protecting young Scouts when it kept confidential two decades worth of files on suspected molesters among its troop leaders, a psychologist testified Wednesday as part of a $14 million lawsuit against the organization. Despite creating a remarkably in-depth file about sexual abusers, the Boy Scouts failed to warn parents or tell authorities about suspected or confessed pedophiles, said Gary Schoener, a national expert and consultant on sexual misconduct in the clergy, health care and other segments of society." The lawsuit "was brought by a 37-year-old Klamath Falls man who was abused by an assistant Scoutmaster, Timur Dykes, in the early 1980s."

Florida jury awards $26.6M to smoker's widow.

The Daily Business Review (3/25, Pacenti) reports, "A Broward [FL] Circuit jury Wednesday awarded the widow of...deceased cigarette smoker" Nathan Cohen "$26.6 million after finding cigarette manufacturers R.J. Reynolds and Philip Morris liable for causing his lung cancer and death." The jury "decided the cigarette makers should pay his widow $10 million each in punitive damages and awarded Cohen's widow, Robin Cohen of Plantation, Fla., $6.6 million in compensatory damages." Both cigarette companies plan to appeal.

Hospital cannot summon testimony from plaintiff's treating physician's group, New Jersey court rules.

The New Jersey Law Journal (3/25, Toutant) reports, "A hospital and its doctors sued for malpractice can't summon expert testimony from members of a medical group that includes the plaintiff's treating physician, a New Jersey appeals court says in a case of first impression. Whatever benefit the defendants derive is far outweighed by prejudice to the plaintiff and interference with the physician-patient relationship, the court held Wednesday in Carchidi v. Iavicoli, M.D ., A-4986-08."

Congress

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Healthcare reconciliation bill to return to House.

In a late development, Senate Republicans managed to find procedural grounds to send the healthcare bill back to the House – and require the lower chamber to take a second vote on the measure. The AP (3/25) reports it was "initially unclear how much of a problem this posed for Democrats hoping to rush the bill to Obama and avoid further congressional votes on what has been a politically painful ordeal for the party." Jim Manley, spokesman for Senate Majority Leader Harry Reid of Nevada, "said Republicans consulting with the Senate parliamentarian had found 'two minor provisions' that violate Congress' budget rules." The provisions "deal with Pell grants for low-income students," and Manley "said those two provisions will be removed from the bill, and he expected the Senate to approve the measure and send it to the House."

        The AP notes the development "came as the Senate completed nine hours of uninterrupted voting on 29 GOP amendments to the legislation." Earlier media reports noted Senate Republicans continued their effort to derail the healthcare reconciliation bill on Wednesday by offering amendments designed to force Democrats into politically damaging votes. However, most reports had portrayed the GOP effort as futile. The Washington Post (3/25, Montgomery, Murray) reports as "night fell, the GOP was making little headway, and Democrats predicted that they were just hours away from pushing the measure to final passage."

Congress seeks action as deadline approaches for black farmers' discrimination settlement.

The Hill (3/24, Bogardus) reported, "Lawmakers from both chambers on Wednesday pressed the administration to help find funds to resolve black farmers' longstanding discrimination claims against the Agriculture Department (USDA). March 31 is the deadline the Obama administration and Congress set to fund a new $1.25 billion settlement," but no progress toward that goal has been made. "Lawmakers said the administration needs to step in so Congress can move forward on the appropriations request." Reuters (3/24) also covered the story.

Insurance

Dialysis company ordered to repay over $19 million to Medicare.

The AP (3/24) reported that US District Judge William J. Haynes Jr. ordered Renal Care Group, Renal Care Group Supply Co., and Fresenius Medical Care Holdings Inc. "to repay $19.4 million to Medicare in a case that began as a whistle-blower lawsuit filed in St. Louis in 2005." In 2007, the US Attorney's office joined the lawsuit, alleging that "Renal Care Group created RCG Supply as a shell company to earn an extra 30 percent on dialysis supplies."

        The St. Louis Post-Dispatch (3/24, Patrick) reported, "Company lawyers claimed that Medicare knew and approved of the RCG Supply Group relationship, that the company lacked any fraudulent intent and that it was a widespread industry practice." However, "Haynes wrote that the relationship showed a 'reckless disregard' for Medicare statutes and regulations."

        The Tennessean (3/24, Ward) reported, "Renal Care Group also failed to heed the advice of its lawyers when operating the supply company, and discussed an internal audit of the supply company that found 100 percent of its files were lacking information that Medicare requires, the court said."

Drug Safety

New study fails to find clear evidence bisphosphonates cause atypical femoral fractures.

ABC World News (3/24, story 8, 1:40, Sawyer) reported that a study published online March 25 in the New England Journal of Medicine "seems to give the reassurance that long-term use" of osteoporosis drugs "does not raise the risk of a thigh bone breaking."

        The New York Times (3/25, A20, Kolata) reports that the study "fails to find clear evidence that bisphosphonates are causing" femoral fractures. In fact, the University of California-San Francisco researchers "report that the thighbone fractures are so rare, even in women taking bisphosphonates for up to 10 years, that it is not clear whether the drugs make them more likely. And, they report, if there is a risk, it is far outweighed by the drugs' clear benefit in preventing fractures of the hip and spine in people with osteoporosis."

        To examine the risk of thighbone fractures, "researchers combined results from three large studies involving more than 14,000 women who were given Fosamax [alendronate], Reclast [zoledronic acid], or dummy treatments for three to 10 years," the AP (3/25, Marchione) reports. Altogether, "284 hip and leg fractures occurred, including 12 of the unusual upper-thigh type." While "there was a trend toward more of these unusual fractures among bisphosphonate users...the difference was small enough to have occurred by chance."

FDA preparing enforcement action against Genzyme.

The New York Times (3/25, B8, Pollack) reports that the FDA "is preparing to fine the biotechnology giant Genzyme for recent manufacturing problems and take a greater role in overseeing operations at the company's factory in Boston," indicating "that federal regulators have, in effect, lost confidence in the company's ability to run its factories without supervision." The company previously shut down the factory because of viral contamination, causing "severe shortages, which still persist, of" Cerezyme [imiglucerase] and Fabrazyme [agalsidase beta]. In addition, the aforementioned medicines and "three other drugs that are put into vials at the factory were contaminated with particles of steel, rubber or fiber."

        The Boston Globe (3/25, Wallack) reports, "To address FDA complaints, company executives said they plan to negotiate a consent decree with the agency over the next month, which will probably include financial penalties and an agreement to hire a third party to inspect the plant's operations regularly," although Genzyme executives say it is "too early to gauge how much the company will have to pay in penalties or to hire an outside monitoring firm."

Groups agree on rules for administering pain medications in nursing homes.

CQ HealthBeat (3/25, Norman) reports that on Wednesday, Sen. Herb Kohl (D-WI) "brought together unhappy nursing home administrators, perplexed pharmacists and Drug Enforcement Administration officials to testify about a DEA crackdown on pain medication administered in nursing homes." During the unofficial hearing of the Special Committee on Aging, the sparring sides came to an agreement under which the National Association of Boards of Pharmacy would "recommend to state pharmacy boards that they authorize nursing homes for distribution of controlled substances, the same way that hospitals now are authorized." The DEA then "said if that authorization occurred, the agency could...begin work on a new controlled substance registration category for nursing homes, enabling homes to more easily administer pain medication."

Employment/Workplace Safety

Secretary sues law firm over "unrealistic work demands."

Law.com (3/25, Sloan) reports that a secretary at Seattle-based Davis Wright Tremaine claims in a lawsuit that "she was unfairly fired by the firm after suffering panic attacks brought on by unrealistic work demands following staff layoffs. In a suit filed last month in Oregon state court, Nancy Topolski claims that Davis Wright Tremaine wrongfully terminated her and violated Oregon's family leave act as well as the state's disability and discrimination and retaliation laws. She is seeking nearly $1 million, according to the complaint."

Veterans Affairs says former marine's cancer caused by chemical exposure.

Gatehouse News (3/24, Forsythe) reported that last week, Paul Buckley of Massachusetts "received a package from the veterans affairs department, and the letter inside confirmed that Buckley's cancer had indeed been caused by a chemical contamination at a Marine Corps base where Buckley had served during the 1980s." Said Buckley, "The VA fights these things tooth and nail, so I was happily surprised when I found out I had been approved" for benefits. The "impediment Buckley referred to is the Feres Doctrine, a legal rule that prevents people who are injured as a result of military service from suing the federal government under the Federal Tort Claims Act."

Medical Errors/Healthcare

Florida bill would make emergency room personnel immune to malpractice suits.

The Miami Herald (3/25, Frank) reports, "Top Florida Republicans are pushing a measure that opponents say would" mean a "government takeover" of the state's emergency rooms. The bill would "make all emergency room healthcare providers...'agents of the state' and consequently immune from medical malpractice lawsuits." However, the trial bar is "vigilantly fighting the bill." They argue that "current law already limits lawsuits against emergency room doctors by requiring lawsuits to show a hospital was reckless in its treatment," and that there already is a cap on punitive damages.

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New Jersey bill would set four-year statute of limitations on med-mal cases.

The New Jersey Law Journal (3/25, Booth) reports, "Bills awaiting action in Trenton would significantly affect lawyers, judges and the courts by limiting awards to prosecutors, restricting solicitations by lawyers and increasing the retirement age for judges. While the likelihood of most of them making it into law is slim, they could at least spark some debate if the sponsors push to have them considered." One such bill, A-710, "would set a strict, four-year statute of limitations for medical malpractice cases," doing away with "the discovery rule that says the current two-year statute of limitations is tolled until the plaintiff knows or should have known of the injury."

Product Safety

Infantino baby slings recalled after three deaths.

The AP (3/24) reported, "More than one million baby slings made by Infantino were recalled Wednesday after claims linking them to three infant deaths. The U.S. Consumer Product Safety Commission said babies could suffocate in the soft fabric slings." The recall "involves one million Infantino 'SlingRider' and 'Wendy Bellissimo' slings in the U.S. and 15,000 in Canada."

        Bloomberg News (3/25) reports, "The safety commission said the products were made in China and Thailand and were sold from January 2003 through March 2010 at retailers including Wal-Mart, Target, Amazon.com, Burlington Coat Factory, Toys R Us and its Babies R Us locations."

More Lee County, FL, renters find tainted drywall.

The Fort Myers News-Press (3/25, Husty III) reports, "Lisa Lubick says her husband and four children are among the latest victims of toxic drywall. The family joins a growing number of renters in Lee County who are experiencing the effects of chemicals given off by the drywall in the homes they lease." Lee County Property Appraiser Ken Wilkinson "said that more than 1,400 homes with toxic drywall have been reported to his office."

Judge refuses to block New York City's restrictions on flavored tobacco sales.

The New York Law Journal (3/25, Fass) reports, "A federal judge has refused to enjoin a New York City law severely restricting the sale of flavored tobacco. The plaintiffs, two manufacturers of so-called smokeless tobacco -- better known as chewing tobacco and snuff -- set forth several constitutional arguments for blocking the law, including that it is pre-empted by the Family Smoking Prevention and Tobacco Control Act of 2009 (FSPTCA), which amended federal law by specifically authorizing the Food and Drug Administration to regulate tobacco. Finding the tobacco companies unlikely to ultimately prevail, Southern District of New York Judge Colleen McMahon denied their motion for a preliminary injunction."

Securities

SCOTUS to consider Australian investors' securities fraud suit.

Bloomberg News (3/25, Stohr) reports, "Three Australians want to sue for fraud" in American court "after buying shares of Melbourne-based National Australia Bank Ltd. on an Australian stock exchange." Although "the case stems from alleged wrongdoing by a former U.S. subsidiary of National Australia, the bank says that is too weak a connection to trigger litigation under American securities laws." The Supreme Court will hear the case next week. The Obama administration and the SEC's proposed standard "would allow lawsuits by those who bought shares abroad only if the losses they suffered were "directly caused" by the U.S. component of an alleged fraud."

Also in the News

Judge ends furloughs for California attorneys, judges.

The Recorder (3/25, Moser) reports, "Thousands of state attorneys and administrative law judges will go back to a full 40-hour workweek in April after an Alameda County Superior Court judge handed Gov. Arnold Schwarzenegger a setback in his furlough plan Wednesday. Patrick Whalen, general counsel for the labor union that represents attorneys employed by more than 80 state departments, agencies and boards, said Judge Frank Roesch's order affects about 2,400 of its members."

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