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AAJ News Brief for May 19, 2010



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AAJ News Brief for Haytham FarajWednesday, May 19, 2010
Leading the News
Civil Justice System
Congress
Employment/Workplace Safety
Medical Errors/Healthcare
Product Safety
Also in the News

Leading the News

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Oil washing ashore as BP relents to pressure to release leak video.

NBC Nightly News (5/18, lead story, 3:00, Williams) reported, "There it is, what used to be the Deepwater Horizon and is now instead a deep water environmental nightmare. ... Today the federal government vowed to do a better job regulating the industry, acknowledging this damage is done, but this damage keeps on coming." NBC (Potter) added, "After two US senators demanded it, BP released that new video from different angles, all that oil pouring into the gulf and more of it is coming ashore." Potter continued, "Today Louisianan Governor Bobby Jindal said that heavy oil is washing ashore," adding, "In Venice, Louisiana, residents living closest to the spill are complaining of health problems seen in other oil disasters."

        The CBS Evening News (5/18, lead story, 1:55, Couric) reported, "Government officials say that 162 sea turtles have died, about half a dozen bottlenose dolphins have died. ... And they admit they have no idea what's happening in the deeper waters because they can't watch it."

        The Washington Post (5/19, Fahrenthold, Achenbach) reports on the growing amount of oil affecting the gulf shore. In south Louisiana, "instead of the tar balls that had previously washed ashore from the spill, thick, brown oil was infiltrating the edges of the marshes." Should those areas be "destroyed by oil, it could mean huge losses for the area's seafood industry and a reduction in Louisiana's already skimpy shield against a hurricane storm surge." According to Louisiana officials, "the oil's arrival underscored the need for their radical-sounding solution: the construction of a chain of small offshore islands to block the oil from the coast."

        BP's withholding information on oil spill questioned. McClatchy (5/18, Taylor, Schoof) reports that in the Gulf oil spill, unlike past national disasters, BP and not the government was designated the "responsible party" under federal law and oversees much of the response. The company's role as the primary source of information on the Gulf of Mexico oil spill "has raised questions about whether the government should intervene to gather such data and to publicize it and whether an adequate cleanup can be accomplished without the details of crude oil spreading across the gulf." The company "has exercised considerable control over how much is known" about the amount of oil flowing into the water as well as the workers' exposure to evaporating oil and smoke burning of crude on the surface, which "researchers say that data is crucial in determining whether the conditions are safe."

        "All-star team" of plaintiffs' lawyers assembling. The AP (5/18) reported that the disaster "marked the beginning of legal action that is spreading as inexorably as the oil that threatens the wildlife and economy of five states along the Gulf of Mexico." The law firms "now assembling are members of the all-star team of plaintiffs' attorneys." Lawyers say that "the prospects of getting big dollars in this case are good."

        Courthouse News (5/18, Canfield) reported, "In the first few hours of the Deepwater Horizon fire, attorneys formed a litigation group and rushed by chartered airplanes to photograph the sinking ship. Since then, they've called for oil and water sampling and have gathered plaintiffs for class actions." Several corporations "have legal exposure, thousands of potential plaintiffs face varying levels of harm, and the incident occurred in an area far more populated and economically active than Alaska."

        Salazar says government partly at fault for oil spill. USA Today (5/19, Levin) reports, "Interior Secretary Ken Salazar acknowledged Tuesday that the government did not have adequate standards in place for the devices that are supposed to prevent blowouts on off-shore oil rigs." Questioned by Sen. Ron Wyden, Salazar said, "I think there is additional work that should have been done on blowout preventers." Salazar, however, "defended the Obama administration's response to the spill, which has so far done little to stanch the flow of oil."

        The New York Times (5/19, Wald, Zeller) reports that the Secretary "acknowledged that the Minerals Management Service, the Interior Department agency responsible for policing offshore drilling, had been weakened by corruption and lax enforcement of safety and environmental rules."

        Conservationists sue MMS. The National Law Journal (5/19, Coyle) reports, "As lawsuits over the BP oil spill mount, a group of conservationists and fishermen have a new target: the US Department of Interior's Minerals Management Service. Earthjustice, an environmental law firm, and New Orleans' Waltzer & Wiygul filed suit in federal court on Tuesday against the federal agency. The suit -- Gulf Restoration Network and Sierra Club v. Salazar -- charges that the agency violated federal law by exempting oil companies that drill in the Gulf of Mexico from disclosing blowout and worst-case spill scenarios as well as plans for dealing with them before approving the companies' offshore drilling plans."

        Tar balls found in Florida Keys. NBC Nightly News (5/18, story 3, 1:30, Kosinski) reported, "The sudden arrival of big globs of tar, 20 of them on Key West yesterday, more today, so far away from the oil spill are a stark reminder of what could come even here." Kosinski added, "The Coast Guard is having the tar tested in a lab, the results due back in a few days."

        Scientists concerned about spill's effects on sea turtles. In a front-page article, the New York Times (5/19, A1, Kaufman) reports that sea turtles "are being monitored closely by worried scientists." While the Deepwater Horizon spill threatens "a wide variety of marine life," the Kemp's ridley turtles rely on the region as its sole breeding ground and have just "made a fragile comeback" from the Ixtoc 1 spill. Officials have recorded 156 sea turtle deaths, "and though they cannot say for sure that the oil was responsible, the number is far higher than usual for this time of year."

        Despite assurances, NOAA said to not be checking underwater oil plumes. In the Huffington Post (5/18), Dan Froomkin writes, "The Obama administration is actively trying to dismiss media reports that vast plumes of oil lurk beneath the surface of the Gulf of Mexico, unmeasured and uncharted." However, Froomkin adds that NOAA doesn't have vessel measuring it, and the ship associated with NOAA that had been doing such research, which is in port, "found signs of just the kind of plume" that is feared. Additionally, Commander Dave Score, who commands a "NOAA vessel that the White House on Friday claimed in a press release 'is now providing information for oil spill related research' told HuffPost on Tuesday that he's actually far away, doing something else entirely."

        Democrats request criminal investigation of BP. Politico (5/18, Sherman) reports that in a letter to Attorney General Eric Holder, eight Democratic senators on the Environment and Public Works Committee asked for "a criminal investigation into BP for allegedly making false statements to authorities about the ability to stop a massive oil spill." At issue is "a BP statement in a Feb. 23, 2009, document submitted to the Minerals Management Service, in which the oil company claimed that 'in the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industrywide standards for using proven equipment and technology for such responses.'" The senators contrast this "with BP's May 10, 2010, press release, in which the company claims 'uncertainties' with the methods used to stop the oil leak because 'they have not been tested in these conditions before.'"

From the American Association for Justice

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Civil Justice System

Family files lawsuits in seven-year-old's death during Detroit police raid.

The Wall Street Journal (5/19, Ramsey) reports that the family of seven-year-old Aiyana Jones, who was killed during a Detroit police raid, has filed federal and state lawsuits accusing the department of negligence and misconduct.

        The AP (5/18) reported, "The federal lawsuit claims police violated Aiyana Jones' constitutional rights and seeks an unspecified cash award of more than $75,000. A four-count lawsuit filed in state court seeks damages of more than $25,000. The amounts the family is seeking in both lawsuits are likely much higher."

        In a column in the Detroit Free Press (6/19), Jim Schaefer discussed the circumstances surrounding Jones' death.

Cuomo sues companies selling overpriced electronics to soldiers.

The AP (5/18) reported, "New York Attorney General Andrew Cuomo on Tuesday sued companies he claims preyed on Fort Drum soldiers by selling them laptops, televisions and other electronic goods on credit at wildly inflated prices. Cuomo says the SmartBuy store that operated out of Salmon Run Mall in Watertown sold products that were marked up by as much as 325 percent above the original retail price and financed the sales through automatic deductions from soldiers' payrolls." Cuomo "said his investigation has revealed that other SmartBuy stores located near other Army posts use the same sales practices."

Huntington Beach, CA, seeks to limit damages in girl's death to value of boat.

In the "L.A. Now" blog, the Los Angeles Times (5/18, Esquivel) reported, "The city of Huntington Beach has taken legal steps to stop the family of an 11-year-old girl who died in a junior lifeguarding exercise from suing the city for anything more than the value of the boat that killed her." Attorneys for Navigators Insurance, "the city's insurance company, cite maritime law which limits liability for the owners of some seagoing vessels."

Billionaire sex offender has failed to pay legal fees to victims' attorneys.

The AP (5/18) reported, "Billionaire sex offender Jeffrey Epstein is violating an agreement with federal prosecutors by refusing to pay more than $2 million in legal fees to attorneys representing a dozen of his victims, according to a new federal lawsuit. Epstein, a New Yorker who owns a Palm Beach mansion, a Paris apartment, a 70-acre Caribbean island and a 7,500-acre New Mexico ranch, could ultimately face federal prosecution stemming from his alleged assaults on mostly teenage girls if he continues to refuse to pay the fees, the victims' attorneys said Tuesday." Under the deal Epstein "signed with prosecutors in 2007, he would avoid federal charges and potentially lengthy prison sentences as long as he abided by several conditions -- including paying fees for lawyers representing victims."

Congress

Reid may not have 60 votes for financial reform cloture.

Reports this morning suggest Senate Democrats' intra-party disagreements over pending amendments to the Wall St. reform bill threaten to extend debate on the legislation beyond tomorrow, when Senate majority leader Harry Reid had hoped to win a cloture vote. Some reports say the disagreements are so deep that the bill itself is at risk.

        Senate backs Carper amendment on state bank regulators 80-18. The Washington Post (5/19, Merle, Dennis) reports that on a vote of 80-18, the Senate "overwhelmingly approved" Sen. Tom Carper's amendment "awarding states more power to pursue cases against national banks, but preserving the right of a federal bank regulator to stop states from pressing some consumer protection cases." Dodd "offered support for the amendment after Carper agreed to some modifications." The Post notes that the amendment "contains a provision, opposed by consumer groups, giving the Office of Comptroller of the Currency the ability to stop states from pursuing some consumer protection cases even if there is no federal law covering the issue."

Employment/Workplace Safety

Plaintiffs' lawyer says Novartis should pay millions in punitive damages in gender-bias suit.

Bloomberg News (5/19, Hurtado, Glovin) reports that "Novartis AG's US pharmaceuticals unit should pay $190 million to $285 million in punitive damages on top of the $3.4 million awarded to a dozen women in a gender bias verdict...plaintiffs' lawyer" David Sanford "said in court." A panel consisting of nine members "found in favor of female employees of Novartis Pharmaceuticals, a US unit of Europe's second-largest drugmaker, following a month-long trial in Manhattan federal court. The jurors' $3.4 million award to the women for lost pay and other damages yesterday came in the first stage of deliberations."

        On its website, ABC News (5/18, Friedman) reported that now, "the court is set to determine how much in the company is responsible for in punitive damages."

        Dow Jones Newswire (5/19, Bray) reports that Sanford said in court, "Justice demands that you punish Novartis for its conduct." The AP (5/19, Neumeister), the New York Law Journal (5/19, Hamblett), and Reuters (5/19, Katz) also cover the story.

Medical Errors/Healthcare

Florida hospital initiative seeks to reduce errors, surgical complications.

The South Florida Sun-Sentinel (5/19, LaMendola) reports that "Florida hospitals and surgeons, under a national microscope for high costs, Tuesday kicked off a new effort to find and prevent system problems that cause needless complications from surgery." The effort "will try to find even simple errors that cause patients to develop infections and other problems that keep them in the hospital longer or force them to return with relapses." According to the Sun-Sentinel, "the first step is to analyze patient files to collect more-detailed data about complications in four areas where problems are common: surgical site infections, urinary tract infections, colorectal surgery and surgery on the elderly."

Product Safety

Knauf drywall settlement with Beazer was for $800K.

The Sarasota (FL) Herald Tribune (5/19, Kessler) reports, "Chinese drywall maker Knauf Plasterboard Tianjin Co. Ltd. confirmed to the Herald-Tribune Tuesday that its settlement with Atlanta-based national builder Beazer Homes was for $800,000. Still unclear, though, is how many tainted homes were covered by the settlement." Plaintiffs' attorney Ervin Gonzalez said, "It's a very low number, no matter what. I think it's time for Knauf to step up to the plate and make people whole."

Toyota pays record $16.4 million fine for response to sudden acceleration.

Reports are emerging that Toyota has paid a $16.4 million fine for its sluggish response to its gas pedal recall crisis. The AP (5/19) reports that the automaker paid the "record" fine yesterday. No official announcement has been made, the AP notes. DOT "is reviewing thousands of Toyota documents and could issue new penalties for the company's handling of other safety recalls. House lawmakers are holding a hearing on Thursday examining the company's review of reports of sudden unintended acceleration and whether electronic issues caused the safety problems." NHTSA Administrator David Strickland and Toyota's "USA sales chief Jim Lentz are scheduled to testify."

        The New York Times (5/19, Maynard), noting that DOT "said the proceeds would go to the Treasury's general fund," adds that Secretary LaHood "announced the fine against Toyota in early April, saying the company had failed to promptly notify the government when it learned of similar problems with vehicles elsewhere in the world." The fine's cap was "set by the Tread Act, which Congress passed last decade after a series of crashes involving Firestone tires on the Ford Explorer."

Investigatory piece reveals some skin-lightening creams may contain high levels of mercury.

In a lengthy piece, the Chicago Tribune (5/19, Gabler, Roe) reports, "Some creams promising to lighten skin, eliminate age spots, and zap freckles contain high levels of mercury, a toxic metal that can cause severe health problems, a Tribune investigation has found." The Tribune "sent 50 skin-lightening creams to a certified lab for testing, most of them bought in Chicago stores and a few ordered online. Six were found to contain amounts of mercury banned by federal law," and five creams tested "had more than 6,000 parts per million -- enough to potentially cause kidney damage over time, according to a medical expert."

FDA says St. Jude's website promotes device for unapproved use.

The AP (5/19, Perrone) reports that the FDA has "issued a warning letter to medical device maker St. Jude Medical Inc. for promoting its device for an unapproved use." The agency "has granted the St. Paul, MN-based company permission to study the device for a new use in treating atrial fibrillation." However, the "FDA says St. Jude's website is already promoting the system for that use by touting its effectiveness against atrial fibrillation." Reuters (5/18) also covered the story.

Baby blankets recalled.

The AP (5/18) reported, "The US government on Tuesday announced a recall of 44,000 pink baby blankets, saying the giraffe decorations on the blankets pose a choking hazard. The Consumer Product Safety Commission said importer Rashti & Rashti is recalling the giraffe blankets, which were made in China and sold at Target stores between January and August of 2009."

Online outrage over new Pampers diapers.

In "The Juggle" blog at the Wall Street Journal (5/18), Michelle Gerdes discussed the internet-fueled controversy over the safety of the new Pampers Dry Max diapers.

New report claims BPA in canned goods may pose health threat.

USA Today (5/19, Szabo) reports that a report released May 18 "by the National Workgroup for Safe Markets (NWSM), a coalition of 19 environmental groups," suggests that expectant mothers "should limit their intake of canned foods and drinks." That is because "92% of food from metal cans is contaminated with an estrogen-like chemical called BPA, or bisphenol A," the report found.

        The NWSM "conducted laboratory tests on 50 samples of canned food, purchased in stores or donated from home pantries in 19 US states and Canada," the CNN (5/19, Hellerman) "Paging Dr. Gupta" blog reported. "Of the 50, 46 contained at least some BPA." While "the median level was 35 parts per billion...some food had much more, as high as 1,140 parts per billion."

Also in the News

Virginia Tech violated law in '07 massacre, preliminary ED review finds.

The AP (5/19, O'Dell) reports that the Department of Education "found that Virginia Tech broke federal campus security laws by waiting too long to notify students during the deadliest shooting rampage in modern US history, a report released Tuesday said. Tech disputed the department's findings, saying university officials met standards in effect at the time of the shootings three years ago and that the report is colored by 'hindsight bias.'" The ED "report said Tech violated the Clery Act's requirement that universities offer a timely warning when possible danger arises."

        The Washington Post (5/19, Anderson) reports, "Virginia Tech failed to comply with a federal law that requires timely warning of safety threats to the campus community after Seung Hui Cho's deadly shooting spree began in April 2007, according to a preliminary review by [ED] released Tuesday. ... The federal officials who reviewed the record...focused on the well-known delay of nearly two hours between the police discovery of those bodies about 7:30 a.m. and the issuance of an e-mail threat advisory at 9:26 a.m." ED spokesman Justin Hamilton is quoted saying that the department's findings are preliminary and after reviewing "Virginia Tech's feedback on our report, we'll issue a final determination in coming weeks."

Landau wins Oregon SC seat.

The AP (5/19) reports, "An appeals court judge who wrote a historic opinion extending gay and lesbian rights, has won a seat on the Oregon State Supreme Court. Jack Landau, an Oregon Court of Appeals judge, on Tuesday defeated Allan J. Arlow, an administrative law judge with the Oregon Public Utilities Commission."

California plaintiffs' lawyers donate nearly $600K to election campaigns.

The National Law Journal (5/19, Bronstad) reports, "Plaintiffs' lawyers in California gave nearly $600,000 to statewide election campaigns during the first 10 weeks of 2010, according to the Civil Justice Association of California, a Sacramento-based tort reform group." One of "the leading Democratic candidates for insurance commissioner is California Assemblyman Dave Jones, who has raised nearly $30,000 from plaintiffs' attorneys." In "the race for attorney general, Los Angeles City Attorney Rocky Delgadillo, a Democratic candidate, leads the pack in contributions from plaintiffs' attorneys, CJAC said."

NYTimes lauds DOJ review of New Orleans Police Department.

The New York Times (5/19) editorializes, "The Justice Department described the New Orleans Police Department earlier this year as one of the nation's worst. There is no doubt about that." The city "suffers from one of the country's highest rates of violent crime and unsolved murders" and its "police force is currently the subject of at least eight federal investigations into accusations of brutality and unjustified killings of citizens at the hands of armed officers." This week, at "the request of Mitch Landrieu, the new mayor of New Orleans, the Justice Department" announced that it "will conduct a full review of the police department. That will likely lead to a consent decree, a legally binding agreement between the city and the Justice Department on steps to reform the force. Changing this culture may take years, but the city has now begun the process."

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