Distributed to over 53,000 subscribers each month€¦ · any large and calledpowerful corporate...

Distributed to over 53,000 subscribers each month

www.BeasleyAllen.com

October 2010

2 www.BeasleyAllen.com

I. CAPITOL OBSERVATIONS

On The RighT Side

Ourlawfirmdoesnotacceptretainersofanykind,andneitherdowedefendanylargeandpowerfulcorporateclients.Weareproud to represent individualswhohavesufferedsomesortoflossandneedaccesstothejusticesystem.Wealsorepresentbusinessownerswhohaveaneedforourfirm’sservicesbecauseofsomeothercompany’swrongdoing. Inmostallofthecaseswehandleouroppo-sitionwillhaveverygoodlawyers,accesstoexpertswhowilltoethecompanylineandusepublicrelationsextremelywell.IrecentlywatchedthemovieClass Action whichfeaturedoneofmyfavoriteactors,GeneHackman,whoplayedthepartofatriallawyerinalawsuitagainstapower-fulDefendant.Somethinghesaidneartheendofthemovieduringanintensivedis-cussioninthejudge’schambersgotmyattention.

The1991movieinvolvedaproductlia-bilitylawsuitinwhichacorporatedeci-sionbyamanufacturerresulted in thecompany’slawyersdestroyingacriticalreportthatdealtwithadefectivedesignissue. The document destruction wasdone at the request of the corporatebosses.Alargedefensefirmwasinvolvedinkeepingthecontentsofthereportoutofthehandsofthevictim’slawyersandawayfromthejury.Duringdiscoverythedefense lawyersdumped thousandsofdocumentspackedinhundredsofboxesonMr.Hackman’sfirm.Missingfromthedocuments,however,wastheonedocu-ment that would have proved theproductthatseverelyinjuredthePlaintiffwasdefective.

Atacriticalstageofthetrial,duringaconferenceinthejudge’schambers,Mr.Hackmanremindedthedefenselawyersthatregardlessoftheoutcomehewasonthe“right side.”That really made animpression on me. Having dealt withmanyclientswhoseclaimsinvolvedcor-porate decisions that put profits oversafety,IcouldcertainlyidentifywithMr.Hackman.Wehaveseenonmanyocca-sionsevidenceofacorporate“bean-coun-ter”tellingthecompany’sdecision-makers

how much it would cost to correct aseriousdesignproblem.Onalltoomanyoccasions,adecisionwasmadebythemanufacturer’sbossestoruntheriskandputadefectiveproductonthemarket.Inthoseinstances,itwasfeltbythebossesthatitwouldbecheapertolitigateratherthanfixtheproblem.

Eventssuchasthosedescribedinthemovie are why we have seen the so-called tort reform movement start upbackinthe1980sandcontinuerightuptothepresent.Atakeoverofthelegisla-tiveandjudicialbranchesofgovernmentintheUnitedStateswasanessentialpartof the tort reformersplan. Itwas alsoveryimportantforCorporateAmericatohave great influence in the executivebranch.Inmanystatesthathasbecomeareality.Becauseofthosesuccesses,manymeritoriousclaimsareeithernotpursuedorarelostatsomestageofthejudicialprocess.Whencasesaresenttomedia-tion,themediatoroftentellsthelawyersrepresentingavictimwithagoodclaimthat they had better settle cheaplybecauseeveniftheywintheircase,theAlabamaSupremeCourtwilltaketheirverdictaway.Thismakesonerealizehowimportantitistofighttokeepourcourtsopen,independentandfair.

The thing that motivates me as alawyerrepresentingfolkswhohavebeeninjured,orwhohave lost a lovedonebecausesomecorporatebossputprofitsover safety and ran a safety risk byputting a defective product on themarket,isthatIknowthatIam“ontheright side!”That’s enough tokeepmegoing,andfor thatreason, Iwillnevergiveupthefight.

AngeR And ApAThy ThReATen OuR COunTRy

There is agreatdealof angerbeingexhibitedalloverthecountrythesedaysbylotsoffolksandthat’snotgood.Manyof them are just mad and really don’tknowexactlywhy.Inthissetting,folksgenerally look for somebodyor some-thingingovernmenttoblame.Theeasytargetformostoftheunresttodayisthefederalgovernmentandsomeofthatisunderstandable.Butanothertroublesomeaspect concerning the mood of thepublicisthatalltoomanypeopleareapa-theticwhenitcomestobeinginvolvedin

theproblem-solvingrequiredtogetourcountrymoving in the rightdirection.Most folks simply don’t want to getinvolved,sitonthesidelinesandjustfussaboutwhat’swrongwithAmerica. Thetruthisthisisstillagreatcountrywithlots of good people. Certainly, we arehaving serious problems with theeconomyandthatalwayscausestremen-dousunrest.

TheTea Party movement, which isfinancedprimarilybyanumberofbillion-aires,includingRupertMurdockandtheKochbrothers (David andCharles), istaking full advantage of the discon-tent.Thismovementhasalreadyenjoyed

IN THIS ISSUE

I. CapitolObservations. . . . . . . . . . . . . . . 2

II. AReportontheGulfCoastDisaster. . . . 3

III. PurelyPoliticalNews&Views. . . . . . . . 6

IV. LegislativeHappenings..............7

V. CourtWatch. . . . . . . . . . . . . . . . . . . . . . 7

VI. TheNationalScene. . . . . . . . . . . . . . . . 8

VII. TheCorporateWorld. . . . . . . . . . . . . . . 9

VIII. ToyotaLitigation . . . . . . . . . . . . . . . . . 11

IX. ProductLiabilityUpdate . . . . . . . . . . . 12

X. MassTortsUpdate. . . . . . . . . . . . . . . . 15

XI. InsuranceandFinanceUpdate . . . . . . 18

XII. EmploymentandFLSALitigation. . . . . 20

XIII. PredatoryLending. . . . . . . . . . . . . . . . 21

XIV. PremisesLiabilityUpdate. . . . . . . . . . . 22

XV. WorkplaceHazards. . . . . . . . . . . . . . . 24

XVI. Transportation. . . . . . . . . . . . . . . . . . . 26

XVII. NursingHomeUpdate. . . . . . . . . . . . . 28

XVIII. EnvironmentalConcerns. . . . . . . . . . . 28

XIX. TheConsumerCorner. . . . . . . . . . . . . 29

XX. RecallsUpdate. . . . . . . . . . . . . . . . . . . 32

XXI. FirmActivities. . . . . . . . . . . . . . . . . . . 37

XXII. SpecialRecognitions. . . . . . . . . . . . . . 38

XXIII. FavoriteBibleVerses. . . . . . . . . . . . . . 38

XXIV. ClosingObservations. . . . . . . . . . . . . . 38

XXV. PartingWords. . . . . . . . . . . . . . . . . . . 39

www.JereBeasleyReport.com 3

somesuccess inpolitical racesaroundthecountry.ButattheendofthedaytheTea Party crowd will have had littlesuccesswiththeactualproblem-solving.It’ssortofinterestingthattheNationalRepublicanPartydoesn’tseemtoknowexactlywhattodoabouttheTeaPartymovement.Idon’tseeitgoingaway,atleast not until the general election isover.ThatwillpresentproblemsfortheGOPonNovember2nd.

ThereisnodoubtthatSarahPalinandheradvisors,withthehelpoftwotalk-show hucksters, Rush Limbaugh andGlennBeck,aredrivingthistrain.ButtheNationalDemocraticParty ispartly toblameforallowingthemovementtotakecenterstage.TheDemocratssimplyfailedtoputtheblamewhereitbelongsandignored some important issues. Forexample,theObamaAdministrationtookoveragovernmentonthevergeoffiscalcollapseandimmediatelystartedtryingtofixthings.Unfortunately,discussionofthehugelistofinheritedproblemswasovershadowedbythenewPresidentandCongress having to push programsdesigned to tackle one of the biggestproblems,thecollapseofWallStreet.Thatsevereproblemwascausedbylaxornoregulationof the financial institutions.PeoplesoonforgotthattheBushAdmin-istrationhad inherited large surpluseswhenBillClinton leftoffice,andaftereightyears left agovernmentbadly indebtandwithhugebudgetsdeficits.Thatseemstohavebeenforgotten.

Hopefully,theangerandapathyaroundthecountrywillsoonbereplacedwithaspiritofnationalunityandoptimismthatissobadlyneeded.Wemustworktohealournation’swoundsandstartsolvingtheeconomicproblemsthatarehurtinglotsof folks. A combination of anger andapathywon’tgetthejobdone!

The gOp COngReSSiOnAl pledge

Ireallyhaven’tpaidtoomuchatten-tion to GOP Congressional Boss JohnBoehner and the so-called Pledge toAmerica.It’snothingbutpoliticsasusual.But I do remember when the samebunch,withaformerleadernamedNewt,hadaContractwithAmerica.Weallknowhowthatoneworkedoutandwearestillpayingforit.Thislatestpoliticalmaneu-verhassomesimilarpromises.Theynowpledge:

• Tocuttaxesforthesuperrich.

• TorollbackregulationsonBigOilandWallStreet.

• To strike down rules reining in thecreditcardlendersandthebiginsur-ancecompanies.

• Toincreasethedeficitbytrillionsofdollars.

Theiragenda is anotherwindfall forthe Big Corporations, including drugcompanies, oil companies and otherspecialinterests.Theirplanforgoverningisdesignedtohelpbig folksandpushlittlefolksfurtherdowneconomically.Afriendwholistenedtothepledgepresen-tationobserved,“InowknowwhatGOPstandsfor,‘GetOurPaychecks’!”ThesadthingisthatlotsoffolkswhowouldbehurtiftheGOPtakesoverCongresswillstillvoteforthem.ManyGOPCongressio-nalcandidateswhosupportthepledgetalkabouthelping“smallbusinesses.”Itmighthelptofindouthowtheydefinea“smallbusiness.”Wouldyoubesurprisedtolearnthatsomeofthebiggestcorpora-tionsintheU.S.fittheirdefinition?

AlAbAmA iS TOpS On SeCReT liST Of STATeS WiTh SOARing pOveRTy RATeS

Aninvestmentnewswebsite,BusinessInsider,hasreleasedwhatitsaysistheU.S.CensusBureau’s“secretlist”rankingstatesbypovertylevel.Unfortunately,thelistplacesAlabamaNo.1ashavingthehighest poverty rate compared to thenationalaverage.AccordingtoBusinessInsider,Alabama’s poverty rate is 3%abovethenationalaverage.WeapparentlyareinworseshapethanevenMississippi,whichcameinsecondonthelist.

BusinessInsidercalculatedthepovertylevelusingtheCensusBureau’s“compli-cated public use files.”To calculatepoverty rates by state, the websiteadjustedhouseholdincomesbygovern-mentbenefitsandusedpovertythresh-old levels that are adjusted for thegeographiccostof living. Thewebsite,whichclaimsitsmethodofcalculatingpovertyratesissuperiortothemethodusedbythefederalgovernment,alsotookmedical, housing, energy andclothingcosts into account. Business Insiderwrote:

The poverty line is $10,830 per year, before taxes. That single threshold remains the same for every American, whether he lives in Mobile, Alabama or the west shore of Maui in the Census Bureaus methodology. To put it bluntly, that amount of money can go a lot further in Mobile than in Maui. Where would you rather live with that lump sum, in Mobile, where a gallon of gas goes for $2.50 or in Maui, where it goes for $3.75?

Iamnotsurethisrankingisjustified.ButIdoknowwehaveseverepovertyproblemsinourstate.Wemustworktocreategoodpayingjobsinallpartsofourstate.ThenextgovernorwillinheritthemostseriousfinancialproblemsourstatehasfacedsincetheGreatDepression.Source: AL.com

II. A REPORT ON THE GULF COAST DISASTER

bp RefuSeS TO pAy AlAbAmA’S iniTiAl ClAim

AgreatdealhasbeenwrittenabouttherefusallastmonthbyBPtopaytheStateofAlabama’sinitialclaimof$148million.ItshouldalsobenotedthatBPhasnotpaid the initialclaims filedbyFlorida,MississippiorLouisiana.Idon’tbelieveTexashasyet filed its initialclaim,butshoulddosoverysoon.SothebottomlineisthatAlabamawastreatednodiffer-entlythananyotherstate.OurstateisnotstandingaloneindealingwithBP.Infact,BPisn’tpayinglegitimateclaimstothethousandsofoilspillvictims,bothindi-vidualsandbusinesses,whoarehurtingbadly. All one has to do is check theMobile Press RegistereachdayanditwillbeveryclearthatBPisn’tpayingclaims.

WhenyouconsiderthatFloridafiledaninitialclaimof$1.1billionwithBP,andwithlessdamagethanAlabama,it’squiteobvious that our state’s initial claimshouldhavebeenmuchhigher.Infact,$148 million isn’t even a drop in thebucket.Louisiana’sinitialclaimwasover$8billion,according to lawyers repre-


sentingthatstate.BPhasconsistentlyliedtothepeopleinallofthecoastalstatesonanumberofsubjects, includingthepaymentofclaims. Inmyopinion, thebossesatBPneverhadanyintentionofpaying$148milliontoAlabama.AnybodywhotrustsBPtovoluntarilydotherightthingwhenitcomestopayingfullvalueonclaimshasneverdealtwiththisoilgiant.

bp ShifTS blAme in gulf diSASTeR

BP PLC’s report on its investigationinto the Deepwater Horizon disaster,releasedlastmonth,isclearlydesignedtoshiftblameandcreatedoubtas to thecause of the explosion.While BP hasacceptedsomeof theblame, themainthrustisanattempttoshiftmuchoftheblametoothercompaniesresponsibleforthe various decisions that led to theexplosionandsubsequentmassivespill.It’s realdifficult tounderstandexactlyhowmuchoftheblameBPisacceptinginthereport.Butlettherebenodoubt—BPcan’tescapeamajorportionoftheblame.BP’sreportisnotonlylargelyself-serving,butisanotherslickpublicrela-tionsmove.

ThereisonethingforcertainandthatisBP’sDeepwaterHorizonoildisasterintheGulfofMexicowasnotcausedbyanysinglefactor.Therewillbeplentyoffaulttogoaroundbetweenthe“multiplecompaniesandworkteams,”mentionedinthereportcomingfromtheoilgiant’sinternal investigation.BP’s reportcon-cludesthatasequenceoffailuresinvolv-ing a number of different partiesincludingBP,Transocean,Halliburton,andCameronInternationalCorporationledtotheexplosionandfirewhichkilled11peopleandcausedwidespreadpollutionintheGulfofMexico.

According to the report, decisionsmadeby“multiplecompaniesandworkteams”contributedtotheaccidentwhichitsaysarosefrom“acomplexandinter-linked series of mechanical failures,human judgments,engineeringdesign,operational implementation and teaminterfaces.”TheBPinternalreportfoundthat:

• Theannuluscementbarrierdidnotisolatethehydrocarbons.

• Shoetrackbarriersdidnotisolatethehydrocarbons.

• The negative-pressure test wasacceptedalthoughwellintegrityhadnotbeenestablished.

• Influxwasnotrecognizeduntilhydro-carbonswereintheriser.

• Wellcontrolresponseactionsfailedtoregaincontrolofthewell.

• Diversion of the mud gas separatorresultedingasventingontotherig.

• Thefireandgassystemdidnotpreventhydrocarbonignition.

• TheBOPemergencymodedidnotsealthewell.

The BP report concluded that “acomplex and interlinked series ofmechanical failures,human judgments,engineeringdesign,operational imple-mentation and team interfaces cametogethertoallowtheinitiationandesca-lationoftheaccident.”Inlaymen’stermsBPissimplysayingallofthecompanieswereatfaultandcausedthedisaster,anddon’tblameustoomuch.

This report will not halt the blameshifting that has been going on andneitherwillthelitigationarisingoutofthedisasterslowdown.Ifanything,thelawsuitswillincreasedramatically.Intes-timonybeforeCongress,severalworkerson theDeepwaterHorizonblamedBPmanagement for the spill,maintainingtheycut corners andneglected safetyissuesinordertoincreaseprofits.DrillingcompanyTransocean, which BP hasargued is largely responsible, hasattempted to distance itself from thedisasterandlimit its liability.ItquicklytookissuewiththefindingsbyBPintheself-servingreport.

Another BP partner on the r ig,AnadarkoPetroleum,hasaccusedBPof“willful misconduct” and said BP isentirelytoblameforthedisaster.Hallibur-tonwasinvolvedinthecementworkontherigandhasbeennamed inseverallawsuits, includingoneby theStateofAlabama.Wemustneverforgetthatallofthe parties mentioned in BP’s reportwereat faultandcontributedtocausetheexplosionthatkilled11workersanddamaged the well, which unleashednearly five-millionbarrelsofcrudeoilintotheGulfofMexico.Therewasalso

significant fault to be assigned to thevariouscorporationsaftertheexplosionand fire. Clearly firms other than BPplayedinstrumentalroles,suchasTrans-oceanLtd.,whichownedtherigandwashiredbyBPtododrillingwork.Therig’scementingwork,donebyHalliburton,isakey component in stabilizing a wellwhenexplorationdrillingisfinishedbutproductionhasn’tstarted.CameronInter-nationalappears tohavesomeseriousdesign issues,but thatwillhave tobefurtherdevelopedbywayofpretrialdis-covery in the MDL. Other companiessuchasAnadarkowillalsohavesignifi-cantliability.

BP’ssafetycultureintheUnitedStateshasbeenunderheavyregulatoryscrutinyin recent yearsbecauseofother acci-dentswithitsoperations,includingthe2005explosionat itsTexasCity,Texas,refinerythatkilled15people.Thattrou-bled past has resulted in charges thatrecentcost-cuttingatBPplayedaroleinthedisaster.IfthosechargesareprovenincourtBPwillbeonthehookforpenal-tiesandfinesofanexcessof$20billionforviolationsoftheU.S.CleanWaterActforallthecrudespilledintheGulf.Sources: Wall Street Journal and Insurance Journal

bp Simply WOn’T Tell The TRuTh

BP has continuously lied about theamountofoilintheGulfofMexicoandits effect on the Gulf’s environment.Despite numerous reports of recentsightingsofoilinGulfCoastwatersandonbeaches,andvariousscientificstudiesindicating giant plumes of oil foundunder thesurfaceof thewater,oneofwhichwasastaggering22mileslong,BPhasdeniedknowledgeofanyoilintheseareas.ThepublicrelationscampaignbyBP,withthehelpofthefederalgovern-ment,hasbeenbusysellingthenotionthatallofthemillionsofgallonsofoilthat poured into the Gulf have eitherbeencleanedupbyBPoreatenbyoil-digestingbacteriaandmicrobes.Mean-while, local fishermen, governmentworkers,andevenBP’sowncrews,con-tinuetopullupthousandsofpoundsofweatheredoil.Puttingthingsinperspec-tive,wehadanExxonValdez-sizespilleveryfivedaysintheGulf.MostofthatoilisstillintheGulf.


AresearchteamfromColumbiaUni-versity found six inches of oil on theflooroftheGulfinlateSeptember.Forsomereason,themediahasignoredthisreport.Despitethecommonknowledgeof oil-contaminated water and sandthroughout theregion,BP is still lyingabout the situation. In addition to theColumbiaUniversity report, therewasalsoareportbyotherscientists.Itwasreported on September 14th by onegroupthatat least twoinchesofoil islying on parts of the f loor of theGulf. This oil is mixed with the toxicchemicals used by BP. This disturbinginformationalsohaslargelybeenignoredbythenationalmedia.

Scott Piggott, a BP employee whoheadsupcleanupinthatarea,claimedthatreportsfromfishermenwhowerefinding oil weren’t reliable. So far, BPrepresentativesareconsistentlyfollowingthecompany lineof“out-of-sight, out-of-mind.”Theyhavemanagedtokeepthetruth about how much oil remains intheGulfoutof themainstreammediaaltogether.

Apparently,thetruthabouthowmuchleakedoilstillremainsintheGulfwaters,andboththeshortandlong-termeffectsofthisenvironmentaldisaster,forsomereason,arenotfullyunderstoodbythemedia.Asaresult,folksoutsidetheGulfCoaststatesreallydon’trealizehowbadthingsare.Hopefully,themediaownershaven’tbeenoverly influencedby themassivepublicrelationseffortsbyBP.Forexample, BP’s public relations effortshaveputoverahundredmilliondollarsinthepocketsofTVstationsacrossthecountry for the misleading ads beingaired.

Inaddition,BPhashadafullpageadineverydailynewspapereverysingledayformonths.It’stimeforBPtoquitspend-ingmillionsintelevisionandnewspaperadsandtostoplyingabouttheGulf.It’salsotimeforthemediatostartaskingforandgettingthetruth.Sources: Pensacola News Journal and Associated Press

bp hAS nO inTenTiOn Of pAying fOlkS

WiththeBPoilspillfinallystopped,it’snowtimetomakesureallGulfCoastresi-dentswhosufferedlossesareappropri-atelycompensatedfortheir immediateandlong-termlosses.Whilesomeofthe

terms and conditions of the claimsprocessputtogetherbyBPandKenFein-berg are stillunclear, therehavebeennumerous reports that its creation ishelping BP more than the Gulf Coastcommunity. I happen to share thisbelief.AsofSeptember22nd,theBP-Fein-bergteamwasstillnotpayingclaims.Infact,FeinberghasbeenjustasbadasBPandthat’sverybad.Butwhenyoucon-siderBPispayingFeinberg,andFeinbergwon’tdisclosehiscompensationagree-ment, it’s sort of easy to figure outwhyvictimsaregettingtheshortendofthestick.

When first conceived, the fundwassupposedtobeanadjunct to theciviljusticesystem,notanobstacletopreventpeoplefromholdingBPandothercorpo-rationsfullyaccountableforlossesthatareenormousandevolving.Thusfarthatdoesn’tappeartobethecase.Feinbergoperatessortoflikeasnakeoilsalesmansellinghiswarestoanunsuspectingaudi-ence, and laughing all the way to thebank.AstheysaywhereIcomefrom—“thisfellabearswatching!”

Nowthatemergencypaymentproto-colsforthefundareknown,therearestillmanyquestionsthatneedtobeansweredaboutthefutureandfinalclaimproto-cols.Sofar,FeinbergiscontinuingwhatBPstartedandthatis,payingaslittleaspossibleonvalidclaims.Claimantsshouldnotbeforcedtoacceptfinalpaymentsbeforethefullimpactofthespillisreal-ized.NeithershouldthefinalprotocolsrequireClaimantstowaivetheirfuturelegal rights inorder to receive a finalpayment from the fund. There isevenspeculationthatthesewaiverssoughtbyBPwouldapplynotjusttoBP,buttoallthe corporations responsible for thedisaster.TocontinuelettingBPcalltheshotsonclaimsisunacceptable.Weruntheriskofessentiallylettingallofthesebad actorsoff thehook for theworstenvironmental disaster ever in thiscountry.

Whileallof themediaattentionhasbeenlargelyonBP,thereareotherswhoshareblameforthedisaster.It’scrucialthatClaimantsnotberequired tosignthesewaiverswhicharereallycompletereleasesofall liability. Theworldnowknowsthattheinvolvedcompaniesareallpointingfingersateachotheronwhobearsresponsibilityforthespill.Inreality,these companieshave shownnothing

but contempt towards the Gulf Coastcommunity—distortingorhidingthefullimpactofthedisastertoavoidaccount-ability—anddelayingneededpayoutstovictims.ToforceGulfCoastresidentsandbusinessestograntthemblanketimmu-nity,inexchangeforapotentiallyinsuffi-cientsettlement,isunconscionableandmorallywrong.

Asofmid-September,onlyabout3,300peopleandbusinessesinAlabamawhohadfiledclaimswithBPovertheoilspillhadactuallyreceivedpayments.It’sbeingreported that $19.6 million has beenpaid.MostofthepaymentshavegonetoClaimantsinBaldwinandMobilecoun-ties.Manylocalofficials,includingOrangeBeachMayorTonyKennon,haveletitbeknownthattheyaredisappointedwithKenFeinberg,theclaimschief,whotookover handling of claims from BP onAugust23rd.Forexample,MayorKennontoldtheMobile Press-Registerthatclaimswere being paid too slowly and thecheckstoosmall.Hesaidmultimillion-dollarclaimsareoutstandingandthatnobusinesseshavebeen“madewhole.”

Feinberg, who is a master at bothpublic relations and political spin, isbeingpaidbyBP.Thusfarhehasrefusedtoletthepublicknowwhathiscompen-sationpackagefromBPis.ThatmaywindupbeingabigtimeproblemforFeinberg,BPandthefederalgovernment,whentheclaimsbossisfinallyforcedtodisclosethisinformation.Basedonwhatwehaveseen,therecanbenodoubtwhereFein-berg’srealallegiancelies!

It’salsoimportanttorememberthatBPisnotshowingmagnanimitybypartici-pating in this compensation program.Fundornofund,theoilgiantislegallyobligatedtopayalloftheclaims.EveniffolksontheGulfCoastdecidethefundwillprovidethefairestandquickestcom-pensation,nobodyshouldgiveuplegalrightstheynowhaveundercurrentlaw.It’sveryclearthattheadverseeffectsofthisdisasterwilllastforyears.BPandtheothers responsible to compensate thevictimsoftheoilspillwilltrytogetoutascheaplyaspossible.RegardlessofBP’s$100milliontelevisionadvertisingcam-paign,noneofthewrongdoers,includingBP,haveanyrealfeelingsforthetensofthousandsof folks theyhavehurt andwillcontinuetohurt.Sources: Associated Press, Mobile Press Register and Bloomberg


The gCCf And feinbeRg muST be mAde TO fOllOW TheiR OWn guidelineS

KenFeinberg,withhelpfromBP,devel-opedaplanwhichwassupposedtocom-pensateindividualsandbusinesseswhohavesufferedlossesasaresultoftheBPoilspill.Section3oftheofficialclaimsprotocol specifically restricts contactbetweentheGulfCoastClaimsFacility(GCCF)andClaimantswhohavehiredlegalcounsel.OnAugust23rd,ourlawyersbegan filing claims on behalf of ourclientswithGCCFinhopesofobtainingpromptemergencypayments.Theclaimsfiledwereaccompaniedbyallofthedoc-umentationrequiredbyGCCF.EverythingneededforclaimstobeprocessedandpaidwerefiledwithGCCF.Ourlawyerswereclearly identifiedoneachclaimsapplicationforourclients.

Within48hoursafterfiling,ourclientsbegan receiving personal contacts byGCCFstaffrequestingnewclaimformsand other information. This conductclearlyviolatesethicalstandards,isoutra-geous,andisunacceptable.Feinbergandthe GCCF created the protocol andcontendtheyhaveasysteminplacetomanageclaims.ButClaimantsarehavingtocontendwith lotsofconfusionanddelaybroughtonby theGCCF.Weareconcernedthatlegitimateclaimsaren’tbeing processed properly. It’s quiteobvious that the claims process wasdesignedwithinputfromBPandispri-marilyforBP’sbenefitandgivestheoilgiantanadvantageoverindividualsandbusinesseswhohavebeendevastatedeconomically.

ThesecontactsviolateSection3oftheprotocolandwillnotbetolerated.WeputtheGCCFonnotice that theprotocolmustbefollowedandourclients’claimshandledpromptly,inafairmanner,andpaid.NotonlyistheGCCFdelayingpay-ments to persons in need, they arewastingtime,effortandmoney.

Each of our clients who were con-tacted,numberingover200,hadprevi-ously been assigned Claimant iden-tificationnumbersbyBP,whichwereinthe GCCF system. Additionally, eachclienthadfiledtherequiredclaimswithsupporting informationwithGCCF. Atthe time of filing, our clients wereassignedaclaimidentificationnumber.GCCF had on file the names of eachlawyerfromourfirmhandlingclaimsforaclient.Thiswouldhavebeenknownto

GCCFatthetimesoftheimpropercon-tacts.Nevertheless, impropercontactsweremadebyGCCFandourclientsweretoldtofilloutnewclaimformsandsendthemintoGCCF.Itappearsthatmanyofourclientsnowhaveatleasttwoclaimidentification numbers, which is veryconfusingtosaytheleast.

These contacts are an interferencewith thecontractual relationshipwithourclients.FeinbergandGCCFwereputon notice to make no further contactwithanyclientrepresentedbyourlawfirm.We attempted to cooperate fullywith Feinberg and GCCF and wereshocked at his allowing this conduct.LawyersfromourfirmhadmetwithFein-bergpersonallyanddiscussedtheclaimsprocesswithhim.OurdesirewastofirstfileemergencyclaimsonbehalfofclientswhoelectedtofirstdealwithBP’sclaimsprocessandthenfilewithGCCFonceFeinberg tookover theclaimsprocessfromBP.

Ourgoalistorepresentourclientsandobtainforthemallwhichtheyarelegallyentitledto.ButourexperiencewithBP,andnowwith theGCCF,hasnotbeenverygood.OnSeptember8th,FeinbergdeniedthatGCCFknewourclientswererepresentedbyourfirmwhichissimplynottrue.Thefirmnameandlawyerhan-dling each claim were on each claimform.Soit’simpossibleforGCCFnottohaveknowntheclaimantswererepre-sentedbyourfirm.IwroteFeinbergonSeptember13thandlethimknowthathewaswrongaboutthecontactswithourclients. Our job is to make sure ourclientsarefullyandadequatelycompen-satedfortheirlosses,boththosetodateandinthefuture.That’sexactlywhatwewilldo.

III. PURELY POLITICAL NEWS & VIEWS

STATeWide RACeS

ALookAtTheGovernor’sRace

Accordingtoallofthelegitimatepollsdonerecently,Dr.RobertBentleyenjoysacommanding lead over CommissionerRon Sparks. That probably shouldn’tcomeasabigsurpriseforanumberof

reasons. TheTuscaloosadoctorcomesacrossasanon-politicianandappearstobe a good man. At this juncture, Dr.Bentleyhasverylownegativesaccordingtoallofthepollsandthat’sveryimpor-tant.

But,MontgomeryinsiderssaythatRonshouldn’tbecountedoutat thisstage.Ron isahardworkerandhasan issuethatmanypeopleappeartoagreewithhimon—andthat’stheclaimedneedforastatewidelottery.SofarthathasbeenRon’smainmessage.IwatchedthefirstteleviseddebatebetweenthecandidatesonSeptember16thanditwasgenerallyagooddiscussionoftheissues.ButIdoubtthatmanyfolkswatchedit.Thisracewilllikelytightenupconsiderably,butaleadofover20pointswillbehardforRontoovercome.

TheLt.Governor’sRace

AllofthepollsareshowingthatJimFolsomwilldefeatKayIveyintheracefor the number two spot. Jim enjoysstrongsupportwithindependentvotersand that isextremely important.He isalsogettingstrongfinancialsupportfromthe business and medical communi-ties. The first twotelevisionadvertise-mentsrunbytheFolsomcampaignareverygood. Themessage inbothads ispositiveandthepublichastoappreciatethat. Idon’t look for things tochangeverymuchinthisrace.

TheMenWantingToBeAttorneyGeneral

ThevoterswillhaveaclearchoiceintheracebetweenthetwomenwantingtobecomeAlabama’s topcop.Ononesideyouhaveanexperiencedandwell-respectedlawyerfromMontgomerywhohastriedhundredsoflawsuitsasacivildefense lawyer.On theother side, thecandidate isaWashington insiderwhohasbeenalobbyistforpowerfulspecialinterestsforhisentirecareer.

James Anderson, the Democraticnominee, is the lawyer and LutherStrange,theRepublicannominee,istheWashingtonlobbyist.Itwillbeinterestingtosee if thevoterswillelecta lawyerovera lobbyist. Itwilldependonhowmuchattention themediapays to thisimportantrace.IwassurprisedtoreadonSeptember24ththatLuthercalledJamesa“triallawyer,”whichistotallyfalse.Inanyevent,it’sclearthatLutherwilloutspendJamesbyaverylargemargin.

TheSupremeCourtRaces

SofartheracesforthethreeSupremeCourtseatshaven’treceivedagreatdealofattention.Theonlypublicexcitementcame when it was reported that twoGOP Justices contributed money to aDemocratic nominee. That seemed toupsetanumberofeditorialwritersforstatenewspapers.Itwouldberefreshingifthosewriterswouldpayasmuchatten-tion to thequalificationsof thecandi-dates. Based on recent polling, fewpotentialvoterscanevennameanyofthecandidates.But tomakethecandi-dates feel a little better, few of thosepolledcouldnameanyof the Justicesnowon theCourt. Thatdoesn’t speakverywellforhowweselectmembersofthehighestcourtinourstate.Hopefully,thatwillchangeoneofthesedays.

IV. LEGISLATIVE HAPPENINGS

The COST Of Child AbuSe in AlAbAmA

Hopefully,theAlabamaLegislaturewilltake action next year to deal with aseriousprobleminAlabama.Thecostofchild abuse is typically measured inbrokenbonesandbroken lives, in thenumberofhorrifying talesand imagesfound on the airwaves and in themorning newspaper pages. But abusealso has an economic cost. A reportreleasedlastmonthbytheUniversityofAlabamasuggeststhatthecostmaybelargerthanexpected.Thisisanareaofconcernthatmustbeaddressed.

Child abuse costsAlabamians morethan$520millioneachyear,accordingtothereportpreparedbytheuniversity’sCenter for Business and EconomicResearch. Marian Loftin, director ofAlabamaChildren’sTrust Fund,whichcommissionedthestudy,saidthe largefigurecameasasurprisetoher,too.Shestatedthattheyknewitwas“very,verycostly,”butthatnobodythoughtitwouldbethathigh.Thereportdividedtheeco-nomicimpactofchildabuseintodirectcostssuchashospitalbillsandcoststothejudicialandwelfaresystems,indirectcoststhatincludeadultcriminalityandlostproductivitytosociety.UAresearch-

ersdrewondatafromvariousnationalstudies. Then applied those figures tostatedemographicstocomeupwiththeestimates.

Paul Smelley,deputydirectorof theDepartmentofChildAbuseandNeglect,whichoverseestheChildren’sTrustFund,saidthenewinformationwillhelpadvo-catesbyprovidingeasy-to-graspfigurestociteinliteratureandwhentalkingtoleg-islators about budgeting needs. Thereportstopsshortofmakingspecificrec-ommendationsonhow toaddress theproblem.Theintentofthereportappar-entlywastoraiseawareness,notproposesolutions.Dr.CarlFerguson,professorattheUniversityofAlabamawhowasacon-sulting economist on the report, said:“Thisstudysimplysayswakeup,there’sanissue.”Hopefully, thelegislatorswillrecognizehowseriousthechildabuseissue isanddealaggressivelywithrealsolutions.Therewillbelegislationagainthisyearaddressingthisproblem.Source: Associated Press

V. COURT WATCH

fOlkS WAnT SpeCiAl inTeReSTS OuT Of JudiCiAl RACeS

Anewnationalpollshowsthatvotersinbothmajorpartiesbelievecampaigndonationsaffectjudges’rulingsandwantgreatertransparency, ifnotacompleteoverhaulinstateslikeAlabamathatelectthetopjurists.Morethantwo-thirdsoftherespondentsinthenationwidepollexpressed distrust in how campaignmoney from special interests affectsjustice. The judicial watchdog group,JusticeatStake,commissionedthepoll.BertBrandenberg,executivedirectorofJusticeatStake,hadthistosayabouthowfolksfeel:

The American mainstream wants courts to be off-limits to special interest money and partisan poli-tics. The desire for impartial courts is broad and bipartisan.

Ourcourtsystemwasnotdesignedtobepoliticalinnaturebutitsurelookslikewe now have a system run by poli-tics.Therecanbelittledoubt,however,

thatfolksexpectjudgestobenon-politi-calandindependent.TheHarrisInterac-tivepoll,conductedinJune,revealedthat:

• BothDemocrats (71%) andRepubli-cans (70%) said they believed cam-paign donations have a significanteffect on courtroom rulings. Nearlyone-fourthdisagreed.

• Republicans (82%) and Democrats(79%)saidjudgesshouldnotpresideincases involving donors who gave$10,000 or more. Eight percent dis-agreed.

• Republicans (88%) and Democrats(86%)called for transparency indis-closingdonorsandtheamountstheygivejudicialcandidates.Eightpercentdisagreed.

It has been widely recognized thatAlabamais theposterchildforspecialinterestspendingonstateSupremeCourtcampaigns. Alabamahas longbeenthemostexpensivestateinthenationtorunfortheHighCourt.AlyceSpruellofTusca-loosa,whoservesasAlabamaStateBarpresident,saysthat“(w)earenumberoneinacategoryinwhichweshouldnotbenumberone.”Thatputsitaboutaswellasitcanbesaid.

CandidatesfortheAlabamaSupremeCourtoftengetatleastone-thirdoftheircashfromsinglesources,accordingtoarecent study by Justice at Stake, theBrennanCenterforJusticeandtheInsti-tute forMoney inStatePolitics. In theHarrispoll,69%called foralternativessuch as a system in which judges areappointedbyacommitteeandperiodi-cally facevoters for retention.But thepollfailedtotakeintoconsiderationthehundredsofmillions that areput intojudicialracesnationwidebygroupsusing527 committees. These committeesspendtheirmoneyforcandidatesdirectly,butdon’thaveanyreportingtoworryabout.ThishasbeenthereasonRepubli-cancandidatesinAlabamahavedonesowellinthepastseveralelections.

Alabama is one of seven states thathold partisan elections for SupremeCourt,while14stateshavenonpartisanelections.Appointment-retentionsystemsareusedin24states.ChiefJusticeSueBellCobbandtheAlabamaStateBarhavepushed for an appointment-retentionsystem.Eachhassubmittedbillscallingforincrementalchanges.Thelegislation



waskilledeverytimethebillswereintro-duced.AlycesaystheStateBarischang-ingtactics,combiningpubliceducationand consensus-building and that "thebusinesssector,politicalparties,ourpro-fessionandthepublicmustfindaunifiedapproach."ItotallyagreewithAlyceandwillsupportanylegislationofferedthatwillfixabrokensystem.Source: AL.com

VI. THE NATIONAL SCENE

JuSTiCe depARTmenT Will SOOn Sue bp

The Justice Department said lastmonthitmaysueBPfordamagesfromtheDeepwaterHorizonoilspill.Thegov-ernmentsaid inapleadingfiled intheU.S.DistrictCourtinNewOrleansthat“TheUnitedStatesexpectsthat itmayfileacivilcomplaintrelatedtotheDeep-water Horizon disaster.”The JusticeDepartment requested that the Courtestablishatrackseparatefromthemanyprivate lawsuits for the government’sclaims.Thegovernmentsaysitsclaims,“mayinvolvecomplexscientificandeco-nomicexperttestimony”thatmaynotbeneededtoquantifyclaimsfromprivateparties. But putting the government’sclaimsonaseparatetrackisnotlikelytohappen.When the JusticeDepartmentfilessuit,thelawyerswillseekclaimsforthegovernmentundertheOilPollutionActandtheCleanWaterAct.

The CleanWaterAct authorizes theUnitedStatestoseekcivilpenaltiesfromvariousentitiesforoilspills,inamountspotentiallyupto$1,100,andinsomecir-cumstancesupto$4,300,perbarrelofoilspilled.Thegovernmentwilllikelyseekcompensationforthecostofremovingoil;economicdamagesuchasthecostofincreasedpublicservicesandlossoftaxrevenue; and destruction of naturalresourcesandassessmentofthatdamage.BasedonhowBPhastreatedotherClaim-ants, I fullyexpect the JusticeDepart-ment to file suit fairly soon. The onlything that could possibly stop a suitwouldbeasettlementwithBPorstronglobbyingbytheoilgiant.Thefirstoption

ispossible,butthesecondismorelikelytobetherouteBPwouldtake.Source: CNN

AbAndOned WellS in gulf muST be plugged

TheObamaAdministrationwillrequireoilandgascompaniesoperatingintheGulfofMexicotoplugnearly3,500non-producingwellsanddismantleabout650productionplatformsthatarenolongerused.InteriorSecretaryKenSalazarsaidaformalnoticetothecompanieswouldmakeenergyproductionintheGulfsaferand prevent potentially catastrophicleaksatwells that in somecaseshavebeenabandonedfordecades.Therearemorethan27,000abandonedoilandgaswellsintheGulfofMexico.Additionally,therearemorethan1,000oil rigsandplatforms that are not being used. AnAssociatedPress investigation showedthatmanyofthewellshavebeenignoredfordecades,withnoonechecking forleaks, and that’s real scary. The orderrequireswellsthathavebeeninactiveforthepastfiveyearstobeplugged.Inmyopinion, this should have been donelongago.Source: Associated Press

SOldieRS CAn Sue miliTARy COnTRACTORS OveR TOxiC emiSSiOnS

Militarycontractorscanbesuedbysol-diersandotherswhoallegetheywereharmed by improper waste disposalwhileservinginIraqandAfghanistan,afederaljudgeinMarylandhasruled.U.S.DistrictJudgeRogerW.TitusruledthatHouston-basedmilitarycontractorsHalli-burtonCo.AndKBRaresubjecttolaw-suits alleging thecontractorsexposedsoldierstotoxicemissionsandcontami-natedwaterwhentheyburnedwasteinopenpitswithoutpropersafetycontrols.

JudgeTitus isoverseeing43lawsuitsfiledin42statesontheissue.ThePlain-tiffsclaimthewastedisposalmethodsusedbythecontractorscausedseriousphysical injuries, includingcancerandpermanentrespiratorydamage.Thecon-tractorssoughttohavethelawsuitsdis-missed,sayingitwouldrequirethecourtstoevaluatesensitivemilitarydecisionswithout the necessary knowledge orexpertise.JudgeTitusagreedthecourts

musttreatsuchlawsuitswithcautiontoprotect military missions abroad. Hewroteinhisorder:

Courts must be careful not to pass judgment on matters outside their realm of competence, and espe-cially in national security matters entrusted to other branches of gov-ernment.

Judge Titus ultimately concluded,however,thatthecourtsshouldhearthecasessothatpeoplewhomayhavebeenharmedhaveachancetomaketheircase.He said both sides should proceed insuchawaythatthemilitarywouldnothavetodealwithintrusiverequestsforinformation.Source: Law.com

ORegOn men SeTTle bOy SCOuT Sex AbuSe CASeS

Sixmenwhoallegedtheyweresexu-ally abused by an Oregon Boy Scoutsleaderinthe1980shavesettledtheirlaw-suitsagainstthegroup’snationalorgani-zation for undisclosed amounts. Thesettlementsincludethecaseofoneman,KerryLewis,whowasawardednearly$20millionindamagesfromBoysScoutsofAmericainatrialthatendedinApril.Itwasbelievedtobethelargestsuchawardagainstthenationalorganization.AjuryfoundtheTexas-basedgroupnegligentforallowingaformerassistantscoutmas-ter,TimurDykes,toassociatewithScoutsafterheadmittedtoaScoutsofficialin1983thathehadmolested17boys.TheverdictcameastheBoyScouts,aCon-gressionally-charteredorganization,marksitscentennial.

Secret files kept by the Boy ScoutswereusedintheLewistrialtodemon-stratethattheorganizationdismissedorignoredallegationsofsexabusebyScoutleadersfornearlytwodecades.Itwasthefirsttimetheso-called“perversionfiles”hadbeenusedinatrial.Afterthejury’sverdict, theBoyScoutsofAmericastillfacedlawsuitsfromfiveothermenwhoalleged Dykes molested them. Thosetrialshadbeenscheduledtobeginthisfall.Butallofthecaseshavebeensettled.

TheBoyScoutshavesettledsexabuselawsuitsoutofcourtbefore,althoughtheexactnumberisnotknownbecausenotallareannounced.Butanexpertonthe


subject,PatrickBoyle,hassaidthatfrom1984through1992,theScoutsweresuedat least60timesforallegedsexabuse,withsettlementsandjudgmentstotalingmorethan$16million.Source: Associated Press

VII. THE CORPORATE WORLD

CORpORATe pROfiTS SOAR And WORkeRS SuffeR

AccordingtoareportbyThe New York Times,corporateprofitsaresoaring.Atleastthat’sthecaseforthebiggestcom-panies thatreportearnings. TheTimessaid that profits of 175 ofAmerica’sbiggestcorporationshave soaredbyawhopping42%thisyear.EvenwithalloftheeconomicwoesintheU.S.,the500largestcorporationsnowhaveanall-timerecord $1 trillion in cash. It’s ratherstrangethatwhileprofitsarerisingbyleapsandbounds,andtremendoussumsof cash are being hoarded, corporatebossesarenothiringemployees.

Instead they are firing or laying offexisting workers.You might want tocheckoutafewofthesecompanies.Youcan start with these: Ford MotorCompany;Alcoa;HarleyDavidson;UnitedTechnologiesandevenGeneralMotors.Each of these companies—with theexceptionofGM—hadrecordprofitsandyet cutpayroll. For exampleFordhad$2.6billioninprofitsduringtheperiodApril,MayandJune,butcutitsworkforcein half during the past decade andrecently announced it would not behiringanynewworkers.Iunderstandthecode word for not hiring is“keepingcapacityincheck.”Source: New York Times

CORpORATiOnS SpReAd influenCe ThROugh COngReSSiOnAl ChARiTieS

Lawmakersaremixingcharitableandpolitical agendas which create yetanotherloopholethatultimatelyallowsmore corporate inf luence in Con-gress.The New York Timesfoundthat“atleasttwodozencharitiesthatlawmakers

ortheirfamilieshelpedcreateorrunrou-tinelyacceptdonationsfrombusinessesseekingtoinfluencethem.”AmongthesecorporationsmakingdonationsareAT&T,Chevron, General Dynamics, MorganStanleyandEliLilly.

Aprovisiontorulesimposedin2007allowsthesebusinessestomakeunlim-itedgiftstothelawmaker’scharities.It’sawin-win for business executives whoclaimtheywanttogivetoa“goodcause,”whentheyactuallyareseekingtoinflu-encepoliticians’positionsonlegislationor policy. For example, the cigarettemaker,Altria, quickly donated at least$45,000overasix-weekperiodtofourHouse members’ char i table pro-grams.Thisso-calledgooddeedconve-niently coincidedwith thecompany’sattemptstoseek“approvaloflegislationintendedtocurbillegalInternetsalesofitscigarettes.”Surelythebossesatthesecompaniesknewwhattheindirecteffectof their giftswouldbe.CraigHolman,whoisPublicCitizengovernmentaffairslobbyist,said:

It’s plain and simple influence ped-dling. These are the same busi-nesses that have maxed out in g iv ing campaign contr ibu -tions. They find other ways to keep throwing money at these members of Congress.

Thesecharitiesmaybehelpingthosein need, but not without members ofCongressgettingthebenefitsofcorpo-rategivingthat isn’tregulatedbycam-paign finance laws.While some goodresults,it’swrongforboththecorpora-tionsandlawmakerstooperate inthismanner.Source: wordpress.com

fOReST phARmACeuTiCAlS pleAdS guilTy

ForestPharmaceuticals,aForestLabo-ratories Inc. unit, has agreed to pleadguilty to distributing its LevothroidthyroiddrugbeforeitwasapprovedbytheFoodandDrugAdministration.Thecompanywillpay$313million to thefederal government. The charges alsoinvolvedillegalpromotionofCelexaforuseintreatingchildrenandadolescentssuffering from depression. The ForestPharmaceuticalsunitalsoagreedtosettleallegations itcaused falseclaims tobe

submitted to federal health care pro-grams for Levothroid, Celexa andLexapro.Alltold,thecompanywillpaya$150millioncriminalfine,willforfeit$14million,andpaymorethan$149milliontosettletheFalseClaimsActallegations.U.S. AttorneyCarmenOrtiz, located inBoston,saidinthestatement:

Forest Pharmaceuticals deliberately chose to pursue corporate profits over its obligations to the FDA and the American public. The company knew that it did not have FDA approval to distribute Levothroid.

ForestLaboratoriesandForestPharma-ceuticalsareDefendantsinallbutoneofourMedicaidfraudlawsuits,whereweallegethatForestmadefalsestatementsto the Medicaid agencies. Contrary towhattheCEOofForestissaying,Forestobviouslydisregardedtheseprinciplesofintegrity,honestyandethicswhenitsys-tematically defrauded our Medicaidagencyclients.Furthermore, itappearsthistendencytomisleadthefederalandstate governments was a widespreadproblem within the Forest corporatefamily.Ifyouneedadditionalinformationonthissubject,contactClayBarnett,alawyerinourConsumerFraudSection,at800-898-2034 or by email at [email protected]: Bloomberg

OmniCARe SeTTleS STATe mediCAid CASeS WiTh TWO STATeS

Covington-based Omnicare Inc. hasentered into settlement agreementsvalued at more than $21 million withMichiganandMassachusetts.Thesettle-mentcame incases involvingchargesthatthefirmoverchargedthestates’Med-icaidprograms.ThesettlementbyOmni-care, the nation’s largest provider ofpharmaceuticalcarefortheelderly,arosefrom a whistle-blower lawsuit filed infederal court inChicago in2003by aformerOmnicarefinancialanalyst.

Omnicarefailedtofollow“usualandcustomary” pricing regulations whenchargingMedicaidforprescriptiondrugssuppliedtoresidentsofskillednursingfacilitiesinMassachusettsandMichigan.Inoneinstance,thewhistleblowercom-plaintalleged that in2001Omnicare’sNorthShorePharmacyinMassachusetts


waspaidbyprivateinsurersanaverageof$27.75perprescription,whileitspay-ments for Medicaid patients averaged$47.15perprescription—roughly67%higher.

Underthesettlement,Omnicarewillpay$9.45milliontoMassachusettsand$11.6milliontoMichigan.ThesettlementalsorequiresOmnicaretocomplywithpricingregulations,whichincludebillingthelowestpricethecompanychargesaprivatethird-partycustomerforthesamedrug.Vogel,SladeandGoldstein,aWash-ington D.C. law firm, represented theformerfinancialanalystinthiscaseanddidaverygoodjob.Source: Cincinnati.com

gOveRnmenT JOinS pfizeR SuiT OveR dRug’S mARkeTing

TheJusticeDepartmenthas joinedawhistle-blowerlawsuitagainstPfizeranditssubsidiaryWyethPharmaceuticalsthataccusesWyethofillegaloff-labelmarket-ingofRapamune,adrugusedtopreventrejectionofkidneytransplants.Thisclaimseeksrecoveryofhundredsofmillionsofdollarsininappropriatebillingstopublichealthprograms.Nineteenstates,includ-ingNewYork,andtheDistrictofColum-biaalsojoinedthefiling.

Thereisalsoacriminal investigationintothemarketingbyWyeth.Thewhistle-blowersuitwasfiledin2005,fouryearsbefore Pfizer boughtWyeth for $68billion.Pfizercouldbeinviolationofacorporateintegrityagreementitsignedayear ago in a separate case if it wasinvolvedinfurther illegalsales. Inthatcase,Pfizerpaid$2.3billion,includinga$1.3billioncriminalfine,thelargestinUnitedStateshistory,tosettleinvestiga-tionsintoillegalmarketingofthepainkill-ersBextraandLyrica,theschizophreniadrugGeodonandZyvox,anantibiotic.Source: New York Times

dRug COmpAny OveRChARged STATe by $27.6 milliOn

A Pennsylvania Court judge hasorderedpharmaceuticalcompanyBristol-MyersSquibbCo. TostopinflatingthewholesalepriceofitsdrugspurchasedbyPennsylvania’spharmaceuticaldrugpro-gramsfor thepoorandfor theelderly.CommonwealthCourt JudgeRobertE.

Simpson said inhisorder thatBristol-Myers,headquarteredinNewYorkCity,violated thePennsylvaniaUnfairTradePracticesandConsumerProtectionLawwithunfairordeceptivepractices.Thejudge said Bristol-Myers owes $27.6milliontotheStateofPennsylvaniaforthepriceofdrugschargedinviolationoffairtradepractices.

The State of Pennsylvania filed suitagainst13pharmaceuticalcompaniesin2004,allegingthatthecompaniesinflatedthewholesalepricesofdrugspurchasedbystate-fundedprescriptiondrugpro-grams, including the state Medicaidprogramforthepoor,thestateprescrip-tiondrugprogramforseniorcitizens,thePharmaceuticalAssistanceContractfortheElderly,andamedical-prescriptionplanforstateemployees,thePennsylva-niaEmployeesBenefitTrustFund.Source: Law.com

h-p SeTTleS kiCkbACk CASe fOR $55 milliOn

Hewlett-Packard Co. will pay $55milliontosettleallegationsthatitpaidkickbackstowinU.S.governmentbusi-nessandotherchargesrelatedtogovern-mentcontracts.Separately,H-Pwilladd$10 bi l l ion to i ts share-buybackprogram.TheJusticeDepartmentallegedthatH-Pknowinglypaid“influencerfees”tosystems-integratorcompaniesinreturnforrecommendationsthatfederalagen-ciespurchaseH-Pproducts.

ItalsoallegedthatH-P’s2002contractwiththeGeneralServicesAdministrationforcomputerequipmentandsoftwarewas defectively priced because thecompanyprovidedincompleteinforma-tiontocontractingofficersduringnegoti-ations.ThedevelopmentscameaboutasthePaloAlto,California,computermakerstruggledthroughsometurbulenttimesthatincludedtheresignationofitschiefexecutiveofficeranda17%slideinitsshareprice.Asexpected,H-Pdeniedthatitengagedinanyillegalconduct.Source: Wall Street Journal

Judge AllOWS lAWSuiTS AgAinST bAnk Of AmeRiCA exeCuTiveS TO COnTinue

A federal judge in New York hasrefusedtodismissshareholderlawsuitsagainstBankofAmericaCorpandvarious

executivesanddirectorsover thepur-chaseofMerrillLynch&Co.duringthe2008 financial crisis and disclosuresaboutMerrill’slossesandbonuspayouts.U.S.DistrictJudgeP.KevinCastelissuedtheruling.BankofAmericaandformerChief Executive Kenneth Lewis havedeniedcivilfraudchargesmadeinasepa-rate lawsuit by New York AttorneyGeneralAndrewCuomooverthemerger.

ProblemsatMerrillhadallowedBankofAmerica togetasecond infusionoffederalbailoutmoney.Thebankwasalsocriticized for not disclosing Merrill’ssoaringlossesinatimelymannerandforlettingMerrillpay$3.6billionofbonusesat the time. Merrill’s losses reached$15.84billion in the fourthquarterof2008. JudgeCasteldeclined todismisssome of the claims related to allegedmaterial misstatements over Merrill’sbonuses and the scope of Merrill’slosses.Anotherclaimrelatedtowhetherthebankintentionallyhidanagreementwithregulatorstoobtainbailoutmoney.

Claimsoverwhetherthebankshouldhaveconductedbetterduediligence,andshouldhaverevealedwhyitconsideredinvokingacontractualclausetobackoutofthemerger,weredismissed.Earlierthisyear,BankofAmericasettledaU.S.Securi-tiesandExchangeCommissioncivilfraudcaseoverthemerger.Inaseparateruling,alawsuitbyBankofAmericaemployeesoverlossesinretirementplans,wherethebank’sstockwasaninvestmentoption,wasdismissed.Source: Insurance Journal

WeST viRginiA mine fAiled TO meeT SAfeTy STAndARdS

ItappearsMasseyEnergyCo.failedtomeetsafetystandardsatitsminewhere29minersdied inApril. Federal safetyofficialsinvestigatingtheexplosionsaid79%ofthedustsamplesfromthemineshowed insufficient levels of crushedlimestone that miners are required tospreadonsurfacestoneutralizecombus-tiblecoaldustandpreventmajorexplo-sions. The findingsby theMineSafetyandHealthAdministrationrevealanotherexampleofjusthowsomepowerfulcor-porations believe they are above thelaw.ThisexplosionatMassey’sUpperBigBranchMineinMontcoal,WestVirginia,wasthedeadliestcoalmineaccidentin


40years.TheJusticeDepartmentshouldtakethestrongestactionpossible if infactMasseyhasviolatedsafetystandards.Source: Wall Street Journal

VIII. TOYOTA LITIGATION UPDATE

TOyOTA SeTTleS SAylOR fAmily lAWSuiT

Toyota Motor Corp. has settled thelawsuitbroughtbyrelativesoffourfamilymembers killed in a high-speed crashnearSanDiegothatfirstbroughtatten-tiontothesafetyproblemsatToyota.Thatled to therecallsofmillionsofToyotacars.MarkSaylor,aCaliforniaHighwayPatrolofficer,hadborrowedtheToyota-made sedan from thedealer inAugust2009.Hewaskilledalongwithhiswife,hisdaughter andhisbrother-in-law, astheydroveonaCaliforniafreeway.Theircar reached speeds of more than 120mph,hitasportutilityvehicle,launchedoffanembankment,rolledseveraltimesandburstintoflames.A911callcapturedthebrother-in-lawtellingtheotherstopray before the car launched off theembankment. The experienced lawenforcementofficercouldn’t slow thecardownasitspeddownthehighway.

Shortlyafterthecrash,Toyotarecalledmillionsofcarstoreplacefloormatsthatit said could cause the accelerator tojam.Thecarmakerlaterrecalledmillionsmorevehiclestoreplacegaspedalsthatitsaidcouldstick.Thecasewasconsid-eredthestrongestofhundredsof law-suitsoverclaimsstemmingfromsuddenaccelerationinseveralToyotamodels,andbrakeglitcheswiththecompany’sPriushybrid. LosAngeles County SuperiorCourtJudgeAnthonyMohrsaidhewouldprobablysignasealingorderthatwouldkeepthesettlementconfidential.

Toyotabadlywantedthislawsuittogoaway as quietly as possible since itcouldn’t afford for the media and thepublictofindoutwhatreallyhappenedtocausethecrash.Simplyput,thisisalawsuit thatToyota couldn’t afford totry. TimPestotnik, a SanDiego lawyer,representedthefamily.Heandhisfirm

should be commended for their goodwork.Source: Associated Press

TOyOTA’S CRASh ReCORdeRS ARe SuSpeCT

AtopToyotaexecutiveclaimsthecrashdataboxesinToyotavehiclesarereliable,butthatabuginthesoftwarethatreadstheinformationcanprovideinaccuratevehiclespeeds.ThatdisclosurecameasNHTSAcontinueditsinvestigationintounintended acceleration of Toyotamodels. The Japanese car maker hadacknowledgedpreviouslythattheeventdatarecorderswerenotaccurate.Toyotaisnowclaimingthat theproblemonlyinvolvesspeed.Thatismostinterestingtosaytheleast.

Theeventdatarecorder,knownasanEDR, also records such informationasthrottlepositionandbrakingpressure.Frankly, Ihavedifficultybelievingany-thingToyotasaysnow,basedonitspasthistoryofwithholdingcriticalinforma-tion from NHTSA and theAmericanpeople, and I am not the only personwhofeelsthatway.

ReCenT Ruling hAS TOyOTA SCRAmbling

DimitriosBiller,a lawyerwhois inahotly-contestedbattlewithhis formerboss,ToyotaMotorSales,U.S.A.,Inc.,willbeable to introducedocuments inhisarbitrationhearingthatthecompanyhadclaimedwereprivileged.Andifthatnewswasnotbadenoughforthecarmanufac-turer in theBillercase, the rulingwilllikely affectothercases. Ibelieve thisrulingmayinfluencejudgestoallowthesamedocumentsintoevidenceinothercasesagainstToyota.

The arbitrator, retired federal judgeGaryTaylor,saidinhisrulingthatBillerhadmadeaprimafacieshowingthatthedocuments,whichordinarilywouldnotbeavailableforhimtouseindiscoveryorduringthearbitrationhearing,qualifyunderthe“crime-fraud”exception.Infair-ness,therulingdoesn’tmeanthatToyotahas lost—nor does it assure Biller avictory.Thearbitratordidn’trule“thatacrimeorafraudhastakenplace,”andthatwasmadeclearinhisorder.JudgeTaylorwroteintheorder:

The ruling is simply that a prima facie showing has been made, so otherwise-privileged materials may be used in discovery and arbitra-tion.

TherulingdoesnotmeanthatallofthedocumentsBillerpossesses,oreventhemorethan100documentsthatJudgeTaylorreviewed,canbereleasedtothepublic. Though Plaintif fs’ lawyersinvolved in the many lawsuitsToyotafaceshavelongsoughtaccesstothem,JudgeTaylorwrotethathisdecisiononlyallowsMr.Billertousethedocumentsinthislimitedcontext.JudgeTayloraddedthatuntilherulesotherwisethe“materi-alswillremainconfidentialwithinthisarbitration,withnopublicdisclosure.”

ItseemsobviousthatToyotawillhavetoconvinceotherjudgesthatthesedocu-ments,whichdealwithsafetyissuesandToyota’sconductonsafetyissues,shouldremaina“secret.”TheBillerarbitrationhearingisexpectedtobeginonNovem-ber 15th, with a final ruling possiblycoming in early January. It will bewatchedcloselybyourfirm.

Biller, who worked forToyota from2003to2007,wasitsnationalmanagingcounselinchargeofdefendinglitigationbroughtinrolloveraccidents.Isuspecthe is a personToyota wishes wouldsimplygoawayoratleastkeephismouthshut.IfthemanythingsthemanhassaidabouthowToyotahasoperatedinroll-overlitigationaretrue,thepublicshouldhaveaccess to informationthatwouldverify his claims. In addition,Toyotashould be severely punished for itsconduct.Source: Law.com

Judge mAy AllOW AddiTiOnAl ClAimS AgAinST TOyOTA

Additional claims for economicdamagesmaybeallowedagainstToyotaMotorCorp.inthemultidistrictlitigationoveritssuddenunintendedaccelerationrecalls.ThetemporaryorderbyU.S.Dis-trictJudgeJamesSelna,whoisinchargeof the MDL, came after the Plaintiffs’steeringcommitteeintheMDLfileditsfirst consolidated Complaint for eco-nomicdamages. In theComplaint it isallegedthatToyotaknowinglyhiddefectsassociatedwithunintendedaccelerationbeginningin2002whilefalselyassuring

consumers about the safety of itsvehicles.

ThecommitteeactuallybroughttwoComplaints: an economic loss masterconsolidatedcomplaint(MCC)filedonbehalfofsome50namedconsumersandfourbusinessesnationwide;anda firstamendedconsolidatedcomplaintfiledbytenconsumersandtwobusinessesinCal-ifornia.EachrelyonclaimsunderCalifor-niaconsumer-protectionlaws,includingtheCaliforniaLegalRemediesActandtheCaliforniaUnfairCompetitionLaw.

Accordingtothecommittee,theMCCwasfiledtohandlepleadings,themeritsofthecase,anddiscoveryissuesthatarepartoftheMDL.Thefirstamendedcon-solidatedComplaintisa“vehicleforclasscertificationandtrial”becauseitsimpli-fiestheprocessbyapplyingonlyCalifor-nia law, rather than a hodgepodge ofvariousstatelaws.

AsofSeptember20th,186classactionshad been filed for economic damagesassociatedwithunintendedaccelerationin39states,theDistrictofColumbiaandPuerto Rico. Of those, more than 120stateclaimsassociatedwiththerecallsofacceleratorpedalsandfloormatdefectsnotassertedintheMCC,whichallegesadefectintheelectronicthrottlecontrolsystem of the vehicles. The MCC alsoomits certain other claims that werebroughtagainstToyota,suchasviolationsundertheRacketeeringInfluencedandCorruptOrganizationsAct,negligenceandlemonlawclaims.

Caseswith claimsomitted from theComplaints would be“essentially inlimbo”untiltheMDLwrapsup.Further-more,Toyotawouldbeforcedtoaddressadditional claims after litigating theclaimsintheexistingComplaints.JudgeSelna, inhisorder, saidclaimsomittedfrom the MCC must be brought byOctober12th,ortheywillbedismissed.Under the judge’s order,proposals onhowtoincorporatethoseclaimsintheMDLareduebyOctober26th.Ahearingon those motions is scheduled forNovember8th. Inhis temporaryorder,JudgeSelnaruledthatthosewithclaimsomittedfromtheMCCareentitledtodueprocessandwrote:

While it might make sense to treat a MCC as a superseding Complaint that effectively dismisses unasserted claims with prejudice when there is no meaningful legal distinction

between plaintiffs’ asserted and unasserted claims, that is not the case when there are meaningful distinctions among the underlying Complaints. Here, as both parties recognize, the MCC omits several claims, allegations, and parties that are entirely distinct from those asserted in the MCC.

JudgeSelnaalsoallowedDefendantsnot named in the consolidated Com-plaintstorespondbytheOctober12thdeadline.Toyotaanditssubsidiary,ToyotaMotorSalesUSAInc.,aretheonlyDefen-dants named in the Complaints. DeeMiles,whoheadsupourfirm’sConsumerFraudSection, serveson thePlaintiff’ssteeringcommitteeintheMDL.Deehasbeenveryimpressedwiththemannerinwhich Judge Selna has handled thiscomplexlitigation.It’squiteobviousthathe demands lots from lawyers on allsides,andwon’tputupwithdelaysorexcuses,andthat’sgood.Source: Law.com

IX. PRODUCT LIABILITY UPDATE

inAdequATe fedeRAl STAndARdS dO nOT mAke CARS SAfe fOR The publiC

BeforeanyautomobilesintheUnitedStatescanbesoldtothepublic,theman-ufacturerofthatcarmustcertifythatthecarpassesalloftheFederalMotorVehicleSafetyStandards(FMVSS)applicabletopassengervehicles.Congress’desire inpassingthesestandardswas“tospecifyonlytheminimumstandardsformotorvehiclesafety,withtheexpectationthatmarketfactorswouldencouragemanu-facturerstodevelophighersafetyperfor-mance.”FMVSSdonotestablishthestateoftheartoranoptimallevelofperfor-mance,but rather aminimum levelofperformancethatthemanufacturermustmeettosellitsproduct.Thestandardsdonotgovernallaspectsofdesignandman-ufactureofavehicle.Mostdesignaspectsarelefttothediscretionofthemanufac-turer. FMVSS covers only a limitednumber of items on a car and only alimitednumberofaspectsof thecar’sperformance.

The standards, and the process bywhich they are adopted, are deeplyf lawed. Joan Claybrook, the formerAdministratoroftheNationalHighwayTrafficSafetyAdministration,summedupthe problem in a November 28, 1980letter to the then-PresidentofGeneralMotors:

Our Federal safety standards are and were intended by Congress to be minimum standards. The tragedy is that many manufactur-ers have treated the standards more like ceilings on safety performance rather than floors from which to improve safety.

Thatisasadcommentaryontheatti-tude of car manufacturers—to designcars just to meet the bare minimumrequirementsofperformance.Yetthatisexactlywhathasbecomecommonplaceinthiscountry.NHTSAhasfailedtodothe job required toprotect thepublicfromunsafevehicles.

ManyofthecurrentFMVSSstandardsapplicabletocarstodaywereissuedinthe late 1960s or 1970s. Think aboutthat.Therehavebeengreattechnologicaladvancementsmadeinthisworldsincethelate60s—cellphones,internet,andcomputersthesizeofdimes.Despitealloftheseadvancements,thefederalgov-ernmentstillonlyrequirescarmanufac-turers to make its cars pass certainperformancerequirementsfoundedontechnologyfromover30-40yearsago.Itisascarythought.Yet,thosearethestan-dardsthatexist.

Thereasonstandardsfromthe60sand70sarestillapplicabletocars today isbecause the rule-making process toupgradeandimprovethestandardsisapainfullyslowprocessthatisinfluencedgreatly by the ever-changing politicalwinds. FMVSS are issued by NHTSAthrougharule-makingprocess.Therule-making process proceeds at a glacialpace.Ittypicallytakesseveralyearsfromthe initial notice of a proposed rulechangetofinalrule.Rule-makingthroughNHTSA is also a quasi - legislativepower.Theheadoftheagencyisapoliti-cal appointee. Major rule-making pro-posedbyNHTSAmustbeapprovedbytheOfficeoftheSecretaryofTransporta-tionandalsobytheOfficeofManage-mentandBudget,which ispartof theExecutiveOfficeofthePresident.When


there is a change in theWhiteHouse,thereisachangemosttimesinthedirec-tionofanyproposedchanges,upgrades,orimprovementstothestandards.Majorcontroversial decisions on issuing,amending,and/orrescindingFMVSSstan-dards are generally made by politicalappointees,notbyNHTSA’sexpertcareertechnicalstaff.Thesepoliticalappointeesareobviouslyinfluencedbythefavored“constituents”oftheWhiteHouse.And,forthemostpart,historyreflectsthatthemost important constituency unfortu-nately is the motor vehicle industryitself.Thecarmanufacturersgreatlyinflu-ence NHTSA’s rule-making. In fact,NHTSAhasbeenconsiderablydependentupontheindustryfortechnicalinforma-tion. The cozy and close relationshipbetween NHTSA and the automobileindustry ishighlightedbythefactthatmanyformeremployersoftheregulatoryagency,uponleavingtheirpositionwithNHTSA,gotoworkforthecarmanufac-turers.

AnotherproblemwiththerelianceonFMVSSisthatNHTSAdoesnotapprovethesafetyoftheproductsbeforetheyaresold.TheprocessofcertificationwiththeFMVSS isoneof self-certification. ThemanufacturerordistributoritselfcertifiesthatitsvehicleiscompliantwithFMVSSbyalabelortagpermanentlyfixedtothevehicle.NHTSAdoesnot“approve”or“certify” that vehicles and equipmentmeetFMVSS,orthattheyare“safe.”Thisisunlike the FDA which must approvepharmaceuticalsbeforetheycanbesold.

Clearly,defectivevehicleshavebeensold in the history of auto making,despitethefactthattheywereself-certi-fied to meet applicable FMVSS stan-dards.Attimes,recallshavebeenissuedonvehiclesthatwerecertifiedtomeetallapplicableFMVSSrequirementsduetothediscoveryofasafety-relateddefect.FMVSSsarenotintendedtodefinewhatasafeproductisunderallcircumstances,or to relieve a manufacturer from itsresponsibilitytodesignasafeproduct.

As mentioned earlier, most of theFMVSSwere initially issued in the late1960s and 1970s. Many NHTSA safetystandardsareverylenientintermsofthestateoftheart,andintermsoftheabilityoftheindustrytoprovidehigherlevelsofsafetytoavoidoramelioratecrashesandinjuries and deaths resulting fromcrashes.Theydonotcovereveryaspect

ofperformanceofmotorvehicles.Thus,NHTSA has stated that, although thesafetystandardsmeettheneedforsafety,theydonotnecessarilyattempttosolvethe full extent of a particular safetyproblem.

NHTSAhasrepeatedlyurgedmanufac-turers to design their products to domore than merely meet the minimum“floor” required inNHTSA’s standards.FormerNHTSAAdministrator,Dr.RicardoMartinez,wrotethat“merecompliancewiththeminimumrequirementsofthestandardisnotenough;minimumstan-dardsshouldnotbethemost insafetydesignthatmanufacturersprovide.”Themessageheretothepublic isdon’tbedeceivedbymanufacturerswhoboastofhowtheirvehiclesmeetandexceedthefederalstandards.Thestandardsareweakandaretheresultsofapoliticalprocessdesigned to water them down. If youwould like more information on thissubject,contactDanaTaunton,alawyerinourfirmwhoisextremelywell-versedinthisareaof law.Shecanbereachedat800-898-2034 or by email at [email protected].

15-pASSengeR vAnS ARe veRy dAngeROuS

Tworecentrolloversinvolving15-pas-senger vans in different parts of thecountryhavebroughtmoreattentiontothepubliconhowdangerousthesevansreally are.Oneof themostdangerousvehicleson theroad, the15-passengervaniswidelyusedbychurches,schools,scout troops, day care centers andhotels.Thesevehicleslooklikeanyothervanexcepttheyhavebeenlengthenedtoholdmoreriders. Thetroubleis,whenyouputthoseextrapassengersonboard,thevanisthreetimesmorelikelytorollover inanemergency. Theproblem isalsoacceleratedwhenluggageandotheritemsareputonboardalongwiththepassengers.

Ford,GMandDodgeallmakeaversionof the15-passengervan. Thevans rolloverevenwhentheydonotcollidewithanothervehicle.Afterseveralwell-publi-cizedcrashes involvingthesevans, theNationalHighwayTrafficSafetyAdminis-trationtooktheunprecedentedstepofnoting:

These crashes have raised the ques-tion as to whether 15-passenger vans, especially loaded 15-passen-ger vans, are unusually susceptible to rollover. Fifteen-passenger vans differ from most light truck vehicles in that they have a large payload capacity and the occupants sit fairly high up in the vehicle. There-fore, when loaded the vehicle may have a much worse rollover pro-pensity than when unloaded.

NHTSAfoundthattheriskofrolloverincreases as thenumberofoccupantsincreasesbyasmuchas85%withtenormorepassengers.Car manufacturer sagreethatvehiclesshouldbedesignedtoslide out on f lat smooth pavementinsteadofrollover.However,the15-pas-sengervanfailsthisstandard.Hardesthithavebeengroupswhouse15-passengervanstotransporttheyoung.Therehavebeennumerousincidentsof15-passengervanstragicallyalteringlivesandfamiliesofyoungpeopleacrossthecountry.

Lawyersinourfirmhavebeenawareoftheproblemswiththesevehiclesformanyyears,butwererecentlyremindedof the dangers this vehicle possesseswhenachurchvanrolledoverrighthereinourhometown.ThiseventinvolvedaDodge15-passengervanthatrolledovercarryingayouthgroupfromFirstBaptistChurch Montgomery to a lake outing.Fortunately,noneoftheoccupantswerekilled.But this incidentspotlights thatsomethingmustbedone toeithergetthesevehiclesofftheroadormakethemsafe. Therewere severalmiracles thatoccurredthatdaytosavethelivesoftheyoungstersinthevan.

Inasecond15-passengervanrolloverwhichtookplaceinNewYork,theoccu-pantsweren’tasfortunate.Inthatinci-dent, six people were killed. This tooinvolved a van being used by achurch.Therewere14passengersinthevanwhenareartireblewout.Thevanpredictablyrolledoverseveraltimes.Inadditiontothosekilled,theothereightpassengerswereinjured.

Electronic StabilityControl is beingofferedforcertaintypesofthesevehiclesandwillhelp. A fixoriginallycontem-platedbyFordengineers,butrejectedforcostsreasons,involvesplacingdualrearwheelsonthevehiclesto increasethestabilityandlessentherisksassociatedwithrear tireblowouts.However, the


safest alternative is tonotdrive thesevehiclesatall.Therearesmallbusesavail-ableonthemarketmuchsaferthanthesevans.Ifyouhaveanyquestionsconcern-ing 15-passenger vans, please contactChris Glover, a lawyer in our firm’sProductLiabilitySectionat800-898-2034orbyemailatChris.Glover@beasleyallen.com. Chris has handled a number ofcasesinvolvingrolloversofthesevans.

AnOTheR lOOk AT TiRe liTigATiOn

Lawyers in our Product LiabilitySection are seeing an increase in thenumberoftirefailurecasescomingintoourfirmforreview.Thereasonforthisistwo-fold:oneisthefailureoftiremanu-facturerstocorrectknowndeficienciesintheirtires;theotheristheincreaseincertainforeign-madetiresthataremakingtheirwayontoU.S.highways.

Theleadingcauseoftirefailureacci-dentsistheseparationofthetreadandtop steel belt from the carcass of thetire.Thisoftenresultsinthedriverbeingunable tocontrol thevehicledue toachange in the steeringproperties thatresultasalossofthetreadandbelt.Whiletiremanufacturershaveknownforyearsof severaldesign features thatpreventtread separations, they have routinelyfailedtoimplementthechangesduetoincreased cost and lost productiv-ity.Thesedesignfeaturesinclude:nyloncapplies,beltedgewedgesandrobustanti-agingcompounds. Allofthesefea-turesincreaseatire’sdurabilityandmakeitlesssusceptibletotread-beltseparation.Bothgovernmentandindustryresearchhaveshownthesafetybenefitofthesefeatures.Butthetireindustryhasrefusedtoimplementthemeasuresacrossalltirelines.

Ourfirmisalso investigatingseveralcasesinvolvingthefailureoftireswhichhave been imported from China andTaiwan.Oneofthesecasesinvolvesanaccidentresultinginseriousinjuriestoamotherandheryoungchild.Thetirethatseparated was manufactured andimported fromTaiwan. An expert weretainedtoexaminethetirehasidenti-fiednumerousproblemswith the tire.Forexample,aU.S.-madetireistypicallysplicedtogetheratonelocation—twoatthemost.Thistirewassplicedtogetherinsixdifferentareas.Themanufacturingquality of the tire is poor to say the

least. A judge inFlorida recently sanc-tionedthisverysamemanufacturerforfailingtoproducediscoverydocumenta-tion.Thejudge,aspartofthesanction,precluded the tire manufacturer frompresentinganyexpertorcompanytesti-monyastotheexistence,orlackthereof,ofanydefectsinthetireatissueinthecase.

Tire failure events are sudden andunexpectedand,unfortunately,oftenleadtotragicresults.Someofthetirecasesourfirmiscurrentlyevaluatingare:

• RecalledTires—failureoftireswhichhavebeenrecalledasdefective;

• Aged Tires—tire failures involvingtiresthathavegoodtreaddepth,butaresix(6)yearsoldorolder;

• MobileHomeTires—failuresinvolv-ingmobilehometireswhichwerenotdesigned to withstand the load andspeedrequirementsformobilehomeuse;

• TireService—improperrepair,serviceand/or placement of tires by tireservicecenters;and

• Motorcycle Tires—failure due toimpropersidewalldesign.

Ifyouneedmoreinformationonthebadtirelitigation,contactJ.P.SawyerorRick Morrison at 800-898-2034 or [email protected]@beasleyallen.com.

A neW TiRe lAW ThAT ShOuld impROve highWAy SAfeTy

Lawyers inourfirmwhohandletirecasesareencouragedbyanewlawthathasbeenenactedintheStateofCalifor-nia.Thelawrequiresretailtiredealerstoproperlycheckandinflatethetiresofthevehiclestheyarerepairingorservicing.Studiesbythefederalgovernmenthaveshownthatitisvirtuallyimpossiblefortheaverageconsumerto“eyeball”theirtiresanddetermineiftheyareproperlyinflated.Manytimesconsumersgointoservicecenters and the tires arecom-pletelyoverlooked.Wehaveevenhandledtirefailurecaseswheresparetireswereputonthevehicleforuseeventhoughthetirehadbeenrecalled.

Thereisnowaitingperiod,sothelawwent intoeffect immediately. The law

appliestoallautomotiveserviceprovid-ers,butnottoautopartsdistributersorretailers.Thelawwillrequireautomotiveserviceproviders tocheckand inflateeachvehicle’stirestotherecommendedtirepressureratingat the timeofper-forminganyautomotivemaintenanceorrepairservice,aswellastoindicateonthe vehicle service invoice that a tireinflationservicewascompleted.Thelawalsorequiresmaintainingtheinvoicesforatleastthreeyears,andhavingtirepres-suregaugeswithanaccuracyofatleastplusorminus2psi.

Most consumers expect and trustservicecenters to inspectand identifypotentialsafetyhazardsrelatedtotheirtires.Hopefully,thislawwillbringatten-tiontoamostimportantsafetyissueandcauseotherstatestofollowwithsimilarlegislation.

fAmily WinS lAWSuiT AgAinST fORd mOTOR COmpAny

AjuryinArkansashasawardedafamilyover$7millioninalawsuitagainstFordMotorCompany,including$2.5millioninpunitive damages. Arkansas residentJohnnyWashingtonwaskilledinAugustof2000whenhis1994FordExplorerrolledovertwice.Hewaspartiallyejectedfrom thevehicle, even thoughhewaswearingaseatbelt.

The lawsuitclaimed thatFordknewtheExplorerhaddefectsthatcouldkilldrivers inarollovercrashbutsoldthevehiclesanyway. Theman’s familyhadbeen in litigation with Ford for tenyears.ThejuryfoundtheExplorertobea“defectiveandunreasonablydangerousproduct.”The jury’s total award to theWashington family is $7,152,125. Thetrial tookplace inPineBluff,Arkansas.Since 2004, juries have awarded FordMotor accident victims $580 milliondollarsindamages.Inall13cases,juriesagreedFordvehiclesweredefectiveandunreasonablydangerousatthetimeofanaccident.Source: HULIQ.com

fORd SeTTleS deATh CASe in miSSiSSippi

FordMotorCo.hassettledaMississippilawsuitovera2001accident inwhichBrianCole,a topNewYorkMetspros-pect,waskilledwhenhisSUVcrashedin


theFloridaPanhandle. The settlementcame shortly after the jury in JasperCounty had awarded $131 million inactualdamagestothevictim’sfamilyandbeforeitwastoconsiderawardingpuni-tivedamages.Thesettlementamountandtermsareconfidential.

Cole,then22,diedfrominjurieshesuf-feredwhenhisFordExploreroverturnedashedrovehomeonMarch31,2001,from spring training in Port St. Lucie,Florida,toMeridian,Mississippi,withhiscousin,RyanCole.BrianColewasejectedfromtheSUV.HewastakinghisExplorerhomeandwastoflytoBinghamton,NewYork,tojointheMets’Double-Ateamforitsseasonopener.Theone-caraccidentoccurredon Interstate10.BrianCole,whowassingleandtheyoungestoffivechildren, was pronounced dead atJacksonMemorialHospital.RyanCole,then17,wastreatedandreleased. Thefamilymadetwoclaims:theExplorerwasunstableanditssafetybeltsdidn’tworkinrollovers,whichallowedBrianColetobethrownoutofthecarduringtheroll-overdespitebeingbelted.

Brian Cole went to Meridian HighSchoolandwasBaseballAmerica’sjuniorcollege player of the year in 1998 atNavarroJuniorCollegeinTexas.HewasselectedbytheMetsinthe18throundofthe1998amateurdraftandturneddownafootballscholarshiptoFloridaState.TabTurner, averygood lawyer fromLittleRock,Arkansas,representedthePlaintiffandhedidaverygoodjob.Source: HULIQ.com

hiTAChi ReCAllS defeCTive nAil gun

OnMarch11,2010,Hitachi issuedaproduct recall through the ConsumerProductSafetyCommission(CPSC)andHealthCanada foroneof itsnailgunssoldintheUnitedStates.TheJapanesemanufacturer issued the recall afterreceivingdozensofcomplaintsofnailsbeingejectedsideways.Theusers’eyesare the primary region of injuryandunfortunately,atleastfiveindividualshavesustainedpermanentpartialblind-ness.Ourfirmisreviewingaclaimforaclientwhosustainedaneyeinjuryafterusingoneofthedefectiveguns.

Our client’s eye injury occurred inearly2009,almostayearbeforetherecall.Althoughtherecallonlyappliestonail

gunsmanufacturedfromOctober2002toSeptember2005,consumersshouldbewaryofusinganynailgunmanufacturedbyHitachi,asmanufacturerswhopartici-pateinrecallsoftenattempttolimitthescopeoftherecallevenwhentheyknowthe recall should be much broader.AccordingtoinformationpublishedbytheCPSC,about50,000unitsweresoldintheUnitedStatesandabout15,000inCanada. CPSC’swebsitehasadditionalinformation about the recalls. If youneed additional information on thissubject,contactKendallDunsonat800-898-2034 or by email at [email protected]: CPSC

X. MASS TORTS UPDATE

WOmAn blinded by dRug WinS heR CASe

A federal jury in New Hampshireawarded $21 million last month to awoman blinded and scarred by a pre-scriptiondrugshetookforshoulderpain.KarenBartlett,51,sufferedextremeburnstoherskin,mucusmembranesandeyesaftertakingtheanti-inflammatorydrugSulindac. The jury foundPhiladelphia-basedMutualPharmaceuticalCo.liableforherinjuries.Thejurorsfoundthatthecompanyshouldhaveknownthedrugwasunreasonablydangeroustoconsum-ers.ThiswasthelargestawardinaNewHampshire product liability case. Thelargestpreviousawardwas$13millionina1993caseinvolvingaconstructionsiteaccident. Ms. Bartlett said her goal infilingthelawsuitwasnotforthemoney,buttoeducateothersaboutthedangersofprescriptiondrugs.Sheadded:

That was my biggest thing—getting the word out. Before this happened to me, I never knew something like this could happen just from taking medication. The verdict was a source of consolation, and the road to reach it has been very nerve-wracking, very emotional and very long.

Mrs.BartlettbegantakingSulindacinJanuary2005totreatshoulderpain.Two

weekslater,shenoticedredspotsonherfaceandirritationaroundhereyes.ShewasadmittedtothehospitalonFebruary2,2005,complainingoffeelingliketherewere“pebbles”underhereyelidsandinherthroat,andsufferingfromaworsen-ingrash.ShewasdiagnosedashavingSte-vens-Johnson Syndrome and toxicepidermalnecrolysis(SJS/TEN)—poten-tiallyfatalskindiseasesthatinflamethemucus membranes and eyes and aremarkedbyaskinrashthatburnsofftheouterlayerofskin.Shespent112daysinfivehospitals, including theMassachu-setts General Hospital Burn Unit. Thediseasealsosearedherthroat,stomachandlungs,causingpermanentdisabilities.Shehasundergone12eyeoperationsandislegallyblind.

Evidencepresentedduringthe14-daytrial included graphic photographs ofulceratedburnsonherbodyandofherdisfiguredeyes.SulindachasthehighestreportedincidentsofSJS/TENofanynon-steroidalanti-inflammatorydrugonthemarket. Thedrug’sdangersclearlyout-weighed any benefit it offered. Manybelievethatthisdrugshouldneverhavebeenputonthemarketandshouldberecalled.Itotallyagree!

In2005,MutualchangedthewarninglabelaccompanyingSulindactoelaborateonitspossiblesideeffects,includingSJS/TEN.Clinoril,whichMs.Bartlett’sdoctorprescribed,isthebrandnamecommonlyassociatedwithSulindac.KeithJensen,a lawyer from Ft.Worth,Texas, repre-sentedMs.Bartlettandhedidaverygoodjobforher.Source: MSNBC

A ClOSeR lOOk AT STevenS JOhnSOn SyndROme

Aswehavewrittenonnumerousocca-sions,StevensJohnsonSyndrome(SJS)isamostserioushealthproblem.Itresultsinlesionsandblistersalloverthebodyandskinthatsloughsoffandthesearejustsomeofthesymptomspatientsexpe-rience. SJS doesn’t discriminate in itstargetsandthat’sascarythought.It’snotfullyunderstoodwhypatientsdevelopSJS.Itisknown,however,thatthecondi-tionisaveryrare,yetsevere,allergicreac-tiontomedications.Theconditionoftenstartsasapainfulrash,sometimesaccom-panied with blisters. By the time the


patientisfinallydiagnosed,theperson’sskinmay start sloughingoff, exposinglargeareasofflesh.It’saverypainfulcon-dition.

Inadditiontolosingtheouterlayerofskin, patients may also experiencesloughingof theirmucousmembranesand of the lining of their internalorgans.Thosewhosurvivetheirexperi-ences often have permanent scar-ring.Therecanalsobedamagetotheireyesightanddamagetotheirtearducts,andsomepatientsfallintoacoma.Somediefromtheirinjuries.Patientsmayhaveno idea they are allergic to a specificmedication until the reaction occurs.FolkshavedevelopedSJSaftertakingawidevarietyofmedications, includingmedications as seemingly harmless asheadache remedies. If you need addi-tionalinformationonSJS,contactFrankWoodsonat800-898-2034orbyemailatFrank.Woodson@beasleyallen.com.Source: LawyersandSettlements.com

TRASylOl SeTTlemenTS TOTAl OveR $60 milliOn

IthasbeenreportedthatBayerAGhaspaidatleast$60milliontosettleabout150lawsuitsoverTrasylol,adrugusedtopreventexcessivebleedingduringheartsurgery. Trasylol can cause kidneydamage,heart failure and strokes, andgreatlyincreasepatients’riskofpost-sur-gerydeathwhencomparedtorivaltreat-ments. TheFDAfirstexpressedofficialconcern overTrasylol in 2006, after astudybyDr.DennisManganopublishedintheNew England Journal of Medicine concluded that the drug more thandoubledtheriskofrenalfailure,andsus-pendedsalesinNovember2007.Trasylolhadbeenonthemarketfor14years.

LawsuitsinvolvingTrasylolhavecon-solidated and are pending in theMDL. According to JimRonca, co-leadcounselofthePlaintiff’ssteeringcommit-tee,Bayerissettlingthesuitsonacase-by-casebasis.Bayerreviewseachcase,one by one, on the relative strengths,meritsandweaknessesofthecase.Theyapparently try to settle the cases thatappear to be certain losers for thecompany.Jimsaysthesettlementframe-work devised by Bayer involves a“detailed,almostline-by-lineanalysisofthemedical recordsofeachcase.”For

example,hesaysayoungerpatientwhohadsimplesurgery,spentlittletimeonaheartbypassmachineandexperiencednoinfectionswouldhaveastrongercasethansomeoneolderwhosesurgerywaslongerandmorecomplicated.Over4.5millionpatientsworldwide,including1.5millionpatientsintheU.S.,areestimatedtohavebeengivenTrasylolbeforesaleswere suspended.Nationwide,approxi-mately1,600oftheoriginal2,000casesarestillpending.Source: Lawyers USA Online

JuRy ReTuRnS veRdiCT in SeCOnd bellWeTheR heRniA pATCh TRiAl

AfederaljuryinRhodeIslandawarded$1.5milliontoaNorthCarolinamanandhiswifeinthesecondbellwethertrialinthe Kugel mesh hernia patch litiga-tion. The juryawarded$1.3million incompensatorydamagestoChristopherThorpe for severe abdominal injuriescausedbybrokenherniapatchrings,and$200,000tohiswife,Laure, for lossofconsortium. The judge did not allowpunitivedamagestogotothejury.JurorsfoundthatDavol,aRhodeIslanddivisionofC.R.Bard,hadnegligentlydesignedtheComposixKugelMeshherniapatchandfailed to provide adequate warningsabout its risks, causing ChristopherThorpe’sinjuries.

A52-year-oldmanufacturingsupervisor,Mr. Thorpesufferedanabdominalwallabscess and fistula when two plasticr ings on his hernia repair patchbroke.About2,500herniapatchlawsuitsarependinginstateandfederalcourtinProvidence. Theproductwas recalledfrom2005through2007.Davolnowusesabio-absorbableringinsteadofaplasticone.InApril,jurorsinthefirsttrialinthefederalmulti-district litigationconsoli-datedinProvidencefoundthatalthoughtheherniarepairpatchwasnegligentlydesigned, itdidn’tcause thePlaintiff’sinjuries.DonaldMigliori, leadPlaintiffs’counselinbothtrials,saidthefirsttrialinvolved a“ring buckle” rather than abrokenring,adding:

It’s a major difference. The first jury did find that while the device was defective [because it buckled], the [Plaintiff’s] injury was not related to the defect.

IntheThorpecase“thejuryfoundthatDavolfailedtowarnofthedangersandnegligentlydesignedtheproduct,whichwasthecauseoftheinjuries.Thisverdictisparticularly significant, because theverdict form included a question thatseems to be biased towards theDefense. The question, which wasimposedbythetrialjudge,askedjurorswhetherthePlaintiff’sinjurywascausedbyhissurgeonusingthemeshpatch“inamannercontrarytoanyexpressandade-quate instructions or warnings which[the surgeon] knew or should haveknownweredeliveredwiththe…patch.”

DefenselawyerstriedthroughoutthetrialtoblamethesurgeonforMr.Thor-pe’sinjuries.Theytriedtoconvincethejury that thedoctor folded thedevicewhenheput it in. Theproblem is thedeviceisdesignedtospringopen.If itdidn’tlieflat,it’sthedevice’sfault,notthedoctor’s.

Davol’s own documents were usedduringthetrialtoshowthatthecompanyacknowledged theproductwasdefec-tivelydesigned.Davol, after the recall,saidinadocument,“thisiswhatwedidindesigningtheproductwrong.”Interest-ingly,oneoftheDefense’sengineeringexpertswaspaid$600,000forhistesti-monyasanexpertinthecase.BothMr.&Mrs.ThorpetestifiedaboutChristopher’sinjuries. Mrs. Thorpe had to clean anopenwoundinherhusband’sabdomenthreetimesadayforayear.

The next federal trials won’t beginuntilearlynextyear.AtrialinstatecourtinRhode Island is scheduled tobeginOctober18th.Lawyerswhohandledthecasewere:DonaldMigliori,whoisPlain-tiffs’ liaisoncounsel intheMDL,andiswithMotley,RiceinProvidence,RhodeIsland;andErnieCoryofCory,Watson,Crowder&DegarisinBirmingham.Theselawyersdidaverygoodjob.Source: Lawyers USA Online

pfizeR SeTTleS pRempRO CASeS

PfizerInc.hasagreedtosettleanArkan-saswoman’sclaimsthatthecompany’sPrempro menopause drug caused herbreastcancer,avoidingasecondtrialontheissueofpunitivedamagestrialinthecase.PfizerfacedaretrialthismonthofDonnaScroggin’sclaimsthattheworld’slargestdrugmakershouldpaymillionsof


dollarsaspunishmentformishandlingitsPrempro hormone-replacement medi-cine. An appeals court overturned a$27.1millionpunitive award last yearandorderedanewtrialondamages.

ThecompanyhasnowagreedtosettleMs.Scroggin’scase.JudgeWilliamWilsonis overseeing more than 8,000 casesinvolvingthemedicine,consolidatedinfederalcourtinArkansas.Wyethhaslostseven of the 12 Prempro cases jurieshaveconsideredsincethecasesbegangoingtotrialin2006.Thedrugmakergotsomeofthoseverdictsthrownoutatthepost-trialstageorhadawardsreduced.Ithasnowsettledsomeoftheothercases,includingMs.Scroggin’s lawsuit.Pfizeralso has won dismissals of more than3,000casesateitherthepretrialstageorafterthecaseshavebeensetfortrial.

Morethan6millionwomentookthehormone-replacementpillstotreatmeno-pausesymptomsincludinghot flashes,nightsweatsandmoodswings.Themedi-cines are still on the market. PfizerboughtWyeth lastyear for$68billion.Ms.Scrogginandotherwomencontendcompany executives ignored studiesraisingquestionsaboutthelinkbetweenhormone-replacementdrugsandbreastcancer topumpupsales. AnnualsalesofWyeth’shormone-replacementdrugstopped $2 bil l ion before a 2002study sponsored by the U.S. NationalInstitutesofHealth suggestedwomenusingthemedicineshadahigherbreastcancerrisk.

InMarch2008,ajuryinfederalcourtinLittleRock,Arkansas,orderedWyethtopayatotalof$29.8millionindamagestoMs.Scroggin, including$2.7million inactualdamages.TheU.S.CourtofAppealsinSt.LouisthrewoutthepunitiveawardinNovember2009,sayingthetrialjudgeallowedjurorstohearinadmissibleevi-denceinthepunitive-damagesphaseofthefirsttrial.ItleftMs.Scroggin’sactual-damageawardintact.

Pfizeralsohasagreedtosettleanotherwoman’s claims over the company’smenopausedrugsthatresultedina$1.5million juryaward. APhiladelphia juryfound inMay2007 thatMerleSimon’sbreastcancerwascausedbyProvera,ahormone-replacementdrugmadebyPfiz-er’sPharmacia&Upjohnunit. A judgelaterthrewoutthe$1.5millionactual-damage award. An appeals court rein-statedtheawardinDecember.

JamesA.MorrisandSteveM.Fariesrep-resented the P la int i f f s in bothcases.Theselawyersfoughthard,nevergaveupandfinallyreceivedjusticefortheirclients.Source: Bloomberg

OTheR hRT liTigATiOn COnTinueS

Thehormonereplacementtherapyliti-gationisturningintooneofthelongest-runningmass torts inU.S.history.ZoeLittlepage,apartneratLittlepageBoothinHouston,andleadPlaintiffs’counselinthe federal multi-district litigation,believes“thisisnowthelongest-runningMDLwithnoinventorysettlementsandnomasssettlementsinsight.”ThismeanstheDefendantsaretakingacase-by-caseapproachinthislitigation.

Thecurrentwaveof litigationbeganafterastudyinJuly2002,knownastheWomen’s Health Initiative, found thatusingPremprofor fiveyears increasedtheriskofbreastcancerby26%,heartattacksby29%,strokesby41%andbloodclots by 113%. There are about 1,500HRT suits in Philadelphia and 12,000nationwide,includingabout8,000con-solidatedinfederalmulti-districtlitigationin U.S. District Court in Little Rock,Arkansas.

ThesuitsnameWyethPharmaceuticals,whichsoldPremarinandPrempro,andUpjohn,adivisionofPfizer,whichsoldProvera. Pfizer acquired Wyeth in2009.Thenextjurytrial,involvingclaimsbythreeArkansaswomen,isscheduledforOctober1st. Itwillbeheard inU.S.District Court in Little Rock,Arkan-sas. Twoother trialsareslated to takeplace before the end of the year. InNovember,ZoeLittlepagewillrepresentGeorgiaTorkie-TorkinU.S.DistrictCourtinAlexandria,Virginia.AresidentofVir-ginia, Torkie-Tork developed breastcancerin2002aftertakingPremproforsixyears.AndinDecember,TedMeadows,alawyerinourfirm’sMassTortsSection,will be the leadPlaintiffs’ counsel forclaimsbyfourwomeninaconsolidatedtrialtobeheldinstatecourtinPhiladel-phia.We look forward to trying thoseclaimsforourclients.Source: Lawyers USA Online

pRempRO ClAimS ARe nOT Time-bARRed

A Pennsylvania appellate court hasruled that product liability PlaintiffsshouldhavebeenallowedtohavejuriesdecidewhenitwasreasonableforthemtodiscoverthattheirbreastcancermayhavebeentheresultoftakingtheDefen-dants’hormonereplacementdrugs.Thedecision reversed the dismissals ofproductliabilitylawsuitsbroughtbyfour-teenpost-menopausalwomenwhowerediagnosedwithbreastcancerbetween1998and2002.

EachofthePlaintiffsclaimedthattheirillness was the result of taking thehormone replacement therapy (HRT)drugsPrempro,PremarinorProvera.Thedrugs’ manufacturers argued that thePlaintiffs’claimsaccruedwhentheywerediagnosed with breast cancer andclaimedthecaseswerethereforebarredbyPennsylvania’stwo-yearstatuteoflimi-tations.Buttheappealscourtruledthatajury must decide when the Plaintiffsshouldhaverealizedthecausalconnec-tion between HRT and their breastcancer.Thecourtwroteintheorder:

Knowledge of an injury alone is not sufficient to trigger such inquiry. One must have some reason to suspect that the injury was caused by a third party to impose a duty to investigate further. Where the injury is one that may result from non-tortious conduct, such as a disease, that point may be difficult to discern without resolving factual issues. Subjective differences among persons and the situations in which they find them-selves are relevant in making that determination.

Thisisasignificantruling.Itisacorrectoneandwillhelplotsofwomen.Source: Lawyers USA Online

plAinTiff CAn bRing negligenT deSign defeCT SuiT

AplaintiffwhoallegedherdaughterdiedasaresultoftakingRedux,adrugmanufactured byWyeth can pursue anegligentdesigndefectclaim,aPennsyl-vaniaappellatecourthasruledinrevers-ingasummaryjudgment.Theplaintiff’sdaughterdiedin2004,shortlyafterbeing


diagnosed with primary pulmonaryhypertension.Theplaintiffallegedthatherdaughter’sconditionwascausedbyher takingRedux for threemonths in1997.TheplaintifffiledvariousproductliabilityclaimsagainstWyeth,includinganegligentdesigndefectclaim.

Wyetharguedthat,understatelaw,pre-scriptiondrugs likeReduxareexemptfromstrictliabilitydesigndefectclaims,andthattheexemptionshouldlikewiseextendtonegligentdesignclaims. Thecourtdisagreed,saying:

PursuanttoPennsylvanialaw,anegli-gentdesigndefectclaimisconsideredtobe distinct from, and not subsumedwithin, a strict liability design defectclaim.Consequently,[theplaintiff’s]negli-gentdesignclaimisnotprecluded…andis a valid causeof actionuponwhichreliefmaybegranted.

But, thecourtconcludedthatWyethcouldnotbeliableunderstate lawfornegligently marketing Redux or negli-gentlyfailingtowithdrawthedrugfromthemarket.Theclaimwillproceedonlyonthenegligentdesigntheory.Source: Lawyers USA Online

pROTeCT yOuR TeenAgeRS fROm COugh SuppReSSAnTS

An FDA advisory panel recentlyreviewed and recommended that theFDAnotmakeover-the-countercoughsyrups containing dextromethorphanprescription medications. As we haveremindedourreadersinpriorissues,theFDAisfreetoacceptorrejectthepanel’srecommendation.

Dextromethorphan (“Dex”) is theactiveingredientinabout125over-the-countercoughandcoldmedicineslikeNyquil,RobitussinandTylenolCold.Inarecent survey, 8% of teens reportedabusingthesecoughsuppressants.TheDEAreportsthatthisepidemichasledtoa70%increaseinemergencyroomvisitsbetween2004and2008.Morethan8,000peopleweretreatedinemergencyroomsasaresultofabusingDex.

AlltoomanyteenagerstakeexcessivedosesofDex,ormoreoften,mixitwithotherprescriptionmedicationormari-juanainordertogethigh.Thisisaprac-ticecalled“robotripping.”Inadditiontobringingoneuphorichighs,thepracticecancause a spike inheart rate, blood

pressureandbodytemperature,andinsomecasesdeath.AswelearnedintheMeridialitigation,Dextromethorphanisaserotoninreuptakeinhibitor,andwhencombinedwithanyserotonergicmedica-tion(orwhentaken inexcess), itmayleadtoSerotoninSyndromewhichisapotentiallylife-threateningcondition.

It’simperativethatparentsacceptthefactthatjustbecausethesemedicationsaresoldoverthecounter,thatdoesnotmeantheyarebenign.Weshouldtakethesamecarewiththesemedicationsaswedo with controlled substances andalcohol.Ifyouneedadditionalinforma-tiononthissubjectcontactRussAbney,alawyerinourMassTortsSection,[email protected]: CNN

depuy hip implAnT ReCAll

Johnson & Johnson, and its DePuyOrthopaedics subsidiary, recentlyannounceditisrecallingpartsusedforhipreplacements.Atissueisthehighrateof repeat surgeries needed by peoplewho have received the parts. An esti-mated93,000peoplewillbeaffectedbythisproductrecall.Affectedhipreplace-mentpartsinvolvedintherecallincludetheDePuyASRXLAcetabularSystemandtheDePuyASRHipResurfacingSystem.Patientswhoreportedproblemsinthefirstfiveyearsoftheoriginalhipimplantand had revision surgery reported avariety of symptoms, including pain,swelling andproblemswalking.Othersymptoms thatmay indicate a seriousproblemwiththehipreplacementpartsinclude:

• Loosening—whentheimplantdoesnotstayattachedto thebone in thecorrectposition;

• Fracture—wherethebonearoundtheimplantmayhavebroken;

• Dislocation—wherethetwopartsofthe implant that move against eachotherarenolongeraligned:and

• Metaldebris—wheremetalparticlesfrom the component parts movingtogetherspreadaroundthehiparea.

Inanefforttolimititsliability,DePuyhasofferedtoreimbursepatientswith

theDePuyimplantsforpotentialfuturesurgical revisions in exchange forpatientssigningaconsentform.However,consentformssignedbypatientswouldallow DePuy to have access to thepatients’doctorsandprotectedmedicalinformation,whichDePuywouldnototh-erwisehave.ItwouldalsorequirethattheimplantedhipdevicebereturnedtoDePuyintheeventthatarevisionisnec-essary.Patientsshouldbeverycautiousaboutsuchconsentforms.Itwouldbewise to seeka lawyer’sadvice to fullyunderstand what is at stake beforesigning.

Lawyers in our firm’s Mass TortsSection are reviewing cases involvingindividualswhohavehadaDePuyhipdeviceimplanted.Wewilllookatpoten-tialcaseswhereanindividualisunsureofthetypeofhipdeviceimplantedifthepersonhashadrevisionsurgery,ortheperson is experiencing hip pain, hipswelling,ordifficultywalking.Ifyouneedmore information on these claims,contactNavanWardat800-898-2034orbyemailNavan.Ward@beasleyallen.com.

XI. INSURANCE AND FINANCE UPDATE

neW fedeRAl ReSeRve RuleS AppROved TO pROTeCT bORROWeRS

As we mentioned last month, theFederal Reserve Board approved newrules to protect mortgage borrowersfromunfair,abusive,ordeceptivelendingpracticesthatcanarisefromloanorigina-tor compensation practices. ScarletteTuley,a lawyer inourConsumerFraudSection,hastakenacloselookatthenewrules.Shehassomemoreinformationforthis issue on the rules, as we prom-ised.Thenewrulesapplytoallpersonswhooriginateloans,includingmortgagebrokersandthecompaniesthatemploythem,aswellasmortgageloanofficersemployedbydepositoryinstitutionsandother lenders. The final rules, whichapplytoclosed-endloanssecuredbyaconsumer’sdwelling,will:

• Prohibitpaymentstotheloanorigina-torthatarebasedontheloan’sinterestrateorotherterms.Compensationthat


isbasedonafixedpercentageoftheloanamountispermitted.

• Prohibit a mortgage broker or loanofficer from receiving paymentsdirectly fromaconsumerwhilealsoreceivingcompensationfromthecred-itororanotherperson.

• Prohibit a mortgage broker or loanofficerfrom“steering”aconsumertoalenderofferinglessfavorabletermsinordertoincreasethebroker’sorloanofficer’scompensation.

Therulesprovideasafeharbortofacil-itatecompliancewiththeanti-steeringrule. Thesafeharborismetifthecon-sumerispresentedwithloanoffersforeach typeof transaction inwhich theconsumerexpressesaninterest(thatis,afixedrateloan,adjustablerateloan,orareversemortgage);andtheloanoptionspresentedtotheconsumerincludethefollowing:

(1) the lowest interest rate forwhichtheconsumerqualifies;

(2) the lowestpoints andoriginationfees,and

(3) thelowestrateforwhichthecon-sumerqualifiesfora loanwithnoriskyfeatures,suchasaprepaymentpenalty,negativeamortization,oraballoonpaymentinthefirstsevenyears.

ThefinalrulesgointoeffectApril1,2011.IfyouneedadditionalinformationcontactScarletteTuleyat800-898-2034orbyemail [email protected].

TRAveleRS WinS $262 milliOn JudgmenT OveR ASbeSTOS ReinSuRAnCe

Travelers Insurancehaswona$262millionjudgmentagainstagroupofrein-surersthatrefusedtopayaportionofanearly$1billionsettlementinasbestosclaims the insurer paid in 2002. Theaward by a NewYork Supreme CourtmeansAmericanRe-InsuranceCo.,partofMunichReinsuranceCo.,willpay$202.5million, plus interest. The remaining$59.8millionwillbepaidbyasecondgroup of reinsurers—ACE, CenturyIndemnityandOneBeacon—allpartofa

reinsurance coalition known as theExcessCasualtyReinsuranceAssociation.

Sincethereinsurancelawsuitsbegansevenyearsago,Travelershaspreviouslyreachedsettlementswithnineotherrein-surersthatwerepartofthelitigation.It’sbeenestimatedthatinterestonthejudg-ment will bring it to more than $420million.Thelong-foughtdecisionstemsfromliabilityinsurancepolicieswrittenjustafterWorldWarIIbyUnitedStatesFidelity&GuarantyCo.(USF&G)forCali-fornia-basedWesternAsbestosCo.Thatcompany,adistributorofasbestos-con-taining materials and products, wasacquiredin1967byMacArthurCo.AndrenamedWesternMacArthur.

In 1993, following a decades-longexplosionof asbestos-related lawsuits,WesternMacArthursuedUSF&G,claim-ing that it was obligated to provideproductcoverage.In2002,USF&G,thenownedbytheSt.PaulCos.,settledwithWesternMacArthurfor$987million.Fol-lowingthesettlement,USF&G—whichbecamepartofTravelers following itsmergerwithSt.Paul in2004—sued itsreinsurersafterthecompaniesrefusedtopaypartoftheclaims.Source: Insurance Journal

lOuiSiAnA CiTizenS inSuRAnCe SeTTleS hOmeOWneR ClAimS

LouisianaCitizensPropertyInsuranceCorp.,Louisiana’spropertyinsureroflastresort,hasreacheda$23millionsettle-ment with thousands of homeownerswhosaytheywerenotproperlycompen-satedafterhurricanesKatrinaandRitaforwork needed to coordinate stormrepairs.Thedisputecenteredaroundtheuseofageneralcontractor.

Whenrepairingahometakesthreeormore typesof specialists, insurers aresupposedtopayextramoneytocoverthecostofageneralcontractortocoordi-nate the work—typically 20% of therepairbill—evenifthehomeowneractsashisowncontractor. The settlementmustbeapprovedbyajudgeinstatedis-trictcourtinNewOrleans.AhearinghasbeensetforNovember18th.

The settlement underscores thatpeople are entitled to overhead andprofit when three or more trades areinvolved.That’snotsomethingthatinsur-ancecompaniesarenecessarilyrunning

aroundtellingpeople.Thedealcreatesa$23 million settlement fund for allparties. Thesettlementproceeds,afterfeesandexpenses,willbedistributedtothePlaintiffs,withpaymentsdependingontheamountofdamagehomeownershad.CitizensisLouisiana’sthird-largestproperty insurer. Alan Canter, a NewOrleanslawyer,wasleadcounselforthePlaintiffsandhedidaverygoodjob.Source: Insurance Journal

$350 milliOn uniTedheAlTh ClASS ACTiOn SeTTlemenT AppROved

Lastmonth,SouthernDistrictofNewYorkJudgeLawrenceM.McKennagavefinal approval to a $350 million classaction settlement with UnitedHealthGroup Inc. The settlement resolvesclaimsthatthehealthinsurercolludedwithotherstounderpaydoctorsoutsideofitsnetwork.Thejudgepointedoutinhisorderthatthecaseinvolvedcompli-catedissuesandthatthesettlementwasagoodresultformembersoftheclass.

The settlement came in a suit com-mencedin2000bytheAmericanMedicalAssociationandothermedicalgroups,providersandpatientsseekingreliefforphysicianswhowereharmedbyUnited-Health’suseofadatabasetodeterminepaymentsforout-of-networkdoctors.

AninvestigationbyNewYorkAttorneyGeneralAndrewCuomoresultedinUnit-edHealthagreeinginJanuary2009toa$50millionsettlementandtheclosureofthedatabase,whichCuomoatthetimesaidresultedin“unfairreimbursements”topatients.Theclassactionsettlement,announcedtwodayslater,alsorequiredthe endof thedatabaseon anationalbasis.JudgeMcKennaunsealedhispre-liminaryapprovalof the settlement inDecember.Another$12millionwillbeaddedininterest.

The law firm of Pomerantz HaudekGrossman&GrossrepresentedthePlain-tiffsanddidaverygoodjobfortheclassmembers.Source: Law.com

blue CROSS TO Refund $156 milliOn in nORTh CAROlinA

HealthinsuranceregulatorsinNorthCarolina have identified nearly $156million in refundsowed toBlueCross


policyholders because of changescomingunder thenation’snewhealthlaw.Consumerswithpolicies atothercompaniesaroundthecountryalsomaydeserverefunds,accordingtoNorthCar-olina Insurance CommissionerWayneGoodwin. TheCommissionerplans tourgeotherstatestoprobepotentialover-chargingforatypeofreservefund.

Thehealthcarelawwilldramaticallychangehowhealthpoliciesaresoldin2014,andmanyplansineffectnowwillceasetoexistthatyearintheircurrentform.Yetstateregulatorswhoscrutinizeda recent rate increase requestbyBlueCrossandBlueShieldofNorthCarolinasaytheydiscoveredtheinsurerwascol-lecting reserves topayclaimsbeyond2014.

BlueCrosshasagreedbyyear’sendtosendrefundstomorethan215,000NorthCarolinapolicyholderswith individualplansinforceonMarch23rd—thedatethe new health law was enacted. Therefunds in North Carolina will varydependingonpremiumspaid,butwillbeworthaboutamonthandahalf’spremi-ums.Foranaveragepolicyholder,that’s$690,accordingtoBlueCross.

Thereservesbeingrefundedarepor-tionsofconsumers’premiumsthattheinsurersetasideintheearlyyearsofapolicytokeepmonthlypaymentsmorestableoverthelifeofthepolicy,astheperson’smedicalexpensesincreased.ItappearsthatBlueCross’grouppoliciesmaynothaveusedthiskindofreserve.

It’sunclearwhatpercentageofhealthpoliciesnationwideusesimilar“activelifereserves” formulas in setting ratesandwhether policyholders in other statesalsodeserverefunds.AccordingtoSteveLarsen,whoheadsinsuranceoversightatthe U.S. Department of Health andHumanServices,theremaybeothers.HesaidinaninterviewwithUSATodaythathethinks“theremaybeabiggerissueatworkhere.”ItwillbemostinterestingtoseeexactlyhowthissituationinNorthCarolinawillplayoutinotherstates.TheNorthCarolina InsuranceDepartmentdidanoutstandingjobinthismatter.Source: USA Today

The hARTfORd AgReeS TO $73 milliOn legAl SeTTlemenT

TheHartfordFinancialServicesGroupInc.hasagreedtoa$72.5millionclass-actionsettlementendingadisputeoverstructuredsettlementsinpersonalinjuryandworkerscompensationcases. ThesettlementwhichhasbeenapprovedinU.S.DistrictCourtinBridgeportcovers21,600peoplenationwide.ItwasallegedinthelawsuitthatTheHartford’sprop-ertyandcasualtycompaniespurchasedannuitiesfromitslifeinsurancesubsid-iary and deducted as much as 15% inundisclosed costs from the promisedvalueoftheannuity.TheHartford’slifeinsurance subsidiary was accused ofpayingakickbacktothepropertyandcasualty companies each year of aportionofthe15%.Source: Associated Press

XII. EMPLOYMENT AND FLSA LITIGATION

lee iACOCCA And OTheR ChRySleR ReTiReeS Sue OveR penSiOn lOSSeS

Lee Iacocca and about 450 otherChryslerwhite-collarretireeshavefiledaclass-action lawsuit in a Michigancourt.ThePlaintiffs,whosaytheylostabigchunkoftheirpensionswhenChrys-ler went bankrupt, want their moneyback.Theretireeslostmorethan$100million in supplemental pension pay-ments because of the 2009 bank-ruptcy. The lawsuit was filed againstDaimlerandCerberus,formerownersofoldChrysler.ThenewChryslerwasnotnamedasaDefendant.

ThelawsuitclaimsthatneitherformerChryslerownerDaimlernorCerberus,whichboughtthecompanyfromDaimlerandlostitinbankruptcy,properlysafe-guardedthefundsforretirees—knownas“RabbiTrusts.”Suchfundsarenotregu-latedbythefederalEmployeeRetirementIncomeSecurityAct.DaimlerorCerberuscouldhaveswitchedtheretiredworkersfundstoannuities,thelawsuitargues,asDaimler did in 2005 for white-collaremployeesstillworkingforChrysler.Cer-berus also did nothing to protect the

accounts, the lawsuit says. Sheldon L.Miller,aMichiganlawyer,ishandlingthiscaseforthePlaintiffs.Source: USA Today

WAl-mART’S Sex diSCRiminATiOn ClASS ACTiOn gOeS TO SupReme COuRT

Thenearlyten-yearlegalbattleovertheclassactionlawsuitallegingsexdiscrimi-nationatWal-MartstoresisnowbeforetheU.S.SupremeCourt.Wal-Martischal-lenging theclasscertificationofmorethan1millionfemaleformerandcurrentworkers.Thegiantretailerchallengesthecertificationandtheclaimsformonetarydamages,sayingtheyviolatedueprocessandfederalrulesofcivilprocedure.Theclasscertifiedbythedistrictcourtwasestimated to include over 1.5 millionformer and current femaleWal-Martemployeeswhohelddifferentjobsindif-ferentstoresindifferentstatesunderthesupervisionofdifferentmanagers.Thisisthe largestemploymentclassaction inhistory.

TheU.S.CourtofAppealsfortheNinthCircuitruledinAprilinfavorofclasscer-tification,agreeingwiththedistrictcourtthat“itwouldbebettertohandlesomepartsofthiscaseasaclassactioninsteadofcloggingthefederalcourtswithinnu-merable individual suits litigating thesameissuesrepeatedly.”

ThePlaintiffsclaimthattheretailchain,withmorethan3,400U.S.storesandamillionemployees,haspaidwomenlessthan men and gives promotions towomen less frequently than men, andthat the women are similarly situatedenoughtoformaclass.JosephSellers,aCohenMillsteinSellers&Tolllawyer,whoispartoftheteamrepresentingthepro-posedclassofWal-Martemployees,saysthatWal-Marthastaken“thekitchensinkapproachtochallengingthepursuitofcivil rights class actions.” Someof theissuesraised,hesaid,includingwhetherpunitivedamagesareallowed,areprema-ture. Hopefully, the Court will denyreviewandsendthecasebackfortrial.Source: Law.com

AT&T SeTTleS OveRTime ClASS ACTiOn lAWSuiT fOR $17 milliOn

Afederaljudgehasgivenpreliminaryapprovaltoa$17millionsettlementina



classactionaccusingAT&TServicesInc.ofmisclassifyingitssenioranalystsanddatabaseadministratorsinCaliforniaasexemptfromovertimelaws.Source: Law360

OlAn millS inC TO pAy $3 milliOn in SeTTlemenT Of lAbOR lAWSuiT

AfederalcourtjudgeinTennesseehasapproveda$3millionclassactionsettle-ment agreement between Olan MillsInc.Andemployees—pastandcurrent—in four statesascompensation for thecompany’sviolationsofthefederalFairLaborStandardsAct. Theallegedviola-tions by the portrait studio chainoccurredbetween2003and2009.OlanMills,whichisbasedinTennessee,wassuedearlierthisyearby18currentandfor mer employees—al l o f themwomen—fromTennessee, California,Florida, New York, North Carolina,GeorgiaandMichigan.MostofthePlain-tiffs areemployedas studiophotogra-phersorwerepreviouslyemployed.Allwerepaidonanhourlybasis. In theirlawsuit, the Plaintiffs allege that OlanMills,Inc.violatedfederallawbyforcingemployeestoworkofftheclock.Source: pdnonline.com

XIII. PREDATORY LENDING

gmAC mORTgAge filed fAlSe AffidAviTS On fOReClOSuReS

GMACMortgage,aunitofAllyFinancialInc.,hashaltedevictionsin23statesasthe result of mishandled affidavits.Companyemployeessubmittedaffidavitscontaininginformationtheydidn’tper-sonallyknowwas trueandsigned theaffidavitswithout anotarypresent. Infact,thisisanindustry-wideproblemandtherewillbemoresaidon that in thecomingweeks.

Stateofficialsareinvestigatingallega-tionsof fraudulent foreclosures at thenation’s largesthomelendersandloanservicers. Mortgage borrowers haveaccusedGMACandotherlendersoffore-closingonhomeownerswithoutverify-

ingthattheyowntheloans.Companiescommonly file affidavits to startcourtproceedings. GMAC has instructedbrokersandagentstohaltevictionstiedto foreclosuresonhomeowners in23states.Thecompanysaysitmayhavetotake“correctiveaction,”whatever thatmeans,onotherforeclosures.

InDecember2009,aGMACMortgageemployeesaid inadeposition thathisteam of 13 people signed“a roundnumberof10,000”affidavitsandotherforeclosuredocumentsamonthwithoutverifyingtheiraccuracy. Theemployeetestified that he relied on law firmssendinghimtheaffidavitstoverifytheiraccuracyinsteadofcheckingthemwithGMAC’srecords,whichisrequired.Theaffidavitswerethenusedtocompletetheprocessofrepossessinghomesandevict-ingresidents.

The admiss ions by the GMACemployee, charged with reviewing10,000 cases a month, could have animpactfarbeyondthe23stateswhereAllyhashaltedforeclosures.Allyisn’ttheonlylenderwhoseemployeesfailedtoreview foreclosure informationbeforetaking legal action. TheoverburdenedforeclosuresystemintheU.S. is fulloffakedocuments, forgedsignaturesandlenderswho take shortcuts reviewingborrower’sfiles.It’stimefortheJusticeDepartmenttocomeinandputastoptothistypeactivity.Sources: Bloomberg and Washington Post

SubpRime COnSumeRS COmplAin TO gOldmAn SAChS

Goldman Sachs’ mortgage servicingunitiscurrentlyfacingalargenumberofcomplaintsfromconsumersoveritsbusi-ness practices. Litton Loan Servicing,GoldmanSachs’mortgageservicingunit,isasubsidiarythatcollectspaymentsonthousandsofloansworthtensofbillionsofdollars.InDecember2007,ayearafterthebankdecidedtoreduceitsexposureto the U.S. housing market, GoldmanSachsboughtLitton,aspecialist incol-lectingmoneyfromhigh-riskborrowers,whose headquarters is in Houston,Texas.ThepurchasegaveGoldmananewwaytoearnfeesfromsubprimeborrow-ers, andprovided itwitha street-levelviewofconditions in theU.S.housingmarket as the financial crisis deep-

ened. ThedealalsoputtheWallStreetbankintheabnormalpositionoffacinghundredsofcomplaintsfrommainstreamconsumers, who allege that Littonunfairlychargedthemmoney.

Littonrecentlyagreedtopay$532,000to settle a class-action lawsuit in LosAngelesthataccuseditofcharginglatefees during a 60-day grace period onloans that it acquired from other ser-vicers. Dan Parsons, the president ofHouston’s Better Business Bureauchapter,anon-profitgroupthatpromotesresponsiblebusinesspractices,hadthistosay:

Litton saw a great opportunity to make a lot of money by collecting servicing fees on troubled loans. But when Litton takes over a loan, the borrower tends to be worse off.

Thechiefexecutiveof theGoldmanunit, Larry Litton, Jr., would only tellreportersthatanyfeesresultedfromhiscompany’sregularservicingprocedures.Mr.Littonaddedthatitwas“inevitable”thecompanywouldfacecomplaintsasitdealsmainlywithdistressedborrowers.

TheBetterBusinessBureaucurrentlylists nearly 800 complaints in theU.S.AgainstLittonduringthepastthreeyears,whichismorethanhavebeenfiledagainst most similar-sized servicers.ConsumerAffairs,awebsitethattracksconsumerproblems,saidithadreceived390 complaints against Litton in thepastyear,which isa60%riseovertheprior12monthsandmorethantriplethenumber recorded against similar-sizedcompetitors.

Additionally,severalofthecomplaintsagainstLittonhavecomefromconsum-erswhosay theyentered intoa“trial”mortgagemodificationprogram.Litton’sloanmodificationprogramisdesignedtoreduce borrowers’ payments, and theprogram’sapplicationstatesborrowersareliableforpastdueamounts,includingunpaid interest, in the event they aredeniedapermanentmodification. Anylate feesare supposed tobewaived ifpermanent modifications are granted.However,accordingtogovernmentdatathroughApril 2010, Litton’s rate forconvertingloansfromtrialtopermanentmodificationswas29%comparedwithratesofmorethan80%forsomecom-petitors.


IfyouhaveanyquestionsaboutLittonLoanServicingoryouhaveanyquestionsabout predatory lending in general,contactBillRobertson,a lawyer in thefirm’s Consumer Fraud Section. Billhandles cases involving predatorylending,andhealsocurrentlyhasfiledseveralcasesagainstLittonLoanServic-ingforallegedfraudinvolvingtheservic-ingof its loans.YoucancontactBillat800-898-2034orbyemailatBill.Robertson@beasleyallen.com.

pAydAy lendeR SeTTleS COnSumeR lAWSuiT in nORTh CAROlinA

Spartanburg, South Carolina-basedAdvanceAmericaCashAdvanceCentersInc., a major payday lender, will paynearly$19milliontosettleaNorthCaro-linalawsuitaccusingitofviolatingstateconsumerfinancelaws.Thesettlementwillaffect144,000consumerswhogotapayday loan at Advance America orNationalCashAdvanceinNorthCarolinaafter March 2003. AdvanceAmerica’sshort-termloanscarriedannualpercent-age rates of as much as 400%, muchhigherthanthestate limitof36%.ThesettlementmustbeapprovedbyajudgeinHanoverCounty,NorthCarolina.

PublicJusticelawyers,alongwithleadcounselJerryHartzellofRaleigh;MonaLisaWallaceand JohnHughesofSalis-bury;RichardFisherofCleveland,Tennes-see;MalMaynardofWilmington;CarleneMcNulty of Raleigh; and Paul Blandshould be commended for their verygoodworkinthiscase.Source: Associated Press

XVI. PREMISES LIABILITY UPDATE

eleCTROCuTiOn CASe SeTTleS

Ourfirmrecentlysettledacaseforoneofourclientswhosehusbandwaselec-trocutedandkilledwhileworkingonthepremisesofSimsProperty inFlorence,Alabama.ThedecedentwasperformingmaintenanceworkandpaintingawningsupportsonthefrontoftheSimsProp-ertybuilding.Hewaselectrocutedwhen

hispaintpolecameintocontactwiththecasingof a florescent signwhichwasalso affixed to the front of the build-ing. Thecasingwasdangerouslyener-gized because it was not properlygrounded.

This case illustrates a most seriousproblem that exists across the state.Ownersofbuildings,whichhaveaged,often ignore safety issues with theirbuildingsandexposetenantsandpeopleworkinginandaroundthesebuildingstoriskofinjuryandevendeath.Inthiscase,theflorescentsign’senergysourcewasatwoprongwiringsystemthatwasnotproperlygrounded.Thehazardposedbyelectricalsystemswhicharenotproperlygroundedhasbeenrecognizedforover60years.Infact,thefirstNationalElectricCode, which was released in 1957,requiredthatallelectricalsystemsandsignsbegrounded toprevent electricshockinjuriesandfatalities.

Inthiscase,theownerofthebuilding,whoisanelectrician,wasawarethattheflorescentsignonthefrontofthebuild-ingwas improperlygrounded.Hewasalsoawarethatitposedasafetyhazardtothosewhomightcomeincontactwithit.However,thesafetyhazardwasnotcor-recteduntilafterthedeathofourclient’shusband,andonlyaftertheCityofFlor-ence ordered the property owner toeliminate the safety hazard. The onlyreasonthebuilding’sownerdidnotelimi-natethehazardbeforeourclient’shus-band’sdeathwasthecostinvolved.

Thecasewaspending inLauderdaleCounty,Alabama before Judge Gil Selfwhenthesettlementwasreached.Theamountofthesettlement,attherequestoftheDefendantandtheliabilityinsur-ancecompanyinvolved,isconfidential.RickMorrisonfromourfirm,alongwithLeslieJohnson,averygoodlawyerfromFlorence,Alabama,representedthefamilyanddidatremendousjob.

$6.8 milliOn JuRy AWARd in AlCOhOl-RelATed CRASh

AjuryhasfoundaPennsylvaniarestau-rantliableforcontinuingtoservealcoholtoanintoxicatedmanwholatercausedacaraccidentthatseverelyinjuredRyanFell. The jury awarded$6.8million indamages to Ms. Fell, who was drivinghomeaftervisitingafriendonMarch15,2007,whenthecrashoccurred.

OmarVillalava-MartinezhadstoppedattheFamousMexicanRestaurant&Bar,locatedinCoatesville,afterwork.Inthecourseoftwohours,themandrank12beersandtoppedthatoffwithashotofliquor.Byhisowntestimony,hebecamevery drunk and the bar continued toserve him. The man—in a drunkenstate—left the bar in a Ford Explorerabout9:30p.m.Hehadtraveledaboutfour miles down the road when hisExplorer crossed the center line andcrashedintoMs.Fell’svehicle.

Ms.Fellwas seriously injured in thecrashwhichcrumpledherNissan. The22-year-oldreceivedbrokenlegsinthecrash.Eventhoughheranklebonewasejected from her body, fortunately,doctorssavedherfoot.Morethanthreeyearsaftertheaccident,walkingisstillpainfulforMs.Fell.Shelostherjobasanadministrative assistant for a truckingcompanyandremainsunemployed.

Villalava-Martinez,anillegalimmigrant,hasbeendeported toMexico,and therestauranthasclosed.UnderstatecivillawinPennsylvania,establishmentscanbeheldliableforservingvisiblyintoxi-catedcustomerswho laterkillorseri-ouslyinjureanotherperson.DawsonR.Muth,alawyer,withGoldberg,Meanix,&Muth,locatedinWestChester,Pennsylva-nia,representedMs.Fellanddidaverygoodjob.Source: Philly.com

bRidge COllApSe SeTTlemenT COmpleTed

A$52millionlegalsettlementwillhelpMinneapolis bridge collapse victimscover lost wages and pay medicalbills. ThesettlementwasreachedwithengineeringgiantURSCorp.Therewere145peopleinjuredand13killedintheincident that occurred in August2007.TheInterstate35WbridgeovertheMississippiRiverbroke apart andcol-lapsedduringasteamyrushhour.Settle-mentswerepreviouslyreachedwiththestateandapavingcontractor. All told,Minnesotaandtwocontractorswillhavepaidout$100million.Thisincidenthascaused lotsofpain,griefandsufferingoverthepastthreeyearsforthoseinjuredandrelativesofthosekilled.

Thislastsettlementavertsatrialnextspring thatcouldhaveopenedURS topunitivedamages.Lawyersforthevictims


claimedthatURSoverlookedcriticaldefi-cienciesthatledthe40-year-oldbridgetofail.URShadargued that itsengineersdidn’tknowaboutadesignflawinthebridgethatmadeitvulnerable.HennepinCountyDistrictJudgeDeborahHedlundhadnotruledonthePlaintiffs’demandforpunitivedamageswhen the settle-mentwasreached.Thesettlementtermscalledfor$48.6millionofthesettlementtogotovictims,and$1.5milliontobesetaside foramemorial to thosewhodiedinthecollapse.

URSwasthelastofthemajorplayerstoagreetoasettlementforvictims.Thestate distributed $37 million from aspecial fund inexchange foranagree-mentthatitwouldn’tbesued.Progres-siveContractorsInc.,apavingcompanythat had been resurfacing the bridge,reacheda$10.5millionsettlementlastfallwithabout130victimsandsurvivors.PCIalsoagreedtopay$1milliontosettlethestate’sclaims.URSpreviouslyagreedtopaythestate$5milliontosettleaneg-ligence claim. This latest settlementwon’tendthebridgecollapselitigationentirely.URSandthestatehavependingclaimsagainstJacobsEngineeringGroupInc. of Pasadena, California, whichacquired the now-defunct firm thatdesignedtheoriginal35Wbridge.Source: Associated Press

RepORT fAulTS uTiliTy And COnTRACTOR in fATAl fiRe

A series of mistakes made by XcelEnergyInc.,alargeutilitycompany,andaCaliforniapaintingcontractor led toa2007firethatkilledfiveworkersinColo-rado,accordingtoareportreleasedbythefederalChemicalSafetyBoard. ThemensuffocatedafterachemicalflashfirebrokeoutinatunnelattheCabinCreekhydroelectricpowerplantintheRockyMountains, about 45 miles west ofDenver.Atthetime,crewsweregivingthetunnelafreshcoatingofwatertightepoxy.

Theboardfaultedthefirmsfora“lackofplanningforhazardouswork, inade-quatecontractorselection”andforuseofflammablechemicals in tightquarters.CabinCreekisownedbyDenver-basedPublic Service of Colorado which isownedbypubliclytradedXcel,basedinMinneapolis,ownerofutilities ineight

states.PublicServiceofColorado,saysithaschangedthewayitmanagescontrac-torsandclaimsitdoesabetterjobanalyz-ing hazards, in an attempt to preventaccidents.Thecompanydisagreedwithsomeofthereport’sfindingsandconclu-sions,includingthatXcelexercisespooroversight.

Initsreport,thechemicalsafetyboardalsourgesthefederalOccupationalSafetyandHealthAdministration tosetmoreexplicitlimitsonuseofflammablesub-stancesinconfinedindustrialspaces.Theboardcited53seriousfiresinconfinedspacesfrom1993toApril2010thatkilled45peopleandinjured54more.Itshouldbenotedthatthechemicalsafetyboardinvestigates chemical accidents, butdoesn’tlevyfines.

OSHA is currently studying thereport.TheAgency’sinvestigationoftheCabin Creek accident led to criminalindictmentslastyearagainstXcel,PublicServiceCo.,thepaintingcontractor,RPICoatingInc.,ofSantaFeSprings,Califor-nia,aswellastwoRPIexecutives,accus-ingthemofwillfulviolationsofOSHArules.Prosecutorsallegedthecompaniesdidn’tassessthehazardinvolvedinthejob,takestepstopreventanaccident,orrespond to the accident quicklyenough.Thecompaniesandindividualshave pleaded not guilty and a trial isexpectednextyear.

Thefirstmistakethatledtoproblems,accordingtothereport,wasXcel’sselec-tionofRPI. ThecontractorhadscoredlowonXcel’sinternalsafetyrankingsforprospectivecontractors,anditpickedasacleaneracommon,buthighlyflamma-blesolvent—methylethylketone,com-monlyreferredtoasMEK.

The second problem was whenworkersusedanepoxythatwaspoorlysuitedtothejobbecausetemperaturesweretoocoldforthatmaterialtoworkwell. As epoxy gummed up sprayingmachinery,workersusedlargequantitiesof solvent to unplug their sprayers.Solventbecameairborneandaflashfireerupted.Firethenspreadquicklytoopenbuckets of solvent and epoxy. Someworkers escaped, but five men weretrappedbehindflamesandretreatedintothetunnel,morethan1,500feetfromfireextinguishers and the exit. They diedabout an hour after the fire erupted,beforetheycouldbereachedbyrescueworkers.

XcelwenttocourtinJuneseekingagagordertopreventthechemicalsafetyboard from releasing the report orpostingtotheagency’swebsiteavideore-enactmentoftheaccident.U.S.DistrictCourtJudgeWileyDanielsaidhewasnotpersuadedbytheutility’sargumentthatrelease of the report and video couldtaintajurypool.Clearlythisisinforma-tionthatthepublicneedsandtowhichtheyareentitledfromapublicsafetyper-spective.Source: Wall Street Journal

fRATeRniTy lAWSuiT pARTiAlly SeTTled

TheparentsofacollegestudentfromAustin,Texas,whodied inaCaliforniahazingincidenthavesettledtheirlawsuitagainst a former SigmaAlpha Epsilonfraternitymemberfor$500,000.CarsonStarkey,anAustinHighSchoolgraduate,wasan18-year-oldfreshmanatCaliforniaPolytechnic State University whenhediedofalcoholpoisoninginDecem-ber2008.

His parents sued the fraternity andninefraternitymembers,includingtheirson’s designated big brother, HaithemIbrahim, also a member. Ibrahim haspleadednocontest to amisdemeanorcharge of hazing causing death. TheinsurancecarrierforIbrahimsettledhiscasewiththefamily,butthesuitagainstthe other Defendants is pending. Thenational fraternal organizations oncollege campuses—as well as a goodnumberofthecolleges’administrator’s—havelettheabuseofalcoholbyfraternitymembersgetwayoutofhand.

It’s time for all concerned to getcontrol over a most serious problem.Forexample,NorthwesternUniversityrecentlypaid$2milliontothefamilyofastudentwhodiedoncampusinanalco-hol-related incident. The school alsoagreedtoreviewandchangeitsalcoholpoliciesoncampus.Ibelieveyouwillseemore of this sort of thing in the nearfuture.Source: The Statesman

TRendS COnCeRning liTigATiOn AgAinST fACTORy fARmS

Afteryearsofverylittlesuccess,law-suitsagainstfactoryfarms,alsoknownasconcentratedanimalfeedingoperations


(CAFOs),aregainingtraction.Therehavebeensomemulti-milliondollarjuryver-dicts recently. Themassproductionofanimal and dairy products was in thespotlightrecentlywhenanationwidesal-monellaoutbreakexposedthefactthathalfabillioneggswereproducedbyonlytwoIowafactoryfarms.

Individuals,familiesandsmallfarmerslivingnext to factory farmshavebeensuing over noxious odors waftingthroughtheirneighborhoodsthattheyclaiminterferewiththeuseandenjoy-mentoftheirproperty.InplainEnglish,they claim factory farms“stink.”Aftermixedsuccessseekingremediesunderfederal statutes like theCleanAir andCleanWaterActs,Plaintiffs’lawyershaveturnedtonuisancetheories.Theshifttothat argument and the focus on civildamages has breathed new life intothesecases.

Fifteenindividualswonan$11millionverdictinMarchunderanuisancetheoryagainstPremiumStandardFarms,whichwas the second largestporkproducerbefore Smithfield purchased it in2007. And in 2006, a Missouri juryawarded$4.5milliontosixindividualswhosuedafactoryfarm.NuisancesuitshavebeenfiledinIllinois,Indiana,Minne-sota,Missouri,NorthCarolina,OklahomaandWestVirginia.

RichardMiddletonofTheMiddletonFirminSavannah,Georgia,andCharlesSpeerof theSpeer law firm inKansasCity,Missouri,areleadingthelitigationnationally. These two lawyers havedevoted their practices to litigationagainstfactoryfarmsandhaveformedanew IndustrialAgriculture LitigationGroupfortheAmericanAssociationforJustice.

The concentrated aspect of CAFOsmeans that thousands of animals arehoused in the same operation. Theirwasteisshoveledintolagoonsandlaterspreadontofieldsasfertilizer.Anumberofstates,includingAlabama,haveenacted“righttofarm”lawsprotectingCAFOs.Source: LawyersUSAonline.com

$100 milliOn fund SeT up fOR blAST viCTimS

PacificGasandElectric,theownerofthe gas pipeline that exploded andleveledaCalifornianeighborhood,killing

atleastfourpeople,hascreateda$100millionfundforthevictims. Thefundswillhelppayday-to-dayexpensesforthescoresofSanBruno,California,residentswhosepropertywasdamagedorwhowereinjuredinthemassivefireball.ThecompanyhadpreviouslygiventheCityofSanBruno$3million.

InvestigatorswiththeNationalTrans-portation Safety Board (NTSB) arelooking into this matter. The 28-footsectionofpipewheretheleakoriginatedwasblownabout100feetawaybytheblast. Investigatorshavenotyetdeter-minedwhetherthemetalintheroughly50-year-oldpipelinebecameweakenedbyage-relatedfactorssuchascorrosionor if it was somehow damaged morerecently. Reports were that residentssmelledgasbeforetheblast,butthishadnotbeenverifiedatpresstime.Source: The Associated Press

CARbOn mOnOxide veRdiCT Of $34 milliOn SuRviveS ChAllenge

Wereportedonacarbonmonoxidecaselastmonththathadgonetotrial.ABaltimore judge has now refused tothrowoutorreducethe$34.3millionajuryawardedto20restaurantworkersover the carbon monoxide leak at awaterfront hotel in 2008. The Pier 5Hotel’sowneranditsoperatorsoughtanewtrial,or,inthealternative,significantreductions in the jury’s awards to theworkersandtheirspouses.JudgeAudreyJ.S.Carrion,whopresidedoverthetrialinBaltimoreCityCircuitCourt,deniedtheDefendants’motiononallcountsonSep-tember8th.

ThejuryfoundhotelownerTPOBPierFive LLC and operator Meyer JabaraHotelsLLCatfault.JudgeCarrion,inherruling,deniedtheDefendants’MotionforJudgmentNotwithstandingtheVerdictonthosecounts.ThejudgealsodeniedtheDefendants’requesttofindtheawardsexcessiveortocapthepainandsufferingawards,whichrangedfrom$285,000to$3.75million,atnomorethan$695,000perPlaintiff.Plaintiffs’lawyersarguedthecapshouldnotapplybecausethe juryfoundintentionalconduct.BillyMurphy,Jr.,a lawyerfromBaltimore, istheleadcounsel for the Plaintiff’s and he hasdoneaverygoodjobinthiscase.Billy,aformer judge, firstbecameknownasa

criminaldefenselawyer.Butoverthepastfewyears,hehastransitionedintoaverygoodcomplexcivillitigationlawyer.Source: mddailyrecord

XV. WORKPLACE HAZARDS

WORkeRS RATe SAfeTy AS TheiR TOp COnCeRn

More than eight of ten workers—85%—rate workplace safety first inimportanceamonglaborstandards,evenahead of family and maternity leave,minimumwage,paidsickdays,overtimepayandtherighttojoinaunion,accord-ing to a new study from the NationalOpinionResearchCenterattheUniver-sityofChicago. Thestudy,“PublicAtti-tudesTowards and Experiences withWorkplaceSafety,”drawsondozensofsurveysandpollsconductedfrom2001to2010byNORC.ThisstudysoughttogainapictureofAmericans’experienceswithworkplacesafetyissues.ItwasdoneforthePublicWelfareFoundation,basedinWashington,D.C.,which includes aworkers’rightsprogram.

Despite widespread public concernaboutworkplace safety, the studyalsofoundthatthemediaandthepublictendtopayclosestattentiontosafetyissueswhen disastrous workplace accidentsoccur.Evenduringthosetragedies,thefateofworkers isoftenoverlooked. InthecaseoftheDeepwaterHorizondisas-ter,TomW. Smith, director of NORC’sGeneralSocialSurvey(GSS),observed:

Workplace safety is too often ignored or accidents taken for granted. It is striking that coverage in the media and public opinion polls have virtually ignored the 11 workers killed by the blowout and destruction of the dri

DirectorSmithpointedoutthatques-tionsinsteadfocusedontheenvironmen-tal impact of the disaster and largelyoverlookedworkersafety.Buthenotedthat“if optimal safetyhadbeenmain-tained,notonlywouldthelivesofthe11workersbeensaved,butthewholeenvi-ronmental disaster would have been


averted.”RobertShull,programofficerforworkers’ rights at the PublicWelfareFoundation,hadthistosay:

Workplace safety should be a con-stant concern. Given the impor-tance that workers themselves place on this issue, we should not have to mourn the loss of people on the job before government and employers take more effective measures to ensure that employees can go home safely after work.

TheU.S.DepartmentofLaborreportedonAugust19th, inapreliminarycount,thatthenumberofworkerswhodiedonthejobin2009fell17%fromtheprevi-ousyear,asworkersclockedinforfewerhoursbecauseoftherecession.Despiteadecreaseinworkplacefatalities,thestudyfoundthatreportsofworkplaceinjuriesremainedhigh.

ThestudydoneforthePublicWelfareFoundation found that about 12% ofworkers reported anon-the-job injuryduringthepastyear.Thirty-sevenpercentsaid theyhave requiredmedical treat-mentatonetimeforaworkplaceinjury.Whileunsafeworkingconditionswindupcostingthepublic,theworkersandtheirfamiliespaythehighestprice.ThePublicWelfareFoundationisanationalfoundationthatsupportsworkers’rights,healthreformandcriminalandjuvenilejustice.TheGeneralSocialSurveyissup-ported with grants from the NationalScienceFoundation.Source: Claims Journal

WidOW Of explOSiOn viCTim TO ReCeive $3.2 milliOn

ThewidowofaTexasmanwhowaskilledinatankertruckexplosionatthePortofBrownsvillein2006hasreachedan out-of-court settlement with RTWProperties L.P., one of the companiesinvolvedinthecase.LiveLaraGutierrezisthewidowofJuanPerez,whowaskilledintheexplosion.Thepartiessettledfora$3.2millionpaymenttothewidowandthedecedent’sheirs.ThelawsuitnamedRTWand14otherDefendants.Thedece-dent,atruckdriver,diedonFebruary27,2006,whenatankertruckthatwasbeingloadedwithmotoroilattheRTWTermi-nalatthePortofBrownsvilleexploded.

Hewas thrownoff the truckanddiedfromhisinjuries.

Onthedayoftheexplosion,thetankerhadastrongsmellofgasoline,butwasfilledwiththeoil-basedcompound.Thetruckhadgasolinefumes,whichruntheriskofignitingduringthefillingprocessbystaticelectricity.Anormalproceduretoavoidthatoccurringistogroundthetankertopreventanysparksfromlight-ingthefumes.Thatwasn’tdonewiththistanker.MarcRosenthal,anAustin-basedlawyer,representedthewidowandtwochildreninthiscaseandhedidaverygoodjob.Source: Brownsville Herald

JuRy AWARdS $30.4 milliOn in pOpCORn lung CASe

Inwhat isbelievedtobethe largestindividual verdict in a popcorn lungdisease case, a Chicago jury awarded$30.4milliontoaplantworkerwhowasexposedtothebutterflavoringchemicaldiacetyl, causing irreversible lungdamage.TheverdictwasagainstdiacetylsupplierBASFCorp.ThePlaintiff,45-year-oldGeraldoSolis,wasdiagnosedwithbronchiolitis obliterans in 2006. Afterworking in butter f lavor processingplants fornearly20years,henowhasonly25%ofnormal lungcapacity.Hisillnessisincurable,andthemaniscur-rentlyawaitingalungtransplant.

BASFknewbackin1993thatdiacetylwouldcausesignificantlungdisease,butitrefusedtotellanyone.Mr.Solisworkedat a number of f lavoring companiesthroughouthislife.HewasworkingataChicagoprocessingplantwhenhewasdiagnosedwithbronchiolitisobliterans.Hefiledsuitagainstmorethanadozencompanies,includingthefactorieswherehewasemployedandthesuppliersofthechemicalsusedtomanufacturethebutter f lavoring. Settlements werereachedwithallDefendantsexceptBASFCorp.AndthecasewastriedagainstthatDefendant.

During the trial, the testimony ofmedicalexpertsonthedangersofdiace-tylwasveryimportant.ThekeypieceofevidencewasastudyconductedbyBASFAG, the Defendant’s German parentcompany,backin1993.Itwasfoundinthatstudythatratsexposedtodiacetyldeveloped severe lung disease. The

companyfailedtodisclosetheresultsofthatstudy.ThatfailureputworkerslikeMr.Solisindangerfromexposuretothechemical. Thedefense lawyers arguedthattherewasnoproofthattheman’sillnesswascausedbydiacetyl,andthathewasalreadysufferingwithrespiratoryproblemsbeforehewasexposedtothechemical.

I understand a $350,000 settlementofferfromtheDefendantwasrejectedbythePlaintiffbeforethetrialbegan.Thejury found inMr.Solis’ favor,assessingcompensa to r y dama ges o f $32million.Thejurorsfoundhim5%atfaultforhisinjuriesbecausehecontinuedtoworkinbutterflavoringplantsafterhefirst began suffering symptoms. $1.6million was deducted from the totalverdictasaresult.KennethB.McClainofHumphrey,Farrington&McClain,alawfirmfromIndependence,Missouri,repre-sentedthePlaintiffandhedidagoodjob.Source: Lawyers USA Online

A lOOk AT fORklifT SAfeTy in The WORkplACe

Nearly5,000workersare injuredorkilledbyforkliftaccidentseachyear.Wehave found that many employers payverylittleattentiontoforkliftsafetytrain-ingfortheiremployees.Asaresult,fork-l i ft safety is a cr it ical industr ialproblem.Therearesomeessentialprinci-plesthatwillhelpensureasaferworkingenvironment wherever forklifts areused.Anyworkerrequiredtooperateaforkliftmustbeproperlytrainedandbequalifiedtooperatetheforklift fortheworker’sspecificjob.Thismustincludetheworkersbeingtrainedonthespecificpieceofequipmenttheywillbeoperat-ing.Thefollowingaresafetyrecommen-dationsforworkersusingforklifts:

• Checktheequipmentandloadbeforeuse. Always check that the load iswithintheforkliftloadlimitlistedontheloadcapacityplate.Iftheloadisn’tplacedcorrectly,reloadit.StabilityisCriticalforSafeOperation.

• Beawareofstabilityissues.Aforkliftcan become dangerously unstablewhenbeingdrivenwitharaisedloadoraraisedemptyloadcarriage.Dualwheeled forklifts provide an extramargin of safety in lateral stability


when l i f t ing loads a bove 15feet. Another importantpoint is thatloads attached to a forklift or sus-pendedfromajibattachmentaremorelikelytoresultinafullforwardtipoverwhenbraking.

• Keeploadsuphill.It’seasytotipoveron ramps and sloping surfaces,whether the forklift is loaded orunloaded.Whendrivingaloadedfork-liftonrampswithagradeof10%ormorealwayskeeptheloaduphill,evenifthismeansdrivinginreversedowntheramp.

• Staywiththeforkliftifitbeginstotipover. Experience from around theworldhasshownthat staying in thevehicle is the safest way to go. Themost common cause of death withthese vehicles is when an operatorattemptstojumpclearofanoverturn-ingforkliftandiscrushedbyeithertheoverheadprotectiveguardstructureorthemast.Theoperatorshouldremainin the forklift with the seatbelt fas-tened,gripthesteeringwheelfirmly,bracebothfeetonthefloor,andleantheirbodyawayfromthedirectionofthefall.

• Whenforwardvisibilityisobstructedor blocked, always drive in reverse.Don’ttrytoseearoundtheload.

• Forklifts aredangerousandmustbetreatedwithcare.Liftingpeopleontheforks is unsafe and shouldneverbeallowed.

• Exclusionzonesmustbeestablishedintheworkplacethatareforforkliftsonly.Safety officers must ensure that allworkersrecognizeandrespectthesezones.

• Level f loors are important: Unevenflooring,particularlywithaheightdif-ferenceinexcessof1.6inchesacrossthefrontwheels,canseriouslyaffectaforklift’s stability when carrying itsratedloadatfullheight.

Ifyouneedadditionalinformationonforklift safety and litigation, contactKendall Dunson or Mike Andrews,lawyersinourPersonalInjury/ProductLiabilitySection,at800-898-2034orbyemailatKendall.Dunson@beasleyallen.

[email protected].

XVI. TRANSPORTATION

AgenCy pROpOSeS mAndATORy SeATbelTS On buSeS

TheNationalHighwayTraffic SafetyAdministrationhasproposedrequiringallnewcommercialmotorcoachbuses toinstallseatbelts.Agreaterdangerofmulti-plecasualtiesresultingfromasinglebuscrashexists,particularlyifpassengersona bus are ejected. The proposed rulewould require that allnewly-manufac-turedcommercialbuseshavelap-shoul-derbeltstohelppreventejectionsinacollision.Therulewilltakeeffectthreeyearsafterthefinalversionisissued.Theagencyisacceptingpubliccommentsontheruleatwww.regulations.govthroughOctober 18th. Hopefully, the rule willbecomefinal.Source: Lawyers USA Online

TWO SeTTlemenTS in COlgAn AiR-CRASh liTigATiOn

Two families have agreed to settlewrongful-deathlawsuitsarisingoutofthecrashofContinentalAirlinesConnectionFlight3407,whichkilled50people.ThefamiliesofJohnG.RobertsIIIandDarrenTolsmareachedwhat Ibelieveare thefirstsettlements.TheFebruary12,2009crashoccurredoutsideBuffalo,NewYork,killingall49peopleaboardandoneontheground.RegionalcarrierPinnacleAir-linesCorp.operatedtheflightthroughitsColganAirunit.

Tolsma, 45, was an engineer atNorthropGrummanCorp.onclassifiedmilitaryprojects.Heandhiswife,Robin,hadtwochildren.Roberts,48,wasavicepresidentatDeloitteConsultingIndiainMumbai.Thesettlementtermsareconfi-dential.AtrialintheothercasesissetforMarch 2012 in federal cour t inBuffalo. The families claim corporatedecisionscausedthepilotandco-pilottomakeaseriesofmistakesthatdoomedtheflightfromNewark,NewJersey.

ThefamiliesofTolsmaandRobertsalsosuedBombardierInc.,makeroftheDash8Q400plane.JudgeWilliamSkretny,whois overseeing the litigation, signed anorderonAugust19thsealingtheterms,saying“confidentialityisafundamentalcomponentoftheaccord”and“financialtermsofthesettlementareofnovaluetothepublic.”Thejudgewroteonthisissue:

Disclosure of the settlement agree-ment would not advance public understanding of the crash of Flight 3407 nor serve any other public interest sufficient to outweigh the parties’ interests in confidentiality. Failure to seal the terms would likely hinder other accords, under-mining the long-recognized policy of favoring negotiated settlements.

After theColgancrash, theNationalTransportationSafetyBoardheldhear-ingsthatfocusedontheactionsofthepilot,whohadtwofailedflighttests,andtheco-pilot,whoonlymade$16,000in2008.Shehadreceivedaraise11daysbeforethecrashto$23,400.TheNTSBconcludeditsinvestigationinFebruarybyblamingthepilotforthecrash,citinghisincorrectresponsetoacockpitstallwarning.Hepulledbackonthecontrolcolumnafter thewarning,sendingtheplane’snoseup,puttingtheaircraftintoastallthat ledtothecrash,accordingtotheBoard’sreport.

Thecrew’sfailuretomonitorairspeed,whichslowedenoughtotriggerthestallwarning,alsocontributedtotheaccident,theNTSBfound.Itwasfoundfurtherthatunnecessaryconversationsbetweenthepilots,andthepilot’sfailuretomanagetheflight,alsowerecontributingfactors.Colgan’slackofstandardprocedurestohelppilotsselectandmanageairspeedforairportapproachesinicingconditionscontributed,theNTSBfound.TheBoardsaid that fatigue“likely impaired” thepilots, and Colgan didn’t“proactivelyaddress”fatigueforpilotswhocommutefromothercitiestotheirhomeairports,as both the pilot and co-pilot on theflightdid.

Allan Lewis, a lawyer with Lewis &LewisinBuffalo,representedtheRobertsfamily. JamesKreindlerofKreindler&Kreindler LLP, represented theTolsonfamily.Eachofthoselawyersdidaverygoodjobfortheirclients.Source: Bloomberg


ThRee deAThS in mediCAl heliCOpTeR CRASh in ARkAnSAS

ThreecrewmemberswerekilledonAugust31stwhenthemedicalhelicopterthey were aboard crashed in centralArkansas.TheAirEvacLifeteamhelicop-terwasflyingtopickupatrafficaccidentvictimwhenitwentdowninVanBurenCounty at about 4:30 a.m. They weref lying under visual f light rules and itdoesn’tappeartheyweretalkingtoanyair traffic controllers at the time. Nopatientswere aboard theBell206air-craft.Thehelicopter,builtin1978,wasregisteredtoAirEvacEMSInc.,basedinWestPlains,Missouri.

AirEvacLifeteamPresidentandCEOSethMyerssaidinanewsreleasethatthehelicopter was equipped with nightvisiongear. Investigators fromtheFAAand theNationalTransportationSafetyBoardareinvestigatingthecrash.Appar-ently therewasnodistresscall andatpresstime,thecauseofthecrashhadn’tbeendetermined.Thecrashsiteisabout80milesnorthofLittleRockincentralArkansas.

As we have reported previously,AirEvac has experienced several fatalcrashes inrecentyears. In2008,anAirEvachelicopter crashed in an Indianacornfieldkillingthreepeople. In2007,anotherthree-membercrewwaskilledwhenanAirEvachelicoptercrashedinColbertCounty,AlabamaIn2006,anAirEvac helicopter crashed in northwestArkansas, killing the three-membercrew. AnAir Evac helicopter made aforcedlandingrecentlynearTulsa,Okla-homa,aftertheaircraft’shydraulicsfailed.Fortunately, no one was hurt in thatincident.

Overthepastyear,therehavebeen14accidentsinvolvingairambulanceheli-copterswitheightfatalities.Aspointedoutabove,sinceJune,fourcrasheshavekilled tenpeople. Advocates forsafetyimprovementsarenotpushingforstiffnew requ i rements on medevacflights.TheNationalTransportationSafetyBoard(NTSB)hasissuednumeroussug-gestedsafetyimprovementsfortheindus-try inrecentyears. Theagencyhasnoregulatoryauthority.

TheFAA,whichoverseestheindustry,iswritingnewrules,butwillnotunveilthemuntil laterthisyear.Congresshasseveralbillsaddressingsafety,butallofthem have stalled in a deadlock over

funding for the FAA. The NTSB wantsnew requirements for equipment thatcanhelppreventpilotsfromgettingdis-oriented inpoorvisibility,betterpilottrainingandimprovedinternalmonitor-ing for safety lapses. There are safetyissuesthatmustbeaddressedbothbytheFAAandbyCongress.Sources: USA Today and Claims Journal

fAA pROpOSed $24.2 milliOn fine AgAinST AmeRiCAn AiRlineS

TheFederalAviationAuthorityhaspro-posed a $24.2 million civil penaltyagainstAmericanAirlines,relatedtotheApril2008groundingofsome300Ameri-canplanes,amovethatledto3,000can-celedflightsinoneweek.Theproposedpenalty is the largest in the FAA’shistory. Aspartof its investigation,theFAAdeterminedthat286ofAmerican’sMD-80sflewacombined14,278passen-gerflightswhilenotincompliancewithanairworthinessdirectivethatrequiredoperators to inspect and repair wirebundlesinwheelwells.FAAofficialssaidabrasiononthewirescouldhaveledtofiresandfuel-tankexplosions.Source: Associated Press

JuRy AWARdS $14 milliOn TO emplOyee buRned in explOSiOn

A jury has awarded a Plaintiff, CarlCotright,$14millioninhislawsuit,whicharoseoutof theexplosionofa tankerthatblewupthreeyearsago.Mr.Cotrightwasonthattankerandwasburnedovermuchofhisbody.HewasonthetankerinAprilof2007justbeforeitexploded.Hewasloadingitwithaflammableliquidwhenitignited.BythetimethePlaintiffrealizedwhatwashappening,itwastoolate.Flameshadalreadyreachedhimandhewasonfire.

Thetankerwasnotgrounded,whichwouldhavepreventedthefire.ThePlain-tiff suffered second- and third-degreeburns on his torso, arms and legs. HesuedtheTransportCompanyC&GHotShotService.Thecompanyhadofferedtosettle for$15,000whichwasrejected.JasonGibson,alawyerbasedinHouston,representedthePlaintiffanddidaverygoodjob.Source: ABC

u-hAul STill hAS SeRiOuS SAfeTy pROblemS

Wehavewrittenonnumerousocca-sionsaboutthedangersoftowingU-haultrailers and tow dollies. Numerousdeathsandseriousinjurieshaveresultedfromthepracticedueeithertomechani-cal issuesorweightdistributionissuesthatcausethetowedunittosway,leadingto loss of control of the towingvehicle.Thisoftenresultsinseriousacci-dentsincludingrollovers.Ourlawfirmisnowinvestigatingaclaimonbehalfofaclientwhowasinvolvedinanaccidentonamajor interstate inGeorgiawhiledrivingaU-haulrentaltruck.Thefrontlefttirefailedcausingthetrucktocrashintoaninterstatebarrier.Althoughtheclient sustained serious injuries, fortu-nately, themedianwallprevented theU-haultruckfromcrossingintooncom-ingtraffic.Interestinglyenough,wearealsoinvestigatingaclaimwhereaU-haulunit caused a vehicle to cross intooncomingtraffictostrikeatractortrailerleadingtothedeathofthedrivertowingtheU-haultrailer.

WithrespecttoU-haultrailers,it’sbestnot to tow them unless the towingvehicle isheavyenoughtoabsorb theswayingoftheU-haultrailer.IfanyonemustrentaU-haultruckitiswisetotakethe pre-trip inspection very seriously,focusingespeciallyon the tires. Mostconditionsthatcausetirestofailarenotnoticeable to a non-expert; however,treaddepthofthetiresisobservable.Theevidencewehavereviewedsofarrevealsthatthetreaddepthofatleasttwoofthetires were unacceptable. Renters ofU-haul equipment should carefullyexaminetheunitbeingrented,includingthetires,andifanythingoutoftheordi-naryisnoticed,bringittotheattentionoftherentalspecialistandifanysafetyissuesareidentified,refusetorentthatunit.Ifyouneedadditionalinformationonthissubject,contactKendallDunson,alawyer in our firm’s Personal Injury/ProductLiabilitySectionat800-898-2034orbyemailatKendall.Dunson@beasleyallen.com.


XVII. NURSING HOME UPDATE

nuRSing hOme ORdeRed TO pAy $43.5 milliOn in WROngful deATh lAWSuiT

AGeorgia juryhas returned a $435millionverdictagainstanursinghomeoperatorinawrongfuldeathlawsuit.Theverdictwasinfavoroftheestateofamanwho died as the result of negligentcare.ThenursingfacilitylocatedinRome,Georgia,hadbeencitedforrepeatedstateandfederalviolations.TheverdictagainstGeorgeD.Houser, theoperatorof thenursinghome,isbelievedtobeamongthe highest in state history against anursinghomeoperator.Priortothetrial,Houserfiledforbankruptcyprotection,listingtotalassetsofbetween$20millionand$100million.

Houser,whooperatedForumGroupCorp.Anditssubsidiary,ForumGroupatMoranLakeNursingHomeandRehabili-tation Center in Rome, faces federalcharges filed inApril in which he isaccusedofbilkingtheMedicareandMed-icaid programs of more than $30million.Accordingtothefederalindict-ment—in which his wife is alsocharged—thoseMedicareandMedicaidpaymentsweresupposedtogotowardcare of residents at Houser’s threenursinghomes.Instead,federalprosecu-tors allege the Housers funneled themoneytopurchaseluxurycarsandrealestate, includinga$1.3millionAtlantahomeforGeorgeHouser’sex-wife.

LorettaTerhune, whose 80-year-oldfather,MorrisEllison,diedonApril17,2007, charged that the nursing homefailed to provide adequate care. Herfather,whowasadmittedtothefacilityayearearlier,fellnumeroustimes,breakinghishipinoneinstance,accordingtothelawsuit.Thenursinghomealsofailedtonotifytheresident’sdoctorsorfamilyofhisinjuries.

It appears that Houser, through hiscompanies, systematically drained themoneyandresourcesfromhisnursinghomes.Therewerealsoallsortsofshort-agesoffood,water,medicine,andbasicsupplies. It appears the resident wasseverely neglected at the time of his

death.Hewasmalnourishedandseverelydehydrated.

Over a period of several years, theGeorg ia Depar tment o f HumanResources’OfficeofRegulatoryServicesconductednumerousinspectionsofthefacility.Theagencycloseditandtermi-natedallfederalfundingafteraMay23,2007, inspection found that“MoranLake’sdeficienciesconstitutedviolationsofstateandfederalregulations,nursinghomeregulations,Georgiastatehealthregulations,andNationalFireProtectionAssociationLifeSafetyCodeStandards.”TwoGeorgialawyers,SteveLowryfromSavannahandMikePrietowhosepracticeis inCartersville, represented the resi-dent’sfamily.Theydidaverygoodjob.Source: ASC.com

XVIII. ENVIRONMENTAL CONCERNS

SeTTlemenT in leAking undeRgROund STORAge TAnk lAWSuiT

Our firm recently settled a lawsuitagainst theownersofanundergroundstoragetank(UST)systemlocatedataBeeline convenience store in Eufaula,Alabama.Inthiscase,a30yearoldUSTlocatedatDefendant’sconveniencestoreleakedgasolineintothesoilandground-water near our client’s property. ThetoxicgasolineconstituentsmigratedfromDefendant’spropertyontoourclient’spropertycontaminatingitwithdanger-ouschemicals,includingbenzene,atcon-centrations above the regulatoryscreening levels established by theAlabamaDepartmentofEnvironmentalManagement.

Ourclientsfirstsuspectedtheirprop-erty was contaminated when theydetectedgasolineodorscomingfromthesoilontheirpropertywhileconductingexcavation work. Our environmentalexpertsconductedextensivetestingofthesoil,groundwaterandaironourcli-ent’spropertyandconfirmedtheexis-tence and extent of the gasolinecontamination.Becauseofthecontamina-tion,ourclientssufferedasignificantlossinthevalueoftheirproperty.

Rhon Jones and Chris Boutwell,lawyers in our Toxic Torts Section,handled this case and theydid a verygoodjobfortheirclient.Thetermsandamountofthesettlementareconfiden-tial,butourclient iswellpleasedwiththeoutcome.ThecasewasreferredtousbyBobMethvin,ofMcCallum,Methvin&Terrell,P.C.Ifyouwouldlikemoreinfor-mationon this subjectorbelieve thatyourhealthorpropertyhasbeenharmedbyaleakingUST,youcancontactChrisBoutwell, a lawyer in our firm’sToxicTortsSection,[email protected].

TvA COAl ASh diSASTeR updATe

Asmostofourreadersknow,ourfirmfiledaclassactionlawsuitonbehalfofproperty owners affected by TVA’sDecember22,2008coalashdisasterinKingston,Tenn. The coal ash disasterspilled5.4millioncubicyardsofcoalashovernearly300acresandintoadjoiningwaterways.Currently,ourcaseisinpre-trial discoverywith class certificationmotionsduethisfall.Aspartofdiscovery,PlaintiffstookthedepositionofTVACEO,TomKilgore,inlateAugustandTVAhascompleteddepositionsoftheninenamedclassrepresentatives inourcase. Addi-tional depositions ofTVA officials arescheduledforthefall.

Thecoalashissueisnotlimitedtothependinglitigation.Aspreviouslyreported,EPAhasissuedproposedcoalashregula-tions.Theproposedregulationsincludetwo options for federally regulatingcoalashwasteforthefirsttime.Neitheroftheproposedoptionswouldclassifycoalashwasteashazardousdespitehighlevelsofheavymetalsintheash.

EPAisseekingpubliccommentontheproposed regulations and will issue afinalversionafterreviewingpubliccom-ments. Aspartof thepubliccommentprocess,EPA isholding town-hall typemeetings in five locations across thecountry.Until recently, those locationsdidnotincludeKingstonorthesurround-ing area, but public pressure on EPAforced the agency to reconsider andagreetoholdapublicmeetinginKnox-ville—approximately 40 miles east ofKingstonandalsohometoTVAheadquar-ters.EPAdeclined toholdmeetings inKingstondespitethefactthattheKings-tondisasterhelpedpropeltheissueof


coal ash regulation into the spotlightnearlytwoyearsago.Atpresstime,EPAhad not announced a timeframe forissuingthefinalcoalashregulations.

Ifyouneedadditionalinformationonthissubject,contactRhonJonesorDavidByrneinourfirmat800-898-2034orbyemailatRhon.Jones@[email protected]: Knoxville News Sentinel, U.S. EPA

big Oil lOSeS hOT fuel AppeAl

Astringofvictoriescontinueforcon-sumersintheHotFuelMulti-DistrictLiti-gation(MDL)consolidatedinKansasCity,Kan. After District of Kansas JudgeKathrynVratilgrantedclasscertificationforthebellweatherKansasclass,bigoilcompanies appealed the certificationrulingtotheTenthCircuit.OnAugust31st,theTenth Circuit struck down the oilcompanies’appeal,ensuringthattheliti-gationwouldmoveforward.Tosaythesearesignificantrulingswouldbeanunder-statement.

TheHotFuellitigationseekstoholdbigoilcompaniesaccountableforcheat-ingconsumersoutofthegasolinetheypayfor.Asthetemperaturerisesinmotorfuel,thefuelexpandsbutitsenergystaysthesame.Inintra-oilindustrytransfers,oilcompaniesadjustfortheeffectstempera-turehasongasolineanddiesel.However,whensellingtoconsumers,oilcompa-nies do not compensate for tempera-ture.Theresultismoregallonsoffuelforthebigoilcompaniestosell,albeitwithless energy per gallon for consumershadtheoilcompaniesadjustedfortem-perature.

Theoilcompanieshavehadthetech-nologytoresolvethemotorfueltempera-tureissuefordecades.Infact,theyareusingitasyoureadthisarticleateverylevelofthefueldistributionprocess—except at retail. InCanada,where thevolumeofmotorfuelshrinksandcon-sumersactuallygainas a resultof thecooltemperatures,theoilcompaniesret-rofittedover90%oftheirpumpsinjustafewyears.However,thesamecompaniesarguethatthetechnologydoesn’texisttoretrofitpumps,wouldrequireyearsofstudies to determine whether it evenworks, and is simply tooexpensive toimplementintheUnitedStates.

RhonJones,whoheadsupourfirm’sToxicTortsSection,isamemberofthePlaintiffs’steeringcommitteeandservesasoffensivediscoverychairofthelitiga-tion.HeandParkerMiller,whoisalsointhissection,areplayingpivotalrolesinthe litigation.Currently, thepartiesareawaitingtheCourt’sordertoreopendis-coveryandproceedtowardstrial.Whilethisisadifficultandcomplexcase,wearefightingtomakeadifference.Ifyouhavequestionsregardingthelitigation,[email protected] and [email protected],orbytelephoneat800-898-2034.

XIX. THE CONSUMER CORNER

3 milliOn Jeep gRAnd CheROkeeS invOlved in SAfeTy pRObe

Federalsafetyregulatorshaveopenedaninvestigationintogastanksthatcouldpose a fire danger on an estimated 3million older Jeep Grand Cherokees.The National HighwayTraffic SafetyAdministrationlaunchedthepreliminaryinvestigationinlateAugustinresponsetoapetitionitreceivedinOctoberfromtheCenterforAutoSafety(CAS).Itshouldbenoted that theprobedoesn’tmeanthe vehicles are being recalled. Thatcould come later depending on whatNHTSAfinds.

CASclaimsthatJeepGrandCherokeesmade between 1993 and 2004 havedefectivefueltankstoragesystemsthatpresentafirehazardincrashes.Thecon-sumerwatchdogsaidfederalrecordsindi-catethattheCherokeesinquestionwereinvolvedin172firecrasheswhere254people died. According to CAS, theplasticgastankontheJeepGrandChero-keesfromthosemodelyearswasplacedbehind the rear axle and below thebumper,whereitcouldberupturedinarear-impactcollision.Thetanksinques-tion also had inadequate shielding,according to the group. In response,NHTSA says it reviewed the recordsgoingback to1992and identified tencrasheswhere the allegeddefectmayhavebeenafactor.Thosecrashesresulted

in 13 deaths , according to theagency. This investigation will bewatchedclosely.Source: CNN

nhTSA inveSTigATing STeeRing in 2011 SOnATA

Thefederalgovernmenthasopenedaninvestigationintopossiblesteeringprob-lemsinthe2011HyundaiSonata,whichis made in Montgomery. The NationalHighwayTraffic SafetyAdministrationsaysithasreceivedfieldreportsallegingtheseparationofajointthatledtoacom-pletelossofsteeringinthesedanoralooseningofa jointconnection in thesteering.

NHTSAsaysthevehiclescitedinthereportsweremanufacturedduring thesame month and had fewer than 600milesonthematthetime.Theinvestiga-tion involves an estimated 16,300Sonatas.AHyundaispokesmansaysthecompany received two reports citingsteeringproblemsandthetwovehicleswere repaired. According to Hyundai,therehavebeennoinjuriesorcrashesreportedandthecompanyiscooperatingwiththeinvestigation.Source: AL.com

bOTOx mAkeR TO pAy $600 milliOn in SeTTlemenT

Allergan Inc., themakerofwrinkle-smoothingBotox,hasagreedtopay$600milliontosettleayear-longfederalinves-tigationintoitsmarketingofthetop-sell-ing, botulin-based drug. The JusticeDepartmentsaysthecompanywillpleadguilty to one misdemeanor charge of“misbranding.”Itappearsthecompany’smarketingledphysicianstouseBotoxforunapproved uses. Those included thetreatmentofheadache,pain, spasticityandcerebralpalsyinchildren.

Aswehavepreviouslyreported,manu-facturersareprohibitedfrompromotingdrugs for unapproved, or“off-label,”uses. Allerganwillpay$375million inconnectionwiththeplea,whichincludesthe forfeiture of $25 mil l ion inassets. Additionally, the company willpay $225 million in civil fines—$210million to the federalgovernmentandtheresttoseveralstates—relatedtotheinvestigation.


Allergan,basedinIrvine,California,alsoreachedanagreementwiththeDepart-ment of Health and Human Services’Office of the Inspector General thatrequiresthecompanytosubmitcompli-ancereports,andtopostonitswebsiteanypaymentstodoctors,suchashono-raria,travelorlodging.

AssistantAttorneyGeneralTonyWestsaidAllergan“paidkickbackstoinducephysicians to injectBotoxforoff-labeluses andAllergan also taught doctorshowtobill foroff-labeluses, includingcoachingdoctorshowtomiscodeBotoxclaims leadingtomillionsofdollarsoffalseclaimsbeingtosubmittedtofederalandstateprograms.”Thesettlementisnotfinaluntilapprovedbyafederal judge.SallyYates,U.S.AttorneyfortheNorthernDistrictofGeorgia,hadthistosay:

The FDA had approved therapeutic uses of Botox for only four rare con-ditions, yet Allergan made it a top corporate priority to maximize sales of far more lucrative off-label uses that were not approved by the FDA. Allergan further demanded tremendous growth in these off-label sales year after year, even when there was little clinical evi-dence that these uses were effective.

The investigation was started by awhistle-blower complaint. Allergan’sproductsalestopped$4.4billionin2009,with Botox accounting for more than$1.3 billion of that total. The JusticeDepartment’sinvestigationcoveredAller-gan’s marketing of Botox from 2001throughat least2008. In recentyears,federalinvestigatorshavereachedmulti-billiondollarsettlementswithPfizer,EliLillyandotherdrugcompaniesovertheirmarketingpractices.Source: Associated Press

WAl-mART SeTTleS in dvd RenTAl AnTiTRuST SuiT

Wal-MartStoresInc.hasreachedapre-liminary settlement inaputativeclassactionbroughtbycustomerswhoclaimtheretailgiantandNetflixInc.illegallycarved up the market for online DVDrentalsandsales.Wal-MartandthePlain-tiffsfiledajointmotionintheU.S.Dis-trictCourtfortheNorthernDistrictofCaliforniaaskingthejudgetobifurcate

thesuitandstayallWal-Mart-relateddead-lineswhilethesettlementawaitscourtapproval.Wal-Martwasfacingaclasscer-tificationhearinginthemultidistrictliti-gationwhenthesettlementwasreached.

ThePlaintiffs,customersofNetflixandBlockbuster Inc., say the agreementbetweenWal-MartandNetflixaffectedmillionsofcustomerswhowouldhavepaid loweronlineDVD-rental feeshadcompetition continued. Netf lix willremainasaDefendantinthelawsuit.ThePlaintiffsclaimthatWal-MartandNetflixcame up with a scheme to drive upprices. According to the Complaint,NetflixCEOReedHastingsandformerWalmart.comCEOJohnFlemingmettodiscusseliminatingcompetition in theDVD rental and DVD sales markets inJanuary2005.ThiscameaboutatatimewhenthetwoweredirectcompetitorsforonlineDVDrentals.ThetwoallegedlyreachedanagreementunderwhichWal-Martwouldwithdraw fromtheonlineDVD rentalmarket andNetflixwouldstopsellingDVDsandpromoteWal-MartasashoppingdestinationfornewDVDs.

Priortotheallegeddeal,NetflixandBlockbusterhadbeeninvolvedinapricewar, according to the Plaintiffs. It’sclaimed that the deal substantiallyreducedcompetitionintherentalmarket.InJuly,NorthernDistrictJudgePhyllisJ.HamiltondeniedamotionbyWal-MartandNetflixtodismissanamendedCom-plaint from the Blockbuster custom-ers. Those Plaintif fs did not sueBlockbuster,butclaimtheallegeddealdroveup theirprices too.Netflix andWal-Martcontendedthatthebasiccon-spiracyclaimsattheheartofthecaseare“conjecturalandunsupported.”

Judge Hamilton had previously dis-missedtheBlockbustercustomers’firstamended Complaint with prejudice,ruling that the Plaintiffs had failed tosatisfythreenecessaryfactorsofantitruststanding:directnessoftheinjury,specula-tivenatureoftheharmandcomplexityinapportioningdamages.TheBlockbusterPlaintiffs filed their second amendedComplaintinMarchafterJudgeHamiltongrantedtheirmotionforreconsideration.Source: Law360

bedbugS hAve beCOme A big pROblem

A resurgenceofbedbugs across theU.S. has homeowners and apartmentdwellers takingdesperatemeasures toeradicate the tenacious bloodsuckers.Some folks are relying on dangerousoutdoorpesticidesandfly-by-nightexter-minators.Theproblemhasgottensobadthat the Environmental ProtectionAgencyhaswarnedagainst the indooruse of chemicals meant for theoutside. Theagencyalsowarnedofanincreaseinpestcontrolcompaniesandothersmaking“unrealisticpromisesofeffectivenessorlowcost.”

Bedbugs,infestingU.S.householdsonascaleunseeninmorethanahalf-century,havebecomelargelyresistanttocommonpesticides.Asaresult,somehomeownersandexterminatorsareturningtomorehazardouschemicalsthatcanharmthecentralnervoussystem,irritatetheskinandeyesorevencausecancer.AnumberofstatesareaskingtheEPAforanemer-gencyexemptionwhichwillallowtheindooruseofthepesticidePropoxur.EPArejected the request in June and haspledgedtofindnew,potentchemicalstokillbedbugs,whichcancauseitchy,redbites that can become infected ifscratched.

Bedbugs, acommonhouseholdpestfor centuries, all but vanished in the1940sand‘50swiththewidespreaduseofDDT.ButDDTwasbannedin1972astoo toxic to wildlife, especially birds.Since then, the bugs have developedresistance to chemicals that replacedDDT. Also, exterminators have fewerweaponsintheirarsenalthantheydidjustafewyearsagobecauseofa1996lawthatrequiresolderpesticidestobere-evaluated based on more stringenthealthstandards.There-evaluationsledtotherestrictionsonpropoxurandotherpesticides.

Thoughpropoxur isstillusedinpetcollars, it is banned for use in homesbecauseoftheriskofnausea,dizzinessand blurred vision in children. StevenBradbury,directoroftheEPA’spesticideprogram,said theproblemis thatchil-drencrawlon the floor andput theirfingersintheirmouths.Criticsinthepestcontrolindustrysaythatthefederalgov-ernmentisoverreactingandthatprofes-sionalapplicatorscanworkwithfamiliestopreventchildrenfrombeingexposedtoharmfullevelsofthechemical,which


ismorecommonlyusedoutsideagainstroachesandcrickets.

Expertssayitisgoingtotakeacom-prehensive public health campaign—publicserviceannouncements,traveltipsandperhapseventaxpayer-fundedexter-minationprogramsforpublichousing—toreducethebedbugproblem.Folkscangetbedbugsbyvisitinginfestedhomesorhotels,where theverminhide inmat-tresses,pillowsandcurtains.Thebugsarestealthhitchhikersthatclimbontobags,clothingandluggage.Source: AL.com

The inveSTigATiOn in The mASSive egg ReCAll iS fAR fROm OveR

Thesalmonellaoutbreakresultinginamassiverecallofeggshascausedmanysafetyexpertstoquestionthefederalgov-ernment’sregulatoryrole.ThecriminaldivisionoftheFoodandDrugAdministra-tion and the Justice Department havejoinedtheprobeoftheIowafarmattheheartoftheeggrecalllinkedtoanout-breakofsalmonella.Thereappearstobea formal investigation going on thatextendsbeyondtheFDAinspectionsthatarefocusedonfarmpractice.TheFBIhasvisitedfacilitiesofWrightCountyEgg,amajor egg producer that recalled 380millioneggsinmid-August,andHillandaleFarms,thesecondproducerinvolvedintherecall.

Asofmid-September,over1,500casesof salmonella had been reported tofederal health authorities since latespring.TheFDAhassaidthatthestrainofsalmonella found in the patients wasidentifiedinsamplesofWright’schickenfeedandinafewplacesonthefarm.Itreleasedareportdetailingnumeroussani-tationproblemsatWrightCountyEgganditsparentcompany,QualityEggLLC,whichmakesfeedforWrightandanothercompany involved intherecall,Hillan-daleFarmsof Iowa. TheFDAsays it isworking with the companies to makesurethattheycleanupthesubparprac-tices,andthateggsdonotgobackintothemarketplace thatarenot safe. Theagencyisalsotryingtomakesurethattherearen’tfurtherrecallsthatwillneedtobetaken“inordertofullyensurethatthepublicisprotected.”

GovernmentreportsonconditionsatthetwoIowaeggproducersatthecenter

of a recallof550millioneggspaint agrim picture. One report describedWrightCountyEggasfilthy,ratandfly-infestedandsooverflowingwithmanurethatinseveralcasesdoorscouldnotbeclosed.Theother,HillandaleFarms,hadmultipleunsealedrodentholesintoitshenhouses,liquidmanureleakingfromamanurepitandasmanyas50escapedhens tracking manure into the hen-house.Thisserioussafetyproblemcon-cerningeggssoldcommerciallyshouldmakeCongressdoallthatisnecessarytomakesurethatthefoodweeatonadailybasis is as safe as possible. It’s mostobviousthatthereismuchworktobedone.Source: Wall Street Journal

fOReign mAnufACTuReR legAl ACCOunTAbiliTy ACT

Recently,thesafetyofforeignproductshascausedgreatconcernamongAmeri-canconsumers.Chinesecompanieshavesoldlead-basedtoys,poisonousfoodanddefectivetires,allcausinggreatharmtohundredsinthiscountry.Since2005,theConsumerProduct SafetyCommissionhas reported between 400 and 500recallsayear.Overhalfof therecalledproducts were“made in China.” Inresponse,federallawmakersareconsider-ingabillthatwouldallowU.S.consum-erstoeffectivelyholdallforeignproductmanufacturersresponsibleforthedan-gerous products they import to thiscountry.

H.R.4678, theForeignManufacturerLegalAccountabilityAct of 2010, willsoonbebeforeCongress.Theproposedbillwasapprovedby theHouse’sSub-committeeonCommerce,TradeandCon-sumerProtectionthispastJuly.TheActisintendedtoprovidegreaterprotectionforconsumersfromforeignmanufactur-ers,whichoperateincountrieswithlessstrict safety standards and regulationsthanintheU.S.WhenyouconsiderhowweakU.S. standards are, these foreigncountrieshavetobemightybad.

TheActwouldrequireallforeignman-ufacturers and producers of productscoveredbytheActtoestablisharegis-teredagentintheU.S.Thisagentmustconsent to jurisdiction and must beauthorizedtoacceptserviceofprocessonbehalfof themanufacturerorpro-

ducerofproductsforthepurposeofallcivilandregulatoryactionsinStateandFederalcourts.Anymanufacturerorpro-ducer who fails to register an agentwithintheU.S.willbeprohibitedfromimporting i ts products into thiscountry. The act is important for anumberofreasons,includingthesetwo:

• TheAct would simplify service ofprocessbyrequiringeverymanufac-turertohavean“agent”locatedinatleastonestatewherethemanufacturerdoes business that would acceptserviceofprocessforanycivilandreg-ulatoryclaims.Thiswillbeawelcomedchange.Holdingforeignmanufacturersaccountable today often requiresserviceoftheDefendantmanufacturerabroad. This can be a cumbersome,costly,andtime-consumingprocess.

• More significantly, the Act wouldsubjectthemanufacturertothejuris-dictionofstateandfederalcourts inthe U.S., where it might previouslyhavebeenbeyondsuch jurisdiction.Nolongerwillmanufacturersbeabletoescaperesponsibilityfortheirdefec-tiveproductsbyconfiningoperationsto overseas and asserting that theycannot be held accountable in ourcountry.

TheActwillapplytoproductssuchaschildren’s toys and clothes, consumerelectronics and medical devices. Con-sumeradvocatesarehopefulthisbillwillpassandprovidemuchneededprotec-tion from foreign manufacturers whocontinue tomakeproducts thatcauseharm.IfyouneedadditionalinformationonthissubjectcontactRickMorrison,alawyer inourPersonal Injury/ProductLiabilitySection,at800-898-2034orbyemai l a t R ick .Mor r i son@beas leyallen.com.

SAfeTy ORgAnizATiOn ReleASeS AuTOmObile bOOSTeR SeAT RATingS

The Insurance Institute forHighwaySafetyhasreleasedtheresultsoftestson72modelsofchildsafety“booster”seats,designedtokeepolderchildrenproperlyrestrained inautomobiles. Theboosterseatsarethenextstepafteratraditionalcarseatforinfantsandyoungchildren.Boosterseatsaregenerallyproducedforyoungsters ages four to eight.Booster


seatsaredesignedtosimplyraisechil-drentotheproperheightsothatanauto-mobile’sstandardsafetybeltwillproperlyrestrainthemintheeventofacrash.

Boosterseatshavenottypicallyfaredwellinsafetyreviews.Inpastyears,themajorityofboosterseatsreviewedbytheIIHS have failed, receiving “poor”ratings. This year, 21 of the reviewedboosterseatsperformedwellenoughtoearna“bestbet”ratingfromtheorganiza-tion,whichindicatesahighlevelofconfi-denceintheproduct.Anadditionalsevenseatsreceiveda“goodbet”rating.Eightseats were placed on the“not recom-mended”list.

The recommendations came justbeforeNationalChildPassengerSafetyWeek,whichwasobservedSeptember19-25th. Theweek,developedandpro-motedby thenationalHighwayTrafficSafetyAdministration,promotedaware-ness about the importance of usingproperchildrestraintsinvehicles.“SeatCheckSaturday”wounduptheweeklongobservance,withmanycitiesandtownsofferinganopportunityforparentsandcaregiverstohaveaprofessionalmakesuretheircarseatisproperlyinstalled.

OurlawfirmsponsoredaSeatCheckSaturdayeventonSeptember25thfrom9a .m . To noon in Montgomer y,Alabama.ThefreeeventwasheldatTheShoppesatEastChase,intheparkinglotacross from Storkland andThe NameDropper.AlistoftheboosterseatratingsfromtheIIHSisavailablefromourfirm.Youcangetitonourwebsiteorbycon-tactingShannaMaloneatShanna.Malone@beasleyallen.com.

CpSC And hSC ReleASe SummeR figuReS On Child dROWningS

AschildrenacrossAmericagobacktoschool,theU.S.ConsumerProductSafetyCommission(CPSC)andtheHomeSafetyCouncil (HSC),aPoolSafetycampaignpartner,releasedareportondrowningincidents for the 2010 summer swim-mingseason.Onaverage,morethan200childrenyoungerthan15drowninpoolsorspasbetweenMemorialDayandLaborDay.Itappearsfrommediareportsthatthisyearhasbeennodifferent.

The report,“The 2010 Pool SafelySummerSnapshotonPoolSafetyintheUnitedStates,”indicatesthatatleast172childrenyoungerthan15havedrowned

sinceMemorialDayweekend.Inaddition,therehavebeenmorethan180non-fatalincidentsinvolvingchildreninpoolsandspas,accordingtomediaaccounts.Withsuchahighnumberofchilddrowningsandnon-fatal incidents,CPSCandHSCcalledforaddedvigilanceatpoolsandspasduringtheLaborDayweekend.Thatcall extends past that popular familyholiday.Source: CPSC

u.S. WARnS Of fATAl Side effeCT WiTh mRi imAging dRugS

U.S.governmenthealthregulatorsarewarningdoctorsthataclassofinjectabledrugsusedinMRImedicalimagingscanscancausearareandsometimesfatalcon-d i t ion in pa t ients wi th k idne ydisease.TheFoodandDrugAdministra-tionsays that it isadding its strongestwarning label to imaging agents thatcontainthechemicalgadolinium,indicat-ingtheyshouldnotbeusedinpatientswith kidney problems.“These labelchanges are intended to help ensurethesedrugsareusedappropriately,”theFDAsaidinapostingtoitswebsite.

Thewarninglanguagewillappearinabolded box at the top of the drugs’labels. Theagency said in a statementthatuseofthedrugscanleadtoararesyndromethatcauseshardeningoftheskinandtissuegrowthalongjoints,eyesandinternalorgans.Theailment,whichissometimes fatal, is callednephrogenicfibrosing dermopathy and has beenreported in patients with weakenedkidneyfunction.

Eventhoughkidneytransplantappearstoslowdisease,andevenreverse it insomecases,thereisnoknowntreatmentfor the condition. Known as contrastagents,theproductsareusedtoimproveclarityinmedicalscansoftheheart,liverandotherinternalorgans.TheFDAhasapproved five suchagents since1988.While the nephrogenic syndrome hasbeen reportedwith all fivedrugs, theFDAsaidthreehavegreaterrisksthantheothers: Bayer Healthcare’s Magnevist,GeneralElectricHealthcare’sOmniscanandCovidien’sOptimark.

According toanFDAspokeswoman,thosethreedrugsare“chemicallymoreunstable”thantheothersintheclassand“thusmorelikelytoreleasegadolinium.”

Gadolinium isametalwithdistinctivemagneticpropertiesthatincreaseitsvisi-bilityduringMRIscans.It’sknowntobetoxic to the liver. ThenewFDA labelsinstructphysicianstoscreenpatientsforkidneydiseasebeforeadministeringtheagents. According to the FDA, therehaven’t been any reports of the syn-drome inpatientswithnormalkidneyfunction.

Thereare twonon-gadolinium-basedimagingagentson themarket,but theFDAhas approved themonly for liverscans.GEHealthcaresaidinastatementthattheFDA’slabelingreinforcesphysi-cian guidelines that already stress theimportanceofscreeningforpatientswithkidneyproblems.ThecompanysaidMRIcontrastagents“continuetobeavaluablediagnostic tool with a proven safetyrecordfortheoverwhelmingmajorityofpatientstowhomtheyareprescribed.”That’scertainlytrue,butthedrugsusedmustbeassafeasisreasonablypossible.Source: MSNBC

mAnufACTuReRS hAve A duTy TO COnSumeRS

Therearesomebasicrulesthatapplytomanufacturersofconsumerproducts.Whenproductsareengineered,manufac-turedandplacedintothestreamofcom-merce,theproductsmustbereasonablysafe.Companieshavearesponsibilitytoeliminate all foreseeablehazards fromtheirproducts,ifpossible.Ifhazardscan’tbeeliminatedwithoutjeopardizingtheutility of the product or making theproductprohibitivelyexpensive,thenthehazards must be guarded. The guardsmusteffectivelypreventaccidentsandnot introduceothertypesofaccidentsintotheproduct.Forthosehazardsthatcannotbeproperlyguarded,consumersmustbewarnedofalldangersassociatedwithuseoftheproduct.

XX. RECALLS UPDATE

Onceagain,wearelistinganumberofproduct recalls in this issue. Unfortu-nately,aswepointedout,serioussafety-related recalls have become rathercommonplace.Thefollowingaresomeof


themoresignificantrecallssincethosereportedinourlastissue.Ourreadersareencouragedtocontactourfirmifmoreinformationisneededonarecall.

TOyOTA ReCAllS 1.1 milliOn COROllAS And mATRixeS

ToyotaMotorCorp.hasrecalled1.13millionCorolla sedans andMatrixhatchbacks from the 2005-2008modelyearsbecausetheirenginesmaystall. Threeaccidentsandoneminorinjurymayberelatedtotherecall.Toyotahasrecalledmorethan10millionvehiclesworldwideoverthepastyearforarangeofqualityproblems. Federal regulators havebeen investigatingtheCorollaandMatrix engine issue sinceDecem-ber. Toyota alerted owners and isfixingtheengineproblemforfree.Manyvehicleownersdon’trealizethatstallingintrafficisamostdan-gerousevent.

fORd ReCAllS 575,000 WindSTAR vAnS

Ford has recalled 575,000 oldermodelWindstarvansintheUnitedStates and Canada over concernsthattherearaxlescancorrodeandpotentiallybreak.Therecallcoversvehiclesinthemodelyears1998to2003soldinstateswheretheheavyuseofroadsaltcancausemorecor-rosion. That includesCanada,NewEngland,theMid-AtlanticstatesandtheGreatLakesregion.Fordhasnoti-fied owners of the problem. TheNational HighwayTraffic SafetyAdministrationopenedapreliminaryinvestigationoftheproblemonMay13afterreceiving234reportsofrearaxlefracturesandtwominorcrashes.

NHTSAsaidthedesignoftheaxleappears toallowit tocollectroadsaltslush,leadingtorust.Therecallaffects vans in Connecticut, Dela-ware,theDistrictofColumbia,Illi-nois,Indiana,Iowa,Kentucky,Maine,Maryland,Massachusetts,Michigan,Minnesota, Missouri, New Hamp-shire,NewJersey,NewYork,Ohio,Pennsylvania,RhodeIsland,Vermont,WestVirginiaandWisconsin.

gm ReCAllS CAdillACS fOR pOTenTiAl leg inJuRieS

GeneralMotors isrecalling20,224modelyear2009and2010CadillacCTSall-wheel-drivecarsandCTS-Vperformancesedansbecauseofthepotential for leg injuries in somecrashes.Thevehiclesdon’tcomplywithfederalsafetyrequirementsinterms of how well they protectsmaller, unseatbelted passengersfromleginjuriesincrashes,GMsaidinaletteralertingsafetyofficialstotheproblem.

“In theeventofacrash, ifa smalloccupant is inthefrontpassengerseatandisnotwearingasafetybelt,the risk of injury to the femur ishigherthanpermittedunderfederallaw,”GM said in a September13thlettertoNHTSA.TheproblemwasapparentlydiscoveredduringcrashtestsconductedbyGM.

Torectifytheproblem,GMdealerswillreplacethecars’glovecompart-mentassemblyand, insomecases,will modify the structure of theinstrument. Theworkwillbeper-formed at no charge to the cars’owners.Therecalldoesnotapplytotwo-wheel dr ive Cadillac CTSmodels.

gOOdyeAR ReCAllS TiReS

GoodyearisrecallingcertainDunlopSP193commercialtrailertires,size295/75R22.5,producedfromJanuary24th through May 29, 2010. Thesetirescouldexperienceairlossand,ifgoneundetected,thetirecouldbedrivenwhileunder-inflated.Drivingavehiclewithunder inflated tiresincreasestheriskofacrash.

Goodyear will notify owners ofrecordandwillvisuallyinspectthetiresforthedefect. If thedefect ispresent, Goodyear dealers willreplacethetiresfreeofcharge.Ifthedefectisnotpresentatthetimeofinspection,thetireisokandwillnotneedtobereplaced.Thesafetyrecallis expected to begin on or aboutSeptember 30, 2010. Owners maycontactGoodyearat1-800-321-2136.

Owners may also contact theNational HighwayTraffic SafetyAdministration’s vehicle safetyhotline at 1-888-327-4236 (TTY1-800-424-9153),orgo toHTTP://WWW.SAFERCAR.GOV.

J&J uniT ReCAllS 93,000 hip implAnT SySTemS

Johnson and Johnson unit DePuyOrthopaedicshasrecalledtwohipaidsystemsafterfindingthatmorepeoplethanexpectedsufferedpainfollowingtheimplantsurgerywhichrequiredadditionalsurgery.DePuy,whichhassoldabout93,000unitsofitsASRXLAcetabularSystemandtheASR Hip Resurfacing System, saidrecentdatareceivedbythecompanyshowedanincreaseinthenumberofpeoplewhohavehadasecondhipreplacement surgery, also called a“revisionsurgery.”

Both products were discontinuedlatelastyear.Thecompanysaidtheinformationshowedthatfiveyearsafter implantation, approximately12.5%ofpatients,orone ineight,whohadreceivedtheASRresurfac-ingdevice,and12.5%ofpatients,oroneineight,whohadreceivedtheASRtotalhipreplacement,neededasecondsurgery.Pain, swelling,andproblems walking are among thesymptomsthatpatientscomplainedabout, the company said. If thosesymptomscontinue,theycouldleadtomore significantcomplications,includinglooseningoftheimplant,fractureofthehipboneanddisloca-tion of the implant, the companysaid.

DePuysaiditwillcover“reasonableandcustomarycostsofmonitoringandtreatmentforservices,”includingadditionalsurgerycostsassociatedwiththerecallofASRsystems.ThisrecallmarkedthesecondproblemfortheJohnson&Johnsonunitinaweek. The FDA issued a warninglettertoDePuyforsellinghipandother joint products without theagency’sapproval.TheFDAsaidthemedical devices maker has beenselling itsTruMatch PersonalizedSolutionsSystem,whichmakesartifi-cialkneeproducts, and theCorail


HipSystemwithout“marketclear-ance”andinviolationoftheFederalFood,Drug,andCosmeticAct.

ChAR-bROil ReCAllS veRTiCAl gAS SmOkeRS due TO inJuRy hAzARd

Char-Broi l LLC, of Columbus,Georgia,hasrecalledabout18,450Char-Broil vertical gas smokers.Whenthetemperaturesettingison“low,”thesmoker’shose/valve/regu-lator(HVR)assemblydoesnotallowsufficient gas to flow, causing theflametoextinguish.Gascontinuestoflowandbuildupinsidethesmoker.Ifthesmokerisreignitedthebuild-up of propane gas can cause anexplosionthatburststhesmoker’sdoor open, posing an injur yhazard. Thecompanyhasreceivedfivereportsofdoorsburstingopenand hitting consumers. Injuriesreportedincludeburnstofaceandhead,headconcussionandcuts.

This recall involves theChar-Broilvertical gas smokers with modelnumber 07701413. The modelnumber is printed on a metal taglocatedontherightrearlegofthesmoker.Thesmokermeasures21.5”x 19.5” x 45.5” and weighs 75pounds. A“G” inside a triangle isprinted on the regulator. The gassmokersweresoldatWalmartandvariousother retailersnationwidefromMarch2008throughJune2010forabout$140.ConsumersshouldstopusingtherecalledsmokersandcontactChar-Broilforafreereplace-menthose/valve/regulatorassemblyand installation instructions. Foradditionalinformation,contactChar-Broil toll-freeat(866)671-7988orvisittheirwebsiteatwww.charbroil.com.

TeleviSiOn WAll mOunTS ReCAlled by mileSTOne Av TeChnOlOgieS

About131,000flatscreentelevisionwallmountshavebeenrecalledbythemanufacturerMilestoneAVTech-nologies LLC, of Savage, Minne-sota. Theelbow jointcomponentsonthewallmount’sarmdonotfittogether properly, causing the

attachedtelevisiontotiltandpossi-bly fall when the television isadjusted.Thiscouldposeaninjuryhazard to a consumer. This recallinvolves the SanusVision Mountmodel LF228-B1 wall mounts andSimplicity model SLF2. The wallmountsweresoldforflatscreentele-visions.ThemodelnumberscanbefoundontheULstickeronthewallplate.TheSanusVisionMountmodelLF228-B1wassoldthroughindepen-denttelevisionmountdealersnation-widefromJune2009throughJuly2010forabout$450.

TheSimplicitymodelSLF2wassoldthrough Costco from June 2009through July2010 forabout$200.Consumers should immediatelyinspectthewallmounttodetermineiftheelbowjointfitsproperlyandcontactMilestoneforafreereplace-mentwallmountarm.Instructionsforvisualinspectionsarelocatedatwww.milestone.com/recall.Foraddi-tionalinformation,contactMilestonetoll-freeat (877)894-6280orvisittheir website at www.milestone.com/recall.

gARmin ReCAllS gpS deviCeS OveR bATTeRieS

NavigationdevicemakerGarminLtd.hasrecalledabout1.3millionNuviGPS devices worldwide becausetheirbatterieshavethepotentialtoove rhea t and c rea te a f i rehazard. About796,000of theGPSunitsweresoldintheU.S.Garminsaidthatcertainbatteriesprovidedbya separatecompanyhaveover-heated in someNuvimodels. Thecompanysaidithasidentifiedfewerthantencasesofoverheating,noneof which produced any propertydamageor injury.Garmin said thebatterysupplierhasagreedtosharethe cost of replacing the batterypacks and that the recall will nothaveamaterialeffectonitsfinancialresults.

SlOW COOkeRS ReCAlled by SenSiO due TO fiRe hAzARd

Sensio Inc. of Montreal, Quebec,Canada,has recalledabout25,000slow cookers. The slow cooker’scontrolpanelcanoverheatandmelt,posing a fire hazard. Sensio hasreceived60reportsof thecontrolpanelsoftheslowcookerssmoking,melting and sparking and threereportsofpanelscatchingfire.Four-teen incidents resulted in minordamagetocountertops.Noinjurieshave been reported. This recallinvolves theBellaKitchen5-quartprogrammable slowcookers.OnlyslowcookerswithmodelnumberWJ-5000DEanddatecodes0907or0909areincludedinthisrecall.Theslowcookers areblack and“BellaKitchen” ismarkedon thecontrolpanel. Themodelnumberand thefour-digitdatecodeareprintedonalabel on the underside. The slowcookersweresoldatKohl’sDepart-mentstoresfromJuly2009throughDecember 2009 for between $20and $40. Consumers should stopusingtheslowcookerimmediately,unplug it and contact Sensio forinformation on receiving a fullrefund.Foradditional information,contactSensiotoll-freeat(888)296-9675orvisittheirwebsiteatwww.acbpromotions.com/sensiorecall.

SWing SeTS ReCAlled by kOmpAn inC. due TO fAll hAzARd

KompanInc.,ofTacoma,Washington(fromJanuary1998throughDecem-ber 2003); and BigToys Inc., ofOlympia,Washington(fromJanuary2004throughDecember2008)haverecalledabout700swingsets. Thejointconnectionbetweenthehori-zontaltopbeamandtheverticalendbracketandsupportpostsystemcancrack andbreak,posing a fall andimpact hazard to users. Kompanreceived19reportsfromBigToysofswingsthathavehadtheendbrack-etsreplacedduetobothactualorpotentialforcrackingorbreakageatthe jointof the topbeamand thesupportposts.Kompanhasreceivedthree reports ofminor injuries tousers; however, the company has


beenunabletoverifythecauseornatureoftheseinjuries.Therecalledswing sets include the“To Fro”models listed below with anynumbers in the series of modelnumbercodes listed.Forexample,forthefirstentry,S1-8,allsinglebay,eightfootswingsbeginningwiththemodel number S1-8 would beincludedintherecall.Kompanhasnotmanufactured theswingsinceDecember31,2003andhasnotsolditsinceDecember31,2008.

The swing sets were sold byKompan,Inc.fromJanuary1998toDecember31,2008forabout$700-$3250.Theunitsweresoldtocus-tomers through third-party salesrepresentatives throughout theUnitedStates.Third-partysalesrepre-sentativesareindividualsandcompa-nieswhomarketandsellKompanplaygroundequipmentbusinesstobusiness.Consumersshouldimmedi-atelystopusingtherecalledswingsetsandremovethechainsconnect-ingtheseatstothetopbeam.Aret-rofit kit will be provided to allaffectedcustomerswithinstallationinstructions.Kompaniscontactingswingownersdirectlybytelephoneand mail to advise them to stopusingtheswingandtoremovethechainsconnectingtheseatstothetop beam and advising customersthat retrofit kitswill bedeliveredwith instal lation instructions.Kompanwillfollowupbytelephoneandemailaftertheretrofitsaredeliv-eredtoconfirminstallationbycus-tomers.Foradditional information,contactKompanrepresentativeJoediRiceat (800)624-4869between9a.m.And5p.m.PTMondaythroughFriday,visitthecompany’swebsiteatwww.kompan.com, or e-mail [email protected].

TOShibA ReCAllS T SeRieS nOTebOOk COmpuTeRS due TO buRn hAzARd

Toshiba Amer ica InformationSystemsInc.ofIrvine,California,hasrecalledabout41,000SatelliteT135,SatelliteT135DandSatelliteProT130Notebook Computer s wor ld -wide.Thenotebookcomputerscanoverheatatthenotebook’splug-into

theACadapter,posingaburnhazardtoconsumers.Toshibahasreceived129reportsof thenotebookcom-putersoverheatinganddeformingtheplasticcasingareaaroundtheACadapterplug,includingtworeportsofminorburninjuriesthatdidnotrequiremedicalattentionandtwore p o r t s o f m i n o r p ro p e r t ydamage.ThisrecallinvolvescertainToshiba Satellite T135, SatelliteT135DandSatelliteProT130note-bookcomputermodels.

“Toshiba”isprintedonthetopofthenotebook computer. The modelnameandnumberareprintedonalabelonthebottomofthenotebookcomputers.Thenotebooksweresoldatelectronicsstoresandotherretail-ersnationwideandonline,includingat www.Toshibadirect.com andother websites, fromAugust 2009throughAugust2010, forbetween$600and$800.Consumersshouldimmediately download the latestversionofToshiba’sBIOScomputerprogramtotheirnotebookcomputerathttp://laptops.toshiba.com/about/consumer-notices.Thisnewcomput-ersprogramwilldetectwhetherthenotebookcomputerisoverheating,andifso,disablethenotebookcom-puter’sexternalpoweranddisplayamessagedirectingtheconsumertocontactToshibaforafreerepair.Con-sumerswhodonothave Internetaccess should contactToshiba toarrange for installation of theupdatedBIOS.Foradditional infor-mation,contactToshibaat(800)457-7777anytimeorvisittheirwebsiteathttp://laptops.toshiba.com/about/consumer-notices.

blACk & deCkeR ReCAllS RAndOm ORbiT SAndeRS due TO lACeRATiOn hAzARd

Black&Decker(U.S.)Inc.ofTowson,Maryland,hasrecalledabout192,000Black & Decker Random OrbitSanders. The black plastic disc(called the platen) that holds thesandpapercanflyofforbreakapartduringuseandthedisc,orpiecesofthedisc,canhit theuseror thosenearby,posinga lacerationhazard.Black & Decker has received 73

reports of incidents involving thesander’sblackplasticdisc(platen)breakingorfallingapart, including15 reports of injuries from flyingpieces, one of which involved aseriousfaciallaceration.Thisrecallinvolves Black & Decker randomorbitsanderswithmodelnumbersRO400, RO400G, RO410, RO410K,RO410LWandFS3000ROSanddatecodes be tween 200701 and200929.Thesandersareorangeandblack.“Black&Decker”isprintedonthesanders. Themodelnumber isprintedonalabelonthesander.Thedatecodeisstampedontheunder-sideof the sanderwhere thedustbag is inserted. The sandersweresoldathomecenter,hardwareanddiscount storesandbyauthorizedBlack&DeckerdealersnationwidefromJanuary2007throughJuly2009for about $40. Consumers shouldimmediatelystopusingtherecalledsandersandcontactBlack&Deckerforafreereplacementplatentoholdthesandpaper.Foradditionalinfor-mation,contactBlack&Deckertoll-freeat(866)220-1767orvisittheirwebsiteatwww.blackanddecker.com.

ReChARgeAble SpOTlighTS ReCAlled by innOvAge due TO buRn hAzARd

InnovageLLCofFoothillRanch,Cali-fornia,hasrecalledabout1.4millionFIXIT One Million CandlepowerRechargeableSpotlights. Thespot-light’s charging adapter can over-charge the battery, forcing it toruptureandleakbatteryacid. Thisposesachemicalburnhazardtocon-sumers.Thecompanyhasreceived13 reports of incidents involvingminor skin chemical burns andbattery acid burn holes in uphol-stery,clothingandcarpeting. ThisrecallinvolvestheOneMillionCan-dlepowerSpotlight,arechargeablehalogen light. Thehand-heldspot-light ismadeofyellowplasticandhasablacklabelthatreads,“FIXITTools UPTO 1,000,000 CANDLEPOWER” or“FIXIT RechargeableSpotlight.”ThespotlightissoldwithanACpowerchargeranda12-voltcar utility adapter. The spotlightswere sold atWalgreens, RiteAid,Bealls,TuesdayMorning,AceHard-


ware,Boscov’sandWinn-Dixiestoresnationwide from October 2003throughOctober2009forabout$10.Consumersshouldimmediatelystopusing the spotlights and contactInnovage for a full refund of theregular retailprice. Forpurchasesmadeabovetheregularretailprice,additional refunds will be offeredwithvalidreceipts.Consumersareasked to return theproduct, via aself-addressedstampedenvelopeorboxthatwillbeprovided.Instruc-tionsforreturningtheproductarepostedatwww.spotlightrecall.organd are also available from theInnovagecallcenter.Foradditionalinformation,contact Innovagetoll-freeat(888)408-1140orvisittheirwebsiteatwww.spotlightrecall.org.Consumerscanalsoemail [email protected].

lighT-up RingS And STAR glASSeS ReCAlled due TO ingeSTiOn hAzARd

CECEntertainment, Inc.,of Irving,TexashasrecalledChuckECheese’sLight-upRings andStarGlasses. Ifcrushedorpulledapart,theplasticcasingcanbreak intosmallpiecesandpossiblyexpose thebatteries,posinganingestionhazardtochil-dren.Ifingested,thebatteriesmaybedamaging to either the stomach,intestine,esophagusornasalmucusmembrane.

Therehavebeentworeportedinci-dentsinvolvingtheLight-UpRings.Oneinvolvedachildswallowingabattery, theother involvedachildinser t ing a bat ter y into h isnostril. Therearenoreportedinci-dents involving the Star Glasses.Light-UpRingsweredistributedaspartofapromotionalproductoffer-ingandduringparent-teacherassoci-a t ion convent ions . The r ingmeasures11/8inchesacrossandismadeofplasticwithablackelasticband. The ring comes in severalcolors—blue,green,purple,yellow,andpink.Thebackoftheringisfas-tenedeitherwithscrewsorglue.

StarGlassesweredistributedaspartofabirthdaypackage. Theglassesmeasureabout51/2inchesacross

by21/2inchestallandaremadeofredtranslucentplasticandhavethewordsChuckE.Cheese’spaintedontheside.ChuckE.Cheese’sRestau-rantssoldtheringsandglassesfromApril2009throughJune2010andAprilthroughAugust2010.

ConsumersshouldimmediatelytaketheLight-UpRingsawayfromchil-drenandreturnthemtoanyChuckE.Cheese’storeceivetheirchoiceofeither a refundof$1.00plus fourChuckE.Cheese’stokensoraSoccerPromo-Cup plus four Chuck E.Cheese’stokens.

ConsumersshouldimmediatelytaketheStarGlassesawayfromchildrenand return them to any Chuck E.Cheese’sfortheirchoiceofeitherarefundof$4.99oraFlashingHandsprizeproduct.Foradditional infor-mation,contactChuckE.Cheese’sat(888)778-7193,emailthecompanyatguestrelations@cecentertainment.comorvisittheirwebsiteatwww.chuckecheese.com.

fun STuff ReCAllS ChildRen’S TOyS due TO ChOking hAzARd

FunStuffInc.ofNewportNews,Vir-ginia, has recalled ClickArmbandBracelets,KlickKlickBallsandBoBoBalls.Thesmallballsontheendofthetoy’sarmscandetach,posingachoking hazard to young chil-dren. The toysweremarketed forchildrenage threeandover.CPSCstaffhasdesignated these toys forchildrenbetweentheagesof19and35 months. The Commission hasreceivedonereportofaballdetach-ingina21-month-oldgirl’smouthinCharlotte, North Carolina. Therecalledbraceletsandballsaremadeofstretchy,rubbermaterialwithhardplastic,colorfulballsattachedattheendofthetoy’sarms.

The toys were sold with orange,green,pink,purpleandbluecoloredballs.TheBoBoballshaveaflashinglightedballencasedinthestretchymaterial.Theitemnumberislocatedontheproductpackaging.Thetoyswere sold at beach resort storesnationwide from January 2009throughAugust2010forbetween$2

and$5.Consumersshouldimmedi-ately take the recalled toys awayfrom young children and returnthem to the place of purchase orcontactFunStuff to receivea fullrefund.Foradditional information,contactFunStuff toll-freeat(888)386-7833 or visit their website atwww.funstuffinc.net.

The COlemAn COmpAny ReCAllS WATeR-ACTivATed SpOTlighTS

SkyCityHoldingsInternationalLTD,China, has recalled about 50,000Coleman®WaterBeam™4DWater-ActivatedFloatingSpotlights.Thelensassemblycancomeapart fromthemainhousingofthespotlightwithforceandposeariskofimpactinju-ries to consumers. Coleman hasreceived33reportsofthelensassem-bly coming apart, 18 of whichresultedinreportsofimpactinjuriessuch as bruising, lacerations andminorburns.TherecalledspotlightsareColeman®water-activatedhand-heldspotlights,modelnumber5338-782 (orange) UPC 76501 222733,model number 5338-792 (yellow)UPC 76501 222753 and modelnumber 2000000153 (blue/white)UPC76501226683.Awhitelabelisaffixedtotheinsideofthespotlightlenswiththemodelnumberandpro-ductiondateinformationprintedonthelabel.Thespotlightsweresoldbyvarious sporting good stores andretailoutletsnationwidefromJanuary2005throughJune2010forbetweenabout $20 and $25. Consumersshouldimmediatelyremovethebat-teriesandstopusingthespotlights.Visit www.coleman.com for addi-tionalinstructionsonhowtoobtainareplacement light. For additionalinformation, contact Coleman at(800)835-3278,orvisittheirwebsiteatwww.coleman.comorviae-mailatcolemanrecall@coleman.com.

beeTle-TAinTed bAby fORmulA ReCAlled

AbbottLaboratorieshasrecalledmil-lionsofcontainersofitsbest-sellingSimilac infantformulathatmaybecontaminatedwithinsectparts.The


recallaffectsupto5millionSimilac-brandpowderformulassoldintheU.S.,PuertoRico,GuamandsomeCaribbeancountries.Thecompanysaid the products may contain asmallbeetleorlarvae,whichcouldcause stomachacheanddigestionproblems.TherecalldoesnotaffectanyliquidformulasorotherAbbott-brandproducts. Abbottuncoveredtheinsectslastmonthinonesectionof a Michigan manufactur ingplant.AbbottmanufacturesSimilacatseveralU.S.sites.

Theaffectedproductsweresoldinplasticcontainersandvariouscansizes,including8-ounce,12.4-ounceand12.9-ounce.Similacisthebest-sellinginfantformulaintheU.S.Thecompanyhassetupawebsiteandconsumerhotlineat(800)986-8850.Consumerscanenterthelotnumberontheircontainersonlinetodeter-mine if they are subject to therecall. The products should bereturnedtoAbbottforafullrefund.

Amgen ReCAllS AnemiA dRugS due TO glASS flAkeS

AmgenInc.hasrecalledsomelotsofitsblockbusterEpogenandProcritanemia treatments because theinjected drugs may contain glassflakesthatcouldcausebloodclots,swelling of veins, immune systemreactionsandotherproblems. Thebiotechnology company says thef lakes are barely visible in mostcases.Amgensaysithashadnocom-plaintsor reports aboutproblemsthat can be directly tied to them.Patients experiencing problemsshouldcontacttheirdoctor.

Amgensaystheflakesarecausedbytheinteractionofthedrugwithglassvialsovertheproduct’sshelflife.Theaffectedlotnumbersandexpirationdatescanbefoundonwebsitesfortheproducts,andpatientscancall1-800-77-AMGEN toaskquestions.Patients harmed by the recalledproducts, or their doctors, shouldnotifytheFoodandDrugAdministra-tionandeitherAmgenorJohnson&Johnson’sCentocorsubsidiary.

Epogen treats anemia in patientswithchronicrenalfailurewhoareondialysis.Procritalsotreatsanemiaforcancerpatientsonchemotherapyand some HIV-infected patients.Amgen makes both products atplantsinPuertoRico.

Again,ifyouneedmoreinformationonanyoftherecallslistedabove,orwouldlikeinformationonarecallnotlisted,youcangotoourfirm’swebsiteatwww.Bea-sleyAllen.com/recalls.You may alsocontact Shanna Malone at [email protected].

XXI. FIRM ACTIVITIES

emplOyee SpOTlighTS

SAnDRAMoATeSSandraMoatesfirstcametothefirmin

2004asatemporaryemployeetohelpout withVioxx cases. She was hiredshortly thereafter and worked on theVioxx litigation untilAugust of 2009.Sandracurrentlyworksasaclericalassis-tantforFrankWoodson,LeeMcIverandMatt Munsen. She assists in obtainingclients’medicalrecords,Batesstampingdocuments,andotherdutiesasneeded.SandraandherhusbandRogerhavebeenmarriedfor32yearsandhaveoneson,Richard, who was recently marriedAmandaBarnesonJuly4th.Sandraenjoyssewing, gardening and reading and isreallylookingforwardtohavinggrand-children.She isaverygoodemployeeandweare fortunatetohaveherwiththefirm.

LAuRenTHoMpSonLaurenThompson,whohasbeenwith

the firm since July of 2009, currentlyservesasAdministrativeAssistanttoExec-utiveDirectorLisaHarris.Inthisposition,Laurenhasanumberofduties.Sheworkswithourpublicrelationsfolks,handlesallsponsorship requests and donationsmadebythefirm,andalsoassistswithspecialevents,conferences,andadvertis-ingprojects. Laurenalsomanages anduploadstheJereBeasleyReporttothewebeachmonth.Youcanreaditatwww.jerebeasleyreport.com!Laurenhadpre-

viouslyworkedintheWebDepartmentandToxicTorts.

LaurenismarriedtoJasonThompsonand they have two wonderful boys.Laurenenjoysattendingherseven-year-oldstep-sonGavin’sbaseballgames,andstaysbusykeepingupwithone-and-a-half-year-oldson,Mason.TheThompsonsalsohavea two-year-oldYorkienamedGrady.

LaurenisagraduateofTheUniversityofAlabama.Herhobbiesincludespend-ing timewithher family, and she sayswatchingAlabamaFootballeverySatur-dayisamust!Shealsoenjoysputtinghercreativetalentstousebymakinghand-paintedpictureframesandartwork.ThefamilyattendsLibertyBaptistChurchinDeatsville.WearemostfortunatetohaveLauren,agoodanddedicatedemployee,withthefirm.

MATTHeWYAReMAMatthewYarema,whohasbeenwith

the firm forover four years, currentlyservesasaStaffAssistantworkingwithFrankWoodson, Lee McIver and MattMunsononthePainPumplitigationinourMassTortsSection.Matthrew’sdutiesincludecommunicatingwithclientsasneeded, assisting indraftingdiscoveryresponses,assisting inthedraftingandfilingofpleadingsonPacerandLexis/Nexis,calendaringschedulingorders,andcoordinatingwithotherstaffmemberstoensurethatalltasksarecompletedprop-erlyandinatimelymanner.MatthewalsoassistsMattMunsonbycommunicatingwith experts and providing materialsthey need to prepare expert reports.Matthew also helps to make sure thelawyers meet deadlines in a timelymanner.

Matthew and his wife,Alyson, havebeenmarriedfortwoyears. Theyhavethreedogs:twoboxers,MyaandLily,andaVizslanamedBarney.Matthewhas aBachelorsDegreeinJusticeandPublicSafety with a concentration in LegalStudiesandParalegalCertificationfromAuburnUniversityofMontgomery.HeenjoysridinghisHarleyDavidsonwithhis wife, traveling, grilling out withfriendsandfamilyandwatchingAuburnFootball.He isknownto letoutaWarEagleonoccasion.Matthew is a goodemployeewhoworksveryhardandwearefortunatetohavehimwithus.


XXII. SPECIAL RECOGNITIONS

dOing The RighT Thing fOR fOlkS WhO need help

IhopeallofourreadersalreadyknowaboutAlabamaArise.Ifnot,thisisagroupthateverybodyshouldlearnabout.Theyworkhard for folkswhoneedhelp inAlabama.KimbleForristerservesasExec-utive Director of theArise Citizens’Project. The folks helped byAlabamaArisearecitizenswhohavelittleifanyinfluenceonwhat goeson ingovern-mentatanylevelinourstate.Thesearelow income citizens who are on thebottomofthetotempolewhenitcomesto the priorities set by many who setpolicyforstategovernment.KimbleandhisstaffgivethesefolkshopebecausetheyworkhardforthembothintheLeg-islatureandinotherbranchesofourstategovernment.ACPpushesprogramsthatare designed to help folks and Icommendthemforit.

XXIII. FAVORITE BIBLE VERSES

Tom Sexton, president of PickwickAntiques, Inc. located in Montgomery,sent in two of his favorite Bibleverses. The first is fromtheOldTesta-ment.TomsaysthisverseremindshimofhisrelationshiptoGodandtoothers.

He has shown you, O man, what is good; And what does the LORD require of you But to do justly, To love mercy, And to walk humbly with your God?

Micah6:8

TomalsosentinsomeversesfromtheNewTestament. He says these versesposethemostpowerfulquestionfoundintheBible.Afterallthetheology—Tomsaysaperson’sfaithboilsdowntothisonequestion.

When Jesus came into the region of Caesarea Philippi, He asked His dis-

ciples, saying, “Who do men say that I, the Son of Man, am?” So they said, “Some say John the Baptist, some Elijah, and others Jeremiah or one of the prophets.” He said to them, “But who do you say that I am?” Simon Peter answered and said, “You are the Christ, the Son of the living God.”

Matthew16:13-16

GingerAvery, who is the ExecutiveDirectoroftheAlabamaAssociationforJustice,sentinherfavoriteverse.GingersayswhensheandherhusbandJackarepreparingfortailgatingorentertaining,orto enjoyThanksgiving and Christmas,theywillkeepthisverseintheirheartsandmindsandactonit.

Then Jesus said to his host, “When you give a luncheon or dinner, do not invite your friends, your broth-ers or relatives, or your rich neigh-bors; if you do, they may invite you back and so you will be repaid. But when you give a banquet, invite the poor, the crippled, the lame, the b l i n d , a n d y o u w i l l b e blessed. Although they cannot repay you, you will be repaid at the resur-rection of the righteous.

Luke14:12-14 (New InternationalVersion)

GibsonVance,alawyerinourfirmwhoiscurrentlyservingaspresidentofAAJ,anational trial lawyers association, fur-nishedthisverse:

If you have any encouragement from being united with Christ, if any comfort from his love, if any fellowship with the Spirit, if any tenderness and compassion, then make my joy complete by being like-minded, having the same love, being one in spirit and purpose. Do nothing out of selfish ambition or vain conceit, but in humility con-sider others better than yourselves. Each of you should look not into your own interests, but also to the interests of others.

Philippians2:1-4(NewInternationalVersion)

WesMcCollum,alawyerfromAuburn,Alabama,(whohappenstobemyson-in-

law),sentinthefollowingverse.Wesismarried to my youngest daughterBee. They have one daughter, Maggie,who is a sophomore atAuburn HighSchool.Maggieisaverygoodstudentandathlete.

Therefore confess your sins to each other and pray for each other so that you may be healed. The prayer of a righteous man is powerful and effective.

James5:16

XXIV. CLOSING OBSERVATIONS

MygoodfriendWalterAlbritton,whoisoneof thepastors at St. JamesUnitedMethodistChurch,wrotethefollowinglastmonthandIfeltitwasworthpassinghismessageontoourreaders.Walterhasawayofcommunicatingsothatyoucanunderstandexactlywhatheissaying.InBarbour County, where I come from,some would sayWalter“puts the haydownwherethegoatscangetit!”

Youcanliveonlyonedayatatimesoenjoyit

Some days I catch myself singing the song that begins “One day at a time sweet Jesus, that’s all I’m asking from you.” The simple tune is easy to remember. Singing the song is really a way of praying, for the song is actually a prayer, and one worth praying daily.

To ask Jesus for “one day at a time” is like saying, “Lord, life is so hard that I can handle only one day at a time. So please just give me the strength to do everyday what I have to do.” To make that request of Jesus is to admit that without divine assistance there is no way I can make it through the night, or through the day.

I like the song, what it says and how it feels in my soul. But I realize that one day at a time is all any of us will ever get. Singing that song will not change the reality that life comes at us one day at a time. Each


new day is a gift and we must decide how to use it morning by morning.

The song acknowledges that yester-day is gone, “and tomorrow may never be mine.” The mature person soon realizes that there is no way to change the past. To fret about past mistakes is to waste energy that could be applied to today’s opportunities. We can learn from our mistakes but we simply cannot live in the past.

Tomorrow is also beyond our grasp. To daydream about what we might do tomorrow is to fail to make the most of today. If we are to live well we must realize that today is all we have and we must make the most of it before the sun goes down.

Defeats and failures can wound our ego. They can also rob us of our willingness to make the most of each new day. Depression and dis-couragement can cause us to sit and stare. Uncaring staring allows self-pity to sap our energy and enthusiasm. But while we sit and stare time does not stop to wait on us. The clock keeps ticking. Sunset follows sunrise. Life goes on.

At the end of the day, the only ques-tion that matters is, “Have I lived this day to the fullest or have I let it slip away?” A day that is lost is a day that can never be regained. Once lost, it is gone forever. When that happens, we can only resolve to “sleep it off” and rise the next morning to live that day to the fullest.

A chest freezer taught me a great lesson. We had one for many years in our garage. One day I realized that we were making little use of it. We kept a bag of ice in it, or a loaf of bread. Finally I had to admit that to keep that freezer running was a

waste of money. My wife agreed and we gave it away.

Storing food may be done wisely of course. Many people make good use of a freezer. I have no quarrel with that. But the truth is, all we really need is food for today. If tomorrow never comes, what good will it do to have a freezer full of food? Perhaps that is why Jesus said when we pray we should say, “Give us this day our daily bread.” We need have more faith in God’s power to provide daily bread than in a freezer we have provided for our-selves.

While we have no choice but to live one day at time, we do have a choice about the attitude we may embrace with each new dawn. We can live with passion and compas-sion, joy and enthusiasm. We can dismiss our regrets about yesterday. We can refuse to waste time day-dreaming about tomorrow.

We can live today to the fullest, thankful for every precious hour, and squeeze it like an orange until there is not a drop of joy left in it. So relax and enjoy today!

A mOnThly RemindeR

If my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then will I hear from heaven and will forgive their sin and will heal their land.

2Chron7:14

XXV. PARTING WORDS

AsafollowuptowhatIhavewritteninthe last few issues, Iwillwindup this

themeinthisissue.Toooftenweletourcircumstances,andtheattitudeoffolksaroundus,determineourownattitudes.We tend to move with the flow so tospeakandreallydon’talwaysstandupforwhat’srightandoftenfailtostateourtruefeelingsonmattersofimportance.Whenlifeisgoodandthingsaregoingsmoothly,wegenerallyfeelgoodaboutoursituationandourselves.Whenthingsgettoughandhard,however,someofustendtoletourmoodsdrop.Wethenbegintotakeonanegativetoneinourdealingswithfamily,friendsandco-workers.

Thisiswhyit’scriticallyimportanttonotonlybelieveinGod,buttotrustHiminallthingsandatalltimes.ItwassaidrecentlybyapersonmuchsmarterthanI,thatweneedtoadoptanattitudethatsays“IcanthroughJesusChristhandleallthings.”That means learning to bringGod’spowerintoplayinoureverydaylives.Thatwillallowustobothacceptandadapttochangingcircumstances.Ilearnedthehardway—asmanydo—thatI am not capable of handling eithersuccessoradversityonmyown.Iseemedtoalwaysmess thingsupwhenI tookthatroute.

Submissionandtrustareneededandthereisnosubstitute.Oncethatisdone,wewillalwaysobeyGodinallthatwedo. But the first and perhaps hardestthingtodoistofirstsurrenderourwilltoGod’swill.WecanthentrustanawesomeGodtooverseeandcontrolourspecificsituation. Theobeyingwill thencomeeasyforeventhemoststrong-willedandhard-headed amongst us. In a recentdevotion,itwaswrittenthattheApostlePaulsubmittedhislifetoGod—trustedh im—and never fa i led to obeyHim. There aremanyexamples in theNewTestamentwherePaulcouldhavetakentheeasywayoutincrisissituations,butheneveroncewaveredandhekeptthe faith regardless of what oftenappearedtobeahopelesssituation.Thebasic question we all must answeris:“Whoisreallyinchargeofmylife?”Ifyouhadtoanswer thatquestion, rightnow,whatwouldyouranswerbe?

To view this publication on-line, add or change an address, or contact us about this publication, please visit our Website: BeasleyAllen.com

Norepresentationismadethatthequalityoflegalservicestobeperformedisgreaterthanthequalityoflegalservicesperformedbyotherlawyers.

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.

RETURN SERVICE REQUESTED

218 COMMERCE STREET (36104)

POST OFFICE BOX 4160

MONTGOMERY,ALABAMA 36103-4160

(334) 269-2343

TOLL FREE

(800) 898-2034

TELECOPIER

(334) 954-7555

WEB PAGE


PRESORTED

STANDARD

U.S. POSTAGE

PAIDMONTGOMERY,ALPERMIT NO. 275


No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Jere Locke Beasley, founding shareholder of the law firm Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., is one of the most successful l it igators of all t ime, with the best track record of verdicts of any lawyer in America. Beasley’s law firm, established in 1979 with the mission of “helping those who need it most,” now employs 44 lawyers and more than 200 support staff. Jere Beasley has always been an advocate for victims of wrongdoing and has been helping those who need it most for over 30 years.

No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Jere Locke Beasley, founding shareholder of the law firm Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., is one of the most successful l it igators of all t ime, with the best track record of verdicts of any lawyer in America. Beasley’s law firm, established in 1979 with the mission of “helping those who need it most,” now employs 44 lawyers and more than 200 support staff. Jere Beasley has always been an advocate for victims of wrongdoing and has been helping those who need it most for over 30 years.

Jere Locke Beasley, founding shareholder of the law firm Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. is one of the most successful litigators of all time, with the best track record of verdicts of any lawyer in America. Beasley’s law firm, established in 1979 with the mission of “helping those who need it most,” now employs 44 lawyers and more than 200 support staff. Jere Beasley has always been an advocate for victims of wrongdoing and has been helping those who need it most for over 30 years.

Distributed to over 53,000 subscribers each month€¦ · any large and calledpowerful corporate...

Documents

Transcript of Distributed to over 53,000 subscribers each month€¦ · any large and calledpowerful corporate...