Wednesday, July 18, 2012

Thomas J. Donahue on "Tort Tourism" in Foreign Courts

Thomas J. Donahue, President and CEO of the U.S. Chamber of Commerce, has an op-ed entitled, U.S. Firms Prone To 'Tort Tourism' In Foreign Courts, in Investor's Business Daily.  The op-ed particularly discusses the Chevron case in Ecuador. 

BGS

July 18, 2012 in Environmental Torts, Foreign, Lawyers, Procedure, Travel | Permalink | Comments (0) | TrackBack (0)

New Hampshire Tort Reform Using Offers of Settlement and Loser Pays

Walter Olson has an op-ed on recent New Hampshire tort reform involving early offers of settlement and loser pays.  Although New Hampshire's new approach concerns medical malpractice, one could imagine such reforms subsequently spreading to other areas of tort, including perhaps products liability.

BGS

July 18, 2012 in Lawyers, Procedure, Settlement | Permalink | Comments (0) | TrackBack (0)

Monday, July 9, 2012

NPR Interview with Ken Feinberg About His New Book

Tuesday, May 15, 2012

Chevron, Ecuador, and Allegations of Misconduct

In yesterday's Wall Street Journal, Mary Anastasia O'Grady has an article, Chevron's Ecuador Morass: The U.S. oil company charges that the $18 billion judgment against it was secured by fraud, which discusses Chevron's attempts in federal district court in Miami to obtain records to show bribery of a court expert.

Another article in today's Wall Street Journal discusses recent decisions from the Southern District of New York. In one opinion, the court allowed certain claims by Chevron, including RICO claims, to proceed against attorney Steven Donziger in connection with Donziger's alleged role as advisor in the Ecuadoran lawsuit, but in the other opinion, the court denied Chevron's motion to attach various assets. 

BGS 

May 15, 2012 in Environmental Torts, Ethics, Foreign, Lawyers | Permalink | Comments (0) | TrackBack (0)

Monday, May 7, 2012

Businesspersons in Law Firms

Interesting article in today's Wall Street Journal on the increasing influence of businesspersons in managing law firms -- Practicing Business: Professional Managers Gain Wider Presence at Law Firms, by Jennifer Smith and Ashby Jones.  As defense firms expand their offices globally and sometimes exceed a billion dollars in annual revenue, business expertise is clearly beneficial, but must be integrated with professional ethical responsibilities and firm culture.  Not discussed in the article are the possible benefits to plaintiffs' firms in including businesspersons.  Increasingly, plaintiffs' firms in mass torts are collaborating globally, as well, and might benefit from specialized business insight.  

BGS

May 7, 2012 in Ethics, Lawyers | Permalink | Comments (0) | TrackBack (0)

Thursday, May 3, 2012

Sixth Circuit Affirms Kentucky Fen-Phen Convictions

On Tuesday, the Sixth Circuit U.S. Court of Appeals affirmed the convictions and sentences of William Gallion and Shirley Cunningham for their handling of a massive settlement of fen-phen claims. Here is the  Sixth Circuit opinion, and here are news accounts from Thomson Reuters and Bloomberg. The lawyers had been sentenced to 25 years and 20 years, respectively. The opinion provides interesting and useful background on the diet drugs litigation and settlement, and it offers a picture of how badly things can go when mass tort aggregate settlements are mishandled. Because the Daubert exclusion of defendants' expert was an issue on appeal, the Sixth Circuit referred to my trial testimony as an expert on behalf of the United States -- I don't know whether I should be offended or flattered that I was accused of espousing ivory tower ideals, but I take some solace in knowing that the court thought the ivory tower had it right.

HME

May 3, 2012 in Ethics, Fen-Phen, Lawyers, Settlement | Permalink | Comments (1) | TrackBack (0)

Tuesday, February 28, 2012

BP Today, Tomorrow and Into the Future

Gentle Readers,

You don't need the Mass Tort Litigation Blog to tell you that the imminent BP trial has been stayed pending settlement talks.  In the meantime, here are some thoughts from the ever relevant George Conk. Special shout out for his poetic references:  Diving Into the Wreck: BP and Kenneth Feinberg's Gulf

I was just at a wonderful conference at the Charleston School of Law on Mass Torts and the Federal Courts where Feinberg spoke.  One of the key questions at the conference is the extent to which claims facilities (BP, 9/11, etc.) are unique and unlikely to be repeated or the wave of the future.  The interesting thing about BP is that it shows the interaction between claims facilities and litigation - its not one or the other.  Speakers mentioned how companies trying to get ahead of a litigation may well look to the BP model.   Others questioned whether BP was really special because the company was prepared to admit liability (although not gross negligence). 

I was especially interested by the remarks of Sheila Birnbaum, currently running the 9/11 Fund for first responders and who mediated settlements for the 94 families who chose not to participate in the 9/11 Victim Compensation Fund.  Even the families who wanted a public trial to find out what happened ultimately settled because of the uncertainty of trial.  This raises important questions about the purpose of litigation for individuals: is it ultimately to get compensation? How important is it to get to the "truth"?  How important is vindication?  Punishment?  When people settle (or waive their right to litigate prior to filing suit), what kind of consent do we want and does money ultimately satisfy?  Lynn Baker, who was at the conference, referred me to the following article that addresses some of these questions: Gillian Hadfield, Framing the Choice Between Cash and the Courthouse: Experiences with the 9/11 Victims Compensation Fund.  This continues to be relevant, especially if Funds become a model rather than a one-off.

ADL

February 28, 2012 in 9/11, Aggregate Litigation Procedures, Conferences, Environmental Torts, Lawyers, Mass Disasters, Mass Tort Scholarship, Settlement | Permalink | Comments (0) | TrackBack (0)

Monday, February 6, 2012

Catherine Sharkey on the Vicissitudes of Tort

Professor Catherine Sharkey (NYU) has posted to SSRN her article, The Vicissitudes of Tort: A Response to Professors Rabin, Sebok & Zipursky.  Here is the abstract:

This response essay probes three themes that tie together three articles submitted for a tort symposium on “The Limits of Predictability and the Value of Uncertainty.” First, I explore the use of unpredictability as a code word for an assault on tort doctrine in response to an out-of-control tort system. In his historical account of the evolution of tort, Professor Rabin focuses on the canonical “no duty” rules of the nineteenth century and the contemporary rules-based limitations on open-textured liability in the twentieth century. But largely missing from this account is the story of rules promoting tort liability, such as strict liability, vicarious liability, negligence per se, and the like. Second, I probe the link between unpredictability and insurance. I argue that Professor Sebok’s efforts to distinguish champerty from illegal gambling and to analogize it to a form of insurance will inevitably fall short of establishing social acceptance or embrace of the practice. Third, I highlight the role of the U.S. Supreme Court and its incursions into the state law domain of tort in the name of predictability. Professor Rabin is doubtful that the U.S. Supreme Court will achieve great strides in its endeavor to quell unpredictability in punitive damages. Professor Zipursky has considerable angst about the Court’s making inroads into privacy and emotional distress torts. Such incursions are in keeping with the Court’s longer-term project of procedural reform of the civil litigation system in the name of unpredictability, but are novel in their ambition to launch frontal attacks.

BGS

February 6, 2012 in Ethics, Lawyers, Mass Tort Scholarship, Punitive Damages | Permalink | Comments (0) | TrackBack (0)

Fordham Lecture on Third-Party Litigation Funding by Lisa Rickard fo U.S. Chamber Institute for Legal Reform

Lisa Rickard, the President of the U.S. Chamber Institute for Legal Reform, will present the 2012 Noreen E. McNamara Memorial Lecture at Fordham Law School in New York.  Her lecture is entitled, The Commercialization of Legal Practice: Legal and Ethical Perils of Third-Party Litigation Funding, and the lecture will take place at 6:00 p.m., February 28, 2012.

BGS

February 6, 2012 in Ethics, Lawyers | Permalink | Comments (0) | TrackBack (0)

Tuesday, January 31, 2012

Leading Law Firm Brands in U.S. for Major Litigation

Marketing-research company Acritas has released the results of its client-interview-based study of top law-firm brands, according to AmLaw Daily.  The firms most likely to be considered for major litigation were Skadden, Arps, Slate, Meagher & Flom; Kirkland & Ellis; Jones Day; Gibson, Dunn & Crutcher; and Sidley Austin.  All have active mass tort or products liability practices.

A particular congratulations to my former firm colleagues at Skadden and Jones Day, which placed #1 and #2 in the overall ranking of leading U.S. law firm brands.

BGS 

January 31, 2012 in Lawyers, Products Liability | Permalink | Comments (0) | TrackBack (0)

Zamir, Medina, and Segal on the Uniformity of Lawyers' Contingent Fee Rates

Eyal Zamir (Hebrew Univ.), Barak Medina (Hebrew Univ.), and Uzi Segal (Boston College, Economics) have posted to SSRN their article, The Puzzling Uniformity of Lawyers’ Contingent Fee Rates: An Assortative Matching Solution.  Here is the abstract:

Lawyers’ Contingent Fee (CF) rates are rather uniform, often one-third of the recovery. Arguably, this uniformity attests to collusion in the market, resulting in clients paying supra-competitive fees. This paper challenges this common argument.

Uniform CF rates are not necessarily superior to negotiable ones; yet they provide clients with an important advantage. They result in clients making a defacto “take-it-or-leave-it” offer. It precludes lawyers from exploiting their private information about the lawsuit’s expected value and the amount of work it requires. The uniformity of CF rates enables clients to hire the best available lawyer, either directly, if clients know lawyers’ ranking, or indirectly, through the referral system. This uniformity thus fosters a positive assortative matching of lawyers and clients. Finally, the fact that both direct clients and clients obtained through paid-for referrals pay the same CF rate does not attest to cross-subsidization, as the cases a lawyer gets through referrals are quite different than those she gets directly.

 BGS

January 31, 2012 in Ethics, Lawyers, Mass Tort Scholarship, Settlement | Permalink | Comments (0) | TrackBack (0)

Tuesday, January 17, 2012

Top Products Liability Defense Firms in the AmLaw Litigation Power Rankings

American Lawyer has put together a list of most-appearing law firms over the past 10 years of its rankings for Litigation Department of the Year.  Several firms on the list are cited for past awards for practice-area expertise in products liability.  Here are those firms' rankings places in the overall Litigation Power Rankings AmLaw list (counting the firm with highest score as #1):

#3                   Jones Day

#11                 Shook, Hardy

#14 (tied)        Reed, Smith

#14 (tied)        Skadden

#19                 King & Spalding

#24                 Dechert

I practiced at both Jones Day and Skadden, and have worked with lawyers from Shook, Hardy; Reed Smith; King & Spalding; and Dechert.  All are excellent.

BGS

January 17, 2012 in Lawyers, Products Liability | Permalink | Comments (0) | TrackBack (0)

Saturday, January 14, 2012

BP, the Gulf Coast Claims Fund, and MDL Plaintiffs' Lawyers

All that in the recent interesting op-ed from New York Times business columnist Joe Nocera -- BP Makes Amends.

BGS

January 14, 2012 in Aggregate Litigation Procedures, Environmental Torts, Informal Aggregation, Lawyers, Mass Disasters, Procedure, Punitive Damages, Settlement | Permalink | Comments (0) | TrackBack (0)

Thursday, January 12, 2012

Mark Hermann on Class Actions on Above the Law

Mark Hermann has posted "Torpedoing Class Actions" in his column on Above the Law which highlights Martin Redish's book "Wholesale Justice" and my book review "Are Class Actions Unconstitutional?"

Hermann asks why class action defense lawyers aren't bringing up Redish's arguments more in courtrooms across the nation.  More thoughts on this later...in the meantime, I recommend his post. 

ADL

January 12, 2012 in Books, Class Actions, Lawyers, Mass Tort Scholarship | Permalink | Comments (0) | TrackBack (0)

Thursday, January 5, 2012

Class Action Countermeasures on the 10 Most Interesting Class Action Articles of 2011

You can find a list of the 10 best class actions articles according to class action countermeasures here.   Our own Beth Burch gets praise for her latest piece Financiers as Monitors, which I also thought is a great contribution to the literature.

While I don't agree with Mr. Trask's assessment of my own work, legal academia or what people ought to write about, his wish list of articles is a great starting place for students looking to write a note on class action related topics.

ADL

January 5, 2012 in Class Actions, Lawyers, Mass Tort Scholarship | Permalink | Comments (0) | TrackBack (0)

Monday, December 5, 2011

Fight Ensures over Attorneys' Fees in BP Oil Spill MDL

Yesterday's NY Times had an article by John Schwartz titled, "Plaintiffs' Lawyers in a Bitter Dispute Over Fees in Gulf Oil Spill Cases."  The article chronicles the now typical battle over attorneys' fees in multidistrict litigation where judges compensate Plaintiffs' Steering Committee members from other attorneys' fee awards.  This dispute is particularly bitter; the steering committee is asking for fees not just from those involved in the federal multidistrict litigation, but from those who negotiated their own recoveries from the privately administered Gulf Coast Claims Facility.

ECB

December 5, 2011 in Current Affairs, Environmental Torts, Ethics, Lawyers | Permalink | Comments (0) | TrackBack (0)

Sunday, November 27, 2011

Fifth Annual Conference on the Globalization of Class Actions and Mass Litigation at The Hague

The Fifth Annual Conference on the Globalization of Class Actions and Mass Litigation is being hosted by Tilburg University and will be held on December 8-9, 2011 in The Hague, Netherlands.  The conference is being organized by Professors Deborah Hensler (Stanford Law School), Christopher Hodges (Oxford Centre for Socio-Legal Studies and Erasmus University), and Ianika Tzankova (Tilburg University).  Master claim administrator Kenneth Feinberg is delivering the keynote speech.

BGS  

November 27, 2011 in Aggregate Litigation Procedures, Class Actions, Conferences, Ethics, Informal Aggregation, Lawyers, Mass Tort Scholarship, Procedure | Permalink | Comments (0) | TrackBack (0)

Monday, October 31, 2011

Ted Frank Profile in the Wall Street Journal

In today's Wall Street Journal, There's a profile of Ted Frank of the Center for Class Action Fairness.  The WSJ Law Blog also has a companion post on him today.  Ted Frank has been toiling for years on class actions, as well as law reform generally in his previous position at the American Enterprise Instititue. Today's recognition is well deserved.

For one indication of his devotion to class-action reform, check out Ted Frank's license plate.

BGS

October 31, 2011 in Class Actions, Lawyers, Procedure | Permalink | Comments (0) | TrackBack (0)

Monday, October 10, 2011

Morris Ratner on A New Model of Plaintiffs' Class Action Attorneys

Morris Ratner (Harvard) has posted to SSRN his article, A New Model of Plaintiffs' Class Action Attorneys, Rev. Litig. (forthcoming).  The article presents a nuanced, updated portrait of plaintiffs' class action firms today that challenges prior conceptions of class-counsel bias.  Here's the abstract:

This Article offers a new model for conceptualizing plaintiffs’ class action attorneys, and thus for understanding principal-agent problems in class action litigation. It responds to the work of Professor John C. Coffee, Jr., who, in a series of influential articles, demonstrated that principal-agent problems may be acute in class action litigation because class members lack the information or financial incentive to monitor class counsel; class counsel is thus free to pursue his own interests at the expense of the class members. But what are those interests, and how do they diverge from the class members’ interests? Professor Coffee provided one answer to this sub-set of questions, presenting a conventional account of class counsel and the precise parameters of his disloyalty corresponding with three descriptive assertions: that class counsel is either a solo practitioner or in a small firm; that he is predominantly interested in maximizing his law firm profit; and he capably pursues his fee-maximizing goal by investing his time in cases based on confident predictions about expected fees. In this Article, I articulate an updated and competing conception of the dominant class action attorneys and firms: the leading firms today are relatively large and internally complex; law firm structural complexity creates diverse incentives other than maximization of law firm profit; and class counsel invest time in cases for complex reasons other than the effect on expected fees, particularly because fees are notoriously difficult to predict. Modeling class counsel to recognize this complexity has three virtues: it better reflects the actual characteristics of the most significant class action attorneys, and hence is a more accurate descriptive tool; as such, it enables a more precise understanding of the extent and nature of agency or loyalty problems; and thus, finally, it provides a more solid basis for reforms. In particular, this new model sheds insight on the importance of direct versus incentive-based regulation to manage agency costs in class actions. In light of the diverse incentives this new model reveals, direct regulation of outcomes by trial courts using enhanced final approval standards should be a central part of any package of reforms to manage agency costs in class litigation.

BGS

October 10, 2011 in Class Actions, Ethics, Lawyers, Mass Tort Scholarship, Procedure | Permalink | Comments (0) | TrackBack (0)

Thursday, August 25, 2011

RAND Reports on Asbestos Bankruptcy Trusts and Tort Compensation

RAND's Institute for Civil Justice last week released its report, Asbestos Bankruptcy Trusts and Tort Compensation, by Lloyd Dixon and Geoffrey McGovern.  Here's the summary:

Payments by asbestos bankruptcy trusts have played an increasingly important role in compensating asbestos injuries and have become a matter of contention between plaintiff and defense attorneys. At issue is how tort cases take into consideration compensation paid by trusts and the evidence submitted in trust claim forms. This monograph examines how such evidence and compensation are addressed by state laws and considered during court proceedings. It also examines how the establishment of the trusts potentially affects plaintiff compensation from trusts and the tort system combined, payments by defendants that remain solvent, and the compensation available to future, as compared to current, plaintiffs. The authors find that the potential effects of trusts' replacement of once-solvent defendants are very different in states with joint-and-several liability than in states with several liability. In states with joint-and-several liability, total plaintiff compensation should not change. In several-liability states, the replacement of once-solvent defendants by trusts can cause total plaintiff compensation to increase, decrease, or remain unchanged. The findings underscore the importance of information on plaintiff exposure to the products and practices of the bankrupt firms in determining the trusts' effects on plaintiff compensation and on payments by defendants that remain solvent. 

RAND also published the shorter Research Brief, Bankruptcy Trusts, Asbestos Compensation, and the Courts, by the same authors.  

BGS

August 25, 2011 in Aggregate Litigation Procedures, Asbestos, Ethics, Lawyers, Mass Tort Scholarship, Procedure, Products Liability, Settlement | Permalink | Comments (1) | TrackBack (0)