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Attorneys challenging bankruptcy court
Legal Business |
2007/08/03 10:03
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| Anticipating that the bankruptcy court may soon send child sexual-abuse lawsuits to trial, lawyers for the San Diego diocese are seeking to have a different federal judge determine how much the cases are worth. Attorneys for Bishop Robert Brom say a reason for the move is that they plan to make a legal challenge on constitutional grounds that is unsuited to be heard in bankruptcy court. But lawyers for nearly 160 men and women who have sued the Roman Catholic diocese for covering up sexual abuse by clergy members and others say the bishop is merely trying to duck the public specter of jury trials. Meanwhile, weeks of closed mediation talks with a federal magistrate have failed to produce a settlement of the abuse claims, nearly all of which were filed in 2003. A key question now is: What is likely to spur a settlement? Veteran legal observers say to look no further than last month's record, $660 million agreement between Los Angeles Cardinal Roger Mahony and attorneys for 508 plaintiffs to see the effect a looming trial has on settlement talks. The Los Angeles diocese settled on the eve of the first trial there. The matter of how to value the abuse lawsuits is set to be debated before federal bankruptcy Judge Louise DeCarl Adler on Aug. 23. She will consider a motion by the victims' attorneys to send dozens of the lawsuits back to state court for trial dates. The diocese wants to take the matter out of Adler's hands, however. Brom's attorneys, in a motion filed two weeks ago, are asking a U.S. District judge to estimate the value of the abuse lawsuits in a way that does not involve testimony in open court. In a response filed yesterday, attorneys representing the sexual-abuse victims called that idea "forum shopping." They said the diocese's action is about "fleeing a state court system that has resulted in average settlements well above the amount it wants to pay." The diocese has offered $95 million, or about $600,000 per victim on average, to settle the abuse lawsuits and emerge from Chapter 11 bankruptcy protection. Diocese attorneys say that offer reflects Brom's goal of trying to fairly compensate the victims while protecting the church's mission of educating Catholic children and ministering to the spiritual needs of parishioners. In court documents filed yesterday, plaintiffs' attorneys note that the Orange County diocese settled more than 90 abuse suits in 2004 for an average of $1.15 million apiece, and that the Los Angeles cases settled for $1.3 million on average. In March, on the first day of the bankruptcy case, Adler made it clear that she would "not be deciding the merits of the abuse cases." She said the value of the abuse claims will be resolved in one of three ways: They will be settled before a mediator, arbitrator or settlement judge; they may be estimated by the U.S. District Court; or they will be tried. Closed mediation talks continue before Magistrate Judge Leo Papas. An intense week of mediation is scheduled beginning Aug. 13, in advance of Adler's ruling on whether to release the cases for state court trials. The diocese's request to have the case-valuation issue decided by a U.S. District judge – whose power supersedes that of bankruptcy court judges – is expected to be considered soon. No hearing date has been set. One reason diocese attorneys give for wanting the matter placed before a U.S. District judge is that they hope to again argue that the 2002 California law allowing lawsuits regarding decades-old abuse incidents is unconstitutional. The diocese has raised that issue twice before in state court and once in federal court. It lost each time. A man with long experience mediating and deciding such complex and high-stakes issues is retired U.S. District Judge Lawrence Irving. "I've handled a lot of mass tort (personal-injury) cases, and one thing is typical of all of them: They never go to trial," Irving said. "What will force the diocese to settle these cases is to set them for trial immediately. And remember, both the bankruptcy judge and a U.S. District judge have the power to remand these cases for trial." |
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Ken Starr’s Law Firm Gives More to Hillary Clinton
Legal Business |
2007/07/31 06:36
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Attorneys at the law firm Kirkland & Ellis – home to Whitewater prosecutor Kenneth Starr – have donated more money to Hillary Clinton’s presidential campaign than to all the top Republican candidates combined. Lawyers at Chicago-based Kirkland – also home to Bush administration official Jay Lefkowitz – have contributed $111,950 to Clinton and another $82,651 to fellow Democrat Barack Obama. Donations to Republicans Rudy Giuliani, Mitt Romney and John McCain total $84,750. Kirkland attorneys gave 28 percent more to George Bush than to Al Gore in 2000, and 34 percent more to Bush than to John Kerry in 2004, Bloomberg.com reports. In an even more glaring example of politics making for strange bedfellows, lawyers at the firm Jones Day, which represents the Republican National Committee, have contributed more than three times as much to Clinton, Obama and John Edwards than to GOP candidates. "Firms want to be on the good side of who they think is going to be the incumbent, whether or not that person is good for business,” Bruce MacEwen, a nonpartisan legal consultant in New York, told Bloomberg. "The conventional wisdom is that the Democrats are going to win the White House.” The largest contribution to Clinton’s campaign came from a law firm – $241,220 from the attorneys at DLA Piper. The fundraising efforts there were led in part by Jim Blanchard, a partner and former governor of Michigan. Blanchard told Bloomberg that the shift to Democrats "has a lot to do with the war in Iraq, Guantanamo, torture” and controversies surrounding Attorney General Alberto Gonzales. © NewsMax 2007. All rights reserved. |
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Calif. Court Rules Against Car Seizures
Legal Business |
2007/07/27 06:10
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| A sharply divided state Supreme Court ruled that California cities can no longer seize vehicles whose drivers are arrested for allegedly buying drugs or soliciting prostitutes. The ruling Thursday overturns the laws of more than two dozen cities from Oakland to Los Angeles that allowed police to seize a vehicle immediately after its driver's arrest. Even drivers suspected of buying a small amount of marijuana, a low-level crime punishable by a $100 fine, faced seizures in many of the cities with the ordinances. The 4-3 ruling said only state law can mete out punishment for drug and prostitution offenses and without authorization from the Legislature, cities can't pass seizure ordinances that are harsher than state and federal laws. Many urban city councils said they enacted the seizure laws as a way to combat drug sales and prostitution and clean up some of their most blighted neighborhoods. The ruling didn't address newer city laws that allow police to seize cars allegedly participating in illegal street races and "sideshows." |
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Law firm urges fire victims to sue agency
Legal Business |
2007/07/26 11:33
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| A California law firm is running television ads in the Reno-Lake Tahoe area seeking potential plaintiffs who want to file lawsuits over the loss of their homes in a big wildfire last month. The ad tells viewers that if they lost a home on a lot with pine needles, shrubs or trees, they might be entitled to compensation. The fire destroyed 254 homes and 75 other structures in late June near the city of South Lake Tahoe. Fliers posted on trees in the burned area also urge residents to mount a lawsuit against the Tahoe Regional Planning Agency, which enforces environmental regulations in the Lake Tahoe Basin. Some Tahoe residents have blamed the agency for the fire, saying the agency's regulations aimed at preserving the clarity of the lake made it difficult to clear pine needles, trim brush and cut trees around properties to create defensible space. In the subdivision damaged in the Angora fire, an assessment found that 19 percent to 34 percent of the homes had created defensible space. Larry Parker, the personal injury lawyer cited in the television ads, did not return a telephone call by the Associated Press to his Long Beach office Tuesday seeking comment. The Reno Gazette-Journal reported that the firm sent the newspaper an e-mail Monday that said the firm "has represented over 100,000 injury victims during the past 30 years and recovered over $750,000,000 for its clients." Tahoe Regional Planning Agency officials said they've seen the ads and the fliers but haven't received any notification of legal action. The agency says it relaxed tree-cutting policies in recent years and can't be blamed for the blaze. "We've tried to convey clearly that most defensible-space work is possible under existing rules," said Julie Regan, agency spokeswoman. "If you look at the work that's been done in Incline Village, it's been done under the same rules as the South Shore," she told the newspaper. "It's unfortunate that some businesses and attorneys are trying to take advantage of this community by using scare tactics." Agency regulations say: "Leave the 'duff' layer of pine needles in your yard -- do not rake them all up. The 'duff' layer is the dark area at the ground level where the pine needles are decomposing. This matter does not burn easily." Other residents said they didn't want agency inspectors on their property because they fear they will be cited for violations of the agency's erosion-control measures. That fear creates a "paralysis" among homeowners who want to make changes on their property, residents and fire experts said last month. Agency officials say the regulations weren't responsible for the blaze but are open to changes. "We have been open to amending policies and ordinances in an effort to better address fire safety at Lake Tahoe," John Singlaub, the agency's executive director, said. "Following the Angora fire, a robust community debate is in order to help prevent such a catastrophic event from occurring in the future." |
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Law firm urges fire victims to sue agency
Legal Business |
2007/07/25 08:01
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| A California law firm is running television ads in the Reno-Lake Tahoe area seeking potential plaintiffs who want to file lawsuits over the loss of their homes in a big wildfire last month. The ad tells viewers that if they lost a home on a lot with pine needles, shrubs or trees, they might be entitled to compensation. The fire destroyed 254 homes and 75 other structures in late June near the city of South Lake Tahoe. Fliers posted on trees in the burned area also urge residents to mount a lawsuit against the Tahoe Regional Planning Agency, which enforces environmental regulations in the Lake Tahoe Basin. Some Tahoe residents have blamed the agency for the fire, saying the agency's regulations aimed at preserving the clarity of the lake made it difficult to clear pine needles, trim brush and cut trees around properties to create defensible space. In the subdivision damaged in the Angora fire, an assessment found that 19 percent to 34 percent of the homes had created defensible space. Larry Parker, the personal injury lawyer cited in the television ads, did not return a telephone call by the Associated Press to his Long Beach office Tuesday seeking comment. The Reno Gazette-Journal reported that the firm sent the newspaper an e-mail Monday that said the firm "has represented over 100,000 injury victims during the past 30 years and recovered over $750,000,000 for its clients." Tahoe Regional Planning Agency officials said they've seen the ads and the fliers but haven't received any notification of legal action. The agency says it relaxed tree-cutting policies in recent years and can't be blamed for the blaze. "We've tried to convey clearly that most defensible-space work is possible under existing rules," said Julie Regan, agency spokeswoman. "If you look at the work that's been done in Incline Village, it's been done under the same rules as the South Shore," she told the newspaper. "It's unfortunate that some businesses and attorneys are trying to take advantage of this community by using scare tactics." Agency regulations say: "Leave the 'duff' layer of pine needles in your yard -- do not rake them all up. The 'duff' layer is the dark area at the ground level where the pine needles are decomposing. This matter does not burn easily." Other residents said they didn't want agency inspectors on their property because they fear they will be cited for violations of the agency's erosion-control measures. That fear creates a "paralysis" among homeowners who want to make changes on their property, residents and fire experts said last month. Agency officials say the regulations weren't responsible for the blaze but are open to changes. "We have been open to amending policies and ordinances in an effort to better address fire safety at Lake Tahoe," John Singlaub, the agency's executive director, said. "Following the Angora fire, a robust community debate is in order to help prevent such a catastrophic event from occurring in the future." |
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Bromwell pleads guilty in corruption case
Legal Business |
2007/07/24 06:47
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Once one of the leading Democrats in the General Assembly, former state Sen. Thomas L. Bromwell Sr. pleaded guilty this morning to accepting bribes from a Baltimore construction company executive in return for the ex-politician's help in winning contracts. Federal prosecutors charged Bromwell, who represented Baltimore County for more than two decades, and his wife, Mary Patricia, in October 2005 with using his political power to help Baltimore-based Poole and Kent in exchange for more than $200,000 in cash, bogus salary and discounted home-improvement materials.
As part of the plea deal his lawyer negotiated with prosecutors, Bromwell, 58, admitted assisting Poole and Kent and its president, W. David Stoffregen, win a multimillion-dollar contract over a competitor with a lower bid for work at the University of Maryland Medical System's Weinberg Building in Baltimore.
Mary Patricia Bromwell, 44, signed a separate plea agreement to a single fraud count for accepting an $80,000-a-year salary for a no-show job from a contractor controlled by Poole and Kent.
If U.S. District Judge J. Frederick Motz follows recommended guidelines, Bromwell will receive a prison term of 6 1/2 years to about eight years for a guilty plea to racketeering conspiracy and tax evasion. His wife could receive up to 2 1/2 years in prison, but her attorneys are more likely to argue for some combination of home detention and probation permitted under the guidelines.
The plea agreement is the climax so far of the largest public corruption investigation in recent Maryland history. Seven other defendants in the case earlier pleaded guilty.
The agreement holds the former senator at least partly responsible for $2.1 million in illegal profits and kickbacks from the scheme with Stoffregen, attorneys said.
In the end, defense lawyers said, the Bromwells agreed to hand over the house where Poole and Kent did construction work valued at more than $85,000. The labor and materials were provided by Stoffregen free or at a reduced cost, according to his guilty-plea agreement.
Bromwell began his political career as a state delegate at age 28. He eventually became chairman of the Senate Finance Committee and one of the state's most powerful politicians. He even kept a large measure of his political clout after he tried, but failed, to overthrow his one-time ally, Senate President Thomas V. Mike Miller.
Resigning from public office in May 2002, Bromwell accepted a top post with the Injured Workers' Insurance Fund, a quasi-public agency that is Maryland's largest insurance fund for injured employees. |
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Judge criticizes fees in Sears case
Legal Business |
2007/07/23 10:57
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| A North Carolina judge has harshly criticized the settlement of a class-action lawsuit in which a Wilmington lawyer and colleagues received $950,000 in fees while consumers who Sears overcharged across the country were reimbursed a total of $2,402. Superior Court Judge Ben Tennille decried the excessive fees and the lack of effort made to reach customers who had paid too much for wheel alignments at Sears automotive centers. Tennille, who specializes in complex business cases, criticized Sears and the lawyers for trying to hide the settlement results from him. "Their efforts to keep the results secret are understandable," Tennille wrote in his May decision. "The shocking incongruity between class benefit and the fees ... leave the appearance of collusion and cannot help but to tarnish the public perception of the legal profession." Sears is appealing Tennille's decision and declined to discuss the case. Gary Shipman, a Wilmington lawyer who led the class action lawsuit, attacked Tennille's order as wrong on the law and filled with factual errors. Shipman complained that Tennille issued his ruling out of the blue, two years after the last hearing in the case. And Shipman said the judge did not have jurisdiction and therefore did not have the power to make decisions in the case. "Do you think Judge Tennille's word is the Gospel?" Shipman asked. "There is so much in that order that is wrong." But a top consumer advocate said Tennille's objections had merit. "Good for the judge," said Ira Rheingold, the executive director of the National Association of Consumer Advocates, which advises and lobbies for lawyers who bring class action lawsuits. "Cases like this make it look like a get-rich scheme for attorneys," Rheingold said. "The attorneys collect all the fees, and the consumers get no benefits." Inflated charges In 2002, Shipman filed one lawsuit in Wilmington and another lawsuit in Chicago, where Sears has its headquarters. The lawsuits alleged that Sears charged clients for pricier four-wheel alignments on cars which can only be serviced with less expensive two-wheel alignments. Although the inflated charge is a few dollars for each customer, Sears stood to make millions of dollars from the alleged scheme, given the retail giant's nationwide presence. Shipman said his lawsuit was inspired by one filed in New Jersey. In that case, the New Jersey attorney general combed through Sears records and identified 12,544 New Jersey residents who had paid too much for alignments. Sears agreed to give $10 cash to each person and to give $500,000 to the Attorney General's Office for consumer protection and expenses. No notices posted Tennille criticized the method Shipman used to locate the estimated 1.5 million customers who had been overcharged. Tennille faulted Shipman and his fellow lawyers for not insisting that Sears post notices and place claim forms on the counters of Sears' 843 automotive centers around the country. Sears' billing records were not used, nor were lists of Sears credit card holders. Rather, Sears advertised in newspapers, which courts have recognized as the least effective way of finding class members -- "an essentially futile gesture," the judge wrote. Sears put notices in newspapers in 25 of the country's largest wheel alignment markets and in Parade magazine and USA Weekend, which are inserted in weekend newspapers across the country. The newspaper notice produced 317 valid claims nationwide. "Doing the math in this case is easy," the judge wrote. "For each class member who received a $10 check or $4 coupon, plaintiffs' counsel received just shy of $3,000." According to Shipman, an expert witness estimated that the newspaper advertisements reached 79.24 percent of the claimants in Sears' top 25 markets for alignment sales. "We certainly believed more people would take advantage of a 100 percent refund," he said. "We don't know if they found out about it. Many times people just don't want to fill out a claim form." Defending the fees Shipman said the legal fees were not excessive because they were based on how much time he and his colleagues from six other law firms had spent on the case. "Sears had paid their attorneys more than what we had been paid," Shipman said. Shipman said he never hid results from Tennille. He said that the judge in the Chicago lawsuit had jurisdiction in the case and that Tennille had no authority to issue orders. Shipman said he would have given an accounting of the lawsuit had Tennille asked, and did supply the figures in May 2005. Though Tennille's order was strongly worded, the judge conceded he cannot undo the settlement approved by the Illinois court in 2005. Shipman and his fellow lawyers have "been more than adequately compensated by the Illinois court," Tennille wrote. "There is nothing this court can do about that." |
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website and help you redesign your existing law firm site to secure your place in the internet. |
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