Vested Interest - Tort Briefs - December 2001 Issue

Norplant class action may proceed

A civil district judge in New Orleans has ruled plaintiffs may go forward with a class action on behalf of thousands of Louisiana women who claim injury from the contraceptive implant Norplant, the first of such class to be certified in the nation. Norplant is made by American Home Products. (Liability & Insurance Week – October 8, 2001)

Los Alamos lab settles cadaver suit

Over 400 New Mexico families who sued the Los Alamos National Laboratory after learning it had conducted secret experiments on the cadavers of their relatives are to receive $9.5 million under a proposed settlement. The University of California, which operates the laboratory, has agreed to pay $8 million. The remaining $1.5 million is to be paid by Banner Health System, which owns Los Alamos Medical Center. (Liability & Insurance Week – October 8, 2001)

Osprey makers settle with widow

Fort Worth-based Bell Helicopter Textron and Seattle-based Boeing Co., the makers of the V-22 Osprey aircraft, have settled a lawsuit brought by the widow of the Marine pilot of an Osprey that crashed for “substantially more” than $1 million, according to the plaintiff’s lawyer. The Marine pilot, who was one of the most experienced V-22 pilots, was on a training flight with an Osprey when it crashed and burned. Three others died in the crash. (Liability & Insurance Week – October 15, 2001)

$5 million award after collision with police cruiser

A Cook County jury awarded more than $5 million to a woman for injuries she suffered in an automobile accident with a police cruiser. Plaintiff’s attorney claimed the officer was traveling at twice the legal speed limit without emergency lights or sirens and in response to a non-emergency call. The cruiser hit the woman as she was turning into a parking lot. The jury awarded $6.677 million, reduced by 25 percent for the woman’s role in the accident. (Chicago Daily Law Bulletin – October 18, 2001)

$15 million for wrongful imprisonment

A federal jury awarded a man $15 million, $1 million for each year he was in prison, for the wrongful conviction of a murder for which he was later pardoned. The jury found the man was framed by two Chicago detectives who coached eyewitnesses. When another man’s fingerprints were found at the murder scene, his conviction was expunged, and he was released in 1994. (Chicago Daily Law Bulletin – October 20, 2001)

State Farm ordered to pay $145 million

The Utah Supreme Court has reinstated a jury’s $145 million punitive damage award against State Farm Mutual Automobile Insurance Co. The ruling stems from a lawsuit filed against State Farm in 1989 by a couple who contended State Farm acted in bad faith by refusing to protect them after they were sued over a fatal 1981 car accident. The court said in its ruling “State Farm’s fraudulent practices were consistently directed to persons – poor, racial or ethnic minorities, women and elderly individuals – who State Farm believed would be less likely to object or take legal action.” (MSNBC – October 20, 2001)

Hooter’s waitress may proceed with Toyota/Toy Yoda claim

A former Hooter’s waitress may proceed with her lawsuit claiming the restaurant defrauded her by promising a new Toyota to the winner of a beer sales contest and then, when she won, giving her a new toy Yoda doll inspired by the “Star Wars” movies. She claims breach of contract and fraudulent misrepresentation by the Hooter’s manager. The restaurant argued the waitress had signed a binding agreement to arbitrate when she signed a receipt for a company handbook. The judge noted the document itself says: “Neither this booklet nor other benefits constitute a contract because either party has the right to terminate…employment at will.” (Liability & Insurance Week – October 22, 2001)

Five families of Columbine victims sue drug company

Five families of Columbine High School shooting victims are suing the maker of an anti-depressant that one of the student gunmen was taking when he opened fire. A therapeutic amount of the drug Luvox was found in one of the shooter’s systems after he died. Solvay Pharmaceuticals Inc. makes the drug to treat obsessive-compulsive disorders and depression. The lawsuit claims Solvay failed to warn the boy’s doctor about side effects. (State-Journal Register – October 22, 2001)

$6.5 million settlement for delayed diagnosis

A Cook County judge approved a $6.5 million settlement in the case of a now seven-year-old girl with cerebral palsy. Plaintiff’s attorney asserted the disease was brought on by the delayed diagnosis and insufficient treatment of Group B strep meningitis which the girl contracted as an infant. (Chicago Daily Law Bulletin – October 22, 2001)

Ford loses appeal in crash case

The First District Appellate Court upheld a $14 million jury verdict against Ford Motor Co. in a product liability case brought by a Chicago woman who was rendered paraplegic stemming from an auto accident. Ford argued the trial judge gave an inadequate jury instruction, but the court concluded the jury was fully informed of "relevant legal principles." (Chicago Daily Law Bulletin - October 24, 2001)

Ford settles ignition lawsuit

Ford Motor Co. agreed to settle a class action over allegedly faulty ignition systems claimed to have contributed to as many as 11 deaths and 31 injuries. The company admitted no wrongdoing, but plaintiffs’ lawyers said it could end up paying $2.7 billion. Ford, which disputed that estimate, agreed to reimburse owners for repair of the ignition modules, as long as the vehicle had less than 100,000 miles at the time of failure. (Liability & Insurance Week – October 29, 2001)

Lloyd’s held to 100% set-aside

Lloyd’s of London will have to post U.S. funds amounting to 100 percent of its reinsurance liabilities from the September 11 terrorist attacks on the World Trade Center. Lloyd’s reached an agreement with the New York Insurance Department to deposit funds amounting to 60 percent of the claims to be made by insurers by November 15 and the balance by March 31, 2002. Lloyd’s hasn’t put a figure on its liability. (Liability & Insurance Week – October 29, 2001)

Workers win suit against city

A federal jury found the City of Chicago Heights fired or demoted four city employees in retaliation for their political opposition to the mayor’s re-election in 1999 and awarded the four a combined $700,000 in damages. The jury also held the mayor personally responsible for $15,000 in punitive damages for violating the 1st amendment rights of one employee. (Chicago Tribune – November 2, 2001)

Appeals court rules 3-strike sentencing law unconstitutional

A San Francisco federal appeals court threw out a shoplifter’s 50-year sentence under California’s “three strikes” law as overly harsh, a ruling that could lead to hundreds of challenges from defendants who received similar terms for petty crimes. The court ruled the man’s sentence violated the Constitution’s ban on cruel and unusual punishment. He received a sentence of 50 years in prison for stealing nine videotapes, valued at $153, from a Kmart store. The court noted that kidnappers and murders could serve less time than the shoplifter, who had a record of several non-violent, petty crimes. (AP – November 3, 2001)

Medical-malpractice payouts stable over decade

Medical-malpractice insurance companies paid claimants an average of only $42,607 in 2000, only slightly more than the $39,093.31 average payout a decade earlier, says a study conducted by the Center for Justice & Democracy. Medical- malpractice costs as a percentage of national health-care expenditures are at an all time low of 0.55 percent. Best’s Review reported medical malpractice is the eighth leading cause of death in the United States, ahead of breast cancer, AIDS and traffic deaths. (Liability & Insurance Week – November 5, 2001)

Stringer family to sue for $100 million

The family of Korey Stringer will seek more than $100 million in a suit against the Minnesota Vikings for alleged negligence in the Pro Bowl tackle’s death from heatstroke during a July training camp. State OSHA officials said the Vikings violated no health or safety guidelines in Stringer’s death and had provided training about heat-stress hazards as required by state law to players, coaches and trainers. Stringer’s agent said “The OSHA report was thoroughly incomplete. The investigation was useless.” (Chicago Sun-Times – November 8, 2001)

Farmer awarded $4.25 million settlement

A Rock Island farmer settled a personal injury lawsuit for $4.25 million, the largest ever entered in Rock Island County Circuit Court. The farmer was heading back to his home when a tractor-trailer heading in the opposite direction crossed the median and collided with his van. The accident ended his ability to farm. (Chicago Daily Law Bulletin – November, 2001)

California court of appeal upholds ex-smoker jury verdict

A three-judge state appellate panel has upheld a San Francisco jury’s $26.5 million award against Philip Morris to a woman who started smoking at the age of 15, before warnings about the dangers of smoking were put on cigarette packages or ads, and learned she had lung cancer about 35 years later. The verdict was the first handed down since California repealed, in 1998, a decade-old ban on smokers’ suits against tobacco companies. (Liability & Insurance Week – November 12, 2001)

Ninth Circuit finds $5 billion Exxon Valdex award excessive

The Ninth Circuit Court of Appeals ruled the $5 billion jury verdict against Exxon Mobil Corp. in the 1989 Exxon Valdez oil spill was excessive. The panel left the $287 million award for economic damages intact. The panel noted that although “the jury may well have decided that for such egregious conduct the company responsible ought to have a year without profit…A unique body of law governs punitive damages…The test of whether a punitive damages award survives review cannot be merely whether there is any evidence to support it.” (Liability & Insurance Week – November 12, 2001)

Bridgestone/Firestone to pay $41.5 million to settle tire claims

Bridgestone/Firestone has agreed to pay $41.5 million to settle claims of state attorneys general that the company engaged in deceptive and unfair trade practices by continuing to sell tires after it became aware of safety problems but before the recall of 6.5 million ATX, ATXII and Wilderness AT tires on August 9, 2000. Bridgestone/Firestone did not admit any wrongdoing. Under the settlement, each of the 50 states, the District of Columbia, Puerto Rico and the Virgin Islands is to receive $500,000 with no restriction on how the money is to be spent. In addition, the company is to pay $10 million in legal fees, $5 million on public-service commercials about tire safety and up to $10 million to reimburse customers whose tires had not yet been recalled or who were claiming reimbursements above the $100-per-tire limit the firm established earlier. The tires have been linked to 271 deaths and more than 800 injuries. (Liability & Insurance Week – November 12, 2001)

Housing Authority to pay $2.1 million in boy’s 1994 death

The Chicago Housing Authority and Diversified Realty Group Inc. have agreed to pay $2.1 million to the family of a 5-year old boy who was killed after being dropped out the window of a 14th floor public housing apartment. The settlement came one day before the wrongful death suit brought by the family was to be reheard. The housing authority and the realty management group argued the death was caused by the criminal act of two boys, ages 10 and 11 at the time, who dropped the 5-year old from the vacant apartment when he refused to steal candy for them. (Liability & Insurance Week – November 12, 2001)

Class action sought against maker of dialysis machines

A lawsuit was filed in Cook County Circuit Court against Baxter International Inc. for negligence that resulted in the deaths of 56 people who used Baxter’s dialysis machines. The suit seeks damages on behalf of patients who died or were injured by the machines. Baxter said a chemical residue in the filters appeared to have played a role in the reported deaths. The company is setting aside $100 million to $150 million for litigation and related expenses. (Chicago Sun Times – November 14, 2001)

$10 million award to child afflicted with cerebral palsy

A jury in Ogle County, Illinois, awarded $10 million to a child afflicted with cerebral palsy as a result of a delayed diagnosis of pre-term labor. The jury found the local hospital liable for medical negligence in failing to timely recognize signs and symptoms of a 27-week pre-term labor, which resulted in a premature birth, two months of respirator dependence, and severe neurological injury. (Press Release, November 16, 2001)

Arizona class action against state farm settled for $45 million

State Farm has agreed to pay $45 million to settle a class-action lawsuit brought by Arizona policyholders who claimed the company refused to let them “stack” benefits despite its use of language allowing them to do so. Each claimant will receive at least $50,000. The plaintiffs’ attorney told the judge his side decided to settle because of concerns that the case could drag on for years and a jury could be reversed by the Arizona Court of Appeals. State Farm agreed to settle to avoid litigation costs and an “adverse relationship with our customers.” (Liability & Insurance Week – November 19, 2001)

Illinois Supreme Court creates new committee

The Illinois Supreme Court has created a panel to study attorneys’ behavior and recommend ways for them to be more respectful to each other and their clients. The Special Supreme Court Committee on Civility will also look at maintaining civility during depositions and when filing pretrial motions. Attorneys on the panel blame several factors for the apparent rise in incivility. Legal television shows, they say, give clients the impression they need tough-as-nails attorneys to beat the opposition into submission. The panel will meet for the first time in mid-December. (Chicago Sun-Times – November 21, 2001)