Vested Interest - Tort Briefs - June 2006 Issue

New York Sues Gun Dealers, Charging Illegal Sales

New York City sent teams of private investigators posing as gun buyers to stores in 5 states, catching 15 dealers making illegal sales. In the two-month sting operations, which city officials and gun control advocates said was the first of such wide scope, teams of operatives wearing hidden cameras traveled to Georgia, Ohio, Pennsylvania, South Carolina and Virginia to make what are known as straw purchases, a violation of federal law in which one individual submits to the required federal background check for a gun that is clearly to be used by someone else. All 15 dealers, whose guns have been linked to more than 500 crimes in New York City from 1994 to 2001, improperly sold a gun to the private investigators. (ATLA Law News Digest – May 18, 2006)

Insurer to Settle Fraud Case

The Hartford Financial Services Group has agreed to pay $20 million to settle an investigation into claims of fraudulent sales practices in retirement products, according to the attorneys general of Connecticut and New York. Hartford agreed to return $16.1 million in profit from sales that were arranged in concealed financial agreements with brokers. The practice helped Hartford realize more than $800 million in sales from 1998 to 2004, forcing higher policy costs for customers. The insurer will also pay a penalty of $1.95 million each to the two states. (ATLA Law News Digest – May 18, 2006)

Rita Bus Fire Victims Reach Settlement

Victims of a bus explosion that killed 23 nursing home patients fleeing Hurricane Rita have reached a settlement in their lawsuit against the bus company and travel broker. Global Limo, the owner of the bus, and BusBank, which hired the bus company for the nursing home, have agreed to pay the maximum coverage of their insurance policies. The settlement will be divided among the 21 survivors and the families of the 23 who died. (ATLA Law News Digest – May 18, 2006)

High Court Limits Whistleblower Lawsuits

In a 5-4 decision, the Supreme Court scaled back protections for government workers who blow the whistle on official misconduct. In a victory for the Bush administration, justices said the 20 million public employees do not have free-speech protections for what they say as part of their jobs. Critics predicted the impact would be sweeping, from silencing police officers who fear retribution for reporting department corruption, to subduing federal employees who want to reveal problems with government hurricane preparedness or terrorist-related security. Supporters said that it will protect governments from lawsuits filed by disgruntled workers pretending to be legitimate whistleblowers. (ATLA Law News Digest – June 1, 2006)