Vested Interest - Tort Briefs - March 2002 Issue

Enron workers file class action suit

Hundreds of current and former employees of collapsed energy trader Enron Corp. filed a class action lawsuit in Houston seeking damages for losses they suffered by investing in the company’s 401(k) plan. Charging that employees were encouraged to invest in Enron stock without being notified of the company’s “precarious” financial condition, the lawsuit names Kenneth Lay, the former chief executive of the company; Jeffrey Skilling, another former chief executive; and Andrew Fastow, the former chief financial officer, as defendants. Other defendants include Northern Trust Company, the retirement plan’s trustee, and accounting firm Andersen Consulting. (MSNBC – January 28, 2002)

Baxter loses fight in IV case appeal

The Illinois Supreme Court has upheld an $18 million award to a Chicago woman’s heirs who sued Baxter International Inc., alleging that a defective design in intravenous tubing made by the company led to her death. The Court affirmed a Cook County Circuit Court jury’s 1998 verdict in the product liability case brought by the woman’s family. The woman suffered brain damage and later died after a connector that linked IV tubing to her catheter came apart and allowed air to enter her brain. (Chicago Tribune – January 29, 2002)

Court continues to render judgments against insurance company

A Cook County circuit judge issued a summary judgment against Gallant Insurance Co., a subsidiary of Warrior Insurance Group, despite that much of Warrior’s assets have been sold. The court ruled Gallant showed bad faith in refusing to honor its insurance policy and settle a claim with an auto accident victim. Gallant repeatedly offered only $9,000 for present and future medical bills totaling $59,000. The court’s judgment orders Gallant to pay $140,000, including a $25,000 sanction for violating the Illinois Insurance Code, plus interest and attorney fees that could add up to another $130,000. (Chicago Daily Law Bulletin – January 31, 2002)

Amputee gets $22.5 million

A Cook County jury awarded $22.5 million to a Chicago cab driver whose legs were amputated at Rush-Presbyterian-St. Luke’s Medical Center. The man had heart bypass surgery at another hospital in 1997 and suffered complications. He was transferred to Rush-Presbyterian with a condition that destroys the leg muscles, and doctors there performed the amputation. He argued it could have been prevented had doctors diagnosed the problem earlier and treated the condition. (Chicago Daily Law Bulletin – January 31, 2002)

Family awarded $8.85 million after daughters death

A Cook County jury awarded $8.85 million to the family of a 17-year-old girl killed in 1991 when she was struck by a car. A Greyhound bus hit a car that then hit and killed the girl. A Greyhound internal investigation found the bus driver was at fault, but the carrier did not offer a settlement to the family. (Chicago Daily Law Bulletin – February 1, 2002)

California jury finds explorer defective, Ford not liable

A California jury decided that the Ford Explorer is “defective by design,” but Ford Motor Co. isn’t liable for serious injuries to a couple who sued after a 1997 rollover of their 1994 vehicle. Instead, jurors found a Ford dealership was mostly liable for failing to make proper repairs after the couple complained about unusual vibrations, shaking and braking problems. The jury found one of the plaintiffs was slightly responsible for her injuries because she was not wearing a seatbelt. (Liability & Insurance Week – February 4, 2002)

‘Apes’ extra miffed over dust

A background actor from last summer’s “Planet of the Apes” movie accused the filmmakers of harming him and hundreds of others with dust used in a climatic desert fight scene. The actor seeks unspecified damages from studio Fox Entertainment Group for alleged fraud, battery, conspiracy and negligence, according to the proposed class-action lawsuit. About 80,000 pounds of Fuller’s Earth, a sedimentary clay used for absorbing chemicals and oils, was tossed into the air with giant wind machines during the production, the lawsuit said. Extras involved in the scene were exposed to the dust for hours at a time without breathing masks. The actor said he suffered lingering eye irritation and respiratory problems. (Chicago Sun-Times – February 4, 2002)

$1 million for family of man who died waiting for 911

The City of Chicago will pay $1million to the family of a retired railroad worker who bled to death from a ruptured surgical wound while waiting 45 minutes for an ambulance, even after his daughters placed four calls to 911. The City Council’s Finance Committee authorized the settlement to avoid a jury trial. Since the man’s death, the city has switched from having only one kind of ambulance to a two-tiered system and call takers are now trained to ask more detailed questions to determine which kind of ambulance to send. (Chicago Sun-Times – February 5, 2002)

Nicor mercury settlement approved

A Cook County judge approved a settlement of a class-action lawsuit against Nicor Gas over mercury contamination. Under terms of the settlement, Nicor customers whose homes were found to contain mercury spilled when Nicor contractors removed old gas regulators are eligible for cash compensation and, in some cases, medical monitoring for the next five years. The settlement creates a $1.85 million fund that will be divided among more than 1,000 suburban customers affected by the contamination. The Naperville company also has settled state and county lawsuits totaling $2.25 million. (Chicago Sun-Times – February 8, 2002)

Judge to decide on double payout for carbon monoxide deaths

An insurance company has agreed to pay $1 million to the estate of a couple who died of carbon monoxide poisoning, and a judge will decide whether there should be a second payment of an equal amount. The couple’s two severely mentally retarded sons, ages 23 and 21, ate canned food to survive while their parents bodies decomposed in the couple’s bedroom for at least a week in January 2001. The building owner’s insurance carrier is arguing that it is obligated to pay the sons $1 million for both deaths on the ground that the incident was a single occurrence. The attorney representing the estate argued that because two people died there were two occurrences and the payment should be doubled. (Chicago Daily Law Bulletin – February 8, 2002)

Family gets $55 million after train wreck

Three family members who suffered permanent brain injuries a year ago when their car was struck at a crossing by an Illinois Central freight train have received a $55 million verdict. The family’s Ford Explorer was struck at a crossing with inoperable lights and gates. Although the lights and gates at the crossing were not working, the train moved through the crossing at 50 mph. The attorney for the family said the award will provide home health care assistance and rehabilitation the family cannot afford. (Chicago Sun-Times – February 11, 2002)

Med-mal suit settles for $12.25 million

A Lake County woman and her family will receive a $12.25 million award for improper medical care that left her brain damaged. The woman was 37-weeks pregnant when she complained of headaches and was taken to the emergency room and diagnosed with preeclampsia. Attorneys for the woman argued the hospital failed to administer a drug that would have halted her bleeding. The defense decided to settle after watching a “day in the life” video of the woman who was pictured weeping uncontrollably. (Chicago Daily Law Bulletin – February 12, 2002)

Crash victims family receives $1.5 million

The wife and four adult sons of an 82-year old Montana man killed in a Lansing, Indiana, crash have agreed to a $1.5 million settlement of their lawsuit. The man was a passenger in a truck driven by a friend that collided with a truck owned by a trucking company. The trucking company agreed to pay $1.2 million and the friend’s insurance carrier agreed to pay $300,000. (Chicago Daily Law Bulletin – February 12, 2002)

87-year-old’s family awarded $1.5 million

A Cook County judge approved a $1.5 million settlement for the family of an 87-year-old woman who was placed in a scalding sitz bath in a nursing home. A nurse used water for the bath from an industrial coffee machine in the facility’s kitchen. The woman suffered second-and third-degree burns as a result. The Illinois Department of Public Health found the temperature of the water from the coffee machine was 185 degrees and fined the facility $10,000. The woman died from congestive heart failure seven months after the incident. (Chicago Daily Law Bulletin – February 13, 2002)

Window death settled for $18 million

The owner of a Chicago skyscraper where a woman was killed by falling glass in 1999 has agreed to pay her family $18 million. The woman died when a jagged shard of glass broke free from a cracked window on the 29th floor and smashed into her head as she walked along the sidewalk, holding the hand of her 3-year-old daughter. Over the years, several consultants found the building’s glass could not withstand thermal stress, and the building’s owner did not follow recommendations to replace or reinforce the glass. (Chicago Tribune – February 14, 2002)

$4.5 million to boy for brain damage

A Cook County judge approved a $4.5 million settlement for a boy who suffered brain damage during birth when doctors allegedly failed to respond to signs of fetal heart distress. The boy, now 7, has permanent speech, cognitive and behavioral impairments because doctors did not perform an emergency C-section. The boy suffered intrapartum asphyxia and was eventurally born vaginally after several attempts at vacuum extraction. (Chicago Daily Law Bulletin – February 15, 2002)

Jury awards $1.25 million for injury

A Cook County jury has awarded $1.25 million to a 44-year old Chicago man who was drawn into a garbage compacting machine in 1992 while working at the John M. Smith Homemakers warehouse in Downers Grove. The man’s pelvis and left leg were broken. His attorney argued the machine, which was 25 years old, was not functioning properly. After a set-off, the man was awarded $762,000. (Chicago Daily Law Bulletin – February 15, 2002)