Vested Interest - Tort Briefs - November 2004 Issue

High Court Won’t Revisit Damages; Court Refused to Review Punitives

The Supreme Court passed up an opportunity to clarify its guidelines on how steep punitive damages may be, much to the disappointment of businesses. The justices, opening the court term, issued a long list of cases they declined to review, including one involving punitive damages assessed against State Farm Mutual Automobile Insurance Co. In April 2003, in a huge win for business, the high court struck down a $145 million punitive-damages award issued by the Utah Supreme Court against the insurer in State Farm v. Campbell. The case involved a State Farm client who sued the company, claiming the insurer hadn’t protected his interests after he was involved in an auto accident. (ATLA Law News Digest – October 7, 2004)

Judge Rules Public Right to Know in Med Mal Settlement

A Pennsylvania judge has ruled against a doctor who sought to keep the details of a medical malpractice settlement under wraps, saying that taxpayers have a right to know. The judge refused to seal the case of an OB/GYN sued for failing to diagnose a woman who later died. The doctor’s insurance company, the Pennsylvania Medical Society Liability Insurance Co., offered to settle the the case for $725,000 after court-ordered mediation. The judge was then asked to seal the terms of the settlement, as has been customary in medical malpractice cases for the last 20 years. The judge refused, saying that because 70 percent of the settlement in the woman’s death is being paid from the MCare fund, the state-run insurance fund that covers catastrophic malpractice claims, the terms can’t be allowed to remain secret. (Insurance Journal – October 8, 2004)

Jury Rules Police Cruisers Safe

A Belleville, Illinois, jury in the first class-action lawsuit filed over the safety of Ford’s Crown Victoria police cruisers ruled the cars are safe, but a judge must decide if the automaker violated state consumer fraud laws. The jury was asked to decide whether Ford committed fraud by failing to disclose alleged problems with the car to law enforcement agencies. At least 15 officers nationwide since 1983 have died in fiery crashes after their Crown Victorias were rear-ended. (AP – October 18, 2004)

Certification Denied in GM Class Action Suit

A Philadelphia judge has denied certification for a proposed class that would have included purchasers of General Motors vehicles manufactured in nine model years and ranging from compact cars to large SUVs. The plaintiffs alleged the front seats of those vehicles feature a common design defect that renders them "extraordinarily dangerous in the event of rear-end collision," but the judge held that the plaintiffs failed to meet the "commonality" criterion needed for class certification. (ATLA Law News Digest – October 21, 2004)

Jury Says Botox Didn’t Cause Ailments

Jurors rejected the claims of a Hollywood producer’s wife who said Botox treatments caused breathing problems, fever, fatigue and severe muscle pain. The woman suffered the symptoms after a Beverly Hills dermatologist gave her three injections of the drug in March 2002 to treat her migraine headaches. She said her symptoms became debilitating after she began the headache treatment. The action also named Allergan Inc., which manufactures Botox, a derivative of the toxin that causes botulism that has been used as an anti-wrinkle drug because it can temporarily paralyze the muscles that cause frowning. Allergan had a $100,000-a-year consulting contract with the dermatologist. Some physicians have reported success in using it to prevent migraines, although the treatment does not have FDA approval. (ATLA Law News Digest - October 14, 2004)