Vested Interest - Tort Briefs - November 2005 Issue

Class Action Law Slow to Impact System

Six months after passage of the Class Action Fairness Act, the legislation, touted as significant tort reform that would decrease class abuses, has had little impact on the court system. The act, which was signed by President Bush on February 18, establishes federal jurisdiction over class action when plaintiffs as a group seek more than $5 million and have "minimal diversity," where at least one plaintiff and one defendant are citizens of different states. (ATLA Law News Digest - September 29, 2005)

Pledging for Accutane

A pregnancy will soon be a recordable national offense, that is, if it occurs while taking the acne drug Accutane. The FDA released iPLEDGE, the web-based program for doctors, patients and pharmacists designed to toughen up distribution of the strong drug because it can cause severe birth defects. The pregnancy problem has bedeviled Accutane makers for years, and the physician counseling and pregnancy tests required for each prescription have made this threat well known to users. Still, each year, with roughly 1 million prescriptions written, the FDA estimates at least 120 women take the drug while pregnant, prompting many to have abortions. (ATLA Law News Digest - September 29, 2005)

HMOs to Pay Doctors $142 Million

A federal judge has approved an estimated $142 million in settlements by two managed health care companies in a massive class action lawsuit by hundreds of thousands of doctors. A U.S district court judge signed off on the settlements reached by Health Net Inc. and Prudential Financial Services with about 950,000 doctors across the country. Under the settlement, Health Net will pay $40 million to active and retired doctors. It will also spend an estimated $80 million to improve the process of dealing with doctors’ bill submissions. (ATLA Law News Digest - September 29, 2005)

Baseball Fan Allowed to Sue

Sports-injury litigation took a new dimension in New Jersey as the state Supreme Court ruled that a ballpark patron hit by a foul ball while buying a beer can sue the park owner for negligence. The ruling alters the long-standing "baseball rule" – a limited-duty-of-care doctrine that for more than a century has shielded stadium owners from litigation. Fans agree to assume a risk of injury, such as from a foul ball or thrown bat, as part of the experience of being close to the game. To foster that up-close feel, there is very little separating fans from the field. The ruling, which affects eight minor league baseball stadiums that have opened in New Jersey in the past 10 years, may prompt teams and owners to erect nettings, screens and other protective barriers between fans and the field to avoid liability. (ATLA Law News Digest - September 29, 2005)

Class Suit Accuses FedEx of Bias Pay

A federal judge certified a class-action discrimination lawsuit targeting FedEx Corp. amid allegations the delivery service paid thousands of current and former minority employees less than their White counterparts, skipped them for promotions and gave minorities poor work evaluations. The case includes an estimated 10,000 current and former hourly workers and about 1,000 low-level management employees in multiple states. The suit was filed in 2003 by eight current and former employees. It seeks damages and an end to the company’s alleged discriminatory practices. (ATLA Law News Digest - October 6, 2005)

Children of Uninsured Get Full Tort Coverage

Children of uninsured motorists have a right to full tort coverage when involved in an accident where their parent was not at fault, a fractured Pennsylvania Supreme Court has ruled, even though the parent is deemed to have limited tort coverage. In Holland v. Marcy, the court relied on Section 1705(b)3 of the Motor Vehicle and Financial Responsibility Law to determine that children may not be considered a "named insured" if the parent is not even insured. (ATLA Law News Digest - October 6, 2005)

Suit Targets Distributor of RU-486

The family of a California woman who died after taking RU-486 and a follow-up drug has sued Danco Laboratories, the distributor of the so-called abortion pill, charging that the company did not sufficiently warn women of potential risks. Four U.S. women have died of massive infection after taking RU-486, prescribed under the brand name Mifeprex, since it was approved by the FDA in 2000. (ATLA Law News Digest – October 13, 2005)