Law And More

"Why not a good-old RI tea party," challenges Ocean State Lead Paint Watcher

That $242,271.21 number is really bothering this Rhode Island lead paint watcher.  That's the first invoice which has been presented to the state of RI for certain administrative expenses associated with the lead paint abatement Co-Examiners's interviews. [Here is a copy of that "invoice." Download KERAffidavitonCo-ExsFees.pdf].  And many more and larger invoices are to follow.

"We taxpayers, innocent bystanders, might get saddled with these costs from that lead paint lawsuit," comments this woman.  "We didn't vote on having the trial so why should we have to cough up the money to pay for it.  The early settlers had the right idea: No taxation without representation.  So, I say why not a good-old Rhode Island tea party.  I say: Do whatever it takes to tell government not to saddle us with the bill for its decision to sue some out-of-town corporations for something that was perfectly legal at the time."

China - Product Iiability suits increasing; first filed over tainted milk

Even in the relatively closed nation China is, product liability lawsuits are rearing their heads.  They're nothing near the elaborate system of liability law in the U.S. but they are enough to scare the Chinese powers-that-still-are.  As in the recent earthquake, in the contaminated milk disaster, the government tried to dissuade alleged injured parties from going to court. Keeping the matters out of court would help keep them out of public scrutiny.

Today, THE WALL STREET JOURNAL writers Sky Canaves and Juliet Ye report that the parents of a toddler allegedly made sick by the tainted milk power filed a lawsuit against a Chinese dairy company.  They are seeking compensation of about $21,900 for hospital costs, travel, and work missed.

This form of product liability litigation differs from that in the U.S. For example, they are usually tried within a year of filing.  The judge is the primary fact-finder.  Judgments are small.  And courts are not independent so government officials usually have a role in suits which are likely to attract attention in China as well as globally.  There is an organization - The All China Lawyers Association - which attempts to act as intermediary between lawyers and the government.

Since supply chains are global, there's support for China to develop a sophisticated legal system.  Among other corporations which use Chinese vendors, Unilever and Kraft reported the presence of contaminant melamine in their products.

Will legal systems become somewhat homogeneous in the global village?  An interesting read on that is by University of Sidney law professor David B. Goldman. His tome, costing almost fifty American dollars, is "Globalisation and the Western Legal Tradition: Recurring Patterns of Law and Authority."

WV SC, like RI SC, puts kabosh on forum-shopping

There's little not to love if you, as plaintiff, can manage to have your case heard in "judicial cesspool" West Virginia. 

But, that "if" just got more iffy, at least for one Ohio plaintiff.  The WV Supreme Court ruled against this kind of forum-shopping.  As all us lead paint watchers know, it was highly strategic forum-shopping which landed the landmark nine-year lead paint public nuisance litigation in the tiny state of Rhode Island.

The case tossed by the WV SC involved Frank Savarese from Yorkville, Ohio and an auto accident related to Alabama.  The original suit had been filed in OH.

The man's insurance company is Allstate Company,  It allegedly, reports John O'Brien in LEGAL NEWSLINE, "failed to make payments for his [plaintiff's] medical treatment.  Therefore the plaintiff sued the company for compensatory and punitive damages.  The lawyer for the plaintiff was based in Wheeling, WV and the defendant communicated by e-mail with that attorney.  On that basis, the out-of-state plaintiff tried to file suit in WV.

In the High Court's ruling, says O'Brien, Justice Brent Benjamin wrote:

"A mere communication to an attorney that a decision has been made without more, cannot confer subject matter jurisdiction.  To find differently would put the Defendants in a situation where they would either have to 1) submit to jurisdiction anywhere a claimant hires an attorney simply because they have a duty to communicate with the attorney, or 2) refuse to send correspondence to a claimant's attorney in order to preserve their jurisdictional defenses, but possibly give rise to additional bad faith claims for failure to communicate."

In the case, WV SC Justice Larry Starcher dissented.  He reserved the right to file an opinion on his own. 

This ruling is a major victory for tort reform and a giant step to turning around the state's anti-business reputation.  Just like Mississippi did, WV could reform its judicial system enough to attract industry, both U.S. and foreign.  MISS snagged a new Toyota plant.

It's also meaningful to note that the RI SC's own decision in the lead paint public nuisance trial also will discourage - at least indirectly - future forum-shopping.  Here is that RI SC ruling overturning the verdict against defendants Sherwin-Williams, NL Industries, and Millennium Holdings Download statev.LeadIndustriesAssoc.,Inc..pdf.  This opinion seems to send the signal: Don't even think about dragging out-of-state corporations to RI to have their deep pockets picked. We're too smart for that.

Brown, Gore Double-Down on Green

At a Silicon Valley green convention, California Attorney General Jerry Brown and Noble Prize winner Al Gore positioned environmentally friendly development as the solution to the current economic crisis.  They explained how both are interconnected and the green revolution could be the tool to turning around the economy. Environmentally sensitive design and development, ranging from buildings to consumer products, could launch new industries.

In LEGAL NEWSLINE, Scott Sabatini reports that the convention was attended by those in the real estate and development industries.  A green approach could lift both out of their downturns.  There were also vendors exhibiting environmentally-sensitive products that were both initially affordable and could reduce energy bills.

"Boston Legal" - Maybe Alan just doesn't care, opines lead paint watcher

This lead-paint watcher and I bonded during the Rhode Island lead paint public nuisance trial II as we discussed episodes of "Boston Legal."  It was just sliding from its peak and was still brilliant, especially the acting of character Alan.  This lead paint watcher suggested that it would be a hoot if Denny was diagnosed with lead paint poisoning instead of Mad Cow.  We both enjoyed the genius of that dance on the balcony between Alan and Denny.

That slide downward has picked up incredible momentum this season, which will be the show's last.  Our lead paint watcher observes, "Last night's episode was disappointing and what they had last week wasn't too hot either.  Jane, I get the impression that the cast and the writers have simply lost the desire to do 'it' any more.  Maybe Alan is getting too old [and chubby] for this role and since the show is in its last season, no one really cares any more. There's no smart humor, just preaching and obvious stuff.  Also, there are too many commercials." 
 

The latest from our Wall St Expert, Sherwin-Williams's shareholder

"The market went up," notes our Wall Street expert and Sherwin-Williams's shareholder.  "Part of that," he goes on to explain, "is because Republicans are lobbying for more votes for the bailout plan, which they promise will be amended.  Also those who count have been floating several ideas such as doubling the $100,000 ceiling on federal deposit insurance and ending the rules that rules that require companies to devalue assets on their books to reflect the price they could get in the market.  As for Sherwin-Williams's stock which was down some, that's not what we investors want to look at.  This is a long-term buy.  The company is now global.  It's sticking to the knitting.  What's not to like."

"There'll be law firm winners & losers in this economic turmoil," Northeast Legal Journalist

"Of course the volatility we currently face will affect all sectors in some fashion," says the legal journalist who has been a lead-paint litigation commentator for three years.  "It remains to be seen," he continues, "exactly how the legal community will fare.  I suspect there will be winners and losers in this economic turmoil. Law firms which are nimble and creative will find ways to capitalize on the situation.  Others will suffer and not be able to adjust.  I think that it's also reasonable that in general clients will be much more restrictive on what they spend.  Uncertainty tends to breed that kind of caution."

RI House Prices Down 16% from Yr Ago

The dark economic cloud hanging over the Ocean State got darker for those trying to sell their homes, reports THE PROVIDENCE JOURNAL today. 

The Rhode Island Association of Realtors states that the median price of a single-family in August dropped 16% from that time last year.  Look at the math: $235,000 now vs. $279,900.  Depending on who is doing the counting, actual sales are down between 16.7% and 22%.  Things will get worse if the credit crunch continues.  

In-House Counsel: Who's the Client

Being an in-house attorney for a corporation is getting to be legally and professionally more complex. 

Hollinger's General Counsel Mark Kipnis wound up losing his law license and just dodging the prison bullet because he seemed to see his "client" as his bosses.  Those such as Conrad Black wound up in jail. Kipnis was judged culpable for allowing the fraud to happen.

At the other end of the spectrum is former GE attorney Adriana Koeck.  She is currently being sued in federal court by her former employer for alleging distributing privileged company tax documents to two government agencies and a journalist.  According to Sue Reisinger of CORPORATE COUNSEL, Koeck had filed a whistle-blower complaint with the U.S. Department of Labor.  In addition, she also transmitted information to the fraud section of the U.S. Department of Justice.

If these kinds of alleged situations emerge on an in-house attorney's watch, the lawyer seems to be between a rock and a hard place.  Look the other way or cooperate and you could wind up in the slammer.  Whistle-blow, and like Enron's Sherron Watkins, you could wind up unemployable.  In recent statements, Watkins, who has found it difficult to secure even an academic job, said that had she had to do it over again she would just leave and keep her mouth shut.

The Knoeck trail will be amazing to watch.

Made-in-China has same problem as Wall St: No Credibility

All that hard work Chinese businesses and government have done to assure global customers that its systems were fixed went out the window in a few weeks.  Just like Wall Street, which underwent the same process at the end of September, Made-in-China has no credibility.  No, the problems which caused toys with hazardous levels of lead to be imported by the big boxes such as Wal-Mart seem to still remain.  That's what most U.S. importers of Chinese goods believe after the contaminated milk crisis.

Most wary is the U.S. food industry.  After flat years, that industry is finally bouncing back. Kraft and Heinz, for instance, are the new darlings of the investor set.  And with thrifty consumers back eating at home, more of the their products are being purchased.  Yet, it seems increasingly likely that they will shop the globe for a supplier to replace China.