Archive for May, 2008

Another Crane Collapse

Friday, May 30th, 2008

Horrible crane collapse in New York City again, resulting in the death of at least one construction worker and injury to a pedestrian. Eyewitness reports describe a catastrophic scene, like a drawn-out car wreck with screeching metal and even fire. A crane collapsing from a high-rise must be a terribly frightening sight.

Whatever Happened to States’ Rights?

Thursday, May 29th, 2008

Good recent New York Times op/ed discussing preemption, the trumping of state law by federal law and a favorite tool of the current administration to further close the courthouse door on consumers. Among other observations (such as how the Bush Administration issued rules preempting state banking laws - over the objection of all 50 states’ banking superintendents - and thus helped pave the way for the subprime mortgage crisis):

[T]he federal rule should be a floor, not a ceiling. It should set a minimum level of rights, not stop states from doing more to protect their citizens.

For years, the federal government used pre-emption [to set a minimum level of rights]. Civil rights acts swept away discrimination at the state level, and workplace safety laws upgraded conditions in factories and mines. Conservatives opposed many of these federal laws on the principle that they were trampling on “states’ rights.”

Since the conservative ascendancy in Washington, many of these same people have stopped praising states’ rights and have begun burying them — not to protect citizens’ rights, but to take them away. The Bush administration and its Congressional allies have helped their friends in industry by enacting weak environmental, health and consumer regulations — and arguing that they wipe out more robust state protections.

Most Americans may not know about the supremacy clause, but they do seem to understand that they are increasingly vulnerable. Weeks before the 2006 elections shifted control of Congress from the Republicans to the Democrats, 79 percent of respondents in an Opinion Research poll said big business had too much influence over the Bush administration. As Democrats and Republicans contemplate what kind of “change” voters are looking for now, they can start with the idea that both the federal and state government need to do a better job of protecting their citizens.

Big Day for Merck, Sad Day for Consumers

Thursday, May 29th, 2008

Well, no surprise here, but appellate courts today in Texas and New Jersey overturned two jury verdicts against drug giant Merck in cases over its drug Vioxx.

Regarding the Texas court, Plaintiff’s lawyer Mark Lanier said, “It’s a sad day that they can write a 10-page opinion and wipe out a widow’s verdict with a new judicial activism that reinterprets the evidence to support corporate executives.” He also pointed out that all three judges on the appellate panel who tossed out his verdict took campaign contributions from law firms defending Merck.

Say what you will about the civil justice system, but it’s scary how far the appeals courts will go these days to overturn jury verdicts. Conservatives always rally against “judicial activism,” yet the GOP-controlled appeals courts in Texas have become the worst practitioners of this.

Mark Lanier is an incredible trial lawyer. Something tells me he’s not through with Merck just yet.

Another Truck Wreck in Wise County

Wednesday, May 21st, 2008

Wise County Messenger reporting a bad truck wreck near Chico on Monday. Apparently a car struck the rear of an 18-wheeler that was turning in to a Nabors Drilling plant. The driver and her young child were flown to hospitals in Fort Worth.

Another blog reports that the child may have died. Very sad.

I had a meeting near Paradise not far from Bridgeport in Wise County this morning, and I am amazed at the volume of traffic on Highway 199, 51 and 114 in that area. There are trucks everywhere, mainly rock haulers and Barnett Shale trucks, many of them driving quite fast. On a different note, that is some beautiful country out there. But watch yourself if you drive out that way.

Pity the poor insurance companies

Friday, May 16th, 2008

According to the National Association of Insurance Commissioners , companies selling medical malpractice insurance in Texas made $807,325,106 profit in the first three years following tort reform. In 2006, more than 50 cents of every dollar collected was profit.

Hidden Costs of Tort Reform

Friday, May 16th, 2008

A disturbing trend is emerging due to “tort reform:” Fewer injured consumers are able to be fully compensated through the court system and more are being forced onto taxpayer-funded government and charity healthcare programs. For example, a baby injured by medical negligence can’t recover damages because of tort reform, and thus is cared for from now on by Medicaid. Or a worker is injured by a defective product but preemption shields the manufacturer from liability, so the worker goes onto Social Security Disability.

It is sad and ironic that one of the darlings of conservatives - tort reform and reduced access to the courthouse - is shifting this burden onto taxpayers, a burden which was once shared with the insurance industry.

Fox 4 News questions the benefits of tort reform in Texas

Friday, May 16th, 2008

Good article on Fox 4 exposing some of the myths that propelled the “tort reform” debacle of the 2003 Texas Legislature.

UT Law Professor Bernard Black’s conclusion after studying the matter? “It is entirely clear there was no crisis in medical malpractice lawsuits.”

Allstate to pay policyholders, reduce rates

Tuesday, May 13th, 2008

The Texas Department of Insurance and Allstate entered into an agreement whereby the insurance giant will refund some money to policyholders and reduce their rates.

The Fort Worth Star-Telegram reports that Allstate must pay $36.8 million in refunds for new and renewal policies written between Dec. 1, 2004 and April 23, 2006; give credits or refunds that amount to 3 percent of premiums for most policies written between Aug. 20, 2007 and June 1, 2008; cut homeowners rates by 3 percent on average statewide for most policies written between June 2, 2008 and at least June 1, 2009; and not increase rates between June 2, 2008 and June 1, 2009.

I’m skeptical of any agreements reached by Big Insurance and the lapdog TDI, particularly knowing how the insurance companies fight meaningful regulation tooth-and-nail. This could be good for consumers or it could just be window dressing (like when TMLT doubled medical malpractice insurance premiums prior to the “tort deform” debacle of 2003 and them hailed an 11% reduction a year later - yipee).

With all these “reductions,” consumers can go broke saving money.

Passenger made to sit on toilet, sues JetBlue

Monday, May 12th, 2008

Okay, this one is sorta funny. Probably very poor judgment by the airline crew but I don’t know if it’s worth two mil, especially since he was on a buddy pass in the first place.

Now in addition to McDonald’s hot coffee, we’ll have to voir dire the jury panel on this case.

The first small chink appears in Halliburton’s armor

Monday, May 12th, 2008

Houston Chronicle reporting today that a federal judge has ruled that Jamie Leigh Jones, the former employee of Halliburton subsidiary KBR who alleges she was raped by co-workers while in Iraq, can take her claims to trial. Halliburton, you’ll recall, is seeking to have Jones’s claims heard in arbitration rather than in court.

Apparently the ruling by U.S. District Judge Keith Ellison is that Jones does not have to take the assault/rape claims through arbitration, but that she must first resolve other workplace-related claims through that process before going forward in court on the more serious charges.

Bravo. Sounds like a thoughtful ruling: Employment contract + workplace disputes = arbitration. Employment contract + assault, rape and imprisonment by co-workers = jury trial.

How much you wanna bet Halliburton appeals this ruling?

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