Legal Radar

Supreme Court Will Hear Philip Morris Appeal to Limit Punitive Damages

The Supreme Court will decide if tobacco giant Philip Morris must pay nearly $80 million in damages to the family of a longtime smoker, Jesse D. Williams. At $79.5 million, the award in the Oregon case is more than 150 times the $521,000 actual damages awarded by the jury.

The outcome of this case will determine if companies could be shielded from large jury awards. A 2001 U.S. Supreme Court ruling had recommended there should be no more than a 9-to-1 ratio between punitive damages and other compensatory damages.

Read "Court Trims $ 150 Million Tobacco Award" posted on May 18.

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Disgruntled Client of Matchmaking Site Wins $ 2 Million

Anne Majerik, 60, enlisted the services of a Beverly Hills matchmaker, Orly Hadida, reputed to be "the world's priciest matchmaker" and paid her $125,000 to meet with wealthy, cultured men. She was disappointed when all she got were a few introductions to some inappropriate men, and sued Orly. A jury has awarded Majerik $ 2.1 million compensation.

Orly argued that Majerik is a serial suer of matchmakers. She said that the widow used her and the men Orly introduced her to, enjoyed herself and then claimed that she had been "psychologically damaged by the process" and demanded compensation.

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Litigation Ills Plague Medical Industry

The Manhattan Institute Center has published a report 'Trial Lawyers, Inc.: Health Care ' examines the impact of the "litigation industry" on health care. This is the third in a series of reports published by the center on 'Trial Lawyers, Inc."

The report finds that litigation is a large contributor to the health care bill, and pharmaceutical litigation also exacts a staggering cost on the economy. Litigation exposure is many times more than the annual research and development budgets of the pharmaceutical companies. Litigation has targeted all levels of health care, including nonprofit hospitals, nursing homes and managed-care providers.

Malpractice suits have inflated the cost of health care by encouraging "defensive medicine" - unnecessary procedures and referrals that doctors prescribe in order to limit their liability.

Product liability lawsuits are also frightening companies away from innovations that would lead to health improvements, not only for American society, but for the entire world.

Finally, the report concludes that medical litigation hardly protects or compensates the actual victims, who often receive less than 50% of the damages, the rest going to lawyers and administrative fees.

Read "Harvard Study Finds 40% Malpractice Suits Baseless" posted on May 11.

Read the Manhattan Institute Center report

Lawyers Deprived Drug Victims of Millions from Settlement Amount

Three lawyers, Shirley Cunningham Jr., William Gallion and Melbourne Mills Jr., who represented plaintiffs in the diet drug fen-phen cases, concealed the settlement amounts due to their clients and overpaid themselves.

The drug's manufacturer had settled with the victims for $ 200 million in 2001, but the lawyers never told plaintiffs what was the amount they were allotted each. They paid each client lower than the amount due, and pocketed the difference. Special Judge William Wehr said the lawyers passed out money from the settlement "like it was theirs to do with as they wish."

A number of legal experts, bar associations and professors of law have reacted to this case, saying that it is both embezzlement and unethical on the part of the three lawyers.

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Missouri Attorney General Sues Charity Scamster

Missouri Attorney General Jay Nixon has sued Darrel M. Sanders for a fraud committed in the name of helping the children of persons killed in Iraq.  Sanders approached business owners and requested permission to place candy vending machines in their premises, falsely claiming that the proceeds would benefit the children. He claimed to be employed by the Armed Forces Children's Education Fund. Nixon says that Sanders has no affiliation with this or any other charity.

The lawsuit asks for a restraining order to prevent Sanders from placing any more vending machines and asks the court for permission to seize the vending machines. It also asks for the defendant to pay the appropriate  restitutions, penalties and costs associated with the lawsuit.

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Christian Brando Fined for Contempt of Court

Christian Brando was held in contempt of court for his behavior during the Robert Blake civil trial which interfered with the processes of the court.

Last year, a criminal court acquitted Blake, the star of the ‘Baretta’ TV show, of murdering Bonny Lee Bakley but a civil court jury ruled that he had intentionally caused her death and awarded damages of $30 million to her children.

Brando apologized to the judge saying, "I have to watch my mouth,” and was fined $1,000.

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Insurance Company to Pay Damages

Donald and Bridget Watkins have been awarded almost $13 million in damages for their part in a class action suit in which they are the lead plaintiffs against State Farm, an insurer. The jury found that the insurer had intentionally acted maliciously by employing Haag Engineering and its independent adjusters from E.A. Renfro Co. to assess the damage caused to homes by a tornado which swept through Oklahoma in 1999. A spokesman for the company said that it was disappointed with the verdict and that it would appeal against it.

The case brings up issues of corporate accountability and as Jeff Marr, who represented the plaintiffs pointed out, Oklahomans' willingness 'to put an end to corporate arrogance'.

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Rights of Howard Stern Master Tapes Transferred

Howard Stern's new employer,  Sirius Satellite Radio Inc., will pay CBS Radio,  a subsidiary of CBS Corp., $2 million for its rights to the recordings of the Howard Stern Show. This settlement will enable the shock jock to regain control of the master tapes of his terrestrial radio program. The other details of the settlement have not been revealed.

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Sheriff Awarded $ 10 Million Against Rapper Turk in Shooting Case

A sheriff's deputy, Chris Harris, was awarded $10 million in a civil judgment against rapper Turk,  who was convicted of shooting the sheriff four times during a drug raid in Memphis, Tennessee. Turk (real name: Tab Virgil) is currently serving time in Shelby County Jail in Tennessee.  On Wednesday, May 24, Judge James Russell set the compensatory and punitive damages awards at $10 million.

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L-3 Loses $ 125 Million in Business Dispute

A federal jury has awarded $125 million in damages to OSI Systems Inc., a Southern California company, ruling that a dispute with L-3 Communications Inc. caused it to lose substantial business after the Sept. 11, 2001, terrorist attacks.

The jury in U.S. District Court in Manhattan awarded OSI Systems $33 million in compensatory damages and $92.6 million in punitive damages, finding that L-3 Communications engaged in malice, oppression or intentional fraud. The case relates to deals when the two companies sought to acquire a third company, Perkin Elmer Security Detection Systems, in 2002.

In a release, L-3 Communications said it "believes this verdict and the damages awarded are inconsistent with the law and evidence presented. The company intends to move to have the verdict set aside and, if necessary, to appeal."

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