June 8, 2010

Biggest Question After Oral Argument in Double Quick v. Lymas is Whether Court Will Even Rule on Constitutionality of Tort Reform Caps

The entire Mississippi Supreme Court heard oral arguments on Tuesday before a mostly full courtroom in the Double Quick v. Lymas case. Here is the Clarion-Ledger’s article on the hearing. The audience was not disappointed as the arguments were very interesting.

Case Background

The case is a premises liability case out of Humphrey County involving the shooting of a patron by a third-person in the parking lot of a convenience store in Belzoni. There was a large jury verdict that the trial court reduced due to the legislative cap on non-economic damages. Both sides appealed. The defendant appealed on liability and the plaintiff challenged the constitutionality of the caps.

The Court Focused on Liability Issues

The justices appeared most interested in the liability arguments. Defense counsel John Henegan argued for thirty minutes and argued that the verdict should be reversed and rendered based on lack of foreseeability and proximate cause. Plaintiff counsel Joe Tatum then argued for thirty plus minutes and did not get to the cap issue until his time had technically expired. Henegan then argued caps for close to thirty minutes on rebuttal. It looked liked the lawyers were more eager to get into the caps than the justices.

It appeared that five or more justices were skeptical that the plaintiff established that the shooting was foreseeable or that any negligence by Double Quick proximately caused the shooting. For this reason, the case could be reversed and rendered without ever reaching the cap issue.

Justices Were Skeptical of Legislative Caps Arguments

On the issue of the caps, Justice Pierce pointed out that the plaintiff did not raise on appeal the argument that the caps violate the equal protection clause. It appeared that Justice Pierce thought that this was the best argument challenging the caps. Several justices appeared skeptical of the constitutionality of the caps in their questioning of counsel.

Henegan argued that not only are the caps constitutional, but that the legislature can eliminate the right to recover “these types of damages” entirely. I thought he lost the justices with that one. The justices quickly realized that if the legislature can abolish some types of damages, then it can abolish the right to recover all damages. And it did not look like they were buying it.

Henegan was steadfast on this argument, citing the workers’ comp system and the fact that the legislature abolished hedonic damages as a separate category of damages. But it’s my understanding that hedonic damages are recoverable, they are just within the other non-economic damages. In addition, Justice Pierce pointed out that the workers’ comp system is different, since employees do not have to prove negligence in return for the limits on recovery.

In any event, the right to sue for damages in civil court is older than this country. If the right were abolished, people would revert to taking the law into their own hands. Violence and chaos would be common. The best thing about our civil justice system is that it provides an orderly mechanism for resolving disputes. Although the system is imperfect, it beats the hell out of the alternative.

Henegan argued that the right to recover can be eliminated by the state legislature. I think he is dead wrong.

One last point on this issue. I find it difficult to believe that companies that make money from selling liability insurance advocate a system where there can be no tort liability. Liability insurance carriers would be out of business. So while insurance companies like caps that limit exposure, they do not want to eliminate exposure. It would eliminate their business.

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Biggest Question After Oral Argument in Double Quick v. Lymas is Whether Court Will Even Rule on Constitutionality of Tort Reform Caps

The entire Mississippi Supreme Court heard oral arguments on Tuesday before a mostly full courtroom in the Double Quick v. Lymas case. Here is the Clarion-Ledger’s article on the hearing. The audience was not disappointed as the arguments were very interesting.

Case Background

The case is a premises liability case out of Humphrey County involving the shooting of a patron by a third-person in the parking lot of a convenience store in Belzoni. There was a large jury verdict that the trial court reduced due to the legislative cap on non-economic damages. Both sides appealed. The defendant appealed on liability and the plaintiff challenged the constitutionality of the caps.

The Court Focused on Liability Issues

The justices appeared most interested in the liability arguments. Defense counsel John Henegan argued for thirty minutes and argued that the verdict should be reversed and rendered based on lack of foreseeability and proximate cause. Plaintiff counsel Joe Tatum then argued for thirty plus minutes and did not get to the cap issue until his time had technically expired. Henegan then argued caps for close to thirty minutes on rebuttal. It looked liked the lawyers were more eager to get into the caps than the justices.

It appeared that five or more justices were skeptical that the plaintiff established that the shooting was foreseeable or that any negligence by Double Quick proximately caused the shooting. For this reason, the case could be reversed and rendered without ever reaching the cap issue.

Justices Were Skeptical of Legislative Caps Arguments

On the issue of the caps, Justice Pierce pointed out that the plaintiff did not raise on appeal the argument that the caps violate the equal protection clause. It appeared that Justice Pierce thought that this was the best argument challenging the caps. Several justices appeared skeptical of the constitutionality of the caps in their questioning of counsel.

Henegan argued that not only are the caps constitutional, but that the legislature can eliminate the right to recover “these types of damages” entirely. I thought he lost the justices with that one. The justices quickly realized that if the legislature can abolish some types of damages, then it can abolish the right to recover all damages. And it did not look like they were buying it.

Henegan was steadfast on this argument, citing the workers’ comp system and the fact that the legislature abolished hedonic damages as a separate category of damages. But it’s my understanding that hedonic damages are recoverable, they are just within the other non-economic damages. In addition, Justice Pierce pointed out that the workers’ comp system is different, since employees do not have to prove negligence in return for the limits on recovery.

In any event, the right to sue for damages in civil court is older than this country. If the right were abolished, people would revert to taking the law into their own hands. Violence and chaos would be common. The best thing about our civil justice system is that it provides an orderly mechanism for resolving disputes. Although the system is imperfect, it beats the hell out of the alternative.

Henegan argued that the right to recover can be eliminated by the state legislature. I think he is dead wrong.

One last point on this issue. I find it difficult to believe that companies that make money from selling liability insurance advocate a system where there can be no tort liability. Liability insurance carriers would be out of business. So while insurance companies like caps that limit exposure, they do not want to eliminate exposure. It would eliminate their business.

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Big Day Today at Mississippi Supreme Court

According to the Mississippi Supreme Court’s docket calendar, there are two en banc oral arguments today involving civil cases. At 10:00 a.m. the Court will hear arguments in three Copiah County cases that were consolidated for appeal. From the captions, the cases look like nursing home cases.

The main event is at 1:30 p.m. when the Court will hear arguments in Double Quick v. Lymas. It’s my understanding that the constitutionality of Mississippi’s tort reform damages caps is at issue in this case.

Both arguments can be viewed live through a web-cast from the Court’s web site.

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According to AP Article, Less than Half Federal Judges in Gulf States are Eligible to Preside over Oil Spill Cases

According to this AP article, less than half the federal judges in Florida, Alabama, Mississippi, Louisiana and Texas are eligible to preside over oil spill cases due to connections with the oil industry. The article relies on 2008 disclosure forms.

The article states:

Thirty-seven of the 64 active or senior judges in key Gulf Coast districts in Louisiana, Texas, Alabama, Mississippi and Florida have links to oil, gas and related energy industries, including some who own stocks or bonds in BP PLC, Halliburton or Transocean — and others who regularly list receiving royalties from oil and gas production wells, according to the reports judges must file each year. The AP reviewed 2008 disclosure forms, the most recent available.

Of course, smart judges who owned stock in BP, Haliburton or Transocean at the time of the spill sold their stock soon after the spill.

The story states:

The AP review of disclosure statements shows the oil and gas industry’s roots run as deep in the Gulf Coast’s judiciary as they do in the region’s economy.

This may be painting with too broad of a brush. I suspect that many judges in other parts of the country also own or owned stock in these companies. They are all leading companies in their industry and are common investments in the energy sector. There is a good chance that anyone who holds individual stocks in their brokerage or retirement accounts owned stock in at least one of these companies.

Similar conflicts recently caused the Fifth Circuit Court of Appeals to dismiss an appeal, as discussed in this post. So this issue will be in play at both the trial and appellate court levels.

Some attorneys (presumably plaintiff’s attorneys) want to bring a New York Judge to Louisiana to preside over the case:

Some attorneys have come up with an unusual assertion: import a New York federal judge with a strong background in environmental lawsuits to Louisiana to preside over the cases.

They are recommending that the U.S. Judicial Panel on Multidistrict Litigation appoint U.S. District Judge Shira Scheindlin. Scheindlin presided over settlement of some 200 lawsuits brought against BP and other oil companies over a toxic additive called MTBE that contaminated drinking supplies nationally — and she has no oil and gas investments, according to her financial disclosure forms.

Sounds like the makings of My Cousin Vinnie 2. It’s twenty years later and Vinnie is now a federal judge who returns to the Deep South to preside over the cases involving the biggest environmental disaster in U.S. history.

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According to AP Article, Less than Half Federal Judges in Gulf States are Eligible to Preside over Oil Spill Cases

According to this AP article, less than half the federal judges in Florida, Alabama, Mississippi, Louisiana and Texas are eligible to preside over oil spill cases due to connections with the oil industry. The article relies on 2008 disclosure forms.

The article states:

Thirty-seven of the 64 active or senior judges in key Gulf Coast districts in Louisiana, Texas, Alabama, Mississippi and Florida have links to oil, gas and related energy industries, including some who own stocks or bonds in BP PLC, Halliburton or Transocean — and others who regularly list receiving royalties from oil and gas production wells, according to the reports judges must file each year. The AP reviewed 2008 disclosure forms, the most recent available.

Of course, smart judges who owned stock in BP, Haliburton or Transocean at the time of the spill sold their stock soon after the spill.

The story states:

The AP review of disclosure statements shows the oil and gas industry’s roots run as deep in the Gulf Coast’s judiciary as they do in the region’s economy.

This may be painting with too broad of a brush. I suspect that many judges in other parts of the country also own or owned stock in these companies. They are all leading companies in their industry and are common investments in the energy sector. There is a good chance that anyone who holds individual stocks in their brokerage or retirement accounts owned stock in at least one of these companies.

Similar conflicts recently caused the Fifth Circuit Court of Appeals to dismiss an appeal, as discussed in this post. So this issue will be in play at both the trial and appellate court levels.

Some attorneys (presumably plaintiff’s attorneys) want to bring a New York Judge to Louisiana to preside over the case:

Some attorneys have come up with an unusual assertion: import a New York federal judge with a strong background in environmental lawsuits to Louisiana to preside over the cases.

They are recommending that the U.S. Judicial Panel on Multidistrict Litigation appoint U.S. District Judge Shira Scheindlin. Scheindlin presided over settlement of some 200 lawsuits brought against BP and other oil companies over a toxic additive called MTBE that contaminated drinking supplies nationally — and she has no oil and gas investments, according to her financial disclosure forms.

Sounds like the makings of My Cousin Vinnie 2. It’s twenty years later and Vinnie is now a federal judge who returns to the Deep South to preside over the cases involving the biggest environmental disaster in U.S. history.

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