December 29, 2010

Breaking News: Judge Yerger Throws Out Eaton’s Case Against Frisby Due to Ed Peters-Bobby DeLaughter Related Misconduct

Perhaps the biggest legal development of the year in Mississippi happened today during what is usually the quietest weeks of the year for lawyers and the judiciary.

Hinds County Circuit Court Judge Yerger unsealed an opinion today dismissing Eaton Corporation’s case against Frisby due to Eaton’s hiring Ed Peters to improperly influence Judge Bobby DeLaughter in the case.

Here is the Judgment of Dismissal.

Here is Judge Yerger’s opinion.

Eaton has a market cap. of over $17 billion, is in the S&P 500 and has over 70,000 employees.

Judge Yerger’s opinion states that Eaton in-house counsel were aware of Ed Peters’ improper ex parte contacts with Judge DeLaughter. The opinion also refers to evidence that suggests that Eaton’s general counsel was aware of the scheme to improperly influence Judge DeLaughter.

Judge Yeger’s opinion included the following findings:

  • Eaton and its counsel intentionally hid Peters’ involvement from defendants despite knowledge that Peters was communicating with DeLaughter about the case.
  • Eaton Vice President and Chief Counsel Vic Leo sent an email to other Eaton lawyers including General Counsel Mark McGuire that stated that Peters “intends to speak with Court Administrator and the Judge about the trial date. This may take some finessing.”
  • The same e-mail stated that Peters forecast that the chances of Eaton winning a particular ruling were 100% [note: nothing is 100% in litigation].
  • In another email Leo told McGuire that Peters had taken DeLaughter’s temperature on a meeting about the possible recusal of Judge Tom Lee in the Frisby criminal trial.
  • Eaton’s corporate office and Wisconsin counsel were aware of Peters’ improper actions. [Note: by this point in the case I believe that Eaton’s Mississippi counsel were former Mississippi Supreme Court Justices Reuben Anderson and Fred Banks. I know they took over the representation at some point. Eaton’s lead counsel were in Wisconsin. Anderson and Banks have not been implicated to date in Peters’ misconduct. They may have had a ceremonial local counsel role in the case. I believe that Mike Allred represented Eaton when Eaton hired Peters].
  • Eaton and its counsel were aware of and sanctioned Peters’ clandestine actions.
  • Eaton “turned Peters loose” to “play fast and loose” with the judicial system without ever appearing in the case [note: this means that Frisby was unaware that Peters was behind the scenes sinking its case.].
  • Eaton’s counsel failed to present a plausible explanation for their complacency with Peters’ conduct.
  • Eaton and its counsel knew of the serious improprieties occurring and stood by with blind eyes.

Judge Yerger determined that in order to protect the integrity of the judicial system it was necessary to dismiss Eaton’s case with prejudice. A billion dollar trade secrets case has been dismissed due to successful efforts to improperly influence a judge.

The fallout from Scruggs-gate grows. This is another case where but for Tim Balducci getting caught attempting to bribe Judge Henry Lackey, there would have been a serious miscarriage of justice due to blatant cheating.

Ed Peters remains the Teflon Man, having received immunity from the DOJ.

For earlier posts on the case go here.

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Cheap Shots in Trial are OK?

The Court of Appeals concluded 2010 with a decision that bothers me. Here is the Court’s opinion in Triplett v. River Region Medical Corp.

Facts:

This was a Warren County medical malpractice case against a hospital, doctor and CRNA. River Region got out on summary judgment and the case was tried in May 2008 before Judge Frank Vollor. The case was tried to a defense verdict and the appeal ensued.

One of the issues on appeal was whether the trial court should have ordered a mistrial after defense counsel dropped this bomb in opening statement:

“a doctor from Viginia is the only one, apparently, [that Triplett’s heirs] could find in the whole United States to testify against [River Region].”

Plaintiff’s counsel objected and the trial court sustained the objection and advised the jury to disregard the statement. The next morning plaintiff’s counsel moved for a mistrial and the trial court denied the motion.

Tim Porter, Patrick Malouf and Johnny Givens with Porter and Malouf in Ridgeland represented the plaintiff. Gene Parker and Penny Lawson of Vicksburg represented the defendants.

Court of Appeals Decision:

On appeal a unanimous Court ruled that the motion for mistrial was untimely because under Mississippi law the objection and motion must be made contemporaneously with the improper remarks. That didn’t really seem fair to me so I did a little research and have come to the conclusion that the Court of Appeals is getting the law wrong on this.

My Take:

First, defense counsel’s statement was way out of bounds. The Court could have at least acknowledged that.

More importantly, the Court’s decision does not explain the rationale for the contemporaneous objection rule. But the Mississippi Supreme Court did explain the rule in 1997 in Herrington v. State, 690 So. 2d 1132 (Miss. 1997). There the Court explained that “contemporaneousness is critical because it allows the judge to avert a mistrial, if possible, by admonishing the jury to disregard the utterance.”

Given the rationale for the rule, it would seem that a contemporaneous objection alone should be enough to preserve the issue. Case law from other jurisdictions supports this conclusion.

A New Jersey District Court ruled in Lyles v. Flagship Resort Development Corp., 371 F. Supp. 2d 597 (D. N.J. 2005) that a contemporaneous objection alone is enough to preserve an issue. The Court observed that the law of the Third Circuit is that an objection alone without a motion for mistrial preserves an issue.

In my opinion the Court of Appeals got this wrong. If the reason for the contemporaneous objection rule is that it gives the judge the opportunity to admonish the jury to disregard the improper statement, then the reason for the rule does not apply in this case. There was a contemporaneous objection and the trial court did admonish the jury. If the reason for the rule does not apply, then the rule should not apply. That’s basic common sense.

What really bothers me about this decision is that this involved what appeared to be a planned cheap shot. While I agree that a trial court should not grant a mistrial for every improper statement that attorneys make in trial, I believe that trial courts should err on the side of granting a mistrial when the statement appears to be a planned cheap shot. Otherwise, what disincentive do lawyers have for making cheap shots?

There was also an issue in the case whether a juror employed by a law firm who represented the hospital should have been struck for cause. The trial court did not and the Court of Appeals affirmed. I also disagree with these rulings.

Having worked at large law firms, I can say without reservation that staff members—at least the ones with a clue—understand where the firm’s bread is buttered. Lawyers and their firms are loyal to their clients—-the law requires it—and a law firm employee should not be on a jury deciding the case of one of the firm’s clients.

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Cheap Shots in Trial are OK?

The Court of Appeals concluded 2010 with a decision that bothers me. Here is the Court’s opinion in Triplett v. River Region Medical Corp.

Facts:

This was a Warren County medical malpractice case against a hospital, doctor and CRNA. River Region got out on summary judgment and the case was tried in May 2008 before Judge Frank Vollor. The case was tried to a defense verdict and the appeal ensued.

One of the issues on appeal was whether the trial court should have ordered a mistrial after defense counsel dropped this bomb in opening statement:

“a doctor from Viginia is the only one, apparently, [that Triplett’s heirs] could find in the whole United States to testify against [River Region].”

Plaintiff’s counsel objected and the trial court sustained the objection and advised the jury to disregard the statement. The next morning plaintiff’s counsel moved for a mistrial and the trial court denied the motion.

Tim Porter, Patrick Malouf and Johnny Givens with Porter and Malouf in Ridgeland represented the plaintiff. Gene Parker and Penny Lawson of Vicksburg represented the defendants.

Court of Appeals Decision:

On appeal a unanimous Court ruled that the motion for mistrial was untimely because under Mississippi law the objection and motion must be made contemporaneously with the improper remarks. That didn’t really seem fair to me so I did a little research and have come to the conclusion that the Court of Appeals is getting the law wrong on this.

My Take:

First, defense counsel’s statement was way out of bounds. The Court could have at least acknowledged that.

More importantly, the Court’s decision does not explain the rationale for the contemporaneous objection rule. But the Mississippi Supreme Court did explain the rule in 1997 in Herrington v. State, 690 So. 2d 1132 (Miss. 1997). There the Court explained that “contemporaneousness is critical because it allows the judge to avert a mistrial, if possible, by admonishing the jury to disregard the utterance.”

Given the rationale for the rule, it would seem that a contemporaneous objection alone should be enough to preserve the issue. Case law from other jurisdictions supports this conclusion.

A New Jersey District Court ruled in Lyles v. Flagship Resort Development Corp., 371 F. Supp. 2d 597 (D. N.J. 2005) that a contemporaneous objection alone is enough to preserve an issue. The Court observed that the law of the Third Circuit is that an objection alone without a motion for mistrial preserves an issue.

In my opinion the Court of Appeals got this wrong. If the reason for the contemporaneous objection rule is that it gives the judge the opportunity to admonish the jury to disregard the improper statement, then the reason for the rule does not apply in this case. There was a contemporaneous objection and the trial court did admonish the jury. If the reason for the rule does not apply, then the rule should not apply. That’s basic common sense.

What really bothers me about this decision is that this involved what appeared to be a planned cheap shot. While I agree that a trial court should not grant a mistrial for every improper statement that attorneys make in trial, I believe that trial courts should err on the side of granting a mistrial when the statement appears to be a planned cheap shot. Otherwise, what disincentive do lawyers have for making cheap shots?

There was also an issue in the case whether a juror employed by a law firm who represented the hospital should have been struck for cause. The trial court did not and the Court of Appeals affirmed. I also disagree with these rulings.

Having worked at large law firms, I can say without reservation that staff members—at least the ones with a clue—understand where the firm’s bread is buttered. Lawyers and their firms are loyal to their clients—-the law requires it—and a law firm employee should not be on a jury deciding the case of one of the firm’s clients.

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