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Eaton Corp. v. Frisby Aerospace: a mess worth watching

On Friday the Clarion-Ledger reported that Hinds County Circuit Court Judge Swan Yerger stayed Eaton Corp. v. Frisby Aerospace pending a determination of whether former Eaton lawyer Ed Peters improperly influenced Judge DeLaughter when he had the case. Eaton is the plaintiff and alleges that former Eaton employees stole $1 billion in trade secrets and gave them to Frisby. If there is a bigger case pending in Hinds County I do not know what it is.

Frisby is represented by Jackson attorney Allen Perry. According to the Ledger:

Perry argued Wednesday that Frisby has been put through “a lot of stuff because of what Peters and DeLaughter did to us.”

“We know there was improper communications and he has admitted that fact,” Perry said in court. “We have been done wrong and we are asking for justice.”

Eaton attorney Reuben Anderson countered that Eaton is the real victim as the victim of the trade secrets theft.

My initial reaction upon reading the article and Perry’s quotes was that Frisby is full of it and the case should not be stayed. Upon further analysis, I changed my mind and agree with Judge Yerger’s decision. It is prudent for Judge Yerger to stay the case until more of the Peters-DeLaughter facts are known. But unless more allegations surface that are directly related to this case, Frisby is probably going to have to defend the case on the merits. Otherwise, Judge Yerger probably would have already dismissed the case.

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Clarion-Ledger oversimplifies physician malpractice insurance premiums analysis

In its March 7, 2009 print edition, the Clarion-Ledger editorializes about the 60% decline in premium costs for medical malpractice insurance for physicians since the passage of tort reform legislation. I was not able to find the editorial on-line in order to link it.

The Ledger points out that the plaintiff’s bar wrongly predicted that malpractice premiums would not decline following tort reform. While this is a true statement, the Ledger is wrong to give all the credit to legislative tort reform. I believe that there were at least two other factors that had a significant impact on malpractice premiums.

First, a court-imposed change in multi-plaintiff joinder laws. In the late 1990’s and early 2000’s, physicians were being named as defendants in pharmaceutical and other mass tort cases filed in Mississippi. In many instances, the physicians were not really target defendants and were sued in an effort to prevent out of state corporations from removing the cases from state court to federal court. But the physicians’ insurance carriers had to hire lawyers to defend the cases. And since the nature of multi-party mass tort cases makes them more expensive to defend, medical insurers had to spend a ton of money on defense costs in cases that the doctors should not have even been in.

At some point–and I do not remember the exact year–joinder laws were changed so that each plaintiff had to file and litigate his case individually. Once that happened, out-of-state mass tort lawyers largely left the state and the number of filed cases in which doctors were “venue” defendants decreased significantly.

The second factor not identified by the Ledger was the perception by some in the plaintiff’s bar that the Mississippi Supreme Court would not affirm a plaintiff’s verdict in a medical malpractice case. This had a chilling affect on the number of malpractice cases filed. It should be noted that in recent months the Supreme Court has affirmed at least two medical malpractice verdicts.

If the Ledger was correct that tort reform was the sole reason that doctors’ insurance premiums declined, then wouldn’t all liability premiums be lower? My personal experience with insurance premiums is that my malpractice premiums have gone up and my personal general liability coverage has not decreased.

Hopefully, the sea-change in the litigation climate will settle down physicians and decrease the open hostility by some doctors towards the plaintiff’s bar.

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Malcolm Harrison: future Hinds County Circuit Court Judge?

A reader of this blog emailed me and suggested that Malcolm Harrison would be a strong candidate in a special election to fill Judge DeLaughter’s seat should the position become open. Harrison is the current county prosecutor, has a solid reputation, lives in the Raymond area (seat of the 2nd judicial district), is African-American and has previously won two county-wide elections. These are strong credentials for the position.

Another suggested possibility to fill the seat was Jackson attorney Melvin Priester. It has been a number of years since any of the Hinds County Circuit Court Judge positions were vacant. A vacancy would no doubt cause a huge amount of political intrigue and jockeying.

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Here is a link to a concise analysis of U.S. Supreme Court’s new drug preemption decision

I have reviewed several blogs discussing the U.S. Supreme Court’s new drug preemption opinion in Wyeth v. Levine. My favorite is at the WSJ blog. Their analysis of the decision is concise and not slanted towards either side.

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Miss. S. Ct. split in legal malpractice case

It was a split decision in the Court’s Thursday opinion in Waggoner v. Williamson. In the decision a divided court reversed a grant of summary judgment in a malpractice case against prominent plaintiff’s lawyer Ed Williamson and remanded the case for a jury trial.

The plaintiff sued his former attorneys after netting nearly $1.5 million in a 2001 fen phen settlement. The plaintiff claims to have not known that his case was part of an aggregate settlement of $73.5 million–apparently on behalf of 45 clients. Plaintiff’s portion of the aggregate settlement was $3 million.

The majority reasoned that there was a fact question as to adequate disclosure under plaintiff’s breach of fiduciary duty claim. In the majority were Justices Carlson, Waller, Dickinson, Randolph and Lamar.

Justice Pierce wrote a concurring opinion joined by Justices Chandler and Waller (in part). Justice Kitchens wrote a dissenting opinion joined by Justice Graves.

None of the opinions state what many lawyers who read this opinion are thinking. The plaintiff was lucky to recover $3 million and net $1.5 million for injuries that left him well enough to give a deposition in his case against his lawyers. The settlement value of fen phen cases and many other types of cases in Mississippi declined substantially shortly after the plaintiff settled this case. This fact rightfully did not factor into the court’s analysis. But perhaps it should have factored into plaintiff’s decision to sue his former lawyers.

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Miss. S. Ct. rejects Daubert challenge

In Killhullen v. Kansas City Southern Railway the Miss. Supreme Court unanimously reversed both the trial court and Court of Appeals granting summary judgment based on KCS’s Daubert challenge of Plaintiff’s expert. This was a crossing accident case. Plaintiff’s expert was a registered professional engineer who made calculations regarding field of vision issues.

The Court rejected KCS’s argument that the expert must be an “accident reconstructionist”:

In rejecting Halfacre’s affidavit due to his lack of “specialized knowledge, training or expertise in the field of accident reconstruction[,]” this Court finds that the circuit court abused its discretion. Given his applied engineering expertise, classification as an accident reconstructionist was not necessary…

This was a sensible decision by the Court. If the issues involve physics, the fact that the expert is not an “accident reconstructionist” should not matter.

I once lost a Daubert challenge of an accident reconstructionist and had to watch him re-create the accident for the jury with a couple of toy matchbox cars. If I had known that was ok, I would have had the 5-year old across the street as my expert.

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Unanimous Miss. S. Ct. rules for Plaintiff on procedural/ notice issues

In Briere v. South Central Regional Medical Center a unanimous Mississippi Supreme Court reversed the trial court’s dismissal of a wrongful death action because an earlier filed action was voluntarily dismissed and the wrongful death statute states that there can be only one wrongful death action. Here is the key language:

We clarify Long and hold that the wrongful-death statute does not require that a second suit be dismissed solely because it was, at some point, pending at the same time as a previously filed suit.

The Court also rejected Defendants’ claim that the pre-suit notice letter was inadequate because it did not adequately describe the Plaintiff’s claims. Here is the key language:

We hold that Briere’s first notice letter complied with the notice requirements of the

MTCA. The broad language in the first letter put SCRMC on notice of all of the claims of which Briere was aware at the time. If suit already had been filed, Briere certainly would have been able to amend her complaint to include the new information, pursuant to Mississippi Rule of Civil Procedure 15.

I have seen a trend in the last year or two of Defendants pushing Long v. McKinney and pre-suit notice arguments beyond logic. Some of these “creative” defense claims are now being decided and rejected by the Court.

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Clarion-Ledger opines on U.S. Supreme Court recusal case–sort of

In its February 23, 2009 opinion section the Clarion-Ledger refers to a pending U.S. Supreme Court case out of West Virginia that involves whether an elected judge must recuse himself/ herself from cases involving one of the judge’s political contributors. Here is the editorial.

The case is straight out of John Grisham’s The Appeal. A defendant lost a $50 million verdict, appealed and contributed $3 million to a supreme court candidate while the appeal was pending. The candidate won, refused to recuse himself from the contributor’s case and voted to overturn the verdict. The Ledger states:

Mississippi’s current quagmire of judicial corruption cases – interposed against a decade of tort reform battles that have pitted big spending trial lawyers against bigger spending business and medical interests in judicial elections – will focus much attention on the high court decision in the West Virginia case.

Regardless if the contributions come from attorneys arguing cases before the judge or from business/medical interests whose assets are at risk in cases, concerns about impartial judges are real.

The Ledger lays all this out and then does not take a position on what should be done.

It will be a crying shame if the Supreme Court does not find a constitutional violation when judges decide cases involving large campaign contributors. In federal court non-elected judges recuse themselves from cases involving companies whose stock the judge owns. Similar rules should apply to state court cases when there is any concern of impartiality, such as large campaign contributions.

I would like to see two things in Mississippi to return the public faith in the judiciary and legal system:

  1. an appointed judiciary system; and
  2. rules prohibiting the hiring or association of an attorney on a case because of a perceived personal relationship between the attorney and the judge.

The first proposal would have to involve the legislature. But the second proposal could be imposed by the Mississippi Supreme Court by adding a rule to the Mississippi Rules of Professional Conduct.

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Supreme Court interprets venue statute in 2/19/09 decision

In AFLAC v. Ellison the Mississippi Supreme Court reversed the Circuit Court of Smith County and ordered venue transferred from Smith County to Rankin County. Justice Dickinson wrote for the majority, joined by Justices Waller, Carlson, Lamar and Pierce. The Court analyzed the case under Miss. Code Ann. 11-11-3. The majority’s decision turned on the following passage:

It is undisputed that the Atkinsons (who are defendants) reside in Rankin County, and that AFLAC’s principal place of business is outside Mississippi. Thus, pursuant to the plain language of the statute, the action must be commenced in Rankin County, unless Ellison can show that a “substantial act or omission” or a “substantial event causing the injury” occurred in Smith County. However, in searching the record for activity which occurred in Smith County, we find only that Ellison was in Smith County when he was informed of the denial of insurance benefits.

The plaintiff being in Smith County when he got the bad news wasn’t enough. AFLAC is doing cart-wheels all the way to Brandon.

Justice Graves wrote an interesting concurrence stating that the doctrine of stare decisis required the Court to transfer the case to Rankin County. Justice Graves reached his decision despite the fact that he believed that the two cases that set the precedent were wrongly decided.

Justice Randolph dissented along with Justices Kitchens and Chandler. The dissent argued that the in-state defendants waived the venue issue by not asserting it as an affirmative defense. AFLAC, as the out-of-state defendant, lacked standing to assert improper venue because the defense belonged to the in-state defendants and not AFLAC.

I’m going to have to go with Justice Graves on this one. Why reinvent the wheel when there are two prior decisions that mandate reversal?

I don’t like the dissent’s position. If it were the law it would lead to venue shopping. Plaintiffs would cut side deals with in-state defendants to not assert improper venue. This would be especially prone to happen in insurance cases where the agent-company relationship is not always cozy. This would put the AFLAC’s of the world shut out of federal court, stuck in the plaintiff’s home county and side ways with a co-defendant.

Is it just me, or have Randolph and Dickinson been disagreeing a lot lately?

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