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NJ Court Drops Suit Against Paint Makers
Court Feed News | 2007/06/16 03:31

The New Jersey Supreme Court on Friday scuttled what little remained of a lawsuit against paint makers by 26 towns and counties that wanted them to cover the cost of removing lead paint, which was banned in 1978 as a health hazard. The 4-2 ruling by the state's highest court was a victory for the manufacturers, which included American Cyanamid Co. (now part of Wyeth (nyse: WYE - news - people )), Sherwin-Williams Co. (nyse: SHW - news - people ) and DuPont (nyse: DD - news - people ).

The court determined that the towns and counties failed to identify a special injury that could be compensated. It said the claim was essentially a products liability issue, and falls under the state Product Liability Act, which excludes coverage for exposure to toxic material.

A lawyer for the towns and counties, Fidelma L. Fitzpatrick, said they were considering whether to ask the court to reconsider its decision, which dismissed the last remaining claim of the lawsuit.

"It means that the New Jersey Supreme Court turned its back on lead-poisoned children of New Jersey, and they allowed the companies that profited from lead paint to turn their back on the children of New Jersey and the crisis that they created," Fitzpatrick said.

Individuals have little recourse to sue because they cannot identify which manufacturer made the paint that is on the walls of their home, Fitzpatrick said.

The paint makers praised the ruling, noting the Missouri Supreme Court had a similar decision on Tuesday.

"These companies are not responsible for risks today from poorly maintained lead paint," said Bonnie J. Campbell, spokeswoman for the paint makers and a former attorney general of Iowa.

New Jersey Public Advocate Ronald K. Chen, who had entered the case in support of the towns and counties, said the ruling was disappointing, but did recognize that landlords must maintain their properties to prevent lead paint from flaking and becoming a health hazard.

The aged housing stock in New Jersey has at least 2 million units with lead paint, Chen said. As a result, 4,547, or nearly 2.5 percent of New Jersey children under 6, had high levels of lead, compared to 1.6 percent nationally, according to the state Department of Health and Senior Services.

The lawsuit was originally filed in December 2001 by Newark, and was later joined by other towns and counties.

A trial judge had dismissed the entire lawsuit, but an appellate panel reinstated the claim charging the manufacturers with creating a public nuisance.



Judge Suing Dry Cleaner Cries Over Pants
Court Feed News | 2007/06/14 16:38

A judge had to leave the courtroom with tears running down his face Tuesday after recalling the lost pair of trousers that led to his $54 million lawsuit against a dry cleaner. Administrative law judge Roy L. Pearson had argued earlier in his opening statement that he is acting in the interest of all city residents against poor business practices. Defense attorneys called his claim "outlandish." He originally sued Custom Cleaners for about $65 million under the District of Columbia consumer protection act and almost $2 million in common law claims. He is no longer seeking damages related to the pants, instead focusing his claims on two signs in the shop that have since been removed.

He alleges that Jin Chung, Soo Chung and Ki Chung, owners of the mom-and-pop business, committed fraud and misled consumers with signs that claimed "Satisfaction Guaranteed" and "Same Day Service."

Pearson, representing himself, said in opening that he wanted to examine the culture that allowed "a group of defendants to engage in bad business practices for five years."

An attorney for the Chungs portrayed Pearson as a bitter man with financial troubles stemming from a recent divorce who is taking out his anger on a hardworking family.

"This case is very simple. It's about one sign and the plaintiff's outlandish interpretation," attorney Chris Manning said.

The Chungs were to present their case Wednesday. Manning asked D.C. Superior Court Judge Judith Bartnoff to award them reimbursement for their legal costs if they win.

Pearson called several witnesses Tuesday who testified that they stopped going to Custom Cleaners after problems with misplaced clothes.

Pearson also called himself as a witness, saying his problems began in May 2005 when he brought in several suits for alterations. A pair of pants from a blue and maroon suit was missing when he requested it two days later. He said Soo Chung tried to give him a pair of charcoal gray pants.

As Pearson explained that those weren't the pants for the suit, he choked up and left the courtroom crying after asking Bartnoff for a break.

Pearson originally asked the cleaners for the full price of the suit, which was more than $1,000. But because the Chungs insisted the pants had been found, they refused to pay.

Manning has said the cleaners made three settlement offers to Pearson, but the judge was not satisfied and increased his demands — including asking for money to rent a car so he could drive to another business.



Wal-Mart workers' suits spur mixed court rulings
Court Feed News | 2007/06/13 17:23

Wal-Mart Stores Inc., facing more than 70 labor-practice lawsuits, won one case in New York and lost two in other states after judges differed on whether employees could sue as a group over claims of unpaid work. Wal-Mart lost bids to reverse approvals of worker class actions or group suits over pay in Missouri and New Mexico on Tuesday. Employees in the New York case sought to include about 200,000 former and current workers in the suit, claiming store managers made workers skip meals and breaks and falsified timecards.
"The facts and circumstances surrounding the allegedly unpaid work vary substantially from associate to associate," New York Supreme Court Justice Richard M. Platkin wrote in a decision Monday in Albany, N.Y., rejecting a class action.

Since December 2005, juries in Pennsylvania and California have awarded Wal-Mart workers $251 million in pay and damages after deciding the retailer didn't properly compensate them for overtime and breaks. Wal-Mart, the largest U.S. employer with 1.9 million workers, faces more than 70 other U.S. wage-and-hour suits, including class actions.
Wal-Mart, based in Bentonville, Ark., is "exploring options for appeal," in the New Mexico and Missouri cases, spokesman John Simley said. "These decisions were not on the merits of the case, but only on whether they should proceed as class actions."

"Even more courts across the country have found that cases like these are not suited for class treatment," Simley said. "An example of that came in New York today, where the court found in favor of Wal-Mart on every aspect of class certification analysis."

Individual circumstances are too varied and the group of people too broad to weigh the New York case as a group, Platkin wrote, noting that "not each and every individual who was ever an hourly employee of defendant during the relevant time period worked without pay, nor was every hourly employee deprived of premium pay for overtime hours."
Including a larger group would "result in miniscule individual awards of damages to class members," Platkin wrote.

In Missouri, Wal-Mart lost a bid to reverse class certification of a similar lawsuit when an a state appeals court upheld a lower court decision granting hourly workers in that state the right to sue as a group.

The Missouri decision expanded the lawsuit by changing the case from an opt-in action, which requires workers to ask to join the suit, to an opt-out suit, which makes hourly workers part of the litigation automatically unless they ask to be let out.

The decision means that Wal-Mart will be facing a group suit by more than 200,000 current and former hourly workers in Missouri, rather than a lawsuit by several hundred or several thousand. Typically, a small number of potential plaintiffs would opt into a suit.

"This gives these people their day in court," said attorney Steve Long, who represents the Missouri workers. He said he would be seeking a trial in 2008.
The Court of Appeals of New Mexico on Tuesday upheld a 2005 lower court's decision granting class action status to Wal-Mart hourly workers in that state who claim they worked off the clock without compensation and missed rest breaks. The New Mexico class would include about 40,000 current and former Wal-Mart hourly employees, said attorney Jerry Bader, who represents the workers.

In New York, while the workers could bring individual claims against Wal-Mart, the cost of pursuing these suits would be too high, said Jonathan Selbin, an attorney for the workers there.
"These are not claims these people could realistically bring without a class action," he said. "Obviously we're disappointed. We plan to appeal. We think the judge got it wrong."
The lawsuit claimed that Wal-Mart required its hourly employees to work off the clock and through breaks and would have covered unpaid workers as far back as August 1995, he said.



Bank of America Calls Dutch Court Action "Shocking"
Court Feed News | 2007/06/08 09:54

In its fight for LaSalle Bank, Bank of America [ticker: BAC] said in an appeal filing that it was “shocking” that the Dutch court would disregard fundamental European Union law.

The Charlotte, N.C.-based bank has accused a Dutch court of unlawful action by blocking its $21 billion purchase of Dutch banking giant ABN Amro’s U.S. unit.

In support of calls from investors, last month a Dutch commercial court froze the deal between Bank of America and LaSalle Bank in order to allow for a shareholder vote.

The Dutch Supreme Court is hearing appeals by both ABN and Bank of America over the frozen deal and will rule later this month or in early July on whether the sale can take place.



Michael Scott Murder Conviction Overturned
Court Feed News | 2007/06/07 11:48

Austin's most notorious killings, the Yogurt Shop murders, remain essentially unsolved. The Court of Criminal Appeals Wednesday morning overturned the conviction of Michael Scott, the only man still convicted for the 1991 Yogurt Shop murders. Amy Ayers, sisters Jennifer and Sarah Harbison and Eliza Thomas were all murdered in a North Austin yogurt shop 15 1/2 years ago on Dec. 6. The shop was then set on fire.

From the beginning, Scott, his family and attorneys have all insisted he is innocent. They say he had nothing to do with the murders. The court of appeals threw out his conviction, saying his right to a fair trial was violated.

In 2002, prosecutors used a videotaped statement from Scott's former friend, Robert Springsteen, to help convict him of murder. At the time Scott did not have an opportunity to challenge it in court.It was a decision the Court of Criminal Appeals now says violated Scott's constitutional rights to a fair trial.

"Because the statement was introduced without Springsteen being there, Scott never had a chance to cross examine the statement,” appellate defense attorney Ariel Payan said. “It was just introduced and there was nothing that could be done about it."

Scott's wife Jeannine has spent five years trying to set him free. "I'm thrilled that they really did look at this and decide there's something wrong with this case," Jeannine said. She says it's time police investigators focus their attention on someone else. "I would like them to find the actual perpetrators and stop wasting the county's and the city's money in this particular endeavor," she said.

State prosecutors admit this latest decision is a setback. They say they don't agree with the Appeals Court ruling.

"If in fact it stays as it is now, Michael Scott would be tried again, " assistant district attorney Bryan Case said.

But until the decision is declared final, Case says they will continue weighing all of their legal options. They could appeal the reversal to the U.S. Supreme Court, or take the case back to trial all over again.

Scott also insists his confession to police was coerced. He say he only agreed to it after several days of almost non-stop interrogation.



Three plead guilty in Chinese spying case
Court Feed News | 2007/06/05 13:45

June 5 Three relatives of a Chinese-American engineer convicted of conspiring to pass U.S. secrets to China have pleaded guilty in California to similar charges. Tai Mak, brother of convicted engineer Chi Mak, pleaded guilty in a Santa Ana, Calif., U.S. District Court to violating export-control laws, The Los Angeles Times reported Tuesday.

Tai Mak's wife, Fuk Heung Li; and son, Billy Yui Mak, pleaded guilty to aiding and abetting the violation of the export-control laws.

Chi Mak was convicted May 10 of acting as an unregistered agent for China, giving false statements to the FBI, conspiracy to violate export-control laws and attempting to violate export-control laws. He was accused of attempting to pass information on U.S. naval technology to China, the newspaper report said. Prosecutors said he put the information on two encrypted disks and gave them to his brother to transport to China.

Chi Mak's wife, Rebecca Laiwah Chiu, is scheduled to go on trial Tuesday, the Times said.



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