Tag Archives: Litigation

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2016’s Worst U.S. ‘Judicial Hellholes’

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This year’s Judicial Hellholes report, published by the American Tort Reform Association, identifies nine “hellholes” in light of changes in the U.S. state court system, the types of cases being seen and the courts’ balance between defendants and plaintiffs.

The top nine judicial hellholes are:
j-hellholesAnd if that isn’t enough, the report also includes a “Watch List,” calling attention to eight additional jurisdictions “that bear watching due to their histories of abusive litigation or troubling developments.” Those are:
jh-watchlistBut the news isn’t all bad. The report examines “Points of Light,” which are examples of “fair and balanced judicial decisions that adhere to the rule of law and respect the policy-making authority of the legislative and executive branches.” Highlights include positive court rulings from 11 states.

These courts made it easier to dismiss groundless claims, tougher to bring junk science into court, gave juries a more accurate understanding of how injuries occurred in auto accident cases, and reduced the potential for inflated damage awards. Courts also confirmed that a state attorney general can dismiss meritless cases brought on behalf of the state, but can’t hand the state’s law enforcement power to private contingency fee lawyers.

The report also points out that there are a staggering number of new laws on the books for companies to keep track of. In fact, since 2010, there was an average of 827 new laws annually in California alone.

From 2010 through 2015, lawmakers in Sacramento managed to tack onto the books an annual average of more than 800 new laws. In 2016, they added another 893, at least some of which (see SB 859, SB 1063, SB 1130, SB 1150 and SB 1241) were designed primarily to foment still more litigation and related costs that for many years have helped drive businesses, along with their jobs and tax revenues, into the arms of less litigious states across the country and around the globe.
new-laws

Risk Link Roundup

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Here are a few articles that caught my attention during the past week highlighting some interesting issues impacting the world of risk and insurance. They include tips on handling cyber disputes, news about the coming El Niño, Department of Labor remote work policies, how students at Butler University are establishing a captive insurer and an interesting look at potential FCPA lessons learned from the July death of Cecil the Lion.

5 Tips for Success in Cyber Litigation

Insurance Thought Leadership: Many insurance coverage disputes can be, should be and are settled without the need for litigation and its attendant costs and distractions. However, some disputes cannot be settled, and organizations are compelled to resort to courts or other tribunals to obtain the coverage they paid for, or, with increasing frequency, they are pulled into proceedings by insurers seeking to preemptively avoid coverage. – See more at: http://insurancethoughtleadership.com/5-tips-for-success-in-cyber-litigation/#sthash.m6sFEr8X.dpuf

El Niño and La Niña: Weather Patterns that Could Impact Your Business

Interstate Restoration: “…the Godzilla El Niño.”“All Signs Indicate a New Monster El Niño is Coming.” These quotes aren’t from a new action movie. They are just a couple of examples of the dramatic headlines and descriptions about the potential of this year’s El Niño. Since most of the stories hearken back to the El Niño of 1997 – 98—the strongest on record—it’s understandable if you’re concerned about the potential impact that of this year’s El Niño on your business. But depending on where you’re located, you may or may not need to worry.

DOL Forcing Everyone to Change Remote Work Policies: Pitfalls to Avoid

HR Morning: If the DOL’s new overtime regs go through as written — and there’s every indication to believe they will — employers of all stripes will have much more than just classification issues to contend with.

Grant Helps Butler Create Student-Run Insurance Company

Butler University Newsroom: The Butler University College of Business will establish a student-run insurance company with the goal of having the company fully operational by the 2019–2020 academic year, thanks to a $250,000 gift from MJ Insurance and Michael M. Bill.

On the Death of Cecil the Lion and the FCPA

Compliance Week: Cecil the Lion was shot and killed in July. What does the death of this well-known and well-beloved lion in Zimbabwe have to do with the Foreign Corrupt Practices Act? More importantly, what are the lessons to be learned by any chief compliance officer or compliance professional from this event? Much more than you would first think, actually.

NY Agrees to Pay $98M to Settle FDNY Class Action

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On March 18, 2014 the U.S. Department of Justice (“DOJ”) announced that New York City agreed to pay $98 million to settle a workplace class action originally brought by the DOJ in 2007 alleging that certain civil service tests administered by the FDNY were discriminatory against African-American and Hispanic applicants. In addition to this large monetary sum, the settlement also provides for systemic relief meant to transform the way in which the FDNY recruits firefighters going forward.

The settlement is the largest employment discrimination class action settlement for 2014 thus far.

Background Of The Case

As we previously blogged here and here, the United States originally filed this lawsuit against the City in 2007, alleging that the City’s entry-level firefighter exams and applicant ranking had an unlawful disparate impact on African-American and Hispanic applicants. The Vulcan Society and several individuals intervened in the lawsuit alleging similar claims of disparate impact and also alleging disparate treatment on behalf of a putative class of African-American, entry firefighter candidates. The Court agreed with Plaintiffs, finding that the City’s procedures for screening and selecting entry-level firefighters violated Title VII, the Equal Protection Clause, and the Civil Rights Act of 1866, along with New York state and local law. Consequently, the Court issued an order requiring the City to develop a non-discriminatory test for entry-level firefighter applicants. In 2013 the Second Circuit vacated the grant of summary judgment for disparate treatment liability, but upheld the injunctive relief order.

Settlement Terms

As set forth in the DOJ press release, New York City will pay a total of approximately $98 million to resolve allegations that the FDNY engaged in a pattern or practice of employment discrimination against African-American and Hispanic applicants for the entry-level firefighter position by using two discriminatory written tests in 1999 and 2002. The parties have yet to agree on the method in which the settlement fund will be distributed among class members; however, according to the DOJ “the parties have committed to streamline the claims process and to expedite the distribution of monetary relief to eligible claimants.”

In addition to the money that the City has agreed to pay, the Court has already ordered several changes to remedy the city’s discriminatory hiring practices included among them the use of an entry-level firefighter exam jointly developed by the parties as well as the appointment of a court monitor to oversee the FDNY’s hiring reforms.

Implications For Employers

Although it appears that the approval of the consent decree (which is still subject to a fairness hearing) is a formality, anything is possible given the number of twists and turns this case has taken over the years. Either way, cases such as this serve as a reminder that multi-million dollar settlements in class action cases such as this are not unusual and that whether it is the Department of Justice or the EEOC, the government is focused on forcing employers to make systemic changes to the way in which they do business as well as seeking monetary relief for class members.

This blog was previously published by Seyfarth Shaw LLP.

 

Less Litigation, More Regulation

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It looks like businesses in the United States and the United Kingdom have seen slightly less litigation in 2011 compared to 2010. However, regulatory actions and internal investigations are climbing — this according to the latest Fulbright & Jaworski Litigation Trends Survey.

But corporate counsel doesn’t expect the trend in decreased litigation to continue. Many respondents expect the year ahead will bring more litigation (and even more regulation) as companies attempt to grow in an economy that remains volatile.

The vast majority of corporate counsel polled in the U.S. and the U.K. predict litigation will either rise or remain the same in the next 12 months: 92% of U.S. companies and 85% of U.K. companies. Of those, one-third of U.S. respondents predict an increase while 20% of U.K. respondents expect a rise in legal disputes in the coming 12 months. That compares with 31% and 16%, respectively, last year.

Why? And what sectors?

According to the report, stricter regulation and company growth topped the reasons cited for the anticipated increase in litigation. The industries bracing the most for an increase in litigation are technology, engineering, health care and insurance.

“Our survey respondents have a front-row seat to the increased scrutiny brought on by stricter regulatory enforcement,” said Stephen C. Dillard, the head of Fulbright’s global disputes practice. “This year, our survey confirmed a heightened level of governmental investigations focused on the energy and insurance industries, with the health care, manufacturing and engineering sectors not far behind.”

The report reveals that whistleblowers remain a concern in the coming year. More specifically, one-quarter of respondents anticipate an increase in the number of claims or lawsuits brought by whistleblowers next year. This year, 22% of respondents said their organizations were subjected to whistleblower allegations. Due to the Dodd-Frank whistleblower provisions, we can definitely expect more in litigation within this category for 2012. Companies, and more importantly, risk managers, should prepare themselves.