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WASHINGTON (Map, News) - Whenever consumers are victimized by shoddy products and dishonest business practices, news cameras roll, headline-hungry congressmen posture for the media and liabilities lawyers scramble to be first to file suits at the courthouse.
But what happens when it’s the lawyers admitting guilt and going to jail as government investigators and federal judges turn up alarming and growing evidence of widespread bribery, fraud and perjury?
Most of the recent headlines heralding such crimes were incited by the Milberg Weiss scandal that has seen three of the most celebrated partners in the New York class action liabilities admitting guilt in an $11.8 million kickback scheme involving hundreds of cases stretching as far back as 1979.
Milberg Weiss is far from the only firm caught up in scandals involving the worst kind of judicial abuses. For example, hundreds of liabilities lawyers in Texas and Mississippi filed claims based on fraudulent diagnoses by doctors who spent little or no time with alleged victims in the Silica Products Liability Litigation case in the U.S. District Court in Corpus Christi.
In that case, Judge Janis Graham Jack noted that aggressive advertising by liabilities lawyers in Mississippi coincided with such a rapid increase in the number of cases being filed that “the worst industrial disaster in recorded history” had occurred.
Judge Jack noted that “this appears to be a phantom epidemic, unnoticed by everyone other than those enmeshed in the legal system: the defendants, who have already spent millions of dollars defending these suits; the plaintiffs, who have been told that they are suffering from an incurable, irreversible and potentially fatal disease; and the courts, who must determine whether they are being faced with the effects of an industrial disaster of unprecedented proportion — or something else entirely.”
Elsewhere, three liabilities lawyers face federal mail fraud charges in a Kentucky court after being charged with keeping millions of dollars that should have instead gone to their clients in litigation sparked by the diet drug fen-phen.
In Miami, asbestos lawyer Louis Robles pleaded guilty to defrauding thousands of former clients and faces up to 15 years in prison. And in Houston, famed liabilities lawyer John O’Quinn was recently ordered to repay the $41.4 million he over-charged clients in a breast-implant case.
But are such cases isolated examples or the tip of an iceberg that cries out for congressional investigation? Sherman Joyce, president of the American Tort Reform Association, thinks there are more than sufficient grounds for such a probe.
“Congress should look into this, if for no other reason than to determine how prevalent the problems are,” he said. Joyce pointed to the need for lawyers to disclose all of their fees before and after a case “and make sure that clients know that they have the option to pay by the hour rather than just on a contingent basis.”
But such a congressional investigation is unlikely, according to Overlawyered.com’s Walter Olson: “We now know that the most prominent and influential law firm in the class action business was crooked from the top down, and that this was an integral part of its business plan over a period of decades.”
But Congress won’t investigate, Olson contends, because “some influential members of the majority in Congress assailed the prosecution when it was announced and must now be embarrassed, if they are embarrass-able at all, by the string of guilty pleas.”
"Lawyers Gone Wild" is a series of special reports by The Examiner looking at the cost and consequences of class action lawsuit abuse in the United States. Read the latest articles in the series.
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Comments from Examiner Readers
8:34 AM MST on Mon., Nov. 5, 2007 re: "Cough it up: Costs rise when liability lawyers have free rein in the courts"
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1:05 PM MST on Mon., Sep. 17, 2007
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Ralph Harrison said:
This is a great series that only begins to document the destructive force of 'legal pollution' that is engulfing America. America is living under 'rule by lawyers'; 'mismanagement by lawyers'; and 'intimidation by lawyers' - A sorry state of affairs indeed. It is high time for America to wake up and replace this arrogant class of sewer rats in government, business and general society with an overwhelming revolt launched and funded by 'the little people'of America who have become 'the victims of the practitioners of the profession of hate'. It is time to replace the codified law (lawyer law) with good old common law (the law of common sense) and restore honesty and integrity to the streets of America. I suggest capping their fees by statute at $25/hour max, and putting a cash bounty on the heads of every trial lawyer in the land. This should set 'em back about 50 years in their quest for power and greed.
178 agree | 131 disagree
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Examiner Reader said:
Unbelievable that you take the stance that because of liability lawsuits, there is some crisis. In this story, Wal Mart, sued by employees who had not recieved remuneration(payment) for time that they had worked for and earned, somehow translates in to higher costs for other Wal Mart customers. May be the Judge should have order a price freeze on all of Wal Marts products until it could be determined that no cost increase was associated with the judgements. These people worked hard, earned every penny and deserve what money they get from the suit. Now, understand, I'm not an economist and there could be a better solution to higher prices than what I just mentioned, but it is reporting like yours that has completely twisted what is right and wrong in this country. May be people would have more faith if big companies didn't rip off their customers or their employees, why don't you lay blame on those in the wrong, Wal Mart and it's payroll department. You are a laughing stock.
230 agree | 166 disagree
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Rippie said:
These problems all started after Reconstruction. Corporations were never intended to be anything but a closely managed PUBLIC TRUST, dissolved and funds disbursed when a project ended. Lawyers started suing then to create the AMORAL entity we have now, with the right of being a "person" but none of the responsibilities. Officers are able to hide behind the Corporate Entity and get away, literally, with murder. Corporations are intentionally designed to have ONE primary objective: Profit, and no other consideration is allowed to impact profit to shareholders. Companies like WalMart are predators, abusing labor in multiple countries, and cheating their US employees in numerous ways. Unlike the stupid and petty lawsuit by the cop who slipped as a result of the very call to which she responded, which case should be prevented from being heard, WalMart type cases should not be able to settle. It's a money saving ploy used by Corporations all the time, and should be illegal.
243 agree | 225 disagree
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Examiner Reader said:
uhhh, when someone has a judgement against them in civil court then they plaintiff's claims are no longer 'alleged'. they are facts proven by the preponderance of the evidence. leave the editorializing language out of it.
217 agree | 216 disagree
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Reality knocking.... said:
"...when liability lawyers have free rein in the courts." - They don't... in US courts, there's a thing called a 'Judge' that shouldn't allow anyone 'free-reign'. It is the Judge's responsibility to throw silly cases out... which they do fairly often, but didn't in this Wal-Mart case because Wal-Mart broke labor law in Colorado. "Whenever a company settles out of court or loses in a verdict, the resulting costs are felt throughout the economy." - If you don't want to pay for a company's punishment after they break the law and lose the suit, like Wal-Mart, then don't shop there! Duh! Is the author's premise that it is OK for corporations to break the law, but it's not OK for people or the communities they live in to hold these corporations accountable for breaking said law? I would hope not.
220 agree | 224 disagree
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Stevo SF said:
So, let me get this straight... Wal-Mart has been screwing it's employees out of overtime pay for years so it can unfairly compete in a market where it sells crap from China for less than it's comtetitors can... putting them out of business. Now you're whining because these Wal-Mart employees are finally getting some of the back-pay they deserve, and now somebody finally has to pay for it? Perhaps if Wal-Mart followed the labor laws in the first place and charged their customers appropriately from the get-go, the mom & pop's would still be in business, Wal-Mart employees wouldn't have to go to court to get what they deserve, and our legal system wouldn't be tied up by yet another corporation trying to screw it's 'associates' our of a few bucks they could really use. Frivious lawsuits are a problem, no doubt... but equating this Wal-Mart case with the cop who slipped and fell is certainly not doing your readers a good service. No wonder your paper is free!
224 agree | 246 disagree
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Examiner Reader said:
I hope the examiner will do a separate series on the positive role class actions and their lawyers have on holding corporate criminals accountable. I think we can all agree that justice is the goal. If it's a bad lawyer - go after him. If it's a bad company - go after it. The examiner's use of titles in this series of articles does an injustice to the System of Justice which is not the problem. The problem is with a few crooked lawyers - not all lawyers who fight for justice for the little guy.
283 agree | 196 disagree
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Examiner Reader said:
You should focus on the Mississippi judicial bribery case which ended 3/07 with the conviction of zillionnaire trial attorney Paul Minor and judges John Whitfield and Wes Teel . Minor was sentenced last month to 11 yrs. in a fed. prison. These judges were not bribed by Minor through campaign contributions, which is the focus of these articles. His scheme,the perfect bribe, undermines the integrity of our democracy and our courts. Minor was guaranteeing loans, which the judges knew they and were told they did not have to pay back. Hundreds of thousands of dollars to these judges alone. Minor virtually owned Whitfield who told me from the bench that it would take someone outside of Mississippi to end this madness and Minor's attack on me and my husband. The bribe was hidden in secret banking records. Ironically, Minor was my attorney. The problem started with we noticed $200K missing from a former settlement. The theft was also perfect, hidden in confidentiality agreements.
211 agree | 218 disagree
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Examiner Reader said:
the lasalle county court house is full off froudulent lawers that pay the judges off to decide acase tis happens right here in ottawa illinois
218 agree | 222 disagree
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Steve White said:
Sorry my last post was about stuff not in the story. My point was, Lockyer used his power to funnel money to his home county, and to rig the hiring of his wife, so steering state contracts to his contributors does not surprise me on bit. And a question, what about the over 1,000 contracts which were kept secret, the article does not say what was discovered about them.
213 agree | 242 disagree
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Steve White said:
Bill Lockyer's wife Nadia Lockyer got a job at the Alameda County Family Justice Center in Oakland, through a rigged selection process. It could be a violation of a state law forbidding elected officials from using their position to aid their family, and maybe also a violation of Federal grant rules for that agency. (it gets a lot of Federal funding, but the staff is mostly Alameda County Employees). Bill Lockyer also did not oversee law enforcement in the state as he is supposed to, as the "Top Cop". I requested stats on how much he had disciplineed cops and prosecutors as AG, and the office had not even kept any numbers, at all. What govt. office or sub-office, does not keep stats to prove it needs more funding next year? Most likely, the stats would look very bad, he only acted on a small percentage of complaints. Last point. Lockyer took over, then settled, a private bad voting machine lawsuit, and funneled some of the money to the DA who hired his wife and daughter.
244 agree | 230 disagree
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Examiner Reader said:
Does the public know of any other solution other than to ban elected officials from practicing law or lobbying ? End all slip and fall and drug company settlements. Tax drugs and pay the poor to be on javelle.
263 agree | 256 disagree
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being a lawyer said:
I work in a law firm; some lawyers are bad and some do excellent work. A lot do nonprofit work, they do work for people who can't afford an attorney. And if you have a law degree it opens doors to many opportunites other than practicing law.
268 agree | 292 disagree
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Examiner Reader said:
My parents wanted me to become a lawyer. I'm glad I didn't, but I obviously passed up an opportunity to make the real bucks in today's society.
222 agree | 255 disagree
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