Jere Beasley Report_ July 2010 by liuhongmeiyes

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									                                            July 2010




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I.                                                 ing	on	“trial	lawyers”	and	a	system	they	        TvA is Fined $11.5 million By Tennessee
                                                   claim	 is	“broken.”	They	 know	 that	 the	
CAPITOL                                            victims	 of	 corporate	 wrongdoing	 and	            Tennessee	 state	 officials	 have	 levied	
OBSERVATIONS                                       abuse	can’t	be	attacked,	so	they	do	the	         $4.5	million	in	fines	against	the	Tennes-
                                                   obvious—they	 attack	 the	 lawyers	 who	                                 T
                                                                                                    see	Valley	Authority.	 	 he	 State	 Depart-
                                                   represent	 them,	 and	 attack	 the	 jury	        ment	of	Environment	and	Conservation	
The Civil JusTiCe sysTem And JusTiCe               system.	                                         imposed	the	penalties	after	determining	
                                                      There	 is	 no	 shortage	 of	 examples	 of	    that	the	billion-gallon	coal	sludge	spill	in	
   Each	night	on	the	news,	and	in	all	the	         corporations	 letting	 profits	 override	        2008	violated	state	clean-water	and	solid	
daily	newspapers,	we	hear	of	things	like	          safety	 and	 basic	 consumer	 protec-            waste	 disposal	 laws.	 In	 a	 statement	
runaway	cars,	massive	vehicle	recalls,	coal	       tions.		 he	marketing	arms	of	the	compa-
                                                           T                                        announcing	the	fines,	Environment	Com-
mine	collapses,	exploding	oil	rigs,	natural	       nies	continue	to	run	over	sound	safety	          missioner	 Jim	 Fyke	 called	 them	 an	
gas	pipe	line	explosions,	serious	safety	          engineering	judgment.	You	can	list	corpo-        “appropriate”	response	“to	an	unprece-
problems	with	prescription	and	over-the-           ration	after	corporation	that	have	com-          dented	event.”	TVA	will	not	challenge	the	
counter	 drugs,	 financial	 institutions	 in	      mitted	 massive	 wrongs	 and	 tried	 their	      fines	 for	 an	 obvious	 reason—they	 are	
trouble,	 and	 the	 list	 goes	 on.	 It	 has	      best	to	get	away	with	it.	Large	corpora-         guilty	as	charged.
become	a	common	occurrence	to	have	                tions	like	BP,	Toyota	and	Massey	Energy	
the	 news	 dominated	 by	 the	 latest	             put	lives	at	risk,	expecting	no	real	conse-
example	of	corporate	misconduct.	Each	             quences.		 hey	attempt	to	evade	account-
                                                               T                                             IN THIS ISS U E
saga	follows	a	similar	pattern:	a	tragedy	         ability	 for	 their	 actions.	Yet	 once	 the	
occurs,	followed	by	apologies	tempered	                                                              I.	     Capitol	Observations	. . . . . . . . . . . . . . . 2
                                                   scandals	of	these	corporations	fade	away,	
by	denials	and	claims	of	innocence,	and	           it	 will	 be	 telling	 to	 see	 whether	 some	    II.	    A	Report	on	the	Gulf	Coast	Disaster	. . . . 3	
evidence	that	profits	were	intentionally	          lawmakers	continue	with	their	fixation	           III.	   Drug	Manufacturers	Litigation		. . . . . . . 6
put	ahead	of	the	safety	and	well-being	of	         on	“tort	reform”—or	hand	out	immunity	
                          T
the	American	people.		 his	sort	of	thing	                                                            IV.	    Purely	Political	News	&	Views		. . . . . . . . 7
                                                   to	the	very	same	corporations	responsi-
has	become	so	common	that	we	almost	               ble	for	injuring	and	killing	consumers	in	        V.	     Settlements	of	the	Month	. . . . . . . . . . . 10
know	the	script	by	heart.	                         the	first	place.	                                 VI.	    Legislative	Happenings.	.	.	.	.	.	.	.	.	.	.	.	.	10
   The	 public	 is	 now	 beginning	 to	 see	          The	barons	of	Corporate	America,	and	
how	federal	agencies	lack	the	resources	           their	hired	guns	at	the	U.S.	Chamber	of	                           .
                                                                                                     VII.	 Court	Watch	 . . . . . . . . . . . . . . . . . . . . 11
to	adequately	protect	and	safeguard	the	           Commerce,	 have	 dedicated	 millions	 of	         VIII.	 The	National	Scene	. . . . . . . . . . . . . . . 12
American	people.	Folks	have	finally	come	          dollars	to	demonize	trial	lawyers.	Yet	each	
                                                                                                     IX.	    The	Corporate	World	. . . . . . . . . . . . . . 12
to	realize	that	powerful	corporate	lobby-          corporate	scandal	and	dangerous	product	
ists	control	Congress	and	that’s	not	good	         show	that	when	the	first	lines	of	defense	        X.	     Toyota	Litigation 	. . . . . . . . . . . . . . . . . 13
for	ordinary	folks	and	really	not	good	for	        fail	to	protect	the	safety	of	consumers,	         XI.	    Product	Liability	Update 	. . . . . . . . . . . 14
businesses.	Large	corporations	brag	about	         that	leaves	only	the	civil	justice	system	to	
the	millions	of	dollars	saved	by	limiting	         hold	corporate	wrongdoers	accountable	            XII.	 Mass	Torts	Update	. . . . . . . . . . . . . . . . 17
their	 recalls	 and	 they	 ignore	 industry	                               A
                                                   and	restore	justice.		 t	the	end	of	the	day,	     XIII.	 Business	Litigation	. . . . . . . . . . . . . . . . 20
guidelines	in	spite	of	the	need	for	con-           it	is	trial	lawyers—not	the	big	corpora-
                                                                                                         	
                                                                                                     XIV.	 An	Update	on	Securities	Litigation	. . . . 21
sumer	safety.	Millions	are	spent	on	public	        tions	that	put	profits	ahead	of	safety—
relations	 efforts	 to	 make	 bad	 conduct	        who	speak	for	ordinary	citizens	and	seek	         XV.	    Insurance	and	Finance	Update 	. . . . . . 21
                          A
look	and	sound	good.		 	case	in	point	is	          justice	for	victims	of	corporate	wrongdo-         XVI.	 Employment	and	FLSA	Litigation	. . . . . 22
BP’s	handling	of	the	ongoing	crisis	in	the	        ing	and	abuse.	
Gulf	of	Mexico.	                                      Meanwhile,	the	tort	system	is	now,	and	        XVII.	 Premises	Liability	Update	. . . . . . . . . . . 23
   Americans	are	entitled	to	safe	products,	       always	has	been,	a	vehicle	for	effecting	         XVIII.	 Workplace	Hazards	. . . . . . . . . . . . . . . 24
fewer	preventable	injuries	and	a	restora-          change,	 enhancing	 safety,	 and	 holding	        XIX.	 Transportation	. . . . . . . . . . . . . . . . . . . 25
tion	 of	 checks	 and	 balances	 that	 give	                                       T
                                                   wrongdoers	accountable.		 he	next	time	
people	 a	 fair	 chance	 to	 obtain	 justice	      cries	of	“tort	reform”	ring	out	from	the	         XX.	    Arbitration	Update	. . . . . . . . . . . . . . . . 26
when	a	corporation	is	guilty	of	wrongdo-           usual	suspects,	remind	those	hired-guns	          XXI.	 Healthcare	Issues 	. . . . . . . . . . . . . . . . 27
ing.	 Unfortunately,	 it’s	 only	 after	 tragic	   about	 BP,	 Toyota,	 Wall	 Street,	 Enron,	
accidents	 that	 our	 government	 closely	                                                           XXII.	 Environmental	Concerns	. . . . . . . . . . . 28
                                                   Massey	Energy	and	the	legions	of	corpo-
analyzes	the	agencies	and	systems	that	            rate	wrongdoers.		 mericans	should	think	
                                                                        A                            XXIII.	 The	Consumer	Corner	. . . . . . . . . . . . . 28
failed.	It	is	only	then	that	emphasis	is	put	      twice	before	they	let	Congress	and	state	         XXIV.	 Recalls	Update	. . . . . . . . . . . . . . . . . . . 32
on	taking	the	necessary	steps	to	correct	          legislative	bodies	continue	to	shield	cor-
things.		 here	is	only	one	institution	that	
         T                                         porate	 profits	 at	 the	 expense	 of	 their	     XXV.	 Firm	Activities	. . . . . . . . . . . . . . . . . . . 36
consistently	 protects	 consumers	 and	            own	safety	and	well-being.	                       XXVI.	 Special	Recognitions	. . . . . . . . . . . . . . 37
holds	wrongdoers	accountable	and	that’s	           Source: American Association for Justice
                                                                                                     XXVII.	Favorite	Bible	Verses	. . . . . . . . . . . . . . 38
                                           T
the	American	 civil	 justice	 system.	 	 his	
system	has	constantly	been	under	attack	                                                             XXVIII.	Closing	Observations	. . . . . . . . . . . . . . 39
with	the	so-called	“tort-reformers”	focus-                                                           XXIX.	 Parting	Words	. . . . . . . . . . . . . . . . . . . 39



2	                                                 www.BeasleyAllen.com
   As	we	have	reported,	the	December	22,	     The numBer oF uninsured Persons in              II.
2008,	spill	began	when	a	dike	collapsed	      AlABAmA And mississiPPi Will droP
at	 a	 retention	 pond	 at	 the	TVA	 power	                                                   A REPORT ON THE
plant	in	Kingston,	about	35	miles	west	of	      The	ranks	of	low-income	adult	Alabam-         GULF COAST
Knoxville.		 he	mixture	of	water	and	ash	
            T                                 ians	 and	 Mississippians	 without	 health	
was	enough	to	fill	nearly	800	Olympic-        insurance	will	fall	by	more	than	half	in	       DISASTER
sized	swimming	pools,	spreading	across	       the	coming	decade	under	an	expansion	
more	than	300	acres	of	land	and	fouling	      of	 the	 Medicaid	 program	 tied	 into	 the	
                                              recently-signed	 health	 care	 overhaul,	       BP Agrees To $20 Billion Fund For oil
                              T
the	adjacent	Emory	River.		 he	spill	con-
                                              according	to	a	new	report.	Under	a	stan-        sPill viCTims
tained	toxic	chemicals,	such	as	arsenic,	
selenium,	and	lead,	as	well	as	radioactive	   dard	scenario,	some	244,800	previously-
                                                                                               It	was	good	to	see	BP	agree	to	set	aside	
materials	 like	 chromium	 and	 barium.		 	   uninsured	adults	in	Alabama,	(53.2%	of	
                                                                                            $20	billion	to	pay	victims	of	the	massive	
About	60%	of	the	1.1	billion	gallon	spill	    the	 total),	 will	 gain	 coverage	 by	 2019	
                                                                                                             T
                                                                                            gulf	oil	spill.		 his	agreement	came	after	
has	been	removed	from	the	river	in	the	       through	Medicaid,	a	federal-state	program,	
                                                                                            President	Obama	put	intense	pressure	on	
first	phase	of	cleanup.		 he	entire	opera-
                         T                    according	to	the	report	released	by	the	
                                                                                            the	powerful	oil	company	to	set	up	such	
tion	may	take	another	three	to	four	years,	   Kaiser	Family	Foundation,	a	non-partisan	
                                                                                                      T
                                                                                            a	fund.		 he	independent	fund	will	be	led	
according	to	Commissioner	Fyke	and	that	      research	organization.	In	Mississippi,	the	
                                                                                            by	 Kenneth	 Feinberg,	 the	 lawyer	 who	
may	be	a	conservative	estimate.	              expansion	will	cut	the	adult	uninsured	
                                                                                            oversaw	payments	to	families	of	victims	
Source: CNN
                                              rolls	by	about	256,900,	which	is	about	
                                                                                            of	the	terrorist	attacks	on	September	11,	
                                              55%,	the	report	finds.	
                                                                                                     T
                                                                                            2001.	 	 his	 appears	 to	 be	 a	 very	 good	
                                                 Source: AL.com
                                                                                            selection.	President	Obama	announced	
A PoliTiCAl PArTy WiTh no AnsWers                                                           the	agreement	in	a	news	conference	after	
                                                                                            winding	up	his	meeting	with	BP	execu-
   The	leadership	of	the	National	Republi- morgAn sTAnley seTTles WiTh                      tives	at	the	White	House.	
can	Party,	as	well	as	GOP	Congressional	 mAssAChuseTTs over suBPrime lending                   The	total	costs	to	BP	before	this	crisis	
leaders,	are	hurting	the	American	people	                                                   is	over	will	be	huge.	It’s	being	estimated	
by	opposing	President	Obama	and	Con-               Morgan	Stanley	has	settled	with	Massa-
gressional	 Democrats	 on	 every	 single	        chusetts	in	a	subprime	lending	case.		 he	 that	the	total	cost	range	will	be	as	high	as	
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program	 they	 present.	 It’s	 time	 to	 find	   investment	bank	agreed	to	a	$102	million	 $60	billion.	If	the	worst	predictions	about	
                                                                                            the	oil	spill	come	true,	that	figure	could	
out	exactly	what	is	causing	the	GOP	to	 settlement	following	an	investigation	into	 easily	surpass	$100	billion.	For	example,	
say	“No!”	to	everything	that	comes	down	 subprime	mortgage	lending.	State	Attor- Goldman	Sachs	estimates	that	each	barrel	
the	pike.	Let’s	take	a	look	at	some	of	the	 ney	General	Martha	Coakley	announced	 of	oil	spilled	could	wind	up	costing	as	
issues.	On	HEALTH CARE,	the	GOP	fights	 the	settlement	with	Morgan	Stanley	on	 much	 as	 $40,000	 in	 cleanup	 and	 com-
                                                          th T
for	BIG INSURANCE—not	the	PEOPLE;	 June	24 .		 he	settlement	calls	for	Morgan	 pensation.	
on	the	ECONOMY,	the	Republicans	fight	 Stanley	to	provide	$60	million	to	borrow-               While	the	$20	billion	fund	is	a	step	in	
for	the	BIG BANKS—not	for	the	PEOPLE;	 ers	and	the	rest	to	the	state	treasury	and	 the	right	direction,	it	won’t	be	nearly	ade-
on	the	massive	OIL SPILL IN THE GULF,	 to	 state	 agencies	 that	 had	 invested	 in	 quate	 to	 cover	 the	 massive	 losses	 and	
the	 GOP	 has	 defended	 BP—not	 the	 securities	backed	by	the	risky	loans.
VICTIMS	of	the	disaster.	                          Attorney	 General	 Coakley	 said	 the	 damage	caused	by	BP.	While	some	ques-
   It	appears	clear	that	the	special	inter-      majority	of	the	risky	loans	were	made	by	 tion	BP’s	capacity	to	pay,	that	is	simply	
                                                                                                        T
                                                                                            not	 true.	 	 he	 giant	 oil	 company	 holds	
                                                                               A
ests	“call	the	tune,”	and	when	they	do,	the	 New	Century	Financial	Corp.		 nd	backed	 enough	oil	in	its	reserves	to	single-hand-
GOP	leaders	start	to	dance.		 he	special	 by	Morgan	Stanley.	New	Century	filed	for	 edly	 supply	 the	 United	 States	 for	 two	
                                  T
interests,	and	especially	Big	Oil,	Big	Banks,	 bankruptcy	in	2008.	You	may	recall	we	 years.	BP	has	little	debt	for	a	company	of	
Big	Insurance	and	Big	Pharma,	call	the	 reported	 last	 year	 that	 the	 attorney	 its	size	and	makes	more	money	than	the	
shots	 and	 their	 political	 friends	 in	 the	 general	had	reached	a	similar	agreement	 corporate	giants	Apple	and	Google	com-
Republican	Party	do	their	bidding.		 hat’s	 in	May	2009	with	Goldman	Sachs.
                                        T                                                   bined.	BP	posted	$17	billion	in	profits	last	
truly	a	sad	state	of	affairs	for	the	Ameri- Source: Associated Press and USA Today          year	from	its	vast	operations	around	the	
                T
can	 people.	 	 he	 people	 in	 our	 great	                                                 globe,	 compared	 with	 $5.7	 billion	 for	
nation	 expect	 our	 political	 leaders	 to	                                                Apple	and	$6.5	billion	for	Google.	More	
work	 together	 and	 to	cross	party	lines	                                                  importantly,	in	the	past	three	years,	the	
when	necessary	to	get	good	things	done	                                                     company	generated	$91	billion	in	cash	
                                T
for	 the	American	 people.	 	 hat	 is	 espe-                                                                               A
                                                                                            flow	from	its	operations.		 nd,	it	should	
cially	true	in	times	of	national	crisis.	It’s	                                              be	noted	that	BP	has	18	billion	barrels	of	
time	for	the	Republican	leaders	in	Con-                                                     oil	 in	 proven	 reserves,	 twice	 what	 the	
gress	 to	 step	 up	 to	 the	 plate	 and	 start	                                            U.S.	consumes	every	year.	
cooperating	with	the	Democratic	leaders	                                                    Source: Associated Press
on	good	programs.	




	                                       www.JereBeasleyReport.com	                                                                     3
uPdATe on oil sPill liTigATion By our           explosion	 exposed	 the	 need	 to	 reform	      lems	they	were	having	in	controlling	the	
Firm                                            the	 1920	 Death	 on	 the	 High	 Seas	Act,	     well.	 Mrs.	 Roshto	 testified	 that	 her	
                                                which	limits	liability	for	wrongful	deaths	     husband	 was	 especially	 worried	 about	
   Our	firm	has	filed	a	number	of	lawsuits	 more	than	three	miles	offshore.	On	this	            “all	the	mud	they	were	losing”	from	the	
on	behalf	of	victims	of	the	gulf	oil	spill	 subject	Rep.	Markey	stated:	                        well.	Both	women	said	the	crews	were	
and	will	file	many	more	in	the	coming	                                                          feeling	the	pressure	to	deliver	oil	more	
weeks.	We	are	representing	a	wide	range	           One way we can hurt BP is to make                     T
                                                                                                quickly.		 he	members	of	Congress	should	
of	clients,	including	fishermen,	shrimpers,	       sure that ‘BP’ stands for ‘bills paid,’      listen	to	the	pleas	of	these	women	and	
business	owners,	property	owners,	and	             that the money for families, the             change	the	law.	
many	others.	So	far	suits	have	been	filed	         money to clean up the Gulf comes
                                                                                                Source: Associated Press
in	federal	courts	in	Alabama,	Florida	and	         out of their pocket, and that we
Louisiana.	Rhon	Jones,	who	heads	up	the	           repeal the Death on the High Seas Act.
firm’s	Toxic	Torts	Section,	is	coordinating	                                                    BP CosT-CuTTing Added signiFiCAnT
                                                   Rep.	Markey	made	that	comment	after	
the	 firm’s	 efforts	 in	 this	 litigation.	We	                                                 risks
                                                listening	to	testimony	from	the	widows	
have	dedicated	an	adequate	number	of	
                                                of	two	workers	killed	in	the	tragic	explo-
lawyers	and	support	staff	to	this	effort	so	                                                        Cost-cutting	by	BP	added	significantly	
                                                sion.	Natalie	Roshto	of	Liberty,	Miss.,	and	
that	we	will	be	able	to	handle	the	volume	                                                      to	the	danger	of	an	explosion	at	the	com-
                                                Courtney	Kemp	of	Jonesville,	La.,	told	an	
of	cases	without	neglecting	any	of	our	                                                         pany’s	Gulf	of	Mexico	oil	well.	It	appears	
                                                Energy	 and	 Commerce	 subcommittee	
other	clients.	We	have	learned	in	previous	                                                     that	BP	made	decisions	that	increased	the	
                                                last	month	that	the	maritime	law	unfairly	
litigation	with	giant	oil	companies	that	                                                       risk	of	a	blowout	to	save	the	company	
                                                limits	how	much	money	companies	must	
they	fight	hard	and	really	can’t	be	trusted.	                                                   time	or	expense.	Reps.	Henry	Waxman	of	
                                                                                 T
                                                pay	in	employee	deaths	at	sea.		 heir	hus-
We	realize	that,	regardless	of	what	BP’s	                                                       California	and	Bart	Stupak	of	Michigan	
                                                bands,	 Shane	 Roshto	 and	 Roy	 Wyatt	
public	relations	arm	tells	the	public,	this	                                                    said	 in	 a	 letter	 sent	 to	 BP’s	 CEO,	Tony	
                                                Kemp,	worked	for	Transocean	Ltd.,	which	
will	 be	 a	 hard	 battle.	While	 we	 don’t	                                                    Hayward,	“If	this	is	what	happened,	BP’s	
                                                owned	the	Deepwater	Horizon	oil	rig.	BP	
expect	 BP	 to	 do	 the	 right	 thing	 by	 its	                                                 carelessness	 and	 complacency	 have	
                                                PLC	operated	the	rig,	which	under	mari-
victims,	hopefully	it	will.	                                                                    inflicted	 a	 heavy	 toll	 on	 the	 Gulf,	 its	
                                                time	law	was	considered	an	ocean-going	
                                                vessel	and	registered	under	the	flag	of	        inhabitants,	and	the	workers	on	the	rig.”	
                                                the	Marshall	Islands,	a	small	island	chain	     The	more	we	learn	about	the	explosion,	
BP hAs PAid less ThAn 12% oF ClAims                                                             and	the	weeks	and	months	leading	up	to	
                                                                        A
                                                in	the	Pacific	Ocean.		 s	we	all	know,	11	
                                                                                                it,	the	worse	things	look	for	BP.
   The	House	Judiciary	Committee	said	 innocent	 men	 were	 tragically	 killed	 in	                 The	letter	from	committee	chairman	
last	month	that	data	it	collected	shows	 the	explosion.	                                        Waxman	and	subcommittee	head	Stupak	
that	BP	has	paid	less	than	12%	of	claims	          Congress	should	also	repeal	the	law	on	
                                                maritime	 deaths	 retroactively,	 which	        listed	a	series	of	“shortcuts	to	speed	fin-
submitted	 by	 people	 and	 businesses	                                                                               T
                                                                                                ishing”	the	work.		 hey	quoted	a	BP	engi-
arising	from	the	gulf	oil	spill.		 ccording	 would	affect	the	deaths	in	the	gulf.	Con-
                                    A                                                           neer	who	called	it	a	“nightmare	well”	and	
to	the	committee,	only	$71	million	out	of	 gress	clearly	has	an	obligation	to	fix	the	          asked	 Hayward	 to	 respond	 in	 his	 testi-
an	estimated	$600	million	had	been	paid	 law.	Rep.	Markey	was	correct	when	he	                          T
                                                                                                mony.		 he	14-page	letter	lays	out	the	mis-
as	of	June	15th.	In	addition,	according	to	 said	Congress	never	intended	to	limit	the	          takes	 BP	 made	 in	 a	 way	 that	 is	 both	
the	panel,	BP	didn’t	make	any	payments	 amounts	families	could	recover	under	cir-               understandable	and	damning.		 he	law- T
in	 the	 first	 two	 weeks	 following	 the	 cumstances	like	these.	But	many	of	the	             makers	described	five	“questionable	deci-
explosion	and	oil	spill.	Michigan	Demo- laws	passed	by	Congress	over	the	years	                 sions”	 by	 BP	 before	 the	 April	 20 th	
cratic	 Rep.	 John	 Conyers	 is	 concerned	 favor	 wrongdoers	 and	 penalize	 their	            explosion,	 including	 the	 use	 of	 a	 less	
that	BP	“is	stiffing	too	many	victims	and	 victims.	Lobbyists	for	the	special	interests	        robust	well	design,	failure	to	anchor	the	
shortchanging	others.”	It	should	be	noted	 have	pretty	much	had	their	way.	                     well’s	 casing	 using	 a	 process	 recom-
that	BP	hasn’t	made	a	single	payment	for	          Rep.	 Charlie	 Melancon	 (D-LA)	 called	
                                                the	law	“egregious”	and	said	it	has	to	be	      mended	 under	 industry	 practices	 and	
bodily	injury	or	diminished	home	prop-                                                          cutting	 short	 procedures	 to	 ensure	
erty	value.	                                               A
                                                changed.		 ccording	to	Rep.	Bart	Stupak,	
                                                (D-MI),	 chairman	 of	 the	 oversight	 and	                                  T
                                                                                                cementing	was	sound.		 he	decision	on	
                                                investigations	 subcommittee,	 the	 field	      testing	the	cement	was	called	“horribly	
                                                hearing	was	intended	to	draw	attention	         negligent”	by	an	expert	the	committee	
Congress should lisTen To The                                                                   consulted.
deePWATer horizon WidoWs                        to	the	local	effects	of	the	oil	spill,	which	
                                                still	remains	uncapped	and	is	the	largest	          While	BP’s	conduct	has	been	very	bad,	
                                                                                                we	must	not	forget	that	there	were	other	
   Congress	should	repeal	the	90-year-old	 spill	 in	 U.S.	 history.	 Nine	 lawmakers—
                                                                                                companies	involved.	Sometimes,	compa-
law	that	limits	the	amount	of	money	sur- seven	Democrats	and	two	Republicans—
                                                                                                nies	whose	conduct	might	not	be	as	bad	
vivors	can	recover	in	the	deaths	of	family	 attended	a	four-hour	hearing	held	at	the	
                                                                                                as	 the	 chief	 wrongdoer	 are	 virtually	
members	killed	in	the	Gulf	of	Mexico	oil	 St.	Bernard	Parish	government	building	
                                                                                                ignored	and	not	looked	at	as	carefully	as	
rig	 explosion.	 Rep.	 Edward	 Markey,	 near	New	Orleans.	
                                                   The	two	young	women	told	the	panel	          they	 should	 be.	 We	 won’t	 let	 that	
(D-MA),	and	other	members	of	the	House	
                                                                                                            T
                                                                                                happen.	 	 ransocean,	 Halliburton,	 and	
Energy	 and	 Commerce	 committee,	 that	their	husbands	had	told	them	in	the	
                                                                                                Cameron	 International	 won’t	 escape	
believe	the	April	20th	Deepwater	Horizon	 weeks	before	the	explosion	about	prob-



4	                                             www.BeasleyAllen.com
paying	for	their	share	of	the	losses	and	 examine	the	actions	of	those	involved	in	                    T
                                                                                                 Fla.		 he	property-information	service’s	
damages	caused	by	their	wrongdoing.	          the	spill”	and	that	if	they	find	evidence	of	      estimates	are	very	conservative.	I	fear	the	
                                              illegal	behavior,	the	government	“will	be	         losses	will	be	much	higher.	Falling	real-
                                              extremely	 forceful	 in	 our	 response.”	          estate	prices	are	clearly	another	conse-
A look AT BP’s PAsT reCord                    Without	 question,	 the	 conduct	 of	 BP	          quence	 of	 the	 worst	 environmental	
                                              prior	to	the	explosion	in	April	had	been	          disaster	in	U.S.	history.	Oil	washing	ashore	
   BP	has	been	spending	big	bucks	in	a	 very	bad.	It	may	rise	to	the	level	of	being	             will	further	harm	property	values	in	an	
public	relations	effort	designed	to	divert	 criminal	 and	 if	 it	 does,	 those	 who	 are	       area	where	Moody’s	Economy.com	esti-
attention	from	its	shameful	conduct	and	 guilty	 should	 be	 prosecuted	 and	 pun-               mates	prices	fell	as	much	as	34%	from	the	
to	restore	its	tarnished	image.	In	fact,	a	 ished	 severely.	 It’s	 clear	 that	 BP	 put	        peak	 of	 the	 U.S.	 residential	 real	 estate	
television	ad	campaign	alone	cost	the	oil	 profits	over	safety	and	that	has	resulted	in	         market	in	2006.
giant	 $50	 million.	 Even	 before	 the	 rig	 an	unprecedented	national	disaster.	BP	               The	 spill	 may	 cost	 BP	 almost	 $50	
exploded	in	the	Gulf,	killing	11	people	 must	be	held	accountable.	If	any	person	                billion	in	cleanup	and	reimbursements	
and	 creating	 the	 worst	 environmental	 has	violated	a	criminal	law,	they	should	              for	economic	damage	to	the	tourism	and	
catastrophe	 in	 our	 nation’s	 history,	 BP	 be	prosecuted.	                                    fishing	 industries.	 But	 that	 doesn’t	
already	had	a	very	bad	safety	record.	Let’s	                                                     include	the	very	real	effect	on	property	
take	a	look	at	a	part	of	that	record.	                                                           values.	Costar,	based	in	Bethesda,	Mary-
•	 BP	has	been	hit	with	760	"egregious	 BP FAils To ProTeCT CleAnuP Workers
                                                                                                 land,	made	its	forecast	for	property	prices	
                                                                                                 assuming	a	10%	loss	based	on	previous	
   and	willful	safety	violations"	according	    According	 to	 the	 U.S.	 Occupational	          disasters,	such	as	oil	spills,	hurricanes	and	
   to	OSHA.                                  Safety	and	Health	Administration,	BP	has	           the	1979	Three	Mile	Island	nuclear	acci-
•	 BP	paid	the	highest	fine	in	history	for	 ignored	worker	safety	in	relation	to	the	            dent	in	Pennsylvania.	Its	estimate	relied	
   failing	to	fix	what	was	wrong	at	a	Texas	 clean	up.	OSHA	made	this	known	to	the	              on	recent	sales	data	of	property	within	
   refinery.                                 Coast	Guard	and	requested	help	in	com-              200	feet	of	the	Gulf	waterfront	and	span-
                                             municating	 the	 agency’s	 “growing	                ning	600	miles	from	Venice,	Louisiana,	to	
•	 BP	 was	 responsible	 for	 explosions	 concern	over	significant	deficiencies	in	                                      T
                                                                                                 Clearwater,	Florida.		 he	analysis	valued	
   resulting	in	the	deaths	of	30	workers	 BP’s	oil	response	operations	related	to	               the	property	at	about	$3	million	an	acre	
   and	the	injuries	of	200	more.             worker	safety.”	The	oil	giant’s	failures	to	        or	 $43	 billion	 for	 the	 entire	 coastline	
                                             adequately	protect	workers	involved	in	             measured.
•	 BP	 lobbied	 successfully	 for	 safety	
                                             the	oil	spill	cleanup	efforts	pose	“poten-             St.	Joe	Co.,	which	owns	578,000	acres	
   waivers	on	the	very	rig	that	exploded	
                                             tially	 grave	 consequences”	 for	 their	           in	northwest	Florida,	including	about	130	
   in	the	Gulf.
                                                      T
                                             health.		 he	failure	by	BP	to	look	out	for	         miles	on	the	Gulf	Coast,	has	seen	its	stock	
•	 BP	 hired	 27	 people	 on	 its	 lobbying	 workers’	safety	isn’t	too	surprising,	con-          fall	 34%	 since	April	 29 th.	 	 he	 company	
                                                                                                                                 T
   team	 who	 had	 worked	 in	 the	White	 sidering	its	past	record.	                             has	 built	 protective	 berms	 and	 taken	
   House	or	Congress.                           Thus	 far	 it	 appears	 BP	 has	 done	           aerial	 photos	 and	 soil	 samples	 as	 evi-
                                             nothing	to	seriously	and	systematically	            dence	in	case	it	files	damage	claims	with	
   Many	 belie ve	 the	 investigation	 address	OSHA’s	concerns.		 ccording	to	
                                                                          A                          T
                                                                                                 BP.		 his	company	will	be	one	of	the	big	
announced	 by	Attorney	 General	 Eric	 reports,	OSHA	field	representatives	have	
                                                                                                 losers	on	the	coast.
Holder	referred	to	in	this	issue	is	likely	 witnessed	“numerous	 deficiencies	 at	
to	result	only	in	monetary	fines—fines	 several	 work	 sites	 and	 staging	 areas	               Source: Bloomberg

that	the	highly-profitable	BP	will	have	 throughout	the	Gulf	Coast	region.”	They	
no	trouble	paying—with	the	company	 say	 these	 problems	 were	 not	 isolated	
not	having	learned	its	lesson.		 he	civil	 incidents.	 	A nother	 source	 of	“grave	
                                   T                                                             meThAne Poses AnoTher mAJor ProBlem
litigation,	which	will	be	extensive,	will	 concern	and	frustration”	on	OSHA’s	part	
compensate	 those	 who	 have	 been	 is	 that	 BP	 has	 failed	 to	 share	 critical	                 There	is	an	overlooked	danger	in	the	
damaged	in	any	manner.	But	I	believe	BP	 health	and	safety	information	relating	to	              oil	spill	crisis	and	that	comes	from	the	
and	 all	 other	 wrongdoers	 responsible	 the	exposure	and	injuries	of	its	cleanup	              vast	amounts	of	natural	gas	escaping	that	
for	the	disaster	in	the	gulf	must	be	pun- workers.	                                              could	pose	a	serious	threat	to	the	Gulf	of	
ished	severely.	                                                                                                                T
                                                                                                 Mexico’s	fragile	ecosystem.		 he	oil	ema-
                                                                                                 nating	from	the	seafloor	contains	about	
                                                                                                 40%	methane,	compared	with	about	5%	
                                                oil sPill mAy CosT over $5 Billion in                                            T
                                                                                                 found	in	typical	oil	deposits.		 hat	means	
A CriminAl ProBe is ongoing                     gulF CoAsT ProPerTy vAlues                       huge	quantities	of	methane	have	entered	
   Federal	 authorities	 opened	 criminal	                                                       the	Gulf,	according	to	scientists,	poten-
                                                  BP	Plc’s	oil	spill	may	drive	down	Gulf	
and	civil	investigations	last	month	into	                                                        tially	suffocating	marine	life	and	creating	
                                                Coast	property	values	by	10%	for	at	least	
what	is	now	recognized	as	the	nation’s	                                                          “dead	 zones”	 where	 oxygen	 is	 so	
                                                three	 years,	 according	 to	 a	 forecast	 by	
worst	oil	spill.	U.S.		 ttorney	General	Eric	
                      A                                                                          depleted	 that	 nothing	 lives.	 It’s	 being	
                                                CoStar	 Group	 Inc.	 It	 was	 estimated	 in	
Holder	 announced	 the	 criminal	 probe	                                                         called	“the	most	vigorous	methane	erup-
                                                mid-June	 that	 losses	 could	 total	 $4.3	
last	month	while	he	was	in	New	Orleans.	                                                         tion	 in	 modern	 human	 history.”	This	 is	
                                                billion	along	the	600-mile	stretch	from	
He	said	that	the	government	“will	closely	      the	 Louisiana	 bayous	 to	 Clearwater,	



	                                        www.JereBeasleyReport.com	                                                                          5
another	part	of	the	problem	and	one	that	        believe	that	they	do	since	the	company	is	 ments	of	Paxil-related	cases	not	involving	
is	causing	major	concern.	                       settling	cases.                                 birth	 defects.	 It	 should	 be	 noted	 that	
Source: Associated Press                         Source: The News Journal                        Paxil,	which	was	introduced	in	1992,	gen-
                                                                                                 erates	 nearly	 $3	 billion	 in	 annual	
                                                                                                         T
                                                                                                 sales.	 	 he	 drug	 is	 used	 to	 treat	 a	 wide	
                                                 PAxil BirTh deFeCTs CAses seTTled               variety	of	psychological	maladies,	includ-
III.                                                                                             ing	 depression,	 anxiety,	 and	 obsessive-
DRUG                                                GlaxoSmithKline	(GSK),	the	manufac- compulsive	disorder.
MANUFACTURERS                                    turer	of	Paxil,	has	agreed	to	settlements	         If	you	want	more	information	on	the	
                                                 in	 nearly	 200	 individual	 cases	 alleging	 Paxil	 litigation,	 contact	 Chad	 Cook,	 a	
LITIGATION                                       that	 the	 antidepressant	 caused	 birth	 lawyer	in	our	firm’s	Mass	Torts	Section	at	
                                                 defects.	 Most	 of	 the	 cases	 alleged	 that	 800-898-2034	or	by	email	at	Chad.Cook@
                                                 babies	born	to	mothers	taking	Paxil	suf- beasleyallen.com.
drug mAnuFACTurers seTTling FrAud                                                T
                                                 fered	 from	 heart	 defects.	 	 he	 leading	 Source: ConsumerAffairs.com
CAses in oTher sTATes                            case,	brought	on	behalf	of	Lyam	Kilker,	
                                                 contended	 that	 he	 was	 born	 with	 no	
   As	 we	 have	 reported	 previously,	 our	     fewer	than	three	cardiac	defects,	includ- drug mAker FAils To CooPerATe
firm	is	representing	a	number	of	states	in	      ing	a	hole	between	the	two	chambers	of	
the	 Medicaid	 fraud	 litigation.	We	 have	      his	heart	that	disrupted	the	aorta.		 hat	
                                                                                         T          According	to	federal	investigators,	the	
settled	with	a	number	of	the	drug	compa-         case	was	tried	last	October	and	resulted	 Congressional	 investigation	 into	 the	
nies	on	behalf	of	several	of	these	states.	      in	a	$2.5	Million	verdict.                      recent	 recall	 of	 children’s	Tylenol	 and	
In	fact,	we	are	still	settling	cases	with	the	      During	the	Kilker	trial,	it	was	proved	 other	 pediatric	 medicines	 has	 been	
drug	manufacturers	in	other	states.	While	       that	animal	testing	put	the	manufacturer	 stymied	by	the	manufacturer,	Johnson	&	
the	Alabama	Supreme	Court	has	thus	far	                                                                      T
                                                 on	notice	that	the	drug	might	cause	prob- Johnson.	 	 his	 raises	 the	 prospect	 that	
protected	the	drug	companies,	that	has	          lems,	 and	 that	 the	 company	 failed	 to	 new	measures—like	issuing	subpoenas	to	
not	 been	 the	 case	 in	 any	 other	 state	     follow	 up	 sufficiently	 with	 additional	 compel	 cooperation—will	 now	 be	
where	 the	 Medicaid	 drug	 litigation	 is	      tests.	 Even	 worse,	 a	 company	 memo	 invoked.	McNeil	Consumer	Healthcare,	
being	pursued.	Interestingly,	the	conduct	       introduced	 into	 evidence	 talked	 about	 the	unit	of	Johnson	&	Johnson	that	makes	
in	every	state	is	identical	and	that	has	to	     covering	up	any	test	results	that	showed	 the	over-the-counter	drugs,	is	now	under	
make	 the	 situation	 in	Alabama	 much	          a	potential	danger.		 he	1997	memo	by	 scrutiny	by	the	FDA	for	a	pattern	of	viola-
                                                                          T
more	difficult	to	explain.	In	Alabama,	the	      GSK	executive	Bonnie	Rossello,	before	 tions	 in	 manufacturing	 and	 quality	
facts	of	the	cases—and	the	admissions	by	        any	tests	were	conducted,	read,	“If	neg,	 control	 practices	 that	 have	 led	 to	 a	
the	drug	manufacturers—were	as	strong,	          results	can	bury.”	Even	though	GSK	still	 number	of	recent	recalls.	
and	 in	 some	 cases	 even	 stronger,	 than	     defends	the	drug,	it’s	significant	that	the	      The	FDA	has	indicated	as	far	back	as	
what	we	discovered	in	the	other	states.	         company	made	a	decision	to	settle	hun- May	that	it	was	considering	criminal	pen-
                                                 dreds	of	cases	less	than	a	year	later.	         alties	 or	 other	 actions	 against	 McNeil.	
                                                    In	2005,	the	Food	and	Drug	Administra- Rep.	Edolphus	Towns,	a	New	York	Demo-
AsTrAzeneCA seTTles ClAss ACTion                 tion	 warned	 doctors	 about	 a	 study	 crat,	and	chairman	of	the	House	Commit-
lAWsuiT For $103 million                         showing	that	babies	born	to	women	who	 tee	 on	 Oversight	 and	 Government	
   AstraZeneca	 has	 agreed	 to	 pay	 $103	      took	 Paxil	 during	 the	 first	 trimester	 of	 Reform,	 says	 Johnson	 &	 Johnson	 has	
million	to	settle	class-action	claims	arising	   pregnancy	 had	 a	 higher	 rate	 of	 major	 used	delaying	tactics	in	its	dealings	with	
out	of	the	company	inflating	the	whole-          birth	defects.		 he	study,	which	involved	 the	 committee	 and	 in	 some	 instances	
                                                                  T
sale	 price	 of	 cancer	 and	 asthma	 treat-     3,500	 pregnant	 women,	 showed	 that	 had	provided	misinformation.	It’s	not	too	
ments.		 he	first	settlement	includes	$13	
         T                                       those	 on	 Paxil	 were	 twice	 as	 likely	 to	 surprising	that	the	company	denies	these	
million	for	consumers	and	health	insurers	       have	a	child	with	defects	than	women	on	 accusations.	Congress	should	make	sure	
in	 Massachusetts,	 and	 $90	 million	 for	      other	antidepressants.	In	the	wake	of	the	 Johnson	 &	 Johnson	 complies	 with	 all	
claimants	outside	of	the	state.		 he	class-
                                   T             study,	 the	 FDA	 put	 out	 a	 statement	 requests	and	the	committee	should	be	
action	lawsuit	alleged	that	AstraZeneca	         warning	that	“[h]ealthcare	professionals	 very	 aggressive	 as	 it	 looks	 into	 drug	
inflated	the	average	wholesale	price	of	         are	advised	to	carefully	weigh	the	poten- quality	 and	 safety	 issues	 raised	 by	 the	
Zoladex,	 a	 cancer	 drug,	 and	 Pulmicort	      tial	risks	and	benefits	of	using	[Paxil]	in	 recall.	
Respules,	 a	 treatment	 used	 to	 prevent	      women	during	pregnancy	and	to	discuss	             The	 House	 committee	 opened	 its	
asthma	symptoms	in	children.		 his	is	one	
                                  T              these	findings	as	well	as	treatment	alter- investigation	 in	 early	 May	 shortly	 after	
of	the	fraud	cases	that	have	been	labeled	       natives	with	their	patients.”	                  McNeil	announced	a	voluntary	recall	of	
AWP	cases	and	the	facts	should	be	famil-            The	terms	of	the	recent	settlements	are	 liquid	pediatric	Tylenol,	Motrin,	Benadryl	
                                      A
iar	to	the	Alabama	Supreme	Court.		 ppar-                                                                        T
                                                 confidential.		 t	least	600	cases	have	been	 and	 Zyrtec.	 	 he	 products,	 made	 at	 a	
                                                                A
ently,	 judges	 in	 other	 states	 take	 a	      filed	alleging	that	Paxil	is	responsible	for	 company	plant	in	Fort	Washington,	Penn-
different	view	on	the	law	applicable	to	         congenital	birth	defects.	Up	to	100	other	 sylvania,	may	have	included	metal	parti-
these	 cases.	 	 t	 least	AstraZeneca	 must	
               A                                 cases	have	already	settled.	GSK	has	also	 cles,	 or	 too	 much	 of	 the	 active	 drug	
                                                 paid	approximately	$1	billion	in	settle- ingredient,	 or	 inactive	 ingredients	 that	




6	                                               www.BeasleyAllen.com
                                  T
did	not	meet	testing	standards.		 he	FDA	        for	off-label	marketing	regarding	Bextra	 gerous	 Chantix	 side	 effects,	 including	
has	referred	the	McNeil	case	to	its	office	      and	Neurontin,	among	other	drugs.	                                                   T
                                                                                                aggression	 and	 suicidal	 thoughts.	 	 he	
of	criminal	investigation,	the	agency’s	law	     Source: Fierce Pharma                          drug	works	by	blocking	nicotine	recep-
enforcement	arm,	which	works	with	the	                                                          tors	 in	 the	 brain—a	 factor	 which	 can	
Justice	Department	to	prosecute	compa-                                                          greatly	exacerbate	pre-existing	psychiat-
nies	accused	of	violating	the	laws	govern-       PFizer reCeives WArning leTTer From            ric	conditions	like	suicidal	thoughts	and	
ing	drug	manufacturing	and	marketing.	It	        FdA                                            aggression.	 	T he	 FDA	 has	 reported	
will	be	most	interesting	to	see	how	the	                                                        roughly	491	cases	of	suicidal	tendencies	
matter	winds	up.                                    Pfizer	 received	 a	 warning	 letter	 last	 or	behavior	directly	linked	to	usage	of	
Source: New York Times                           month	from	the	FDA	because	of	the	com- Chantix.	So	long	as	the	weak	laws	relat-
                                                 pany’s	 failure	 to	 report	 complaints	 ing	to	lobbyists	go	unchanged,	compa-
                                                                T
                                                 promptly.	 	 he	 agency	 warned	 Pfizer	 nies	like	Pfizer	will	continue	to	control	
Blue Cross Blue shield sues PFizer               about	its	failure	to	promptly	report	com- what	happens	in	Washington.	Over	the	
                                                 plaints	associated	with	its	drugs	that	may	 past	few	months	the	Obama	Administra-
   Blue	 Cross	 Blue	 Shield	 entities	 from	                                     A
                                                 have	involved	serious	injury.		 ccording	 tion	and	Congressional	leaders	have	had	
Texas,	 Illinois,	 New	 Mexico	 and	 Okla-       to	the	warning	letter,	Pfizer	repeatedly	 to	focus	their	attention	on	issues	like	the	
homa	(hereinafter	“BCBS”)	have	filed	a	          failed	to	submit	product	complaints	to	 gulf	oil	spill	and	Toyota’s	safety	issues.		 s	A
lawsuit	against	Pfizer	over	its	marketing	       the	FDA	within	the	required	15-day	regu- a	 result,	 all	 reform	 efforts	 have	 been	
of	 three	 drugs.	 	 he	 allegations	 in	 the	
                    T                            latory	scheme.	In	some	cases,	Pfizer	failed	 delayed	and	that	is	certainly	understand-
lawsuit	state	that	the	company	pushed	           to	 report	 adverse	 events	 altogether,	 able.	Hopefully,	the	reform	measures	will	
off-label	uses	of	the	drugs	and	used	“kick-      including	reports	of	serious	side	effects	 soon	get	back	on	track.	
backs”	to	persuade	doctors	to	prescribe	         with	the	cholesterol	drug	Lipitor	and	the	 Source: LAS Newswire
them.		 he	allegations	made	in	the	Com-
       T                                                                    T
                                                 anti-seizure	drug	Lyrica.		 hese	concerns	
plaints	resemble	those	in	the	$2.3	billion	      were	initially	raised	by	the	FDA	following	
settlement	between	Pfizer	and	the	United	        an	inspection	that	concluded	in	August	
States	Department	of	Justice.		 lso	named	
                                A                2009.	 Let’s	 hope	 for	 safety’s	 sake	 that	 IV.
in	the	lawsuit	are	four	Pfizer	managers	         Pfizer	 will	 comply	 with	 the	 regulatory	 PURELY POLITICAL
and	 ex-managers	 in	 their	 individual	
capacities.		 hose	Pfizer	employees	and	
              T
                                                 scheme	in	the	future.	
                                                                                                   NEWS & VIEWS
former	 employees	 are	 not	 company	
higher-ups.	 One	 was	 a	 district	 sales	       PFizer sPends millions on loBByisTs
                                                                                                   A look AT The PrimAry resulTs
manager	who	allegedly	prepared	mislead-          desPiTe ChAnTix WArnings
ing	sales	materials	to	present	to	doctors.	                                                           On	 June	 1 st 	 there	 was	 a	 very	 low	
   According	 to	 the	 lawsuit,	 Pfizer	 not	      The	 powerful	 drug	 manufacturing	
                                                                                                   turnout	of	voters.	For	whatever	reason,	
only	handed	out	those	misleading	materi-         industry	has	pretty	well	had	its	way	in	
                                                                                                   lots	 of	 folks	 made	 a	 decision	 to	 stay	
als	for	off-label	uses,	but	sent	doctors	on	                                  A
                                                 Congress	over	the	years.		 	good	example	
                                                                                                   home.	 But	 the	 low	 turnout	 probably	
Caribbean	junkets	and	paid	them	$2,000	          of	 how	 these	 companies	 keep	 things	
                                                                                                   shouldn’t	have	been	that	big	of	a	surprise.	
in	honoraria	in	return	for	them	listening	                                         A
                                                 under	control	involves	Pfizer.		 	recently-
                                                                                                   Most	Alabamians	were	sick	and	tired	of	
to	lectures	about	Bextra.	More	than	5,000	       released	expenditure	report	reveals	that	
                                                                                                   all	the	negative	television	ads	and	all	the	
healthcare	 professionals	 were	 enter-          manufacturer	Pfizer	spent	$4.3	million	
                                                                                                   mudslinging.	I	believe	that	had	lots	to	do	
tained	in	meetings	in	the	Bahamas,	Virgin	       lobbying	Congress	and	federal	agencies	
                                                                                                                             T
                                                                                                   with	the	low	turnout.		 here	were	some	
Islands	and	across	the	U.S.,	according	to	                                           T
                                                 in	 the	 first	 quarter	 of	 2010.	 	 he	 drug	
                                                                                                   surprises	 in	 the	 margins	 of	 victory	 in	
the	lawsuit.	Pfizer	has	responded	stating:       company	wanted	items	like	smoking	ces-
                                                                                                   some	 of	 the	 races.	 Perhaps	 the	 biggest	
                                                 sation	medications	included	in	the	health	
    This is a case of an insurance                                                                 news	has	turned	out	to	be	the	drama	sur-
                                                                       T
                                                 care	overhaul	bill.		 hat	was	despite	the	
    company seeking its money back                                                                 rounding	the	recount	in	the	GOP	guber-
                                                 inherent	risks	of	Chantix	suicide.	
    for medicines that physicians pre-                                                                             T
                                                                                                   natorial	race.		 here	was	no	change	after	
                                                   While	some	of	the	funding	was	spent	
    scribed appropriately using their                                                                                                T
                                                                                                   the	recount	was	completed.		 here	will	
                                                 serving	special	interest	partnerships	like	
    best medical judgment.                                                                         be	a	run-off	between	Bradley	Byrne	and	
                                                 veterans’	health	organizations,	the	bulk	of	
                                                                                                   Dr.	Robert	Bentley.	Only	28%	of	registered	
                                                 the	money	was	spent	on	aspects	of	the	
   Back	 in	 2009,	 a	 former	 Pfizer	 sales	                                                      voters	turned	out	to	vote	which	was	a	
                                                 legislation	that	could	lead	to	greater	use	
manager	was	sentenced	for	off-label	pro-                                                                                 T
                                                                                                   very	poor	turnout.		 his	should	be	recog-
                                                 of	 the	 company’s	 products,	 including	
                    T
motion	of	Bextra.		 he	sales	manager	told	                                                         nized	as	a	sign	of	disgust	with	all	of	the	
                                                 insurance	coverage	for	smoking	cessation	
Massachusetts	officials	that	the	company	                                                          negative	campaigning	that	the	public	was	
                                                                              T
                                                 products	 like	 Chantix.	 	 his	 action	 has	
not	only	knew	about	her	off-label	activi-                                                          subjected	to	by	all	too	many	candidates.	
                                                 sent	up	a	red	flag	to	many	health	advo-
ties,	 but	 actually	 encouraged	 them.	 It	
                                                 cates,	 who	 expressed	 concern	 that	
appears	 that	 off-label	 promotion	 of	
                                                 increased	prescription	and	availability	of	
Bextra	was	“part	of	the	Pfizer	culture.”	It	
                                                 Chantix	could	lead	to	a	rash	of	suicides.
should	be	noted	that	Pfizer	settled	with	
                                                   These	 concerns	 stem	 from	 a	 2007	
the	federal	government	for	$2.3	billion	
                                                 black	box	warning	about	potentially	dan-



	                                         www.JereBeasleyReport.com	                                                                         7
ron sPArks Wins A deCisive viCTory             tum	at	the	time—made	a	statement	about	              Primary.	 It’s	 recognized,	 without	much	
                                               Coach	Nick	Saban	in	an	apparent	attempt	             doubt,	that	Jim	is	extremely	popular	in	
   I,	along	with	all	of	the	real	pollsters,	   to	be	funny,	and	it	hurt	him	badly.		 la-   A        Alabama	and	will	be	very	had	to	beat	in	
was	 way	 off	 base	 in	 predicting	 the	      bamians	take	their	football	seriously	and	           the	fall.	He	has	been	a	very	good	Lt.	Gov-
outcome	of	the	Governor’s	race	in	the	         it	 doesn’t	 take	 much	 to	 set	 off	 a	 fire	      ernor	 and	 hasn’t	 made	 any	 major	 mis-
Democratic	primary	between	Ron	Sparks	         storm.		 t	a	critical	time	in	the	campaign,	
                                                        A                                                  A
                                                                                                    takes.		 s	a	result,	the	Cullman	native	will	
and	Artur	 Davis.	While	 I	 saw	 a	 strong	    Tim’s	statement	became	a	hot	topic	on	all	           go	into	the	General	Election	as	the	favor-
momentum	 swing	 toward	 Ron	 in	 the	         of	the	sports	talk	shows.	In	my	opinion,	it	                                 T
                                                                                                    ite	 and	 rightly	 so.	 	 he	 Sparks-Folsom	
race	about	ten	days	out,	the	polls	were	       hurt	Tim	and	may	have	been	enough	in	                ticket	will	be	a	good	one	and	a	team	that	
still	showing	Artur	winning	on	June	1st	by	    itself	 to	 cost	 him	 a	 spot	 in	 the	 run-off.	   will	 be	 especially	 strong	 in	 North	
a	very	small	margin.	But	all	of	us	should	     Lots	of	Bama	fans	took	what	he	said	seri-                       T
                                                                                                    Alabama.		 hat’s	an	area	of	the	state	that	is	
have	recognized	that	the	size	of	the	unde-     ously.	 	 im,	 as	 governor,	 couldn’t	 fire	 a	
                                                        T                                           primed	to	elect	a	Governor	and	this	may	
cided	vote,	which	at	that	time	was	over	       coach,	but	most	folks	don’t	know	that.	              be	the	year.	
                                     A
30%,	had	to	be	bad	news	for	Artur.		 t	one	       Another	factor	in	the	reversal	of	for-
time,	Artur	led	in	the	race	by	over	30%.	      tunes	between	Bradley	and	Tim	was	that	
Without	question,	Ron	Sparks	ran	a	mas-        Bradley’s	advisors	finally	realized	that	it	         kAy ivey survives The rePuBliCAn
terful	 race	 and	 deserved	 to	 win.	 He	     was	a	mistake	to	run	a	race	solely	aimed	            PrimAry
gained	the	momentum	at	the	right	time	         at	Dr.	Paul	Hubbert	and	AEA.	Somebody	
and	never	looked	back.	I	have	congratu-        eventually	figured	out	that	Paul	Hubbert’s	             Kay	Ivey	won	her	race	for	Lt.	Governor	
lated	him!                                     name	wasn’t	on	the	ballot.		 he	resulting	
                                                                                T                   in	 the	 Republican	 primary	 without	 a	
   Ron	won	an	overwhelming	victory,	car-       change	 in	 strategy	 may	 have	 been	 the	          runoff.	 She	 spent	 much	 more	 in	 the	
rying	all	but	six	counties,	with	an	over-      real	difference	in	why	the	primary	vote	             primary	than	 did	 Sen.	 Hank	Erwin,	 her	
whelming	62%	of	the	vote.	No	longer	will	      turned	around	at	a	critical	time.	Bradley	           main	opponent,	and	will	now	move	on	to	
anybody	underestimate	his	ability	to	cam-      forgot	about	Paul	and	started	to	hammer	             the	fall	election.	I	believe	Kay’s	margin	of	
paign	effectively	and	to	get	votes.	Regard-    Tim	on	a	daily	basis.	It	apparently	worked.	         victory	was	largely	due	to	her	name	rec-
less	 of	 who	 winds	 up	 as	 the	 GOP	           Judge	Roy	Moore,	who	started	his	cam-             ognition	and	the	fact	that	she	is	a	very	
nominee,	I	believe	Ron	will	very	likely	be	    paign	with	over	30%	of	the	vote,	slipped	            hard	worker.	It	doesn’t	hurt	that	she	has	
elected	Governor	of	Alabama.	I	supported	      badly	as	the	race	progressed.	He	never	              the	ability	to	finance	her	own	campaign.	
Artur,	 serving	 as	 his	 State	 Campaign	     seemed	to	get	off	the	ground.		 im	took	
                                                                                     T              Kay	also	will	be	able	to	raise	substantial	
Chairman,	 but	 my	 candidate	 lost.	 I	 am	   some	 of	 his	 support	 and	 that	 hurt	 his	        campaign	 money	 from	 some	 obvious	
supporting	 the	 Democratic	 ticket	 and	      chances	to	make	the	run-off.		 he	Judge	
                                                                                    T               sources.	Since	Kay	has	courted	the	Tea	
will	vote	for	Ron	in	the	fall.	                ended	up	in	fourth	place,	but	really	not	            Party	groups,	it	will	be	interesting	to	see	
                                               that	 far	 behind	 Bradley	 in	 votes.	 Judge	       if	they	become	a	real	factor	for	her	cam-
                                               Moore	 seemed	 to	 enjoy	 running,	 ran	 a	          paign	this	fall.	It’s	pretty	well	agreed	that	
The goP run-oFF in The governor’s              low-budget	 campaign	 and	 seemed	 at	               Jim	can’t	afford	to	take	Kay	lightly.	I	don’t	
rACe                                           peace	when	his	race	ended	on	June	1st.	              believe	he	will.
                                                  Now	let’s	take	a	look	at	Dr.	Bentley’s	
   Even	 though	 Bradley	 Byrne	 led	 the	                  T
                                               showing.		 he	Tuscaloosa	doctor	is	smart,	
ticket	in	the	Republican	primary,	he	had	      a	hard	worker,	and	I	am	told	an	honorable	           JAmes Anderson rAn exTremely Well
to	take	a	backseat	for	a	while	due	to	the	     man.	Clearly,	he	ran	the	best	campaign	of	
GOP	recount	controversy.	Now	that	the	         any	of	the	men	who	wanted	to	be	Gover-                  James	Anderson	 came	 very	 close	 to	
recount	is	over,	it’s	clear	that	Bradley	will	 nor	 and	 with	 much	 less	 money	 than	             winning	his	race	without	a	runoff.	He	got	
face	Dr.	Robert	Bentley	in	the	run-off	on	     either	Bradley	or	Tim.	He	also	was	able	to	          over	 49%	 of	 the	 vote	 against	 two	 very	
July	 13th.	 	 o	 gain	 the	 top	 spot,	 Bradley	
             T                                 take	 advantage	 of	 the	 negative	 tone	 of	        good	candidates.	Most	political	experts	
overcame	what	most	say	was	a	poorly-           the	 Byrne	 and	 James	 campaigns.	 Dr.	             believed	 that	 Giles	 Perkins,	 who	 ran	
run	campaign	on	his	part.	Even	though	         Bentley	 had	 a	 positive	 message	 and	 it	         second,	shouldn’t	run	it	off,	but	appar-
he	 was	 under	 constant	 attacks	 by	Tim	     paid	off	for	him.	I	wouldn’t	be	surprised	           ently	he	has	decided	to	stay	in	the	race.	
James,	Bradley	had	every	opportunity	to	       if	Dr.	Bentley	wins	in	the	run-off	and	is	           Giles	 received	 the	endorsement	of	the	
pull	 away	 from	 the	 pack,	 but	 he	 never	  the	GOP	nominee	in	the	fall.	He	will	be	a	           New	South	Coalition,	which	apparently	
       T
did.		 he	end	result	was	Bradley	leading	      formidable	candidate	in	the	fall.		 s	soon	
                                                                                       A            gave	him	the	encouragement	he	needed	
the	ticket	by	a	very	small	margin	getting	     as	the	recount	was	over	on	June	18th,	the	                                T
                                                                                                    to	stay	in	the	race.		 his	should	make	the	
only	28%	of	the	vote.	It	was	quite	evident	    Byrne	campaign	started	with	attack	ads	              big	oil	companies	and	the	GOP	nominee	
that	the	top	GOP	bosses,	including	Gov-        on	Dr.	Bentley.		 hat	may	turn	out	to	be	a	
                                                                  T                                 pretty	 happy.	 James	 will	 have	 to	 raise	
ernor	 Riley,	 were	 backing	 Bradley,	 and	   major	mistake!                                       money	 and	 go	 through	 a	 run-off	 that	
they	have	to	be	greatly	disappointed	with	                                                          shouldn’t	have	been	necessary.	Clearly,	
their	efforts.                                                                                      Giles	has	a	very	steep	hill	to	climb	in	the	
   I	 really	 thought	Tim	 would	 lead	 the	                                                        run-off.	
                                                  Jim Folsom did iT The eAsy WAy
ticket	in	the	primary	due	mostly	to	Brad-                                                              Michelle	 Nicrosi,	 the	 candidate	 who	
ley’s	campaign	slipping	badly	in	mid-May.	          Jim	Folsom,	the	incumbent	Lt.	Gover-            ran	third,	ran	a	very	good	race	with	little	
But	Tim—who	clearly	had	the	momen- nor,	was	unopposed	in	the	Democratic	                            financial	backing.	Her	support	in	a	runoff	



8	                                             www.BeasleyAllen.com
would	be	welcomed	by	either	candidate	          demoCrATiC CAndidATes Were All                    thing	 for	 granted.	 He	 will	 continue	 to	
and	the	talk	around	the	Capitol	is	that	        unoPPosed in The suPreme CourT rACes              work	just	as	hard	in	the	run-off	as	he	did	
Michelle	currently	 leans	toward	James’	                                                          in	the	first	primary.
candidacy.	One	thing	for	certain	is	that	           The	three	Democratic	candidates	for	             Billy	wants	to	be	a	Senator	for	all	the	
this	 race	 was	 one	 of	 the	 cleanest	 and	    seats	 on	 the	Alabama	 Supreme	 Court	          folks	in	the	counties	making	up	the	dis-
most	 civil	 of	 all	 the	 races	 in	 either	    were	 nominated	 without	 opposition.	 I	        trict.	His	main	emphasis	has	been	on	cre-
primary,	and	that	was	most	welcome	by	           believe	 these	 candidates,	 Judge	 Mac	         ating	jobs,	making	educational	needs	a	
the	public.	Hopefully,	it	will	carry	over	       Parsons,	 Tom	 Edwards,	 and	 Rhonda	            top	priority,	and	working	to	assure	that	
into	the	fall	in	all	of	the	races.	              Chambers,	will	provide	strong	competi-           healthcare	is	both	available	and	afford-
                                                 tion	for	the	GOP	nominees	in	the	General	                                T
                                                                                                  able	to	all	citizens.		 hose	will	continue	to	
                                                 Election.	 If	 real	 issues	 are	 discussed—     be	 his	 priorities.	 Billy	 will	 always	 be	
The WorsT PerFormAnCe oF All WAs in              which	 can	 certainly	 include	 both	 past	      accessible	to	his	constituents,	as	he	has	
The goP rACe For ATTorney generAl                records	and	judicial	performances—the	           been	during	his	three	terms	in	the	House	
                                                 races	for	the	Court	this	fall	will	be	very	      of	 Representatives,	 and	 I	 believe	 that’s	
    The	 contest	 between	Troy	 King	 and	 close.	                                                important.	He	has	consistently	promised	
Luther	 Strange	 was	 the	 toughest	 and	                                                         the	folks	in	all	of	the	counties	in	the	Dis-
hardest-hitting	race	in	either	primary.		 t	 A                                                    trict	 that	 when	 he	 is	 elected,	 he	 will	
times	things	got	pretty	dirty.	Neverthe- mike Bolin And Tom PArker survive The                    never	 forget	 them	 and	 he	 will	 never	
less,	 a	 Washington	 lobbyist	 handily	 PrimAry                                                  embarrass	them	personally	or	profession-
defeated	an	incumbent	Attorney	General	                                                           ally	while	in	the	Senate.	Everybody	who	
by	 a	 large	 margin.	 	 his	 race	 was	 filled	
                        T                           The	 two	 races	 for	 seats	 on	 the	 High	
                                                                                                  knows	 Billy	 will	 tell	 you,	 he	 keeps	 his	
with	accusations,	a	few	true,	but	mostly	 Court	 in	 the	 GOP	 primary	 were	 most	               promises!
false.		 he	contest	started	off	somewhat	 interesting.	Justice	Tom	Parker	was	said	
        T                                                                                            Billy’s	 run-off	 opponent	 has	 already	
nasty,	and	got	worse	as	it	progressed.		 roy	 by	 the	 experts	 to	 have	 no	 chance	 of	
                                          T                                                       leveled	a	number	of	unfounded	accusa-
was	not	able	to	raise	sufficient	campaign	 being	reelected.	I	understand	the	Busi-                tions	 as	 he	 seeks	 to	 overcome	 a	 huge	
money	to	go	on	television	so	he	could	 ness	Council	of	Alabama,	and	the	group	                    deficit.	 Frankly,	 I	 don’t	 believe	 any	 of	
defend	 himself	 against	 the	 rough	 stuff	 known	as	AVALA,	hand-picked	Eric	John-               them	deserve	repeating.	My	mother	used	
that	 was	 being	 thrown	 at	 him.	 Long	 ston	to	run	against	Justice	Parker.	Most	of	            to	 tell	 me	 that	 if	 you	 want	 to	 find	 out	
before	 the	 campaign	 officially	 started,	 the	political	experts	let	it	be	known	to	            about	the	true	character	and	heart	of	a	
malicious	 rumors	 were	 spread	 around	 the	world	that	Eric	would	win	the	race	                  person,	talk	to	the	folks	back	where	they	
the	 state	 about	Troy	 that	 were	 totally	 easily.	But	with	the	support	of	Tea	Party	           live	and	work	because	homefolks	know	
false.		 he	politically-inspired	grand	jury	 groups	around	the	state,	and	his	conser-
        T                                                                                         best.	Over	the	years,	I	have	found	that	to	
investigation,	 and	 the	 obvious	 involve- vative	base,	Parker	won	without	a	run-off.	           be	very	true.	If	anybody	in	District	28	has	
ment	of	the	Riley	forces	in	the	race,	hurt	         In	the	other	race,	Justice	Mike	Bolin	
                                                                                                  any	doubts	about	Billy,	all	they	have	to	do	
Troy	badly.		 his	combination	of	things,	in	 defeated	 Dothan	 lawyer	Tracy	 Carey,	 a	
              T                                                                                   is	check	with	the	folks	in	Barbour	County.	
my	opinion,	resulted	in	his	defeat.		 he	 lifelong	Republican	and	a	good	man,	by	
                                           T                                                      Homefolks	do	know	about	a	person	and	
vote	was	clearly	anti-King	and	has	little	to	 labeling	him	a	“trial	lawyer.”	That	was	the	        they	also	know	best!
do	with	Big	Luther.	                             sole	message	of	Bolin’s	heavy	television	
    It	 was	 rather	 interesting	 that	 Big	 ad	 campaign.	 Most	 folks	 never	 got	 to	
Luther’s	background	as	a	Washington	lob- know	Tracy—a	military	veteran,	a	family	                 An imPorTAnT develoPmenT
byist,	 and	 his	 most	 interesting	 list	 of	 man,	a	strong	Christian,	and	a	very	good	
                                                          A
“clients,”	never	really	surfaced	in	this	race.	 lawyer.		 s	a	result,	he	lost	the	race	and	         Myron	Penn,	who	has	represented	Dis-
While	both	should	have	been	real	issues	 probably	 never	 even	 had	 a	 chance	 to	               trict	 28	 in	 the	 Alabama	 Senate,	 has	
in	the	campaign,	neither	issue	ever	devel- win	 once	 the	 Bolin	 attacks	 started	 on	                              T
                                                                                                  endorsed	Billy.		 his	is	a	very	significant	
oped.		 roy	wound	up	having	to	defend	 television.	 Both	 Bolin	 and	 Parker	 will	
         T                                                                                        and	important	endorsement	and	will	defi-
himself—causing	a	good	record	over	his	 face	 strong	 Democratic	 opposition	 in	                 nitely	help	Billy	throughout	the	District.	
                                                           T
tenure	as	Attorney	General	to	be	lost	in	 the	fall.		 he	word	on	the	street	is	that	              Myron	 has	 been	 very	 effective	 in	 the	
the	shuffle	and	virtually	ignored	by	the	        Bolin,	 if	 reelected,	 will	 run	 for	 Chief	   Senate	 and	 is	 well	 liked	 and	 highly	
voters—and	in	reality	he	never	really	had	 Justice	in	2012.                                       respected	both	in	the	Senate	and	in	his	
a	chance	to	win.	When	you	get	down	to	                                                                      T
                                                                                                  District.		 he	following	is	what	Myron	had	
it,	 there	 were	 just	 too	 many	 things	 for	                                                   to	say:
Troy	to	overcome.	It	will	be	interesting	to	 Billy BeAsley leAds in The disTriCT 28
see	how	the	GOP	nominee,	who	has	very	 senATe rACe                                                  For the last 8 years I have had the
close	 ties	 to	 big	 oil	 companies	 like	 BP,	                                                    pleasure of serving as state senator
                                                    My	brother,	Billy	Beasley,	came	within	         for District 28. I have worked very
will	fare	in	November.	
                                                 300	votes	of	winning	his	Senate	race	in	           hard during this time to improve the
                                                 District	28	without	a	run-off.	He	will	now	        lives of the folks who live and work
                                                 face	former	Tuskegee	mayor	Johnny	Ford	            in all of the counties that make up
                                                 in	the	July	13th	run-off.	Billy	led	Johnny	by	     this district. It is very important to me
                                                 20%	in	the	first	vote,	but	isn’t	taking	any-       that we as a district continue to



	                                         www.JereBeasleyReport.com	                                                                            9
  move in this direction and build on               providing	an	ignition	source.	For	years	          fidential	 amount.	 Mike	 Crow	 from	 our	
  the accomplishments and improve-                  prior	to	the	manufacture	of	this	vehicle,	        firm	and	Shane	Seaborn,	who	is	with	the	
  ments we have made in recent years.               other	manufacturers	have	been	placing	            firm	of	Penn	and	Seaborn,	represented	
                                                    batteries	between	the	frame	rails	in	order	                   T
                                                                                                      the	family.		 hey	did	a	very	good	job	for	
  Over the last decade I have worked                to	 move	 the	 battery	 cables	 away	 from	       their	clients.	
  closely with Billy Beasley and I                  fuel	tanks	in	the	event	there	was	a	colli-
  know he will work tirelessly for all                    T
                                                    sion.		 his	company	failed	to	do	so.
  the people of this senate district. He
  is a man of character who will con-
                                                       Additionally,	this	particular	model	truck	
                                                    had	never	been	tested	in	a	dynamic	roll-
                                                                                                      VI.
  tinue to move this district forward               over	event	before	production	so	the	man-          LEGISLATIVE
  through the issues that we will face
  over the next 4 years. Billy and I
                                                    ufacturer	was	unaware	of	how	the	cab	             HAPPENINGS
                                                    would	perform	in	a	rollover	event.	Since	
  have discussed redistricting, which               the	late	1960s	and	early	1970s,	govern-
  will likely come up in the Senate,                ment	studies	have	shown	that	there	is	a	
  and we have agreed to work                                                                          There Will Be neW FACes in The
                                                    significant	need	for	heavy	trucks	to	be	          AlABAmA legislATure
  together to ensure that the makeup                designed	with	occupant	survival	space.	
  and demographics of Senate Dis-                   However,	heavy	truck	manufacturers	con-              Six	incumbent	legislators	lost	on	June	
  trict 28 will remain fair.                        tinue	to	ignore	this	need	for	occupants	          1 st 	 and	 one	 will	 face	 a	 run-off.	 	 hat	
                                                                                                                                                T
  On July 13 th I will vote for Billy               and	continue	to	produce	un-crashworthy	           means	there	will	be	at	least	six	new	faces	
  Beasley to replace me in the                      cabs	made	of	lightweight	aluminum	and	            in	the	Alabama	Legislature	next	year.	Of	
  Alabama State Senate and am con-                  fiberglass.	In	this	case,	if	the	roof	strength	   course,	there	may	be	other	changes	after	
  fident that he will serve all of the              had	been	adequate	the	driver	would	have	                                     T
                                                                                                      the	 General	 Election.	 	 he	 incumbents	
  people of District 28 with integrity.             been	able	to	escape	the	cab	before	the	           who	 lost	 were	 three	 Democrats	 and	
Source: Associated Press
                                                                                   T
                                                    fire	 got	 out	 of	 control.	 	 his	 case	 was	                          T
                                                                                                      three	Republicans.		 he	Republican	Party	
                                                    settled	 for	 a	 confidential	 amount	 on	        has	indicated	it	will	take	over	both	the	
                                                    behalf	of	the	decedent’s	family.	Ben	Baker	       House	and	the	Senate	next	year.	While	I	
                                                    was	the	lead	lawyer	for	our	firm	and	did	a	       really	don’t	believe	that	will	happen,	it	
V.                                                  very	good	job	for	our	clients.	                   should	 be	 an	 interesting	 General	 Elec-
SETTLEMENTS OF                                                                                        tion.	
THE MONTH                                           WrongFul deATh seTTlemenT in Civil
                                                    dAmAges ACT                                       A look To 2011
heAvy TruCk CAse is seTTled                           Our	firm	settled	a	case	recently	filed	            In	 2011	 members	 of	 the	 House	 and	
                                                    under	Alabama’s	 Civil	 Damages	Act.	 It	         Senate	 will	 face	 the	 toughest	 financial	
   Our	 firm	 recently	 settled	 another	           involved	the	death	of	a	19-year-old	man	          challenges	that	any	group	of	legislators	
crashworthiness	case	involving	a	heavy	             who	was	killed	in	a	motor	vehicle	acci-                                            T
                                                                                                      has	faced	in	recent	memory.		 he	State	of	
truck	or	18-wheeler	cab.	In	this	case,	the	                 T
                                                    dent.	 	 he	 case	 involved	 the	 sale	 of	       Alabama	is	in	terrible	fiscal	condition	and	
driver	 for	 some	 unknown	 reason	 lost	           alcohol	to	a	minor	in	December	2008.	In	          the	patching	job	that	was	skillfully	done	
control	of	his	rig	and	it	overturned	180	           the	 early	 morning	 hours	 of	 December	         this	year	won’t	work	again	in	2011.		 s	    A
degrees	onto	the	roof	in	the	median	of	             31st	 the	 young	 man	 lost	 control	 of	 his	    they	say	in	Barbour	County,	the	state	is	
I-85	 between	Auburn	 and	 Montgom-                 vehicle	and	crashed,	which	caused	his	            “broke	 as	 a	 haint,”	 and	 that’s	 very	 bad	
     T
ery.		 he	roof	crushed	all	the	way	to	the	          death.	 During	 the	 investigation	 of	 the	      news	for	the	next	Governor	and	Legisla-
                        T
dash	in	the	rollover.		 he	driver	survived	         case,	 our	 lawyers	 discovered	 that	 the	       ture.	
the	wreck	and	asked	witnesses	for	help	             store	 selling	 the	 alcohol	 had	 captured	         The	Republicans	claim	they	are	going	
in	 getting	 out	 of	 the	 cab.	 But,	 only	 his	   the	sale	on	December	30th	on	its	surveil-         to	take	over	both	houses	of	the	Legisla-
arm	 would	 fit	 through	 the	 window	              lance	camera.	                                    ture.	Maybe	a	good	question	for	their	leg-
opening	 due	 to	 the	 cab	 crush.	Within	            The	 video	 clearly	 showed	 that	 the	         islative	candidates	would	be:	“what	state	
minutes	of	the	crash,	the	vehicle	burst	            clerk	failed	to	ask	for	the	proper	identifi-      programs	 do	 you	 propose	 eliminating	
into	 f lames	 and	 the	 driver,	 who	 was	         cation	from	the	young	man.	Further,	the	          outright	 and	 which	 ones	 will	 you	 cut	
unable	to	get	out	of	the	severely	crushed	          parents	 of	 the	 young	 man	 had	 on	 two	       drastically?”	I	suspect	the	answers	to	that	
cab,	died	a	tragic	death.	                          prior	occasions	gone	to	the	store	where	          question	will	be	most	interesting.	But	the	
   We	 brought	 claims	 against	 the	 truck	        the	purchase	was	made	and	informed	the	           voters	need	to	know	the	answers	before	
manufacturer	for	lack	of	crashworthiness	           clerk	on	duty	on	each	occasion	that	their	        November.	
as	well	as	a	claim	for	defects	related	to	                                          T
                                                    son	was	under	the	age	of	21.		 hey	asked	
the	fuel-fed	fire.	During	the	rollover,	one	        the	store	to	not	sell	him	alcohol.
of	the	unprotected	fuel	tanks	ruptured,	              We	were	able	to	develop	a	pattern	and	
spilling	 fuel.	 Unfortunately,	 the	 battery	      practice	of	this	store	selling	alcohol	to	
cables	for	the	engine	were	located	in	an	                                         T
                                                    minors	on	a	regular	basis.		 he	case	was	
                            T
area	near	the	fuel	tank.		 he	cables	arced,	        settled	on	behalf	of	the	parents	for	a	con-


10	                                                 www.BeasleyAllen.com
VII.                                              No vaccine manufacturer shall be                 said	 the	 damages	 intended	 to	 punish	
                                                  liable in a civil action for damages             DuPont	for	its	behavior	should	be	about	
COURT WATCH                                       arising from a vaccine-related                   $39	million,	not	the	nearly	$100	million	
                                                  injury or death... if the injury or              DuPont	was	ordered	to	pay.	In	its	deci-
                                                  death resulted from side effects that            sion,	the	Court	said	it	rejected	DuPont’s	
PuBliC JusTiCe oPPoses PreemPTion For             were unavoidable even though the                 latest	arguments	that	punitive	damages	
vACCine viCTims                                   vaccine was properly prepared and                should	be	modified.
                                                  was accompanied by proper direc-                 Source: Insurance Journal
   Public	Justice	has	struck	another	blow	
                                                  tions and warnings.
for	access	to	justice	by	arguing	against	
federal	 preemption	 in	 a	 U.S.	 Supreme	        The	 Lower	 Court	 bought	 Wyeth’s	
Court	 case	 involving	 vaccine	 preemp-                                                           AlAskA seTTles Pension lAWsuiT For
                                                argument	that	Congress	viewed	any	and	
tion.	 	 he	 case—Bruesewitz	 v.	Wyeth,	
       T
                                                                                                   $500 million
                                                all	 side	 ef fects	 from	 vaccines	 as	
Inc.—will	decide	whether	the	National	          “unavoidable,”	and	thus	that	it	intended	             Alaska’s	Attorney	General,	Dan	Sullivan,	
Childhood	Vaccine	Injury	Act	preempts	          the	Act’s	express	preemption	clause	to	            announced	 last	 month	 that	Alaska	 has	
state-law	 design	 defect	 claims	 against	     wipe	out	all	design	defect	claims	related	         settled	a	breach	of	contract	and	profes-
                                   T
vaccine	drug	manufacturers.		 he	amici	         to	 vaccines.	 In	 response,	 Hannah’s	            sional	 malpractice	 lawsuit	 against	 its	
brief,	which	was	filed	on	behalf	of	Public	     parents	argued	that	the	risks	of	certain	                                                T
                                                                                                   former	actuary	for	$500	million.		 he	set-
Justice,	 the	American	Association	 for	        vaccines—in	 particular,	 the	 dangerous	          tlement	between	the	Alaska	Retirement	
Justice,	 and	 Public	 Citizen,	 emphasizes	    version	of	DPT	marketed	by	Wyeth—are	              Management	Board	and	Mercer	Inc.	may	
the	important	role	that	the	tort	system	        “avoidable,”	 and,	 as	 to	 such	 vaccines,	                                      T
                                                                                                   be	the	largest	of	its	kind.		 his	appears	to	
plays	 in	 promoting	 public	 safety	 and	      there	 is	 no	 federal	 preemption	 under	         be	 a	 great	 result	 for	 state	 workers	 and	
compensating	victims.                           the	Act.                                                                 A
                                                                                                   retirees	in	Alaska.		 ttorney	General	Sulli-
   The	 case	 involves	 the	 diphtheria,	         The	 U.S.	 Supreme	 Court	 granted	              van	is	to	be	commended	for	pursuing	this	
tetanus,	and	pertussis	vaccine,	which	is	       review	 in	 order	 to	 decide	 whether	 all	       matter	in	the	courts.
                                   T
manufactured	by	Wyeth,	Inc.		 ragically,	       vaccine	 manufacturers	 are	 completely	              Alaska	 sued	 Mercer	 in	 2007	 alleging	
Hannah	Bruesewitz,	then	a	healthy	six-          immune	from	common-law	tort	liability,	            that	mistakes	by	the	company	had	con-
month-old,	suffered	catastrophic	injuries	      even	 in	 cases	 where	 the	 manufacturer	         tributed	to	an	$8.4	billion	state	pension	
hours	after	receiving	an	unsafe	version	of	     could	 easily	 have	 chosen	 to	 market	 a	        deficit.	Mercer	had	been	the	actuary	for	
the	 vaccine.	 In	 their	 lawsuit,	 Hanna’s	    safer	alternative.	Public	Justice	appeared	        the	state’s	Public	Employees’	Retirement	
parents	 allege	 that	 at	 the	 time	 Hannah	   in	 this	 case	 to	 argue	 for	 the	 rights	 of	   System	and	Teachers’	Retirement	System	
was	 injured	 by	 the	 dangerous	 vaccine,	     injury	victims	across	America.	Its	brief	          pension	plans.	Of	the	total	amount	to	be	
Wyeth	already	knew	how	to	manufacture	          emphasizes,	contrary	to	Wyeth’s	claims,	           paid,	$100	million	will	come	from	liabil-
a	 much	 safer	 alternative,	 but	 delayed	     that	the	common-law	tort	system	plays	             ity	insurance.	Mercer	will	pay	the	rest.
seeking	approval	from	the	FDA	in	order	         an	absolutely	essential	role	in	spurring	          Source: Montgomery Advertiser
to	cut	costs.	                                  manufacturers	 to	 make	 their	 products	
   By	the	time	Wyeth	finally	decided	to	        safer.	If	the	tort	system	isn’t	allowed	to	
market	the	safer	alternative,	Hannah’s	life	    operate	with	respect	to	vaccines,	then	            suPreme CourT reJeCTs PFizer PuniTive
was	 destroyed.	 Her	 parents	 pursued	 a	      vaccine	manufacturers	will	have	far	less	          dAmAges APPeAl
timely	but	unsuccessful	petition	for	com-       incentive	to	improve	the	safety	of	their	
pensation	 before	 the	 Court	 of	 Federal	     products.	 Such	 a	 result	 would	 pose	 a	           The	U.S.	Supreme	Court	has	rejected	
Claims,	which	was	established	pursuant	         threat	to	the	health	and	safety	of	every	          Pfizer	 Inc.’s	 appeal	 of	 a	 ruling	 that	
to	the	federal	Vaccine	Act	to	offer	mone-       American.                                          ordered	a	retrial	on	the	amount	of	puni-
tary	 awards	 to	 individuals	 who	 suffer	     Source: Public Justice                             tive	damages	that	should	be	awarded	to	a	
certain	vaccine-related	injuries.	Hannah’s	                                                        woman	 who	 developed	 breast	 cancer	
parents	then	sued	Wyeth	in	court,	seeking	                                                         after	 taking	 the	 company’s	 hormone	
compensation	 for	 her	 terrible	 injuries	     WesT virginiA CourT uPholds PuniTive               replacement	therapy	drugs.	Pfizer	argued	
based	 on	 a	 showing	 that	 less	 toxic	       dAmAges AWArd AgAinsT duPonT                       that	 a	 retrial	 limited	 to	 just	 punitive	
vaccine	 alternatives	 were	 readily	 avail-                                                       damages	had	violated	its	constitutional	
able	and	should	have	been	administered	            The	West	Virginia	Supreme	Court	has	            right	to	a	jury	trial	and	that	the	trial	judge	
to	Hannah.                                      refused	to	reconsider	its	decision	involv-         in	the	case	had	improperly	admitted	the	
   The	U.S.	Court	of	Appeals	for	the	Third	     ing	DuPont	and	the	$100	million	award	             testimony	of	a	scientific	expert.
Circuit	dismissed	the	case	on	federal	pre-      of	punitive	damages	awarded	in	a	pollu-               An	Arkansas	 jury	 in	 2008	 ruled	 for	
emption	grounds,	finding	that	the	Vaccine	      tion	case.	DuPont	had	asked	the	Court	to	          Donna	 Scroggin	 in	 her	 lawsuit	 against	
Act	expressly	preempts	all	design	defect	       reconsider	 a	 ruling	 issued	 in	 March	          two	Pfizer	units—Wyeth	and	Upjohn.	She	
claims	related	to	vaccines,	even	in	cases	      involving	 pollution	 at	 a	 longtime	 zinc-       was	 diagnosed	 with	 breast	 cancer	 in	
where	 the	 adverse	 side	 effects	 are	        smelting	plant	in	Spelter,	West	Virginia.	In	      2000,	after	taking	hormone	replacement	
demonstrably	avoidable.	But	the	Act	says:	      seeking	the	rehearing,	DuPont	said	the	                                                T
                                                                                                   therapy	 drugs	 for	 11	 years.	 	 he	 jury	
                                                Court	 gave	 too	 much	 weight	 to	 the	           awarded	her	compensatory	damages	of	
                                                                              T
                                                medical	monitoring	issue.		 he	company	            $2.7	 million	 and	 punitive	 damages	 of	


	                                        www.JereBeasleyReport.com	                                                                           11
$19.4	 million	 against	Wyeth,	 and	 $7.8	                        I	 don’t	 believe	 the	American	 people	       Punishment.	Hopefully,	the	 Center	 will	
                           A
million	against	Upjohn.		 	federal	appeals	                    had	any	idea	how	much	money	the	oil	              prove	to	be	helpful	to	families	through-
court	upheld	the	jury’s	award	of	compen-                       companies	have	been	making.		 he	five	
                                                                                                   T             out	 the	 country.	 Few	 things	 could	 be	
satory	damages,	but	said	a	federal	judge	                      companies,	 including	 BP,	 appearing	 on	                                             A
                                                                                                                 worse	than	having	a	child	abducted.		 ny-
had	 correctly	 set	 aside	 the	 punitive	                     Capitol	Hill,	have	a	combined	worth	of	           thing	that	can	help	a	family	experiencing	
damages	 award	 against	 Upjohn	 as	 a	                        $776	billion	and	earned	$64	billion	last	         such	a	terrible	ordeal	is	most	welcome.	
                T
matter	of	law.		 he	appeals	court	ordered	                     year.		 s	a	matter	of	interest,	BP	paid	CEO	
                                                                      A                                          We	 should	 all	 commend	 this	 brave	
a	new	trial	on	punitive	damages	involving	                     Tony	 Hayward	 $4.7	 million	 last	 year,	        woman	 and	 pray	 that	 the	 Center	 will	
Wyeth.                                                         while	 spending	 only	 $10	 million	 on	          succeed.	
   In	 2002,	 the	 National	 Institutes	 of	                                T
                                                               research.	 	 hat	 certainly	 seems	 out	 of	
Health	published	the	results	of	its	study	                     balance.	One	report	put	Hayward’s	total	
that	linked	the	use	of	hormone	replace-
ment	 therapy	 to	 breast	 cancer.	 In	 its	
                                                               compensation	package	much	higher.
                                                                  Rep.	Waxman’s	 committee	 released	
                                                                                                                 IX.
appeal,	 Pfizer	 opposed	 a	 partial	 retrial	                 documents	that	showed	BP	made	a	series	           THE CORPORATE
limited	to	punitive	damages,	claiming	it	                      of	money-saving	shortcuts	and	blunders	           WORLD
would	lead	to	confusion	and	uncertainty	                       that	dramatically	increased	the	danger	of	
for	the	jury	and	would	be	a	denial	of	its	                     a	 destructive	 spill	 from	 a	 well	 that	 an	
                       T
right	to	a	fair	trial.		 he	pharmaceutical	                    engineer	ominously	described	as	a	“night-         PoWerFul CorPorATions Work To deny
company,	and	a	number	of	groups	sup-                           mare”	 just	 six	 days	 before	 the	 April	       JusTiCe To viCTims
porting	it,	said	the	appeals	court	should	                     blowout.	Investigators	found	that	BP	was	
have	ordered	an	entirely	new	trial.	But,	                      badly	behind	schedule	on	the	project	and	           Powerful	 corporations	 with	 virtually	
the	Supreme	Court	rejected	the	compa-                          losing	hundreds	of	thousands	of	dollars	          unlimited	resources	are	endangering	con-
ny’s	appeal	without	any	comment.	                                                        T
                                                               with	each	passing	day.		 he	investigators	        sumers	 and	 working	 openly,	 and	 also	
Source: Insurance Journal                                      say	that	BP	responded	by	cutting	corners	         behind	 the	 scenes,	 to	 deny	 folks	 who	
                                                               in	the	well	design,	cementing	and	drilling	       become	victims	of	corporate	wrongdoing	
                                                               efforts	and	the	installation	of	key	safety	                              T
                                                                                                                 of	their	day	in	court.		 hese	corporations	
                                                               devices.	“Time	after	time,	it	appears	that	       drown	out	the	voices	of	American	citi-
VIII.                                                          BP	made	decisions	that	increased	the	risk	        zens	in	the	political	world	and	attempt	to	
THE NATIONAL                                                   of	a	blowout	to	save	the	company	time	or	         close	 off	 their	 access	 to	 justice.	 It’s	
SCENE                                                          expense,”	 Rep.	Waxman	 and	 Rep.	 Bart	          become	evident	that	the	rights	of	con-
                                                               Stupak,	(D-MI),	chairman	of	the	commit-           sumers	have	to	be	fought	for	on	a	daily	
                                                               tee’s	 investigations	 panel,	 wrote	 in	 a	      basis.	When	you	put	together	a	list	of	all	
Congress grills oil Bosses                                     letter.	 Hopefully,	 Congress	 will	 take	 all	   of	those	in	Corporate	America	who	have	
                                                               required	steps	to	make	sure	that	a	disas-         committed	 massive	 wrongdoings	 over	
   As	hearings	commenced	on	the	Gulf	of	                       ter	such	as	the	one	caused	by	BP	never	           the	past	few	years,	that	list	will	be	quite	
Mexico	 oil	 spill	 disaster	 last	 month,	                                      A
                                                               happens	again.		 ll	of	the	victims	of	this	                T
                                                                                                                 lengthy.		 he	civil	justice	system	is	defi-
members	 of	 Congress	 chastised	 the	                         disaster	must	be	fully	compensated	for	           nitely	 worth	 fighting	 for	 and	 must	 be	
largest	oil	companies,	accusing	them	of	                       both	their	losses	and	damages,	both	in	           defended.	If	the	bad	guys	in	Corporate	
being	no	better	prepared	than	BP	to	avert	                     the	past,	and	also	for	the	future.	It’s	also	     America	are	successful	in	destroying	the	
an	environmental	catastrophe.		 s	the	oil	   A                 critically	important	that	all	responsible	        jury	system,	ordinary	citizens	will	have	
executives	testified	at	a	House	hearing,	                      for	this	disaster	be	punished	severely.	          nowhere	else	to	go	to	seek	justice.	If	you	
Rep.	 Henry	Waxman	 asserted	 that	 the	                       Source: Forbes                                    believe	 the	 American	 jury	 system	 is	
c o m p a n i e s ’	 s p i l l 	 re s p o n s e 	 p l a n s	                                                     worth	saving,	join	in	the	battle!
amounted	to	“paper	exercises”	that	mir-
rored	BP’s	failed	plan.		 ccording	to	the	
                                  A                            The nATAlee holloWAy resourCe CenTer
California	Democrat,	the	companies’	strat-                                                                       Poor regulATion hurTs The PuBliC
egies	to	plug	a	spill	deep	beneath	the	sea	                       The	Natalee	Holloway	Resource	Center	          BAdly
are	the	same	failed	strategies	that	have	                      was	opened	last	month	in	Washington.	Its	
stymied	BP.	Rep.	Waxman	said	the	other	                        goal—a	very	good	one—is	to	help	fami-                There	has	been	a	constant	cry	over	the	
companies	“are	 no	 better	 prepared	 to	                      lies	of	missing	persons.	Beth	Holloway,	a	        years	by	many	Republican	politicians	for	
deal	with	a	major	oil	spill	than	was	BP.”	                     most	 courageous	 woman,	 has	 been	              a	 cutback	 in	 the	 regulation	 of	 certain	
Interestingly,	the	executives	for	the	other	                   through	a	terrible	ordeal	over	the	past	          industries.	If	anybody	believes	that	either	
oil	 companies	 tried	 to	 distance	 them-                     five	years.	She	spoke	at	the	news	confer-         poor,	lax	or	no	regulation	by	the	federal	
selves	 from	 BP,	 telling	 lawmakers	 they	                   ence	announcing	the	Center.	Mrs.	Hollo-           government	is	the	way	to	go	and	is	suffi-
would	 not	 have	 drilled	 the	 Deepwater	                     way	believes	the	Center	“will	serve	as	a	         cient	 to	 insure	safety	 and	 good	perfor-
Horizon	well	in	the	same	way	the	British	                      point	of	light	for	all	missing	persons.”	The	     mance	 by	 big	 companies	 like	 BP,	 they	
company	 did.	 	 hey	 even	 said	 some	 of	
                     T                                         Resource	Center,	co-founded	by	her,	was	          haven’t	been	keeping	up	with	the	news	
BP’s	 design	 decisions	 and	 actions	 may	                    officially	opened	with	a	public	fundraiser	       over	the	past	few	months.	Consider	the	
have	jeopardized	well	integrity.	                              at	 the	 National	 Museum	 of	 Crime	 and	        following:	 we	 have	 had	 a	 tremendous	
                                                                                                                 number	of	miners	killed	in	the	mines;	at	


12	                                                            www.BeasleyAllen.com
least	89	deaths	due	to	Toyota’s	sudden	          done	in	Washington,	but	they	are	begin-      doing	pretty	well	in	the	biotech	industry,	
acceleration	problems;	unsafe	drugs	put	         ning	to	find	out.	But	until	we	figure	out	a	 building	 a	 multibillion	 dollar	 business	
on	the	market	killing	hundreds;	millions	        way	to	stop	the	flow	of	money	from	Cor-      around	treatments	for	rare	diseases.	Cer-
of	vehicles	recalled	for	safety	problems;	       porate	America—and	specifically	the	oil,	    ezyme	treats	Gaucher	disease,	an	enzyme	
unsafe	foods	on	the	market;	and	now	the	         drug,	 and	 insurance	 industries—the	       disorder	that	can	result	in	liver	and	neu-
BP	oil	spill	disaster.	You	can	readily	see	      public	will	continue	to	have	little	say	on	  rological	 problems,	 while	 Fabrazyme	
that	there	are	certain	industries	that	must	     what	happens	in	Congress.                    treats	 an	 inherited	 disorder	 known	 as	
be	properly	regulated.	When	the	govern-          Source: Center for Responsive Politics       Fabry	 disease,	 which	 is	 caused	 by	 the	
ment	turns	over	standard-making,	regula-                                                      buildup	of	a	particular	type	of	fat	in	the	
tion,	and	monitoring	to	an	industry,	that	is	                                                 body’s	 cells.	 Myozyme	 treats	 Pompe	
a	recipe	for	disaster.	                          FdA Fines genzyme For ProBlems AT A          disease,	 which	 interferes	 with	 muscle	
   Many	of	the	regulatory	agencies	suffer	       mAnuFACTuring PlAnT                                          T
                                                                                              development.		 hyrogen	is	used	to	diag-
from	 a	 shortage	 of	 funds	 and	 staffing	                                                  nose	 thyroid	 cancer.	 My	 advice	 to	
problems.	In	others	the	industry	actually	          Biotech	 drug	 maker	 Genzyme	 Corp.	 Genzyme	is	to	clean	up	its	plants!
controls	 the	 regulators.	 	 lso	 there	 are	
                             A                   has	agreed	to	pay	a	$175	million	penalty	 Source: Associated Press
agencies	that	lack	the	statutory	authority	      to	federal	regulators	in	connection	with	
to	carry	out	their	responsibilities.	Con-        long-standing	 manufacturing	 problems	
sider	that	OSHA,	which	is	responsible	for	       that	have	already	cost	the	company	mil-
workers’	 safety,	 doesn’t	 have	 enough	        lions.		 ccording	to	the	Food	and	Drug	 X.
                                                         A
inspectors	to	visit	all	of	the	workplaces	in	    Administration,	 the	 company	 signed	 a	 TOYOTA
the	United	States	more	than	once	every	          legal	 agreement	 to	 fix	 problems	 at	 an	
                                                 Allston	 facility	 that	 makes	 injectable	
                                                                                              LITIGITATION
130	years.	We	need	to	give	the	agencies	
adequate	funding	and	staffing	and	pass	          biotech	 drugs.	 Under	 terms	 of	 the	
laws	necessary	to	give	them	authority	to	        consent	decree,	Genzyme	must	map	out	
                                                                                              nhTsA sAys 89 deAThs mAy Be linked
do	their	jobs.                                   a	plan	for	overhauling	the	plant	and	stick	
                                                                                              To ToyoTA
                                                 to	a	preset	timetable	or	face	additional	
                                                        T
                                                 fines.		 he	decree	also	sets	a	deadline	for	   The	federal	government	now	says	the	
Big oil Pours money ouT To The                   transferring	 Genzyme’s	 operation	 for	 death	toll	from	Toyota’s	unintended	accel-
PoliTiCiAns And loBByisTs By The                 filling	drug	vials	to	a	new	manufacturing	 eration	crashes	are	up	to	89.	NHTSA	said	
millions                                         site.	FDA	principal	deputy	commissioner	 it	now	has	6,200	reports	of	unintended	
                                                 Joshua	Sharfstein	had	this	to	say:	          acceleration	in	Toyota	vehicles	from	2000	
  Over	the	years,	the	big	oil	companies	                                                         through	 May	 20 th	 of	 this	 year.	 	 hose	
                                                                                                                                       T
have	been	able	to	control	what	happens	            It is critical for the safety of the
                                                   drug supply that companies comply             include	 allegations	 of	 71	 crashes	 in	
in	 Congress	 and	 now	 the	 American	                                                           which	 89	 people	 are	 said	 to	 have	
people	are	paying	for	it.		 he	companies	
                             T                     with basic manufacturing stan-
                                                   dards. FDA takes these obligations                   T
                                                                                                 died.		 hat	number	of	deaths	is	up	71%	
have	gained	and	maintained	control	by	                                                           from	 NHTSA’s	 previous	 report	 of	 52	
giving	large	“campaign	donations”	to	their	        very seriously and expects manu-
                                                   facturers to do the same.                     deaths	 allegedly	 resulting	 from	Toyota	
political	friends	and	by	having	powerful	                                                        unintended	acceleration.
and	highly-influential	lobbyists	on	their	          In	 June,	 Genzyme,	 located	 in	 Cam-          Actually,	I	believe	the	actual	numbers	
            T
payrolls.		 he	lobbyists	make	sure	those	        bridge,	 shut	 down	 its	 plant	 for	 about	    will	be	lots	higher.	For	example,	Safety	
who	take	their	money	follow	to	the	letter	       three	months	to	clean	up	viral	contami-         Consultant	Sean	Kane	says	that	incidents	
the	 industry	 line.	 Lobbyists	 are	 the	       nation	that	had	been	slowing	production	        reported	 to	 NHTSA	 usually	“represent	
channel	of	influence	in	Washington	and	          of	the	drugs	Cerezyme	and	Fabrazyme.	In	        only	a	fraction	of	the	total”	and	that	Con-
there	is	no	real	dispute	about	that.	During	     November,	the	FDA	found	tiny	particles	         gress	has	reports	of	“nearly	38,000	poten-
the	Bush	years	Big	Oil	took	full	advantage	      of	 trash	 in	 drugs	 made	 by	 Genzyme,	       tial”	 acceleration	 incidents	 involving	
of	its	alliance	with	the	Administration.	                                                T
                                                 including	 steel,	 rubber	 and	 fiber.	 	 he	                     T
                                                                                                 Toyota	vehicles.		 hat	is	much	higher	than	
  According	to	the	Center	for	Respon-            agency	 recommended	 that	 doctors	                                T
                                                                                                 NHTSA’s	6,200.		 here	is	no	telling	how	
sive	 Politics,	 the	 five	 oil	 companies	      closely	inspect	vials	of	four	drugs	made	at	    many	people	have	been	killed	because	of	
whose	top	executives	traveled	to	Capitol	        the 	 plant:	 Cerezyme,	 Fa brazyme,	           Toyota’s	unintended	acceleration	crashes.	
Hill	 in	Washington	 to	 testify	 about	 the	    Myozyme	and	Thyrogen.	                          Many	of	the	deaths	were	blamed	on	the	
gulf	oil	spill	have	spent	$18.7	million	lob-        Since	 January,	 Genzyme	 has	 restruc-      driver’s	 conduct	 because	 of	 the	 speed	
                       T
bying	so	far	in	2010.		 hose	firms	account	      tured	 its	 manufacturing	 operations,	         involved.	
for	about	50%	of	the	$38.2	million	the	oil	      naming	a	new	president	of	global	manu-          Source: USA Today
industry	has	spent	on	K	Street	(the	home	        facturing	and	corporate	operations,	along	
                               A
of	lobbyists)	so	far	in	2010.		 s	a	point	of	    with	 a	 senior	 vice	 president	 of	 global	
reference	consider	that	in	2009	the	oil	         product	quality.	It	also	contracted	manu-
giants	 spent	 $175	 million	 for	 lobbyists	    facturing	for	some	of	its	key	products	to	
and	 in	 2008	 the	 total	 spent	 was	 $92.5	    Hospira	Inc.	Prior	to	the	problems	with	
million.	 Unfortunately,	 most	Americans	        its	Allston	 plant,	 Genzyme	 had	 been	
haven’t	had	a	clue	about	how	things	are	


	                                         www.JereBeasleyReport.com	                                                                      13
Judge orders ToyoTA To ProduCe                  lawyers	 should	 structure	 their	 revised	 XI.
doCumenTs                                       Complaint.	Currently,	there	are	over	200	
                                                federal	lawsuits	filed	around	the	country	 PRODUCT
   A	U.S.	federal	judge	has	ordered	Toyota	     for	personal	injury,	wrongful	death	and	 LIABILITY UPDATE
to	turn	over	the	bulk	of	documents	from	        economic	 loss	 claims	 stemming	 from	
previous	 investigations	 of	 complaints	       acceleration	 issues—all	 of	 them	 now	
                                      T
about	its	cars	racing	out	of	control.		 hese	   brought	together	in	the	consolidated	pre- The overlooked ProBlem oF CloThing-
doctors	were	sought	in	litigation	by	class-     trial	 proceedings	 overseen	 by	 Judge	 relATed Burn inJuries And deAThs
                   T
action	lawyers.		 he	discovery	order	by	                T
                                                Selna.		 oyota	says	it	faces	about	100	other	
U.S.	 District	 Judge	 James	 Selna	 was	 a	    lawsuits	 filed	 in	 various	 state	 courts	      Our	firm	represents	a	family	that	lost	
                              T
major	 defeat	 for	Toyota.	 	 he	 Japanese	     around	the	country.	                           its	mother	when	the	Blair	robe	she	was	
automaker	faces	potential	civil	liability	      Source: Reuters                                wearing	 caught	 fire.	 	Tragically,	 the	
estimated	 conservatively	 at	 more	 than	                                                                                  T
                                                                                               woman	burned	to	death.		 his	event	illus-
              A
$10	billion.		 s	all	America	knows,	com-                                                       trates	one	of	 the	 overlooked	problems	
plaints	of	runaway	vehicles	have	led	to	        ToyoTA PlAys gAmes WiTh The PuBliC             with	consumer	safety—clothing-related	
the	recall	of	more	than	8	million	Toyota	                                                      burns	and	deaths.
vehicles	worldwide	for	repairs	of	what	is	         Toyota	waited	nearly	a	year	in	2005	to	        On	average,	120	people	die	and	over	
being	described	as	ill-fitting	floor	mats	      recall	 trucks	 and	 SUVs	 in	 the	 United	 4,300	 are	 seriously	 injured	 each	 year	
and	 sticking	 gas	 pedals	 the	 automaker	     States	 with	 defective	 steering	 rods,	 from	clothing-related	burns.	Remarkably,	
blames	for	surging	engines.	Many	of	the	        despite	issuing	a	similar	recall	in	Japan	 the	textile	and	clothing	industry	has	done	
lawsuits	assert	that	at	least	some	of	the	      and	 receiving	 dozens	 of	 reports	 from	 very	little	over	the	past	half	century	to	
acceleration	problems	were	caused	by	an	        Ameri	 an	 motorists	 about	 rods	 that	 decrease	the	flammability	of	the	clothes	
                                                         c
electronic	glitch,	a	problem	that	Toyota	       snapped	without	warning,	according	to	 and	minimize	this	safety	issue.	Instead,	
has	denied.                                     documents	recently	obtained	by	the	Asso- the	industry	chooses	to	manufacture	its	
   The	 Plaintiffs’	 lawyers	 were	 seeking	    ciated	Press.		 he	lengthy	gap	between	 clothes	to	conform	to	an	outdated	and	
                                                                 T
about	 125,000	 pages	 of	 internal	 docu-                                                                             T
                                                the	Japanese	and	U.S.	recalls—strikingly	 minimum	standard.		 he	majority	of	the	
ments	already	submitted	to	Congressional	       similar	to	Toyota’s	handling	of	the	recent	 clothing	or	textile	products	sold	in	this	
                                      T
panels	and	auto	safety	regulators.		 hose	      recall	 for	 sudden	 acceleration	 prob- country	are	regulated	by	the	Flammable	
documents	have	remained	largely	confi-                                                                       T
                                                lems—triggered	a	new	investigation	in	 Fabrics	Act.		 he	Act	was	passed	by	Con-
dential,	 except	 for	 a	 relatively	 small	    May	by	NHTSA.	                                                   T
                                                                                               gress	 in	 1953.	 	 he	 vast	 majority	 of	 all	
number	 cited	 in	 recent	 Congressional	          It	isn’t	clear	whether	NHTSA	will	order	 clothing-related	 injuries	 and	 deaths	
hearings	 on	Toyota’s	 handling	 of	 com-       a	timeliness	investigation.		 n	automaker	 occurred	with	fires	involving	apparel	that	
                                                                              A
plaints	of	sudden,	unintended	accelera-         is	 re	 uired	 to	 notify	 NHTSA	 about	 a	 complied	with	this	standard.	
                                                       q
tion	in	its	vehicles.                           defect	 within	 five	 days	 of	 deter	 ining	
                                                                                      m           Since	1953,	the	Flammable	Fabric	Act	
   Under	Judge	Selna’s	order,	Toyota	had	       that	one	exists.	I’m	not	sure	what	more	 has	essentially	been	unchanged.	It	was	
30	days	to	turn	over	any	English-language	      NHTSA	needs.	NHTSA	now	has	linked	16	 enacted	to	remove	from	the	market	only	
documents	 it	 does	 not	 consider	 privi-      crashes,	three	deaths	and	seven	injuries	 those	garments	that	were	the	most	highly	
leged—those	involving	communications	                                                                        T
                                                to	the	steering	rod	de	ect.	When	a	steer- flammable.		 he	vast	majority	of	textile	
                                                                          f
                           T
with	 its	 own	 lawyers.	 	 he	 judge	 gave	    ing	rod	snaps,	the	driver	cannot	control	 products	subjected	to	the	standard’s	test	
Toyota	 up	 to	 60	 days	 to	 produce	 Japa-    the	ve	 icle	because	the	front	wheels	will	 readily	pass	and	are	designated	as	“Class	
                                                        h
nese-language	papers	among	the	docu-            not	turn.	                                     one	 normal	 flammability.”	This	 result	
ments,	said	by	the	automaker	to	number	            After	the	2004	Japanese	re	 all,	Toyota	 unfortunately	implies	that	the	textiles	are	
                                                                                 c
                       A
some	20,000	pages.		 ny	documents	con-                                                                                     T
                                                claimed	initially	that	it	had	very	little	evi- safe	to	use	in	clothing.		 he	concept	of	
taining	trade	secrets	or	other	information	     dence	of	a	steering	rod	problem	among	 “normal	flammability”	in	the	context	of	
that	might	compromise	Toyota’s	competi-         U.S.		 rucks	and	SUVs.	But	the	AP	found	 this	 test	 is	 misleading	 as	 a	 measure	 of	
                                                      T
tive	 position	 will	 be	 kept	 confidential	   that	the	automaker	had	received	at	least	 safety.	“Normal	flammability”	is	merely	a	
under	a	protective	order.	Disclosure	of	        52	 reports	 from	 U.S.	 drivers	 about	 the	 term	 defined	 by	 the	 general	 wearing	
the	documents	will	make	it	easier	to	draft	     de	 ect	before	vehicles	were	re	 alled	in	 apparel	 standard.	 Ordinary	 news	 print	
                                                   f                                c
a	newly-consolidated	version	of	all	legal	      Japan.	 It’s	 interesting—and	 perhaps	 paper	passes	this	test.	Consumers	need	to	
claims	 seeking	 compensation	 from	            telling—that	the	Associated	Press	seems	 be	aware	that	a	“does	not	ignite”	result	
Toyota	 for	 economic	 losses—such	 as	         to	be	doing	a	better	job	than	NHTSA.           under	 these	 test	 conditions	 does	 not	
diminished	resale	value—stemming	from	          Source: Associated Press                       mean	that	a	fabric	will	not	ignite	under	
the	 acceleration	 problems	 and	 related	                                                     real	 world	 conditions.	 In	 addition,	 just	
recalls.                                                                                       because	the	fabric	passes	the	standard	
   The	judge	felt	that	30	days	was	suffi-                                                      does	not	mean	that	it	will	prevent	a	fairly	
cient	for	the	bulk	of	documents	already	                                                       rapid	spread	of	flames	up	the	fabric.	Fur-
delivered	to	Congress	and	the	National	                                                        thermore,	the	standard	only	measures	the	
Highway	Traffic	 Safety	Administration.	                                                       rate	 of	 flame	 spread	 up	 the	 fabric	 test	
Judge	Selna	also	rejected	Toyota’s	recom-
mendations	 for	 how	 the	 Plaintiffs’	


14	                                             www.BeasleyAllen.com
specimen,	 but	 permits	 a	 rapid	 flame	        Jury reTurns verdiCT in yAmAhA CAse              pending	against	Yamaha	in	federal	court	
spread.	                                                                                          and	 in	 the	 Superior	 Court	 of	 Orange	
   There	can	be	no	doubt	that	the	indus-            In	 what	 was	 described	 as	 a	 test	 for	                       T
                                                                                                  County,	California.		 here	is	also	a	consoli-
try	 can	 design	 and	 test	 its	 clothes	 to	   similar	 cases	 pending	 in	 Gwinnett	           dated	case	in	U.S.	District	Court	for	the	
decrease	the	injuries	and	deaths	caused	         County,	 Georgia,	 a	 State	 Court	 jury	        Western	District	of	Kentucky,	
by	flammable	clothing.		 he	textile	indus-
                          T                      awarded	 $317,002	 to	 a	 north	 Georgia	        Source: Law.com
try	could	utilize	the	more	stringent	Flam-       couple	last	month	to	compensate	them	
ma bility	 Standards	 for	 children’s	           for	injuries	caused	when	the	husband’s	
sleepwear.	 In	 the	 1970s,	 Congress	           leg	 was	 trapped	 under	 his	Yamaha	 off-       $5,661,000 verdiCT in goodyeAr Tire
enacted	the	Children’s	Sleepwear	Stan-                           T
                                                 road	vehicle.		 his	case	is	one	of	the	first	    CAse
dard	Act	which	had	as	its	goal	to	protect	       to	reach	a	verdict	among	product	liability	
young	children	up	to	twelve	years	of	age	        cases	filed	and	pending	against	Yamaha	in	          A	jury	in	New	Port	Richie,	Florida,	has	
from	 the	 unreasonably	 risk	 of	 thermal	               A
                                                 the	U.S.		 nd	Canada	alleging	defects	in	its	    returned	 a	 $5,661,000	 verdict	 against	
burns	caused	by	burning	sleepwear.		 he	 T       Rhino-model	recreational-utility	vehicle.        Goodyear	Tire	&	Rubber	Company.		 he	   T
Children	 Sleepwear	 Standards	 Act	                Roger	 McTaggart,	 a	 resident	 of	 Blue	     case	involved	a	tread/belt	detachment	on	
brought	 about	 certain	 changes	 to	 the	       Ridge,	 Georgia,	 was	 injured	 in	 a	 2007	     a	right	front	Goodyear	G159	tire	mounted	
materials	and	construction	of	children’s	        accident.	 He	 was	 driving	 his	 Rhino,	                                        T
                                                                                                  on	a	Class	A	mobile	home.		 he	verdict	
sleepwear	in	order	to	reduce	the	risk	of	        stopped	 the	 vehicle,	 and	 then	 started	      was	 all	 compensatory	 damages.	 	 he	 T
cloth-related	 burns.	 	T he	 standards	         going	forward	again.	He	then	turned	the	         claims	against	Fleetwood	Motor	Homes,	
required	the	fabric,	once	ignited,	to	extin-     steering	wheel	to	the	right,	and	the	Rhino	      the	 RV	 manufacturer,	 and	 the	 retailer	
                                       T
guish	before	burning	seven	inches.		 hose	       tipped	onto	the	driver’s	side,	trapping	his	     were	severed	because	of	their	bankrupt-
changes	resulted	in	safer	sleepwear	and	         leg	 under	 the	 vehicle.	 McTaggart	 sus-              T
                                                                                                  cies.	 	 he	 case	 was	 tried	 only	 against	
contributed	to	a	reduction	in	burn	inju-         tained	a	“crush”	injury	in	which	the	“skin	                  T
                                                                                                  Goodyear.		 he	victim,	who	died	of	natural	
ries	and	deaths	for	the	public	at	large.	        exploded”	and	bone	was	exposed.		 he	     T      causes	two	years	before	the	trial	started,	
   Everyday	 in	 this	 country,	 people	 are	    area	where	the	incident	occurred	was	“an	        suffered	the	loss	of	both	legs	below	the	
subjected	to	burns	and	die	in	clothing-          uneven,	relatively	flat,	grassy	area,”	accord-   knee.	His	widow	received	severe	facial	
related	fires.	Many	of	these	losses	are	pre-     ing	to	the	Complaint.	Yamaha’s	lawyers	                                         T
                                                                                                  injuries,	but	has	recovered.		 his	was	the	
ventable,	 yet,	 the	 Federal	 standard	         disputed	that	description.	                      third	 largest	 verdict	 in	 the	 history	 of	
regulating	the	flammability	of	these	prod-          McTaggart	and	his	wife,	Glenda,	sued	         Pasco	 County.	 Chris	 Roberts,	 a	 lawyer	
ucts	 remains	 unchanged.	 Regulators	           three	separate	Yamaha	corporate	entities	        with	Smith	&	Fuller,	located	in	Belleair	
could	build	on	the	proven	approach	of	           in	Gwinnett	County	State	Court.		 mong	A         Bluffs,	Florida,	represented	the	plaintiff	
the	 Children’s	 Sleepwear	 Standard	Act,	       their	 claims,	 they	 contended	 that	 the	      and	did	a	very	good	job.	
and	develop	a	modernized	clothing	flam-          Yamaha	 Rhino	 should	 have	 included	 a	
mability	 standard	 that	 equally	 protects	     barrier	to	contain	a	rider’s	legs	inside	the	
the	public.		 he	textile	and	apparel	indus-
             T                                             A
                                                 vehicle.		 lthough	Plaintiffs	in	cases	filed	    CooPer Tire involved in TrAgiC highWAy
try	could	move	towards	the	production	           against	Yamaha	in	other	courts	have	said	        CrAsh
of	 safer	 garments	 by	 re-designing	 its	      that	there	are	problems	with	the	Rhino’s	
products.	In	addition,	greater	use	of	effec-     stability	which	cause	the	vehicle	to	roll	          A	 faulty	 tire	 is	 said	 to	 have	 caused	 a	
tive,	visible,	clothing	fire	warning	labels	     over,	 that	 contention	 was	 not	 made	 in	     fatal	 crash	 involving	 eight	 high	 school	
would	help.	Historically,	it’s	been	proven	      this	case.	                                                                            T
                                                                                                  students	in	 Florida	last	year.	 	 he	crash	
that	most	consumers	don’t	recognize	or	             After	a	two-week	trial,	the	jury	awarded	     occurred	on	an	interstate	highway,	and	
appreciate	that	much	of	the	clothing	they	                                    T
                                                 $317,002	to	the	Plaintiffs.		 he	award	con-      four	students	were	killed	and	four	more	
purchase	can	be	so	easily	ignited.	              sisted	 of	 pain-and-suffering	 damages,	                   T
                                                                                                  injured.		 he	tragic	accident	was	on	the	
   Clothing-related	 causalities	 will	          medical	expenses,	lost	wages,	future	lost	                              A
                                                                                                  last	day	of	school.		 ccording	to	the	inves-
undoubtedly	continue	unless	changes	are	         wages	 and	 loss	 of	 consortium	 for	 Mrs.	     tigation	by	the	Florida	Highway	Patrol,	
made	 to	 the	 way	 clothing	 is	 manufac-                     T
                                                 McTaggart.		 he	jury	did	not	award	puni-         the	Ford	Explorer	the	teens	were	riding	
tured	and	labeled.		 he	effects	of	the	Chil-
                     T                                            T
                                                 tive	damages.		 he	jury	felt	it	was	signifi-     in	rolled	after	the	tread	on	its	left	rear	
dren’s	Sleepwear	Standards	demonstrate	          cant	that	Yamaha	had	not	performed	any	          tire,	a	Cooper	Cobra,	separated.
that	the	frequencies	of	deaths	and	inju-         testing	on	the	Rhino	specific	to	occupant	          One	 lawsuit	 has	 been	 filed	 against	
ries	will	decline	if	changes	are	made	to	                        T
                                                 containment.		 he	jury	believed	that	was	        Cooper	Tire	&	Rubber	Co.,	Ford	Motor	
the	fabric	and	apparel.	It	is	time	that	the	     something	 the	 company	 should	 have	                 A
                                                                                                  Co.	 	 nd	 two	 other	 Defendants.	 It	 was	
textile,	apparel,	and	retailing	industries	      tested.	Had	they	done	so,	the	company	           alleged	 in	 the	 suit	 that	 Cooper	 had	 an	
respond	by	producing	safer	clothing.	If	         would	have	known	this	was	a	danger	a	            “outrageously	high	number	of	tread	sepa-
you	 need	 more	 information	 on	 this	          lot	of	people	would	run	into.                    rations.”	The	 company’s	 manufacturing	
subject	contact	Rick	Morrison	in	our	firm	          Andy	 Childers	 of	 the	Atlanta	 firm	 of	    process	 was	 also	 blamed	 in	 the	
at	 800-898-2034	 or	 by	 email	 at	 Rick.	      Childers,	Schlueter	&	Smith,	along	with	                  T
                                                                                                  crash.		 here	have	 been	 numerous	law-
Morrison@beasleyallen.com.	                      Bob	 Blanchard,	Troy	 Rafferty	 and	 Kim-        suits	 filed	 against	 the	 company.	 But	
                                                 berly	 R.	 Lambert	 from	 the	 Pensacola,	       Cooper	still	hasn’t	corrected	the	safety	
                                                 Florida,	 firm	 Levin,	 Papantonio,	 repre-      issues	 with	 its	 tires.	 Folks	 have	 been	
                                                 sented	 the	 Plaintiffs.	 Other	 cases	 are	     dying	 all	 over	 the	 United	 States	 for	 a	



	                                         www.JereBeasleyReport.com	                                                                            15
number	 of	 years	 because	 of	 defective	           Sarah	Goodner,	who	was	19-years-old,	         analyzing	 the	 effect	 lap	 belts	 have	 on	
Cooper	Tires.	 Florida	 Highway	 Patrol	          was	killed	in	a	2007	car	accident	when	                                        T
                                                                                                   reclined-seat	occupants.		 he	report	dis-
investigators	found	no	indication	the	tires	      she	was	ejected	from	the	reclined	seat	of	       cussed	sled	testing	in	which	the	seatback	
weren’t	properly	inflated	and	no	nails	or	        the	Hyundai	Tucson	SUV.	Sarah	was	taking	        was	reclined	almost	fully.	When	the	sled	
other	objects	were	found	that	might	have	         a	 nap	 in	 the	 front	 passenger	 reclining	    stopped	suddenly,	the	test	dummy	sub-
             T
damaged	it.		 he	Explorer’s	owners	had	           seat	when	she	was	thrown	out	of	the	car	         marined	 under	 the	 lap	 belt	 almost	 ten	
taken	the	vehicle	for	service	and	replaced	       when	 it	 rolled	 over	 on	 a	West	Texas	        inches,	driving	the	belt	into	the	dummy’s	
two	tires	two	weeks	earlier	at	a	Cooper	                     T
                                                  highway.		 he	federal	jury	returned	a	$1.8	      abdominal	cavity.	
distributor.                                      million	verdict	against	Hyundai	for	using	          In	 1988,	 the	 National	Transportation	
Source: Jacksonville.com                          a	 defective	 reclining	 seat	 system.	 Evi-     Safety	 Board	 conducted	 a	 safety	 study	
                                                  dence	presented	during	the	trial	showed	         where	one	of	the	issues	was	the	effect	of	
                                                  that	 the	 lap	 seat	 belt	 was	 supposed	 to	                          T
                                                                                                   reclining	seatbacks.		 he	NTSB	examined	
more on The dAngers oF 15-PAssenger               provide	 the	 primary	 safety	 protection,	      167	collisions	involving	passengers	who	
vAns                                              but	it	failed	to	prevent	the	young	victim	                                                T
                                                                                                   had	 worn	 three-point	 restraints.	 	 he	
                                                  from	sliding	out	from	under	the	lap	seat	        result	showed	that	three-point	restraints	
  We	 have	 received	 a	 large	 number	 of	       belt	 when	 the	 seat	 was	 fully	 reclined.	    offered	 good	 protection	 only	 if	 worn	
comments	 and	 inquiries	 about	 the	             Sarah	was	wearing	the	seat	belt	lap	and	                    A
                                                                                                   properly.		 n	occupant	who	wears	a	seat-
dangers	of	the	15-passenger	van	since	the	        shoulder	restraint.                              belt	while	his	seat	is	reclined	is	not	“cen-
June	 issue	 was	 mailed	 and	 received.	 	 	A       Hyundai	told	the	jury	that	its	reclining	     tered”	 in	 the	 belt,	 rendering	 the	 belt	
number	of	our	readers	told	as	of	safety	          seat	was	only	supposed	to	be	used	when	          ineffective	 for	 spreading	 crash	 forces	
problems	 involving	 these	 vans.	 Others	        the	car	was	not	moving.	In	fact,	the	car-        over	the	body.	
had	questions	relating	to	the	risks	associ-       maker	blamed	Sarah	for	not	reading	the	             The	 NTSB	 stated	 that	 the	 protection	
ated	 with	 the	 vans.	 It’s	 really	 hard	 to	   fine	print	in	the	owner’s	manual.	Hyundai	       offered	by	any	type	of	seatbelt	is	compro-
believe	that	any	organization—including	          has	failed	to	use	available	accident	safety	     mised	when	the	seat	is	reclined	present-
churches—would	still	use	a	15-passenger	          technology	that	would	prevent	reclining	         ing	a	“potentially	dangerous	combination	
van	to	transport	people.	If	you	want	more	        seats	from	being	tilted	back	at	more	than	       in	a	moving	vehicle.”	It	was	noted	by	the	
information	 on	 the	 subject,	 you	 can	                               A
                                                  a	45-degree	angle.		 	life	could	have	been	      NTSB	that,	“since	vehicles	had	been	mar-
contact	 Chris	 Glover,	 a	 lawyer	 in	 our	      saved	if	Hyundai	had	used	a	system	cur-          keted	 with	 reclining	 seats,	 most	 adults	
Product	Liability	Section,	at	800-898-2034	       rently	 used	 by	 another	 automobile	           and	children	were	tempted	to	combine	
or	by	email	at	Chris.Glover@beasleyallen.         company	 that	 automatically	 returns	 a	        belt	use	with	a	reclined	seat.”	The	study	
com.	You	can	also	go	to	www.vanangels.org	.       reclining	seat	to	the	upright	position	in	       concluded	 that,	“at	 best,	 lap/shoulder	
                                                                                     T
                                                  the	event	of	a	car	accident.		 odd	did	a	        belts,	indeed,	any	type	of	seatbelt,	offered	
                                                  very	 good	 job	 for	 Sarah’s	 family	 and	      reduced	effectiveness	when	used	with	a	
reClining seATs Are A hidden dAnger               should	be	commended	for	his	hard	work	                             A
                                                                                                   reclined	 seat.	 	 t	 worst,	 a	 lap/shoulder	
                                                  and	efforts	to	bring	a	serious	safety	defect	    belt	in	a	reclined	seat	may	be	a	poten-
  In	April,	a	federal	jury	in	Texas	found	        to	the	public’s	attention.	                      tially	dangerous	combination	in	a	moving	
that	Hyundai	Motor	Company’s	reclining	                                                            vehicle—proper	fit	is	impossible.”	
seat	caused	the	death	of	a	passenger	in	a	                                                            Although	 some	 vehicle	 owner’s	
single	 car	 accident	 of	 a	 2005	 Hyundai	      A look AT WhAT The CArmAkers hAve                manuals	warn	of	the	dangers	of	reclined	
                                T
Tucson	Sport	Utility	Vehicle.		 odd	Tracy,	a	     knoWn                                            seatbacks	in	moving	vehicles,	the	warn-
very	good	lawyer	from	Dallas,	has	been	                                                            ings	do	not	state	specifically	what	degree	
warning	drivers	for	decades	that	reclin-            Let’s	 take	 a	 minute	 and	 think	 about	     of	recline	is	dangerous.	Further,	the	NTSB	
ing	seats	can	kill	or	cause	severe	injury	to	     how	many	times	you	have	been	in	a	car	           pointed	out	that,	since	the	manufacturers	
                                  T
passengers	in	car	accidents.		 odd,	who	          and	 have	 reclined	 your	 seat	 while	          advertised	their	cars	by	showing	a	pas-
handled	the	case	for	the	family	of	Sarah	         wearing	 your	 seatbelt	 to	 take	 a	 nap.	 I	   senger	in	a	reclined	seat,	while	wearing	a	
Goodner,	made	this	observation:                   believe	 most	 will	 agree—this	 is	 a	 very	    seatbelt,	these	advertisements	undermine	
                                                  common	 practice.	 If	 a	 seatback	 is	          the	 already	 limited	 effectiveness	 of	
  The automobile industry and auto
                                                  reclined,	the	common	seatbelt	becomes	           owner’s	manuals	warnings	(especially	if	
  dealerships advertise reclining seats
                                                  much	 less	 effective,	 if	 not	 completely	     the	warnings	are	unclear,	as	in	advertising	
  as an inexpensive luxury accessory
                                                  useless,	because	the	shoulder	harness	of	        not	to	recline	the	seat	“any	more	than	as	
  for passenger comfort on the road
                                                  the	belt	moves	away	from	the	body.	Folks	        needed	for	comfort”).	
  and highway. They tell car buyers
                                                  don’t	realize	or	understand	that	the	more	          The	NTSB	submitted	safety	recommen-
  that the family can lay back, rest,
                                                  space	there	is	between	the	seatbelt	and	         dations	to	NHTSA	based	on	the	findings	
  and even sleep. But for dozens of
                                                  an	occupant’s	chest,	the	greater	the	risk	                       T
                                                                                                   in	the	study.		 he	report	recommended	
  years there’s been growing evidence
                                                  of	death	or	serious	injury	in	an	accident.	      that	 manufacturers	 limit	 the	 angle	 of	
  that reclining seats kill or cause
                                                    Automobile	manufacturers	have	been	            inclination	allowable	in	a	reclining	seat	to	
  severe injury such as paralysis in
                                                  well	 aware	 of	 the	 dangers	 of	 reclining	    no	greater	than	the	maximum	angle	that	
  car accidents.
                                                                                    A
                                                  seats	for	nearly	four	decades.		 t	a	1964	       can	safely	be	used	in	combination	with	a	
                                                  Stapp	Car	Crash	Conference,	two	safety-                     T
                                                                                                   seatbelt.	 	 he	 report	 further	 requested	
                                                  equipment	engineers	presented	a	report	


16	                                               www.BeasleyAllen.com
that	NHTSA	determine	to	what	degree	a	 warning	if	a	passenger	were	to	recline	his	                      BAyer ConTinues To mArkeT BirTh
seatback	could	be	reclined	and	still	allow	 seat	to	a	dangerous	degree.	                                ConTrol ProduCTs
an	 occupant	 to	 be	 properly	 and	 safely	       Folks	are	being	needlessly	injured	and	
restrained	by	a	lap/shoulder	belt	combi- killed	as	a	result	of	the	automobile	indus-                       You	may	have	noticed	a	new	television	
nation.	In	March	1989,	the	NTSB	stated	 try’s	inaction	on	this	subject.		 he	indus-      T              commercial	by	the	drug	giant	Bayer	in	
that:                                           try	knows	that	the	motoring	public	does	                which	the	company	appears	to	altruisti-
                                                not	understand	or	recognize	the	danger	                 cally	 suggest	 that	 women	 should	 learn	
•	 Warnings	and	owner’s	manuals	are	not	 of	reclining	the	seat	while	the	vehicle	is	                    the	 facts	 about	 birth	 control	 options	
   effective	 for	 preventing	 passengers	 in	motion.		 he	industry	knows	that	mil-
                                                                 T                                      before	choosing	one.	One	of	the	“facts”	
   from	misusing	lap/shoulder	belts	and	 lions	of	families	drive	millions	of	miles	on	                  Bayer	states	in	its	commercial	is	that	its	
   reclining	seats;	                            the	road	every	year.		 he	industry	knows	
                                                                           T                            products	 are	 among	 the	 most	 widely	
                                                that	 occupants	 in	 their	 vehicles	 will	             used	in	the	United	States.	It’s	not	surpris-
•	 It	is	not	known	at	what	point	the	lap/
                                                                                                        ing	that	Bayer’s	products,	such	as	Yaz	and	
   shoulder	belt	becomes	dangerous	with	 recline	their	seats	to	take	naps,	and	by	
                                                doing	so,	the	occupants	are	all	at	great	               Yasmin,	are	widely	prescribed,	because	
   reclined	seats;	and
                                                risk	of	serious	injury	or	death	in	an	acci-             Bayer	has	done	an	excellent	job	in	mar-
•	 Testing	 is	 required	 to	 determine	 the	 dent.	But,	the	automobile	manufacturers	                  keting	these	products	so	that	the	risks	of	
   safe	limits	of	reclined	seats.               turn	 a	 blind	 eye	 to	 this	 danger	 even	            the	 products	 are	 understated	 and	 the	
                                                though	there	are	simple	approaches	they	                benefits	 are	 overstated.	 (Readers	 may	
   NHTSA	also	noted	that	“it	is	likely	that	                                                            recall	that	this	was	a	previous	conclusion	
                                                could	 take	 to	 educate	 the	 public	 and	
most	people	who	ride	with	the	seatback	                                                                 by	the	FDA	regarding	certain	Yaz	adver-
                                                prevent	such	needless	injuries	and	deaths	
reclined	are	not	aware	of	the	associated	                                                               tisements.)
                                                each	year.	If	you	need	more	information	
risks;	 they	 are	 simply	 using	 the	 added	                                                              Bayer’s	 new	 commercial	 also	 directs	
                                                please	contact	Dana	Taunton	at	800-898-
comfort	the	reclining	seatback	affords.”	In	                                                            women	 to	 its	 website	 www.bayerfor	
                                                2034	or	by	email	at	Dana.Taunton@beas-
response	to	NHTSA’s	initial	position	and	                                                               women.com,	 which	 allegedly	 allows	
                                                leyallen.com.	
NTSB’s	findings,	the	auto	manufacturers	                                                                women	to	research	the	risks	and	benefits	
                                                Source: Portions of the above article were taken from
claim	 that	 the	 owner’s	 manuals	 effec- the PR Newswire, “Hyundai Reclining Seat Kills in Car        of	various	birth	control	products	before	
tively	“discourage”	 the	 use	 of	 reclined	 Accident, Injury Attorney Todd Tracy Issues Car Safety     choosing	 one.	While	 the	 site	 provides	
seats	 while	 a	 vehicle	 is	 in	 motion,	 and	 Alert,” April 23, 2010.                                 general	information	regarding	the	various	
that	“common	 sense”	 indicates	 that	 an	                                                              types	of	birth	control,	the	only	products	
upright	seat	is	safer	than	a	reclined	one.	                                                             mentioned	by	name	are	its	own	products,	
Clearly,	 the	 industry’s	 response	 was	 to	 XII.                                                      Yaz,	Yasmin,	and	Mirena.	What	is	troubling	
blame	 the	 motoring	 public	 and	 ignore	                                                              about	the	commercial	and	website	is	that	
the	problem.                                    MASS TORTS                                              they	give	the	impression	of	impartiality,	
   It	 is	 shameful	 that	 the	 automobile	 UPDATE                                                      but	in	fact	they	are	advertisements	for	
                                       T
industry	has	taken	this	position.		 here	                                                                                 T
                                                                                                        Bayer	products.		 his	is	a	perfect	example	
are	ways	for	the	industry	to	address	this	                                                              of	Bayer’s	marketing	tactics.
                         A
dangerous	 problem.	 	 	 simple	 warning	 merCk hiT WiTh $8 million verdiCT in                             Our	firm	continues	to	investigate	cases	
that	points	out	the	danger	of	reclining	 FosAmAx TriAl                                                  regarding	injuries	caused	by	Bayer’s	prod-
seats	can	be	inexpensively	incorporated	                                                                ucts,	Yaz,	Yasmin,	 and	 Ocella.	We	 have	
into	a	vehicle	design,	and	yet,	it	would	          Merck	&	Co.	has	been	hit	with	an	$8	                 filed	several	cases	on	behalf	of	women—
convey	the	needed	information	to	alert	 million	 jury	 verdict	 in	 the	 case	 of	 a	                   otherwise	healthy—who	have	suffered	
the	passengers	of	the	danger.		 	warning	 Florida	 woman.	 Merck’s	 osteoporosis	
                                    A                                                                   injuries	 such	 as	 gallstones/gallbladder	
label	can	be	the	first	step	towards	educat- drug	 destroyed	 her	 jaw	 bone	 and	 has	                  disease,	pulmonary	embolism,	deep	vein	
ing	the	public.	But	a	warning	would	be	 caused	 significant	 pain	 in	 the	 plaintiff.	                 thrombosis,	stroke	and	heart	attack.	For	
unnecessary	if	the	industry	would	start	 Merck	 says	 it	 will	 appeal	 the	 deci-                      additional	 information,	 please	 contact	
                                                         T
designing	its	restraint	system	in	such	a	 sion.	 	 he	 case	 was	 brought	 by	 Shirley	                 Alyce	Addison	 at	 800-898-2034	 or	 by	
manner	to	alleviate	the	problem.	               Boles	of	Fort	Walton,	Florida,	who	took	                email	at	Alyce.Addison@beasleyallen.com.	
   For	example,	GM	has	incorporated	into	 Fosamax	for	about	10	years.	Merck	says	
some	of	its	current	vehicles,	a	seat	design	 her	dental	problems	were	due	to	heavy	
that	mounts	the	seatbelt	system	within	 smoking	 and	 periodontal	 disease.	 	 he	                T     ACTress sues BAyer in yAsmin CAse
the	seat	itself.	Known	as	the	“all	belts	to	 jury	 awarded	 Mrs.	 Boles	 $8	 million	 in	
                                                                                    T
seat,”	 this	 design	 allows	 the	 shoulder	 compensatory	 damages.	 	 his	 was	 her	                     A	 stage	 actress	 has	 filed	 suit	 against	
                                                                   T
harness	to	stay	in	position	even	when	the	 second	trial.		 he	first	ended	in	a	mistrial	                Bayer,	alleging	that	the	birth-control	pill	
occupant	reclines	the	seat.		 utomakers	 last	September.	Merck	faces	more	than	
                                  A                                                                     Yasmin	caused	her	to	have	a	stroke	at	age	
could	also	add	a	device	that	would	warn	 1,400	lawsuits	alleging	Fosamax	harmed	                        27.	Brenda	Hamilton,	who	is	in	the	Broad-
the	vehicle	passengers	of	the	hazards	of	 patients.                                                     way	 show	 Wicked,	 had	 been	 taking	
reclined	seats.	In	fact,	years	ago,	a	major	 Source: Associated Press                                   Yasmin	for	a	little	more	than	two	years	
manufacturer	 of	 seatbelts	 patented	 a	                                                               when	she	suffered	a	stroke	in	May	2007.	
device	that	would	give	a	visual	or	audible	                                                             Ms.	Hamilton	alleges	in	the	suit	filed	in	a	
                                                                                                        New	York	court	that	Bayer	knew	Yasmin	



	                                            www.JereBeasleyReport.com	                                                                            17
posed	a	greater	risk	than	did	other	birth-         operative	 anesthesia	 directly	 into	 the	        in	which	Baxter	agreed	to	stop	manufac-
control	pills	for	blood	clots	and	strokes,	        joint	space	for	days	after	surgery.	Often	         turing	and	distributing	all	models	of	the	
but	 withheld	 that	 information	 from	            the	result	is	a	total	loss	of	cartilage	in	the	    Colleague	pump	until	the	company	cor-
patients	and	doctors.	Ms.	Hamilton	had	                   T
                                                   joint.		 his	is	a	permanent	and	debilitating	      rected	 manufacturing	 deficiencies	 and	
no	history	of	health	problems	when	she	            injury.	 But	 there	 are	 also	 other	 uses	 of	   until	devices	in	use	were	brought	into	
was	stricken.	She	had	this	to	say:                 pumps	that	cause	problems.	                        compliance.	Since	then,	Baxter	has	made	
                                                      Cold	 Therapy.	 	 nother	 dangerous	
                                                                            A                         numerous	 changes	 to	 the	 Colleague	
  I’m pretty angry that this happened              use	for	very	low	tech	pumps	is	in	cryo-            pumps	but	these	changes	have	not	cor-
  to me. I was 27 at the time. I don’t             therapy.	Essentially,	a	pump	is	used	to	cir-       rected	the	product	defect,	leading	to	the	
  think this should be happening to                culate	 water	 through	 an	 ice	 chest	 and	       permanent	injunction.
  young women. It shouldn’t happen                 into	a	cooling	pad	which	is	place	on	the	             Infusion	pumps	generally,	including	the	
  to any woman just because they                   operative/injury	 site.	 In	 essence,	 it’s	 a	    Baxter	Colleague	models,	have	been	the	
  take birth-control pills.                        super	ice	pack	commonly	referred	to	as	            source	of	persistent	safety	problems.	In	
   Women	 have	 suffered	 strokes	 stem-           “cold	 therapy.”	These	 devices	 are	 rou-         the	past	five	years,	the	FDA	has	received	
ming	from	the	use	of	other	types	of	birth-         tinely	prescribed	by	orthopedic	surgeons	          more	 than	 56,000	 reports	 of	 adverse	
control	 pills,	 which	 experts	 said	 were	       and	 podiatrists	 after	 a	 surgical	 proce-       events	associated	with	the	use	of	infusion	
caused	by	increased	levels	of	estrogen.	                   T
                                                   dure.		 he	device	is	sent	home	with	the	                     T
                                                                                                      pumps.	 	 hose	 events	 have	 included	
Bayer	touts	Yasmin	particularly	for	its	low	       patient	 (who	 is	 often	 on	 pain	 medica-        serious	 injuries	 and	 more	 than	 500	
estrogen	levels.	But	in	2008,	as	we	have	          tion)	with	little	or	no	instruction.	Without	      deaths.	Between	2005	and	2009,	87	infu-
pointed	out,	the	FDA	cited	Bayer	for	over-         proper	 instruction,	 and	 because	 the	           sion	 pump	 recalls	 were	 conducted	 to	
stating	 the	 safety	 of	 the	 product	 in	 its	   devices	have	no	temperature	alarms	or	             address	 identified	 safety	 concerns,	
advertising.	                                      automatic	shut-offs,	the	skin	and	underly-         according	to	FDA	data.	
   Ms.	Hamilton’s	lawsuit	is	one	of	about	         ing	nerves	around	the	affected	area	(typi-            An	 FDA	 analysis	 of	 these	 adverse	
1,100	throughout	the	country	claiming	             cally,	ankles	and	feet,	wrists	and	hands,	         events	has	uncovered	software	defects,	
the	pills	caused	serious	or	life-threatening	      shoulders	or	knees)	are	essentially	frozen.	       user	interface	problems	and	mechanical	
                    T
health	problems.		 wo	class-action	suits	          Injuries	resulting	from	these	devices	can	         and	 electrical	 failures.	 Problems	 with	
were	also	filed	in	Canada.	But	the	phar-           be	significant.	                                   infusion	pumps	are	not	confined	to	one	
maceutical	 giant	 has	 consistently	                 There	are	three	main	manufacturers	of	          manufacturer	 or	 one	 type	 of	 device.	 If	
defended	the	drug,	which	accounted	for	            these	 cold	 therapy	 pumps:	 Donjoy	              you	need	additional	information	please	
$1.5	billion	in	sales	in	2009.	Our	firm	is	        (Iceman);	Breg	(Polar	Care);	and	Biomet	           contact	Russ	Abney,	a	lawyer	in	our	Mass	
handling	 a	 number	 of	 cases	 for	 clients	      (EB	Ice).	Interestingly,	the	devices	cost	         Torts	Section,	at	800-898-2034	or	by	email	
against	Bayer.	If	you	need	more	informa-           around	 $46,	 but	 retail	 to	 patients	 for	      at	Russ.Abney@beasleyallen.com.	
tion	please	contact	Alyce	Addison	at	800-          $300.	It	appears	only	one	case	involving	a	        Source: May 12 Update for Health Professionals
898-2034	 or	 by	 email	Alyce.Addison@             cold	therapy	pump	has	gone	to	trial,	and	
beasleyallen.com.	                                 it	resulted	in	a	$4.1	million	verdict.
                                                      Infusion	 Pumps.	 	 he	 FDA	 sent	 a	
                                                                               T                      dennis QuAid sues drug mAker on
                                                   letter	to	Baxter	Healthcare	Corp.	on	April	        BehAlF oF his Children
simPle mediCAl PumPs CAuse                         30th	ordering	the	company	to	recall	and	
nighTmAres: BeWAre oF Cold TherAPy                                                           T
                                                   destroy	 all	 of	 its	 Infusion	 Pumps.	 	 his	      Actor	Dennis	Quaid	has	filed	a	lawsuit	
PumPs                                              action	is	based	on	a	longstanding	failure	         against	Baxter	Healthcare	Corp.,	a	drug	
                                                   to	correct	many	serious	problems	with	             maker,	 alleging	 similar	 labels	 for	 the	
  Over	the	past	several	years,	our	firm	           the	pumps.		 he	FDA	believes	there	may	
                                                                   T                                  blood	thinner	Heparin	and	a	less	potent	
has	 handled	 a	 number	 of	 lawsuits	 for	        be	as	many	as	200,000	of	those	pumps	              drug	 caused	 a	 mix-up	 at	 Cedars-Sinai	
clients	 involving	 simple	 mechanical	            currently	 in	 use.	 Infusion	 pumps	 are	         Medical	Center	threatening	the	lives	of	
devices	that	are	comprise	primarily	of	a	          devices	 that	 deliver	 fluids,	 including	                                       T
                                                                                                      his	newborn	twins	in	2007.		 he	lawsuit	
simple	pump.	Our	lawyers	in	the	firm’s	            nutrients	and	medications,	into	a	patient’s	       seeking	damages	was	filed	in	Los	Angeles	
Mass	Torts	Section	have	found	that	these	          body	 in	 a	 controlled	 manner.	 	 hey	 are	
                                                                                        T             Superior	Court	on	behalf	of	his	children.	
medical	devices	have	caused	lots	of	prob-          widely-used	 in	 hospitals,	 other	 clinical	      Both	Heparin	and	the	lower	dose	version,	
lems	for	persons	who	have	used	them	to	            settings	 and,	 increasingly,	 in	 the	 home,	     Hep-lock,	 are	 packaged	 in	 similar	 vials	
ease	pain.	More	and	more	cases	are	being	          because	 they	 allow	 a	 greater	 level	 of	       with	 blue	 backgrounds	 and	 very	 small	
discovered	where	these	simple	devices	             accuracy	in	fluid	delivery.                        print	 on	 both	 labels,	 according	 to	 the	
cause	severe	injuries.	We	are	involved	in	            The	FDA	has	been	working	with	Baxter	           Complaint.	
the	litigation	involving	the	pain	pumps,	          since	1999	to	correct	numerous	device	               The	 Quaid	 twins,	 who	 were	 born	 in	
representing	 a	 number	 of	 clients	 who	         flaws.	 Since	 then,	 its	 Colleague	 pumps	       November	2007,	were	both	administered	
have	suffered	severe	injuries.	                    have	been	the	subject	of	several	Class	I	          multiple	near-fatal	doses	of	Heparin	to	
  Intra-articular	 Use:	We	 have	 previ-           recalls	for	battery	swelling,	inadvertent	         treat	staph	infections,	according	to	the	
ously	reported	on	the	abject	catastrophes	         power	off,	service	data	errors,	and	other	                   T
                                                                                                      lawsuit.	 	 he	 children,	 Zoe	 Grace	 and	
caused	by	the	intra-articular	use	of	pain	         issues.	In	June	2006,	the	FDA	obtained	a	          Thomas	Boone,	were	given	10,000	units	
pumps.		 he	pump	is	used	to	inject	post-
         T                                         consent	decree	of	permanent	injunction	            of	Heparin,	rather	than	the	10	units	of	




18	                                                www.BeasleyAllen.com
Hep-Lock	they	were	prescribed,	accord-                      of	continuous	use,	are	being	revised	to	           The	study	estimated	that	about	48,000	
ing	to	the	Complaint.	Baxter	Healthcare	                    include	 information	 about	 this	 risk.	       elderly	patients	experienced	serious	car-
should	have	recalled	the	vials	of	Heparin	                  “Because	these	products	are	used	by	a	          diovascular	harm	or	death	as	a	result	of	
containing	 10,000	 units	 because	 the	                    great	number	of	people,	it’s	important	         using	Avandia	instead	of	the	alternative,	
company	knew	infants	had	died	because	                      for	the	public	to	be	aware	of	this	possi-       and	noted	that	the	national	impact	would	
of	similar	medication	errors,	according	to	                 ble	 increased	 risk,”	 according	 to	 Dr.	     be	 much	 greater	 because	 the	 estimate	
             T
the	lawsuit.		 he	company	also	was	obli-                    Joyce	Korvick,	deputy	director	for	safety	      didn’t	account	for	the	majority	(61%)	of	
gated	to	warn	healthcare	providers	of	the	                  in	the	FDA’s	Division	of	Gastroenterol-         prescriptions	for	patients	under	65	years	
previous	medication	mistakes.	                              ogy	Products.	                                        T
                                                                                                            old.	 	 he	 study	 concluded	 that	“[g]iven	
  The	children	suffered	internal	injuries	                     For	patients	with	pre-existing	osteopo-      the	lack	of	any	proven,	unique	and	medi-
and	shock,	but	the	extent	of	what	hap-                      rosis,	the	FDA	suggested	no	action	other	       cally	important	health	benefits	of	rosigli-
pened	 to	 them	 will	 probably	 not	 be	                   than	management	of	bone	status	accord-          tazone	compared	to	pioglitazone,	there	is	
known	for	years,	according	to	the	suit.	                    ing	to	current	standards	for	clinical	prac-     no	rationale	of	its	continued	viability	on	
Newborns	 and	 infants	 are	 often	 given	                  tice	along	with	adequate	vitamin	D	and	         the	market	or	its	use	by	prescribing	phy-
Hep-Lock	 to	 prevent	 clotting	 because	                   calcium	supplementation.	In	November	           sicians	or	patients.”	The	Food	and	Drug	
their	intravenous	lines	are	so	small.	                      the	FDA	issued	a	warning	about	concomi-         Administration	 requires	 a	 black	 box	
Source: Contra Costa Times                                  tant	use	of	the	PPI	omeprazole	(Prilosec	       warning	 on	 Avandia	 about	 potential	
                                                            and	Prilosec	OTC)	and	clopidogrel.		 he	T       increased	 risk	 of	 heart	 attack,	 but	 has	
                                                            PPI	was	found	to	blunt	the	antiplatelet	        resisted	efforts	by	health	experts	and	the	
ProTon heArTBurn drugs linked To                            effect	 of	 clopidogrel.	 Consumers	 are	       consumer	 group	 Public	 Citizen	 to	 pull	
WrisT, hiP And sPine FrACTures                              advised	 by	 the	 FDA	 not	 to	 stop	 taking	   the	drug	off	the	market.
                                                            PPIs	unless	told	to	do	so	by	their	health	         In	2007,	a	study	first	raised	concerns	
   The	 FDA	 has	 warned	 that	 taking	                     care	professional.		 he	FDA	also	says	con-
                                                                                 T                          about	the	drug’s	cardiovascular	effects.	
certain	drugs	to	treat	symptoms	of	heart-                   sumers	should	also	be	aware	that	OTC	           Dr.	David	Graham,	author	of	the	recent	
burn,	acid	reflux	or	ulcers	may	increase	                   PPIs	should	only	be	used	as	directed	for	       paper	 and	 a	 known	 whistleblower,	
the	 risk	 of	 hip,	 wrist	 and	 spine	 frac-               14	 days	 for	 the	 treatment	 of	 frequent	    argued	in	2007	to	an	advisory	panel	of	
       T
tures.		 he	drugs	belong	to	a	class	of	med-                 heartburn.		 hey	say	that	no	more	than	
                                                                         T                                  outside	experts	that	Avandia	sales	should	
ications	called	proton	pump	inhibitors,	                    three	14-day	treatment	courses	should	be	       be	stopped.	But	the	panel	voted	22-1	to	
(PPIs),	 which	 work	 by	 reducing	 the	                    used	in	one	year.		 ny	questions	or	con-
                                                                                 A                          urge	the	FDA	to	keep	the	drug	on	the	
amount	of	acid	in	the	stomach.		 he	drugs	   T              cerns	about	PPIs	should	be	directed	to	a	                   A
                                                                                                            market.		 vandia	was	given	a	black	box	
are	available	by	prescription	to	treat	con-                 health	 care	 professional.	 If	 you	 need	     warning	at	that	time	after	a	study	con-
ditions	such	as	gastroesophageal	reflux	                    more	 on	 this	 subject,	 contact	 Ted	         cluded	that	people	taking	Avandia	had	a	
disease	 (GERD),	 ulcers	 in	 the	 stomach	                 Meadows	at	800-898-2034	or	by	email	at	         43%	 higher	 risk	 of	 suffering	 a	 heart	
and	small	intestine,	and	inflammation	of	                   Ted.Meadows@beasleyallen.com.	                  attack.	In	the	newest	study,	Dr.	Graham	
                        T
the	 esophagus.	 	 hey	 are	 also	 available	               Source: FDA Release                             and	other	researchers	looked	at	data	on	
over-the-counter	to	treat	frequent	heart-                                                                   nearly	 230,000	 Medicare	 patients	 and	
       T
burn.		 he	prescription	PPIs	are	Nexium,	                                                                   found	 Avandia	 increased	 the	 risk	 of	
Dexilant,	Prilosec,	Zegerid,	Prevacid,	Pro-                 AvAndiA inCreAses heArT risks And               stroke	by	27%,	heart	attack	by	25%	and	
                                        T
tonix,	Aciphex	and	Vimovo.		 he	over-the-                   deAThs                                          death	 by	 as	 much	 as	 17%.	 Dr.	 Graham	
c o u n t e r 	 P P I s 	 a r e 	 P r i l o s e c 	 OT C	                                                   drew	attention	to	a	number	of	other	pre-
(omeprazole),	Zegerid	OTC	(omeprazole)	                       A	draft	study	on	the	effects	of	diabetes	     scription	 drugs,	 including	Vioxx,	 that	
and	Prevacid	24HR	(lansoprazole).                           medication	Avandia	 (rosiglitazone)	 has	       were	later	withdrawn	or	saw	strict	new	
   The	FDA	has	found,	based	on	a	review	                    concluded	that	given	the	increased	risk	        warnings.	 Maybe	 the	 FDA	 should	 start	
of	several	epidemiological	studies,	that	                   of	stroke	and	heart	disease	and	the	alter-      paying	more	attention	to	his	opinions!	If	
consumers	who	received	high	doses	of	                       native	medication	pioglitizone,	there	is	       you	 need	 additional	 information	 on	
PPIs	or	used	them	for	one	year	or	more	                     no	rationale	for	continuing	to	prescribe	       Avandia	please	contact	Frank	Woodson,	a	
were	 at	 greater	 risk	 for	 wrist,	 hip	 and	                       A
                                                            Avandia.		 vandia-maker	GlaxoSmithKline	        lawyer	in	our	Mass	Torts	Section,	at	800-
spine	fractures.		 he	majority	of	studies	
                        T                                   faces	thousands	of	lawsuits	alleging	that	      8 9 8 - 2 0 3 4 	 o r 	 b y 	 e m a i l 	 a t 	 Fra n k .
evaluated	individuals	50	years	of	age	or	                   the	 company	 failed	 to	 warn	 about	 the	     Woodson@beasleyallen.com.	
older.		 he	increased	risk	of	fracture	pri-
        T                                                   increased	risk	of	heart	attack,	stroke	and	     Source: Lawyersandsettlements.com
marily	was	observed	in	this	age	group.                                          T
                                                            other	 conditions.	 	 he	 draft,	 dated	 May	
   While	it’s	not	clear	whether	the	use	of	                 28th,	was	an	observational	study	looking	
PPIs	is	the	cause	of	the	increased	risk	in	                 at	the	risk	of	heart	attack,	stroke,	heart	
fractures,	the	FDA	is	working	with	the	                     failure	 and	 death	 in	 227,000	 elderly	
manufacturers	of	PPIs	to	further	study	                               T
                                                            patients.		 he	study	estimated	that	in	the	
this	possible	risk.	In	the	meantime,	as	a	                  ten-year	period	from1999	through	2009,	
precaution,	 the	“Drug	 Facts”	 label	 on	                  when	 the	 drug	 was	 marketed,	 82.5	
both	the	prescription	PPIs	and	the	OTC	                     million	prescriptions	were	filled.
varieties,	which	are	indicated	for	14	days	



	                                                   www.JereBeasleyReport.com	                                                                                  19
XIII.                                            allowed	 to	 injure	 thousands	 of	 people	       drug	patented	by	the	branded	manufac-
                                                 without	being	held	accountable	for	their	         turer.	 But	 in	 so	 doing,	 the	 Plaintiff-
BUSINESS                                         actions.	Often	those	who	champion	“tort	          branded	manufacturer	risks	that	a	court	
LITIGATION                                       reform”	 say	 that	 because	 these	 actions	      might	invalidate	the	patent	on	its	success-
                                                 result	in	large	awards,	but	are	then	split	       ful	 pharmaceutical	 product—the	 very	
                                                 among	many,	they	are	only	injuring	busi-                                                       T
                                                                                                   patent	that	it	has	sued	to	enforce.		 hus,	in	
The PAsT, PresenT, And FuTure oF                 nesses	and	helping	lawyers.		 his	is	simply	
                                                                                T                  many	cases	the	Plaintiff-branded	manu-
ClAss ACTions                                    not	true.	                                        facturer	 settles	 its	 claim	 against	 the	
                                                    Big	 business	 cannot	 be	 allowed	 to	        Defendant-generic	competitor	by	paying	
   Over	the	past	several	years,	class	action	    enjoy	huge	profits	while	it	injures	con-          the	competitor	to	delay	its	entry	into	the	
litigation	has	been	the	focus	of	some	pos-       sumers.	Consumers	shouldn’t	be	forced	                       T
                                                                                                   market.		 his	practice	harms	consumers	
itive,	but	mostly	negative,	publicity.	Much	     to	 take	 on	 these	 massive	 companies	          because	it	keeps	cheaper	generic	drugs	
                                         T
of	 this	 treatment	 has	 been	 unfair.	 	 he	   alone.	 By	 banding	 together	 in	 a	“class,”	    off	the	market.
class	action	is,	and	will	continue	to	be,	       consumers	can	force	these	businesses	to	             Reverse	settlements,	also	characterized	
the	best	tool	available	to	allow	the	Ameri-      stop	their	actions	and	repay	the	ill-gotten	      as	“pay	for	delay”	settlements,	were	criti-
can	public	to	defend	its	rights	and	keep	        gains.	 In	 many	 cases,	 these	 consumers	       cized	 by	 President	 Obama	 during	 his	
over-reaching	business	interests,	whether	       successfully	punish	the	wrong-doers	so	           campaign	when	he	promised	to	“ensure	
financial,	product-related,	or	relating	to	      they	 understand	 that	 their	 behavior	          that	 the	 law	 effectively	 prevents	 anti-
securities,	in	check.                            cannot	be	tolerated	in	the	future.	Without	       competitive	agreements	that	artificially	
   The	history	of	class	action	litigation	is	    this	type	litigation,	how	could	individuals	      retard	the	entry	of	generic	pharmaceuti-
                          A
over	1,000	years	old.		 merica’s	present	        stand	up	against	Big	Tobacco	companies?	          cals	onto	the	market.”	California	Repre-
class	action	system	was	born	when	law	           Asbestos	manufacturers?	Insurance	com-            sentative	Henry	Waxman	has	stated,	“As	
                               T
and	equity	merged	in	1937.		 hat	year	the	       panies?	 Financial	 companies,	 such	 as	         coauthor	of	the	Hatch-Waxman	Act,	I	can	
Supreme	Court	adopted	the	Rules	of	Civil	        Enron?	What	about	today?	Could	a	single	          tell	 you	 that	 I	 find	 these	 type[s]	 of	
Procedure,	and	Rule	23,	“Class	Actions,”	        person	take	on	Toyota or BP?	In	theory	           reverse	payment	collusive	arrangements	
was	included.	Rule	23	has	been	adjusted	         yes,	but	in	reality	no.		 his	subtle	fact	is	
                                                                           T                       appalling.”	
in	favor	of	and	to	the	detriment	of	Plain-       known	 by	 the	 large	 and	 irresponsible	           Now	the	Second	Circuit	has	begun	to	
tiffs.	In	1966,	substantial	changes	in	the	      entities	when	they	do	harm	to	individu-           weigh	in.	In	Ciprofloxacin,	purchasers	of	
process	 added	“opt	 out”	 language	 that	       als.	 Folks	 need	 to	 be	 able	 to	 associate	   the	antibiotic	Cipro	sued	Cipro’s	manu-
changed	the	landscape	of	class	actions.	         themselves	with	other	people	who	have	            facturer,	Bayer,	as	well	as	generic	manu-
Class	action	litigation	through	2005	was	        suffered	common	injuries	and	utilize	the	         facturer	Barr	Laboratories,	for	violating	
generally	limited	to	state	or	federal	cases	     skills	 of	 experienced	 lawyers	 who	 can	       antitrust	laws	by	entering	into	a	reverse	
only;	removal	was	difficult	due	to	diver-        adequately	 represent	 their	 interests.	         settlement	as	described	above.		 he	Plain-T
sity	limitations.	                               Lawyers	in	our	firm	continue	to	cham-             tiffs	alleged	that	Bayer	settled	its	patent	
   In	2005,	the	Class	Action	Fairness	Act	       pion	 the	 causes	 of	 individuals	 and	          infringement	case	against	Barr	by	paying	
(CAFA)	was	enacted,	relaxing	the	rules	of	       groups.		 hrough	the	efforts	of	our	highly-
                                                          T                                        off	Barr	in	exchange	for	Barr’s	agreement	
diversity	 and	 removal,	 enabling	 most	        skilled	 lawyer s	 and	 support	 staff	           to	withhold	release	of	its	generic	version	
large	class	cases	to	be	filed	in,	or	removed	    members,	we	continue	to	fight	to	keep	            of	Cipro.	
to,	federal	court;	restricted	the	practice	of	   the	scales	of	justice	balanced.	If	you	need	         The	 Department	 of	 Justice	Antitrust	
“coupon	settlements”;	and	transformed	           additional	information	on	class	action	liti-      Division	joined	the	Ciprofloxacin	Plain-
the	procedures	for	settling	class	actions	       gation,	contact	Dee	Miles	or	Tim	Fiedler	         tiffs	 to	 argue	 that	 reverse	 settlement	
in	federal	courts.	Ever-changing	interpre-       at	 800-898-2034	 or	 by	 email	 at	 Dee.         agreements	in	the	pharmaceutical	indus-
tation	 and	 application	 in	 class	 actions	    Miles@beasleyallen.com	or	Tim.Fiedler@            try	should	be	treated	as	“presumptively	
continues	to	be	evident	evenf	today	in	          beasleyallen.com.	                                unlawful”	under	Section	1	of	the	Sherman	
recent	 Court	 decisions,	 such	 as	 the	                                                                T
                                                                                                   Act.		 his	represented	a	marked	departure	
Supreme	Court’s	decision	in	Ashcroft v.                                                            from	 the	 longstanding	 Department	 of	
Iqbal, 129	S.	Ct.	1937	(2009).                   A look AT reverse seTTlemenTs in                  Justice	position	under	the	Bush	Adminis-
   Throughout	 these	 changes,	 whether	         PhArmACeuTiCAl PATenT CAses                       tration,	which	essentially	turned	a	blind	
substantive	 or	 procedural	 in	 nature	 or	                                                       eye	to	reverse	settlements.	
effect,	class	actions	have	stayed	true	to	          In	In re Ciprofloxacin Hydrochloride              In	an	opinion	released	April	28,	2010,	
their	 purpose:	 to	 provide	 the	 group	 of	    Antitrust Litigation,	the	Second	Circuit	         the	Second	Circuit	noted	that	“there	are	
injured	 persons	 with	 relatively	 small	       Court	of	Appeals	recently	indicated	that	it	      compelling	 reasons	 to	 revisit	 [prece-
claims	with	a	way	to	come	together	and	          is	willing	to	reexamine	its	prior	case	law	       dent]”	 with	 respect	 to	 reverse	 settle-
take	 action	 against	 the	 entities	 that	      with	 respect	 to	“reverse	 settlements”	         ments,	including	the	substantial	increase	
harmed	them.		 hese	injuries	were	real	
                   T                             which	arise	in	the	context	of	pharmaceu-          in	the	number	of	reverse	settlements	in	
and	painful	to	Plaintiffs,	but	because	of	       tical	patent	disputes.	In	a	“reverse	settle-      pharmaceutical	patent	cases,	as	well	as	
their	position	in	relation	to	those	who	         ment,”	a	branded	drug	manufacturer	files	         the	federal	government’s	recent	about-
harmed	 them,	 their	 voices	 were	 silent	      a	patent	infringement	suit	against	a	com-         face	 on	 the	 legality	 of	 reverse	 settle-
without	class	litigation.	No	one	should	be	      petitor	 who	 seeks	 federal	 approval	 to	       m e n t s .	 	T h e 	 C o u r t 	 i n v i t e d 	 t h e	
                                                 market	 a	 generic	 version	 of	 the	 same	


20	                                              www.BeasleyAllen.com
Ciprofloxacin	Plaintiffs	and	the	govern-           to	 be	 the	 first	 step	 of	 several	 to	 curb	   Schapiro	 has	 identified	 two	 of	 these	
ment	to	petition	for	an	in banc	hearing	           damage	caused	by	unusual	market	fluctu-            types:	 market	 orders	 (orders	 to	 buy	 or	
to	 consider	 whether	 prior	 precedent	           ations	like	those	seen	on	May	6th.	Regula-         sell	 at	 market	 price	 without	 regard	 to	
condoning	reverse	settlements	should	be	           tors	haven’t	pinpointed	a	single	cause	for	        fluctuations)	and	stop-loss	orders	(orders	
overturned.	                                       the	incident	and	are	saying	it	was	caused	         to	 sell	 when	 a	 stock	 falls	 to	 a	 certain	
   This	U-turn	by	the	federal	government	          by	a	confluence	of	events.	                        price).	 Investigators	 of	 the	 flash	 crash	
with	respect	to	reverse	settlements,	not	             The	 financial	 industry	 generally	 sup-       believe	those	types	of	orders	could	have	
to	mention	the	potential	for	reversal	of	          ports	 the	 circuit	 breaker,	 but	 most	          accelerated	the	market	drop.	If	you	need	
Second	 Circuit	 precedent,	 represent	 a	         observers	 and	 regulators	 agree	 that	 it	       more	information	on	this	subject	contact	
most	interesting	development	in	antitrust	         alone	 won’t	 stop	 another	 flash	 crash	         Scarlette	Tuley	 in	 our	 firm	 at	 800-898-
law.	We	expect	that	reverse	settlements	           from	 occurring.	 Right	 now,	 the	 circuit	       2034	 or	 by	 email	 at	 Scarlette.Tuley@
will	receive	increased	scrutiny	from	the	          breaker	applies	only	to	stocks	contained	                   a
                                                                                                      beasley	 llen.com.	
Department	 of	 Justice	 and	 also	 the	           in	 the	 S&P	 500	 index.	 It	 doesn’t	 cover	     Source: Wall Street Journal
Federal	Trade	Commission	going	forward.	           smaller	cap	stocks	or	index-based	prod-
If	the	Second	Circuit	reverses	Ciprofloxa-         ucts	 such	 as	 exchange-traded	 funds,	
cin,	we	foresee	that	reverse	settlements	          which	were	some	of	the	stocks	most	dra-
will	be	the	subject	of	increased	litigation	       matically	 affected	 on	 May	 6th.	“It	 is	 my	
                                                                                                      XV.
in	 the	 federal	 courts.	If	you	 need	addi-       hope	to	rapidly	expand	the	program	to	             INSURANCE AND
tional	information	on	this	subject	contact	        thousands	of	additional	publicly	traded	           FINANCE UPDATE
Archie	 Grubb	 at	 800-898-2034	 or	 by	           companies,”	Schapiro	said.	
email	at	Archie.Grubb@beasleyallen.com.	              Rep.	Melissa	Bean	(D-IL),	in	a	letter	to	
                                                   the	SEC,	said	“I	am	concerned	that	by	lim-         BAnk oF AmeriCA seTTles CounTryWide
                                                   iting	the	rules	to	the	issuers	in	the	S&P	         ChArges For $108 million
XIV.                                               500,	other	issuers	will	be	vulnerable	to	
                                                   continued	market	volatility.”	The	Issuer	            Bank	of	America	will	pay	$108	million	
AN UPDATE ON                                       Advisory	Group	suggested	that	regulators	          to	 settle	 federal	 charges	 that	 Country-
SECURITIES                                         include	an	“opt-in”	provision	that	would	          wide	Financial	Corp.,	which	it	acquired	
                                                   permit	non-S&P	500	companies	to	elect	             nearly	two	years	ago,	collected	outsized	
LITIGATION                                         to	participate.	Other	people	commenting	           fees	 from	 borrowers	 facing	 foreclo-
                                                   about	the	rule	are	concerned	about	the	                  T
                                                                                                      sure.		 his	is	the	latest	evidence	of	gross	
                                                   market	disruptions	outside	of	the	9:45	            misconduct	at	Countrywide,	once	consid-
neW rules PAssed To Avoid AnoTher                        T
                                                   a.m.		 o	3:45	p.m.	EDT	(1345-1945	GMT)	            ered	an	industry	giant.	Last	year,	three	top	
FlAsh CrAsh                                        window	when	the	circuit	breaker	would	             executives,	including	former	CEO	Angelo	
                                                                  T
                                                   be	in	effect.		 D	Ameritrade	Holding	Corp.	        Mozilo,	were	charged	with	civil	fraud	and	
   Trading	 exchanges	 will	 implement	
                                                   (AMTD)	said	10%	to	15%	of	its	trades	on	           insider	 trading	 by	 the	 Securities	 and	
rules	designed	to	tame	the	volatility	of	
                                                   any	given	day	are	placed	overnight	to	be	          Exchange	Commission.	
individual	stocks	by	temporarily	halting	
                                                   executed	at	market	open,	leaving	those	              The	 settlement,	 which	 will	 refund	
trading	during	dramatic	price	changes,	
                                                   stocks	vulnerable	for	15	minutes.	                 money	to	about	200,000	borrowers,	was	
even	as	market	participants	are	bracing	
                                                      As	a	next	step,	the	SEC	is	looking	to	          announced	 last	 month	 by	 the	 Federal	
                   T
for	stiffer	rules.		 he	new	rule	will	be	in	
                                                   ban	“stub	quotes,”	which	are	placeholder	          Trade	Commission.	It	is	the	largest	mort-
effect	on	a	pilot	basis	for	six	months.	
                                                   prices	that	tend	to	be	far	from	an	actual	         gage	industry	settlement	for	the	agency,	
   The	 cross-market	 trading	 pause	 was	
                                                   market	 price.	 Normally,	 those	 trades	          which	 oversees	 non-banking	 functions	
proposed	last	month	in	response	to	the	
                                                   won’t	 get	 executed.	 But	 investigators	                                    T
                                                                                                      such	as	debt	collection.		 he	FTC’s	chair-
May	6th	“flash	crash”	that	saw	the	Dow	
                                                   believe	that	on	May	6th	some	trades	were	          man,	 Jon	 Leibowitz,	 accused	 Country-
Jones	Industrial	Average	plummet	almost	
                                                   executed	 unintentionally	 at	 stub-quote	         wide	 of	“callous	 conduct,	 which	 took	
1,000	 points	 before	 partially	 recover-
                                                             T
                                                   prices.	 	 he	 SEC	 also	 is	 working	 with	       advantage	 of	 consumers	 already	 at	 the	
      A
ing.	 	 ll	 exchanges	 will	 halt	 trading	 for	
                                                   exchanges	to	create	a	unified	and	predict-         end	of	their	financial	rope.”	As	previously	
five	minutes	in	an	individual	stock	when	
                                                   able	policy	for	breaking	erroneous	trades.	        reported,	 Bank	 of	America	 purchased	
its	price	moves	10%	or	more,	up	or	down,	
                                                   Regulators	and	exchanges	alike	have	said	          Countrywide	in	July	2008.	It	should	be	
                                 T
in	the	previous	five	minutes.		 he	pause	is	
                                                   they	are	dissatisfied	with	the	decision	to	        noted	that	the	actions	in	this	case	took	
designed	 to	 give	 traders	 time	 to	 catch	
                                                   cancel	hundreds	of	trades	that	occurred	           place	before	the	acquisition	by	Bank	of	
their	breath	and	assess	whether	a	stock’s	
                                                   during	the	height	of	market	volatility	on	         America.	
price	change	stems	from	a	real	shift	in	
                                                   May	 6 th .	 	A fter	 the	 f lash	 crash,	 the	      According	to	the	FTC,	Countrywide	hit	
value	or	an	unrelated	market	hiccup.	
                                                   exchanges	decided	to	cancel	all	trades	            borrowers	 who	 were	 behind	 on	 their	
   SEC	Chairman	Mary	Schapiro	said	that	
                                                   executed	at	prices	that	were	more	than	            mortgages	with	fees	of	several	thousand	
the	 “new	 rules	 will	 ensure	 that	 all	
                                                   60%	above	or	below	those	printed	before	                              T
                                                                                                      dollars	at	times.		 he	fees	were	for	such	
markets	 pause	 simultaneously	 and	
                                                   2:40	p.m.	EDT	(1840	GMT).	                         services	 as	 property	 inspections	 and	
provide	 time	 for	 buyers	 and	 sellers	 to	
                                                      The	SEC	is	eyeing	certain	types	of	buy	         landscaping	 that	 far	 exceeded	 market	
trade	at	rational	prices.”	The	SEC	consid-
                                                   and	 sell	 orders	 for	 further	 regulation.	      rates.	Countrywide	created	subsidiaries	
ers	the	stock-by-stock	circuit	breaker	rule	



	                                           www.JereBeasleyReport.com	                                                                            21
to	hire	vendors,	who	marked	up	the	price	       $14.5 million Jury verdiCT AgAinsT               tured	settlements,”	which	are	payments	
for	such	services,	according	to	the	agency.	    hArTFord                                                    A
                                                                                                 over	time.		 nnuities	are	typically	used	to	
Countrywide	profited	from	making	risky	                                                                                    T
                                                                                                 provide	the	payments.		 he	annuities	in	
loans	to	homeowners	during	the	boom	               A	 federal	 jur y	 in	 South	 Carolina	       this	case	were	provided	by	Hartford	Life,	
years,	and	then	they	profited	again	when	       awarded	 $14.5	 million	 in	 damages	            the	property-casualty	insurer’s	life-insur-
the	 loans	 failed.	 It	 will	 take	 several	   recently	 to	 a	 South	 Carolina	 printing	      ance	division.	It	was	alleged	that	Hartford	
months	to	contact	the	affected	borrow-          company	in	a	case	brought	against	The	           would	tell	people	the	value	of	a	settle-
ers,	according	to	the	FTC.	Countrywide’s	                                        T
                                                Hartford	insurance	company.		 he	insurer	        ment,	 but	 would	 not	 mention	 that	 the	
record-keeping	was	described	as	“beyond	        had	denied	a	claim	for	a	major	fire	loss	in	     company	would	take	at	least	15%	for	fees,	
abysmal.”	                                      2008	contending	that	the	fire	was	caused	        taxes	and	profit.	
   Consumer	 advocates	 don’t	 believe	         by	 arson.	 In	 March	 2008,	 investigators	        According	to	the	federal	court,	the	set-
banks	have	done	enough	to	prevent	fore-         said	someone	sprinkled	fuel	to	set	11	dif-       tlement	 was	“fair,	 reasonable	 and	 ade-
closures	 because	 of	 the	 income	 they	       ferent	 fires	 in	 the	 building	 of	 Genesis	   quate”	 to	 the	 more	 than	 21,000	
receive	from	these	sort	of	fees.	In	a	2007	            T
                                                Press.		 he	fires	damaged	several	printing	                   T
                                                                                                 claimants.	 	 he	 court	 has	 scheduled	 a	
conference	call	with	investors	that	was	        presses,	 computer	 drives	 and	 other	          hearing	for	September	21st	to	consider	
cited	by	FTC	lawyers,	a	top	Countrywide	                      T
                                                equipment.		 wo	weeks	earlier,	the	busi-         final	approval	of	the	settlement.	
executive	called	such	fees	“part	of	our	        ness	 had	 been	 vandalized	 with	 anti-         Source: Hartford Concurrent
diversification	strategy”	as	foreclosures	      Semitic	graffiti,	according	to	testimony	at	
soared.	Diane	Thompson,	a	lawyer	with	          the	trial.
the	National	Consumer	Law	Center,	says,	           Hartford	said	that	it	stopped	paying	on	
“This	 is	 an	 ongoing	 problem.	 	 hose	
                                      T         the	$7	million	claim	after	it	became	suspi-      XVI.
default	 fees	 are	 huge	 barriers	 to	 loan	   cious.	 	T he	 insurer	 alleged	 that	 the	      EMPLOYMENT AND
                                                owners	of	Genesis	Press	enlisted	the	aid	
modifications.”	
                                                of	an	alcoholic	family	member	to	perform	
                                                                                                 FLSA LITIGATION
   The	FTC	also	alleged	that	Countrywide	
made	false	claims	to	borrowers	in	bank-         “surgical	 strikes”	 on	 the	 presses	 and	
ruptcy	 about	 the	 amount	 owed	 or	 the	      inflict	 damage	 to	 computer	 drives	 to	
                                                make	the	arson	appear	to	be	a	crime	of	          $250 million in dAmAges AWArded
size	 of	 their	 loans—and	 failed	 to	 tell	                                                    AgAinsT novArTis in BiAs CAse
those	 borrowers	 about	 fees	 or	 other	                  T
                                                passion.		 he	owners	of	the	business	said	
charges.		 he	settlement	requires	Bank	of	
          T                                     Hartford’s	 investigators	 failed	 to	 ade-         A	jury	has	found	that	drug	company	
America	to	notify	bankrupt	borrowers	by	        quately	pursue	other	leads	in	the	case,	         Novartis	discriminated	against	women	by	
monthly	notices	about	what	they	owe,	           including	one	involving	a	former	disgrun-        paying	them	less	than	men,	promoting	
including	fees.	Bank	of	America	has	dealt	      tled	employee.                                   fewer	 of	 them	 and	 allowing	 a	 hostile	
with	allegations	of	deceptive	practices	at	        After	Genesis	Press	sued	Hartford	for	        workplace	and	has	awarded	$250	million	
Countrywide	since	acquiring	the	mort-           bad	faith,	Hartford	filed	a	counterclaim	                                                  T
                                                                                                 in	punitive	damages	to	the	Plaintiffs.		 he	
gage	 company.	 In	 October	 2008,	 it	         seeking	to	recover	$2	million	paid	out	          same	jury	concluded	later	that	Novartis	
reached	 a	 settlement	 with	 attorneys	        before	denying	the	insurance	claim.		 he	T       Pharmaceuticals	Corp.	had	discriminated	
general	 agreeing	 to	 modify	 troubled	        jury	found	that	Hartford	was	wrong	to	           against	its	female	employees	since	2002,	
mortgages	 with	 up	 to	 $8.4	 billion	 in	     deny	the	printing	company’s	claim	and	           and	it	awarded	$3.3	million	to	a	dozen	
interest	rate	and	principal	reductions	for	     found	for	the	business	owners.	Hartford	                   T
                                                                                                 women.		 he	company	says	it	will	appeal.	
nearly	 400,000	 customers.	 It	 has	 aban-     plans	to	appeal.	                                   David	 Sanford,	 who	 was	 one	 of	 the	
doned	the	tarnished	Countrywide	name	           Source: Insurance Journal                        Plaintiffs’	lawyers,	said	the	findings	“sent	a	
and	remains	the	largest	collector	of	mort-                                                       message	to	Novartis	and	all	other	corpo-
gage	payments	in	the	country.	                                                                   rations	in	America	that	they	cannot	con-
   The	 FTC	 is	 charged	 with	 enforcing	      hArTFord To PAy $72.5 million To                 tinue	to	get	away	with	the	discrimination	
federal	laws	designed	to	prevent	abuses	        seTTle ClAss-ACTion lAWsuiT                      and	 the	 systemic	 problems	 that	 have	
by	 companies	 that	 collect	 consumers’	                                                                                 T
                                                                                                 gone	on	for	so	long.		 hat	day	has	come	
debts.		 hat’s	because	mortgage-collection	
       T                                           A	 federal	 judge	 in	 Connecticut	 has	
                                                                                                 and	we’re	absolutely	delighted.”	During	
activities	 are	 typically	 handled	 outside	   granted	preliminary	approval	to	a	$72.5	
                                                                                                 the	trial,	the	Plaintiffs	portrayed	one	dis-
the	oversight	of	federal	banking	regula-        million	 settlement	 in	 a	 national	 class-
                                                                                                 trict	manager	as	particularly	abusive,	so	
tors.	 Critics	 say	 the	 agency	 lacks	 the	   action	lawsuit	alleging	Hartford	fraudu-
                                                                                                 much	so	that	he	showed	women	porno-
expertise	or	resources	to	enforce	those	        lently	kept	millions	in	fees	that	should	
                                                                                                 graphic	images	and	invited	them	to	sit	on	
laws.		 	sweeping	financial	overhaul	being	
      A                                                                            T
                                                have	gone	to	accident	victims.		 he	2005	
                                                                                                 his	lap.	Novartis	admitted	that	it	might	
negotiated	by	Congress	would	create	a	          case	involves	Plaintiffs	who	were	injured	
                                                                                                 have	been	slow	to	investigate	the	claims	
new	agency	focused	specifically	on	con-         and	eligible	for	either	personal	injury	or	
                                                                                                 against	 the	 manager,	 who	 incidentally	
sumer	financial	protection.	                    workers’	compensation	claims	from	The	
                                                                                                 was	fired	two	years	after	the	lawsuit	was	
                                                Hartford	Financial	Services	Group.	Plain-
Source: Associated Press                                                                         filed	in	2004.	
                                                tiffs	 alleged	 that	 Hartford	 fraudulently	
                                                                                                    A	lawyer	for	Novartis	told	the	jury,	“he	
                                                underpaid	personal	injury	and	workers’	
                                                                                                 wasn’t	that	bad	a	manager.	He	was	just	
                                                compensation	claims.	Instead	of	receiv-
                                                                                                 terrible	with	women.”	It	was	a	comment	
                                                ing	a	lump	sum,	the	insurer	paid	“struc-



22	                                             www.BeasleyAllen.com
that	 I	 suspect	 had	 best	 not	 been	           Complaint,	Bank	of	America,	the	largest	           XVII.
       T
made.		 he	Plaintiffs’	lawyers	repeatedly	        U.S.	bank	by	assets,	requires	employees	to	
reminded	the	jury	about	it	during	closing	        work	in	excess	of	eight	hours	a	day	or	40	         PREMISES
arguments.	I	agree	with	David	Sanford,	           hours	a	week,	but	fails	to	pay	them	both	          LIABILITY UPDATE
who	represented	the	women,	when	he	               for	 overtime	 and	 for	 all	 straight	 time	
told	 the	 jury,	“You	 can’t	 be	 a	 good	        worked.
manager	if	you’re	terrible	with	women.”	             The	 Complaint	 also	 accuses	 Bank	 of	        mAny hoTels in The uniTed sTATes lACk
This	appears	to	be	a	verdict	that	will	be	        America	of	requiring	employees	to	work	            Fire sPrinklers
upheld	by	the	appeals	court	in	the	event	         during	unpaid	breaks,	failing	to	provide	
Novartis	goes	forward	with	the	appeal.	           meal	and	rest	breaks,	and	failing	to	timely	          Lots	 of	 travelers	 don’t	 realize	 that	 a	
Source: Associated Press                          pay	 terminated	 employees	 for	 earned	           deadly	fire	hazard	danger	exists	in	many	
                                                  wages	 and	 accrued	 vacation	 time.	 	 he	
                                                                                            T        hotels	 and	 motels	 around	 the	 country.	
                                                  Complaint	states	that	“Bank	of	America	            Many	older	hotels	and	motels	can	legally	
Tyson Foods Agrees To PAy Workers                 enjoys	 millions	 of	 dollars	 in	 ill-gained	     avoid	installing	sprinklers	that	stop	blazes	
For All Work Time                                 profits	 at	 the	 expense	 of	 its	 hourly	        before	 they	 kill	 guests.	 Since	 a	 cata-
                                                  employees,”	violating	either	the	federal	          strophic	fire	killed	87	at	the	MGM	Grand	
  	Tyson	Foods	Inc.	has	settled	a	decade-         Fair	Labor	Standards	Act	or	various	state	         Hotel	 in	 Las	Vegas	 in	 1980,	 a	 national	
long	 dispute	 by	 agreeing	 to	 pay	 its	        labor	 laws.	 Shirley	 Norton,	 a	 Bank	 of	       push	to	require	sprinkler	systems	in	new	
workers	for	time	they	spend	putting	on	           America	 spokeswoman,	 said	 the	 Char-            hotels	and	motels	has	helped	bring	fire	
and	taking	off	protective	clothing.	Federal	      lotte,	North	Carolina-based	bank	would	            deaths	down	significantly.	Even	so,	federal	
officials	 have	 insisted	 that	 meat	 and	       defend	against	the	lawsuit,	and	had	com-           officials	 estimate	 that	 3,900	 hotel	 and	
poultry	processors	pay	employees	for	all	         prehensive	 policies	 and	 training	 to	           motel	fires	 are	 reported	to	fire	depart-
hours	worked.	In	a	consent	decree	filed	          ensure	compliance	with	all	federal	and	            ments	 across	 the	 country	 each	 year,	
in	 U.S.	 District	 Court	 in	 Birmingham,	       state	wage	and	hour	laws.                          causing	on	average	15	deaths,	150	inju-
Tyson	 also	 agreed	 to	 pay	 $500,000	 in	          As	 of	 March	 31 st 	 Bank	 of	 America	       ries	 and	 $76	 million	 in	 property	
overtime	 back	 wages	 to	 nearly	 3,000	         employed	 283,914	 people	 worldwide,	                         T
                                                                                                     losses.	 	 he	 lack	 of	 sprinklers	 in	 many	
workers	at	its	Blountsville,	Alabama,	plant.      and	 operated	 5,939	 U.S.	 branches.	 	 he	
                                                                                            T        o l d e r 	 fa c i l i t i e s 	 h a s 	 t o 	 b e 	 a 	 b i g	
  The	Labor	Department	reached	a	similar	         federal	Judicial	Panel	on	Multidistrict	Liti-                     T
                                                                                                     problem.	 	 he	 National	 Fire	 Protection	
agreement	earlier	this	year	with	poultry	         gation	in	April	had	directed	that	the	12	          Association	says	it’s	rare	for	a	guest	to	die	
processor	 Pilgrim’s	 Pride	 Corp.	 It	 had	      original	 cases	 be	 consolidated.	 	 he	 T        when	a	fire	breaks	out	in	a	room	with	
accused	 both	 companies	 of	 violating	          lawsuit	seeks	class-action	status,	a	halt	to	      sprinklers.	In	fact,	they	say	there	hasn’t	
federal	law	by	not	paying	workers	for	all	        the	alleged	illegal	conduct,	compensatory	         been	a	documented	fire	in	a	“sprinklered”	
                      T
work-related	 tasks.	 	 he	 consent	 decree	      and	 punitive	 damages	 and	 other	 reme-          hotel	that	killed	more	than	one	person.
                                          T
affects	 all	 of	Tyson’s	 U.S.	 workers.	 	 he	   dies.	George	Hanson,	a	lawyer	located	in	             While	newer	hotels	must	install	sprin-
company	has	117,000	workers	worldwide.            Kansas	 City,	 Missouri,	 represents	 the	         klers,	older	ones	don’t	have	to.		 	study	by	   A
Source: Associated Press                          Plaintiffs.	                                       the	U.S.	Fire	Administration	for	2005-2007	
                                                  Source: Reuters                                    found	 that	 about	 60%	 of	 hotels	 and	
                                                                                                     motels	 reporting	 fires	 lacked	 sprin-
BAnk oF AmeriCA Workers sue For                                                                              T
                                                                                                     klers.		 he	National	Fire	Protection	Associ-
overTime                                          ChArTer CommuniCATions PAys $18                    ation	 also	 found	 that	 every	 single	 fire	
                                                  million To seTTle lAWsuiT                          death	from	2002	to	2005	was	in	a	motel	
  Workers	for	Bank	of	America	Corp,	one	                                                             or	hotel	that	lacked	a	sprinkler	system.	
of	 the	 nation’s	 largest	 employers,	 have	        Cable	 operator	 Charter	 Communica-            More	recent	statistics	aren’t	available.	
sued	the	company	for	allegedly	failing	to	        tions	 has	 agreed	 to	 pay	 $18	 million	 to	        In	Alabama,	all	motel	and	hotel	rooms	
pay	 overtime	 and	 other	 wages.	 	 he	 T        current	 and	 former	 employees	 who	              must	have	smoke	detectors,	but	sprinkler	
lawsuit	filed	last	month	in	federal	court	        alleged	the	company	did	not	adequately	            requirements	vary	by	city.		 he	Alabama	    T
in	 Kansas	 City,	 Kansas,	 consolidates	12	                                   T
                                                  pay	them	for	their	work.		 he	settlement	          Legislature	should	take	a	serious	look	at	
lawsuits	filed	on	behalf	of	employees	in	         must	be	approved	by	a	federal	judge	in	            this	 safety	 problem	 next	 year.	 Persons	
California,	 Florida,	 Kansas,	Texas	 and	        Wisconsin.	If	this	happened,	the	settle-           who	stay	in	hotels	and	motels	need	to	be	
Washington.	 It	 seeks	 nationwide	 class-        ment	 will	 end	 all	 of	 the	 Plaintiffs’	 and	   protected	in	the	event	of	a	fire,	and	sprin-
action	status	on	behalf	of	employees	at	          class	members’	wage	and	overtime	claims	           kler	systems	are	needed	for	that	reason.	
Bank	of	America	retail	branches	and	call	                                             T
                                                  in	exchange	for	the	payment.		 he	jobs	            When	sprinkler	systems	are	not	available,	
centers	over	the	past	three	years.                were	field	technicians	who	worked	for	             the	facilities	should	make	that	known	to	
  It’s	estimated	that	the	case	could	even-        Charter	in	California,	Missouri,	Michigan,	        all	potential	guests.	
tually	cover	more	than	180,000	workers,	          Minnesota,	Illinois,	Nevada,	Washington,	          Source: Associated Press
based	 on	 information	 provided	 by	 the	        Oregon	and	Nebraska.	Charter	is	the	sec-
       T
bank.		 hat	could	lead	to	a	recovery	in	the	      ond-largest	cable	operator	in	Wisconsin,	
“hundreds	of	millions”	of	dollars,	assum-         behind	Time	Warner	Cable.
ing	a	typical	employee	was	deprived	of	           Source: Journal Sentinel
                            A
$1,000	to	$2,000	in	pay.		 ccording	to	the	


	                                          www.JereBeasleyReport.com	                                                                                          23
lAWsuiT Filed over ATlAnTA Bridge                  sor.	 	 fter	 several	 attempts,	 the	 heater	
                                                         A                                            pecuniary	loss,	and	loss	of	companion-
CollAPse                                           exploded.	Petrie	suffered	trauma	to	his	           ship	and	mental	anguish,	as	well	as	$25	in	
                                                   head	and	chest,	and	died	of	his	injuries	in	       punitive	 damages.	 	A mmons	 said	 the	
   The	widow	of	a	construction	worker,	            a	hospital	the	next	day.	                          verdict	shows	other	gas	processing	com-
who	was	killed	when	a	pedestrian	bridge	              A	lawsuit	was	filed	against	Quicksilver	        panies	that	they	will	be	held	accountable	
collapsed	at	the	Atlanta	Botanical	Garden	         Resources,	 the	 owner	 of	 the	 gas	 plant,	      if	they	fail	to	keep	their	workers	safe.	
in	 2008,	 has	 filed	 a	 lawsuit	 against	 the	   and	 Hanover	 Compression,	 which	 sold	              Three	additional	Defendants	who	were	
attraction	and	several	construction	com-           the	gas	processing	plant	to	Quicksilver.	          involved	in	various	ways	with	the	refur-
panies.	 Eucebia	 Lopez	 Carbajal,	 the	           Hanover	Compressions	is	now	known	as	              bishing,	 relocating	 or	 installing	 of	 the	
widow	of	66-year-old	Angel	Chupin,	filed	          Exterran	Energy	Solutions.	It	was	alleged	         heater	were	dismissed	from	the	lawsuit	
her	 suit	 in	 state	 court	 in	 Fulton	           in	the	suit	that	Hanover,	which	owned	             as	 a	 result	 of	 a	 confidential	 settlement	
          A
County.		 lso,	three	workers	injured	when	         the	plant	when	it	was	located	in	Okla-                                                 A
                                                                                                      reached	with	each.	Robert	E.		 mmons,	a	
the	 elevated	 walkway	 collapsed	 have	           homa,	had	the	responsibility	of	relocating	        lawyer	from	Houston,	Texas,	represented	
                  A
filed	lawsuits.		 ll	four	men	worked	for	a	        the	 plant	 to	Texas,	 refurbishing	 and	          the	family	and	did	a	very	good	job.
subcontractor	that	pours	concrete	foun-            restoring	 the	 plant	 and	 its	 equipment,	       Source: Lawyers USA Online
           T
dations.		 he	lawsuits	accuse	the	garden	          and	 then	 reconstructing	 the	 plant	 and	
and	the	companies	of	failing	to	protect	           reinstalling	the	equipment	at	the	Texas	
the	workers	building	the	“Canopy	Walk,’’	          site	 in	 accordance	 with	 specific	 safety	
which	 by	 the	 way	 is	 now	 open	 to	 the	       standards	 and	 plan	 specifications.	 	 he	
                                                                                              T
                                                                                                      XVIII.
public.	                                           Defendants	argued	that	Petrie’s	own	neg-           WORKPLACE
   The	 incident	 that	 killed	 Chupin	 and	
injured	 another	 18	 workers	 occurred	
                                                   ligence	caused	the	heater	to	explode.	             HAZARDS
                                                      Hanover	failed	to	install	purge	systems	
during	 construction	 of	 a	 pedestrian	           and	 safety	 valves	 in	 the	 oil	 heater	 that	
walkway	designed	to	give	visitors	a	view	          would	have	prevented	gas	from	building	
of	 the	 garden	 from	 40	 feet	 above	                                                               oshA Fines Three ComPAnies For FATAl
                                                   up	inside	and	causing	the	explosion	that	          PiPeline exPlosion
          T
ground.		 he	men	were	hurt	when	part	of	                                  T
                                                   killed	 the	 worker.	 	 hat	 failure	 violated	
the	 elevated	 path	 crumbled,	 causing	           the	National	Fire	Protection	Association	             The	 Occupational	 Safety	 and	 Health	
workers	 to	 fall	 dozens	 of	 feet	 to	 the	      standard.	Both	Hanover	and	Quicksilver	            Administration	has	levied	fines	totaling	
ground.	 Several	 workers	 suffered	 frac-         were	 on	 notice	 about	 the	 absence	 of	         $108,000	against	three	companies	in	con-
tures	and	spinal	injuries.	Mr.	Chupin	was	         purge	systems	and	safety	valves	back	in	           nection	with	a	pipeline	explosion	that	
        A
killed.		 n	Occupational	Safety	and	Health	        2005.	Purge	systems	would	have	gotten	             killed	one	man	and	injured	three	others	
Administration	 report	 determined	 the	           the	gas	out	of	the	furnace.	                                                                T
                                                                                                      last	year	in	Smith	County,	Mississippi.		 he	
incident	may	have	been	caused	by	two	                 The	 Plaintiffs	 also	 claimed	 that	 the	      explosion	happened	on	July	15,	2009	on	
support	towers	that	were	placed	too	far	                                                      T
                                                   heater	 was	 not	 properly	 installed.	 	 he	      a	 county	 road	 near	 Sylvarena.	Workers	
from	each	other.	OSHA	also	referenced	a	           worker	went	through	the	proper	steps	to	           were	using	nitrogen	to	pressure	test	the	
failure	 to	 properly	 inspect	 the	 shoring	      start	the	furnace,	and	each	time	gas	was	          pipeline.	 During	 the	 tests,	 something	
equipment	before	the	concrete	pour	as	a	           introduced	 inside.	 Since	 it	 wasn’t	                                           A
                                                                                                      caused	the	line	to	explode.		 ccording	to	
factor	 in	 fines	 ranging	 from	 around	          installed	properly,	the	furnace	wouldn’t	          OSHA,	the	lid	on	the	separator	where	the	
$5,000	to	$15,000	issued	against	three	of	                 T
                                                   light.		 he	Plaintiffs’	lawyers	focused	on	        pipes	 attached	 flew	 off,	 throwing	 por-
the	companies	involved	in	the	walkway’s	           OSHA	records	and	witness	testimony	to	             tions	of	the	massive	pipe	into	the	air.	
construction.	 Mike	 Moran,	a	very	good	           explain	the	proper	safety	standards	and	              An	employee,	James	Lee	Candler,	was	
lawyer	 from	 Atlanta,	 represents	 Mrs.	          prove	their	case.	                                 killed	during	the	explosion	and	three	of	
           T
Chupin.		 he	family	wants	to	recover	the	             The	 plant	 relocation	“was	 a	 turnkey	        his	 co-workers	 injured.	 OSHA	 levied	
full	 value	 of	 this	 man’s	 life.	 Hopefully,	   project,”	 meaning	 that	 Hanover	 had	 to	        these	fines	against	the	companies	listed:	
they	will	be	successful	in	this	case.	             reconstruct	 and	 transfer	 the	 plant	 to	        Mustang	 Engineering	 $65,000;	 Grand	
Source: Atlanta Journal Constitution               Quicksilver	in	a	ready-to-use	condition.	          Bluff	Construction	Co.,	of	Beckville,	Texas	
                                                   Delays	 in	 the	 job	 cost	 the	 companies	        $38,500;	and	Priority	Energy	Services,	of	
                                                   money.	 It	 appears	 the	 companies	 side-         Chicago	$49,000.	Clyde	Payne,	of	OSHA,	
Jury reTurns $82.5 million verdiCT in              stepped	safety	standards	in	order	to	cut	          stated:	
gAs PlAnT BlAsT CAse                               costs,	despite	the	fact	that	the	two	com-
                                                   panies	 agreed	 to	 adhere	 to	 NFPA	 stan-          There were known issues employees
  A	Texas	jury	has	returned	a	verdict	of	          dards	 in	 their	 agreement	 to	 sell	 and	          shouldn’t have been exposed
more	 than	 $82	 million	 against	 two	            relocate	the	plant.                                  to. There should have been steps
natural	 gas	 plant	 companies	 after	 a	             The	jury	found	Hanover	80%	at	fault	              taken to protect employees.
worker	in	a	rebuilt	and	refurbished	plant	         and	Quicksilver	20%	at	fault	for	the	inci-
was	killed	in	an	explosion.	Joshua	Wade	                                                                There	 has	 been	 a	 rash	 of	 pipeline	
                                                   dent.	Jurors	concluded	that	the	worker	            explosions	 over	 the	 past	 year.	 Most	 of	
Petrie	was	a	plant	operator	at	a	natural	                                 T
                                                   was	not	negligent.		 he	verdict	consisted	
gas	processing	plant	in	Cleburne,	Texas.	                                                             them	involved	testing	the	pipelines.	
                                                   of	 $57.5	 million	 in	 compensator y	
On	May	25,	2007,	the	worker	attempted	                                                                Source: Associated Press
                                                   damages	for	the	Plaintiffs’	past	and	future	
to	start	a	hot	oil	heater	on	a	plant	proces-



24	                                                www.BeasleyAllen.com
ComPonenT mAker mAy Be liABle For                          $15 million seTTlemenT For inJured               ConsTruCTion Worker is AWArded $40
deFeCT in sysTem                                           Worker                                           million

   The	Utah	Supreme	Court	has	ruled	that	                    An	 oil	 field	 rigger	 who	 had	 been	          A	jury	awarded	$40	million	in	damages	
the	maker	of	a	component	for	a	laundry	                    severely	 injured	 in	 a	 post-Hurricane	        to	 a	 Brooklyn	 construction	 worker,	
system	 may	 be	 liable	 for	 brain	 damage	               Katrina	salvage	job	has	settled	his	claims	      Matthew	Falcone,	who	was	left	severely	
suffered	by	a	worker	due	to	ozone	expo-                                     T
                                                           for	$15	million.		 he	trial	in	the	worker’s	     disabled	after	a	Verizon	truck	struck	him	
       T
sure.		 he	Court	reversed	a	summary	judg-                  lawsuit	against	his	employer,	Longnecker	                                            T
                                                                                                            near	his	home	four	years	ago.		 he	truck	
ment	that	had	been	entered	by	the	trial	                   Properties	Inc.,	and	several	other	compa-                                            T
                                                                                                            was	traveling	50	miles	an	hour.		 he	award	
judge.		 he	Plaintiff	alleged	that	she	suf-
         T                                                 nies	had	been	scheduled	to	start	July	18th	      will	help	the	Plaintiff,	who	suffered	brain	
fered	brain	damage	as	a	result	of	expo-                                                T
                                                           in	a	Louisiana	state	court.		 he	35-year-old	    damage	and	is	partially	paralyzed,	leave	a	
s u re 	 t o 	 o z o n e 	 e m i t t e d 	 f ro m 	 a n	   worker	 was	 crushed	 by	 a	 salvage	 pipe	      Staten	Island	nursing	home	and	move	in	
ozone-laundry	system	installed	where	she	                  that	 was	 being	 lowered	 onto	 a	 barge,	                       A
                                                                                                            with	his	sister.		 fter	the	crash,	the	Plaintiff	
worked.	She	filed	product	liability	suits	                 leaving	 him	 a	 paraplegic.	 Wild	 Well	        was	in	a	coma	and	not	expected	to	survive.	
against	a	variety	of	installers,	distributors	             Control	Inc.	directed	the	salvage	job	on	        He	spent	weeks	in	the	hospital.	Verizon	is	
and	manufacturers	of	the	laundry	system.                   behalf	 of	 Newfield	 Exploration	 Co.,	         considering	whether	to	appeal	the	verdict.
   The	manufacturer	of	the	ozone	genera-                   which	owned	the	damaged	equipment	               Source: New York Daily News
tor	 used	 in	 the	 system	 argued	 that	 it	              and	hired	the	worker’s	employer.
could	 not	 be	 held	 liable	 because	 its	                Source: Associated Press
product	was	not	defective.	But	the	Court	                                                                   neW Jersey Jury AWArds doCTor $7
decided	that	the	Plaintiff	produced	suffi-                                                                  million in PersonAl inJury CAse
cient	evidence	showing	that	the	genera-
tor	was	defective	because	it	didn’t	have	
                                                           XIX.                                               A	New	Jersey	jury	has	awarded	$7.2	
an	automatic	shut	off	sometimes	installed	                 TRANSPORTATION                                   million	 to	 a	 doctor	 who	 sued	 the	 Port	
in	other	generators.	Moreover,	the	Court	                                                                   Authority	of	New	York	and	New	Jersey	
adopted	the	“component-parts	doctrine,”	                                                                    after	she	fell	and	broke	her	elbow	at	a	
under	 which	 a	 manufacturer	 of	 a	 non-                 roTor mAnuFACTurer seTTles WiTh                  North	Jersey	rail	station.	Dr.	Soma	Mandal	
defective	product	may	be	liable	for	the	                   Children oF FlighT nurse                         of	Jersey	City	suffered	an	injury	that	cost	
design	defects	of	a	system.		 he	Court	said	
                                     T                                                                      her	full	use	of	her	right	arm	and	she	had	
in	an	opinion:	                                               A	lawsuit	filed	on	behalf	of	two	chil-        to	 stop	 working	 at	 New	York’s	 NYU	
                                                           dren	of	a	flight	nurse	killed	in	a	medical	      Medical	Center,	where	she	was	an	attend-
    Liability for failure to install a                     helicopter	crash	has	been	settled	for	$5.6	      ing	physician.
    safety device…depends on whether                       million.	 Sandra	 Pearson,	 38,	 was	 killed,	     The	jury	award	includes	$3	million	for	
    the component manufacturer was                         along	 with	 the	 pilot	 and	 a	 paramedic,	     pain	 and	 suffering	 and	 $4	 million	 for	
    in a position to control the decision                  when	the	rotor	came	off	their	Bell	206	          future	 lost	 earnings.	 Dr.	 Mandal	 was	
    making involved in the design of                       Longranger	 before	 it	 crashed	 in	 a	 field	   injured	in	March	2007	when	she	slipped	
    the integrated product. The act of                     outside	Burney,	about	40	miles	southeast	        on	 a	 rubber	 mat	 on	 a	 walkway	 in	 the	
    ‘simply design[ing] a component to                                                         T
                                                           of	Indianapolis,	in	August	2008.		 he	set-       Newport-Pavonia	PATH	station.
    its buyer’s specifications’ or ‘provid-                tlement	was	reached	with	Bell	Helicopter	        Source: Insurance Journal
    ing … technical services or advice’                    Textron,	the	company	that	manufactured	
    about the component does not in                                         T
                                                           the	rotor	blade.		 he	National	Transporta-
    and of itself constitute substantial                   tion	Safety	Board	found	that	the	flawed	         Jury AWArds $1.3 million To meTro
    participation in the design of the                     main	rotor	blade	had	broken	apart	just	          PAssenger
    integrated product. However, if the                    after	take-off.
    specifications provided are obvi-                         The	lawsuit,	filed	in	Marion	Superior	          A	jury	in	King	County,	Washington,	has	
    ously unreasonably dangerous, the                      Court,	named	as	Defendants	Rolls-Royce,	         awarded	a	Metro	passenger	$1.3	million	
    component manufacturer may be                          the	helicopter’s	engine	maker;	Decatur	          for	injuries	he	sustained	when	he	slipped	
    deemed to have control over the                        County	REMC,	the	utility	responsible	for	        exiting	a	bus	in	October	of	2006.	In	that	
    integrated product and therefore be                    maintaining	power	lines	in	the	area;	Rush-       incident	Keith	Knappett	suffered	perma-
    deemed to have substantially par-                      ville	Memorial	Hospital,	which	dispatched	       nent,	severe	leg	injuries.	He	needs	a	cane	
    ticipated.                                             the	 helicopter;	 and	 Bell	 Helicopter	         to	walk,	and	faces	possible	amputation.	It	
                                                           Textron,	the	rotor	manufacturer.	                was	proved	at	trial	that	when	portions	of	
  The	case	was	remanded	to	the	lower	
                                                              The	lawsuit	was	filed	on	behalf	of	Pear-      the	 bus	 stairs	 get	 wet,	 especially	 the	
court	so	that	the	Plaintiff	would	have	the	
                                                                                       T
                                                           son’s	two	young	children.		 he	settlement	       bright	yellow	material	on	the	stairs,	they	
opportunity	to	develop	the	case	under	a	
                                                           funds	 will	 be	 deposited	 into	 trust	         become	very	slick.	Metro’s	lawyers	tried	
                           T
component-parts	theory.		 his	case	will	be	
                                                           accounts	for	the	children	until	they	turn	       to	prove	that	this	was	impossible,	but	the	
watched	closely	by	safety	advocates.	
                                                                A
                                                           18.	 	 	 Hendricks	 County	 probate	 judge	      jury	 didn’t	 buy	 their	 argument.	 Lori	
Source: Lawyers USA Online
                                                           has	approved	the	settlement.	                       A
                                                                                                            H.		 skell	represented	the	Plaintiff	in	the	
                                                           Source: Indystar.com                             case	and	did	a	very	good	job.	
                                                                                                            Source: SeattlePI.com




	                                                  www.JereBeasleyReport.com	                                                                            25
WomAn sues google AFTer PArk CiTy                    An	Enterprise	company	official	said	in	        of	Grassini	and	Wrinkle,	represented	the	
ACCidenT                                          a	 deposition	 that	 the	 company	 had	 no	       parents	 and	 they	 did	 a	 ver y	 good	
                                                  plans	 to	 change	 policies	 regarding	           job.	 	T hese	 lawyers	 are	 to	 be	 com-
   A	Los	Angeles-area	woman	has	filed	suit	       recalled	cars	in	its	fleets.	Raechel	Houck,	                  T
                                                                                                    mended.	 	 hey	 stayed	 the	 course	 and	
against	an	individual	and	Google	alleging	        24,	rented	a	2004	Chrysler	PT	Cruiser	at	         didn’t	allow	Enterprise	to	wear	them	and	
that	Google	Maps	led	her	onto	a	danger-           an	Enterprise	location	for	herself	and	Jac-       their	clients	down	over	the	5	year	long	
ous	 Park	 City	 roadway	 where	 she	 was	        queline,	her	20	year	old	sister.	Daimler	         legal	battle.	It’s	a	shame	that	Enterprise	
struck	by	a	car.	In	the	lawsuit	filed	in	U.S.	    Chrysler	sent	out	safety	recall	notices	for	      put	 this	 family	 though	 such	 an	 ordeal	
District	 Court	 for	 Utah,	 the	 Plaintiff	      435,000	PT	Cruisers	from	2002	through	            when	it	knew	all	along	they	were	at	fault	
Lauren	Rosenberg	states	that	on	January	          2005	 one	 month	 before	 this	 rental	           and	caused	two	young	women	to	be	trag-
19,	 2009,	 she	 sought	 instruction	 from	       occurred.	 	 he	 notice	 said	 the	 power	
                                                                 T                                  ically	killed.
Google	Maps	on	her	Blackberry	for	direc-          steering	 hose	 on	 the	 recalled	 vehicles	      Source: MercuryNews.com
                                     T
tions	to	walk	from	96	Daly	Ave.		 o	1710	         could	leak,	resulting	in	a	fire.
Prospector	Ave.	in	Park	City.	                       Enterprise	 records	 showed	 the	 PT	
   According	 to	 the	 suit,	 Google	 Maps	       Cruiser	the	Houck	sisters	rented	had	not	
directed	 Rosenberg	 along	 Deer	Valley	          been	repaired.	Neither	was	it	grounded.	
                                                                                                    XX.
Drive,	which	is	State	Route	224,	in	an	area	      In	fact,	the	vehicle	had	been	rented	four	        ARBITRATION
“where	vehicles	travel	at	a	high	rate	of	
speed	and	[is]	devoid	of	pedestrian	side-
                                                                              T
                                                  times	 since	 the	 recall.	 	 he	 manager	 of	    UPDATE
                                                  Enterprise’s	 Northern	 California	 area,	
walks.”	The	suit	states:	“Google	undertook	       which	included	the	location	where	this	
the	duty	to	exercise	reasonable	care	in	          rental	took	place,	claimed	that	before	the	
providing	safe	directions	to	patrons	of	its	                                                        Congress TAkes mAJor sTeP ToWArd
                                                  accident,	 he	 was	 not	 aware	 the	 PT	          ending ForCed ArBiTrATion
Google	Maps	service.	[But]	Google	failed	         Cruiser	was	a	recalled	vehicle.	But,	he	did	
to	 warn	 Plaintiff	 Rosenberg	 of	 said	         admit	 that	 Enterprise	 rented	 recalled	           Public	 Citizen	 was	 instrumental	 in	
known	dangers.”                                   vehicle	on	a	nationwide	basis.                    getting	language	limiting	forced	arbitra-
   The	 Plaintiff	 claims	 that	 a	 Salt	 Lake	      The	 Houck	 sisters	 were	 on	 a	 state	       tion	put	in	the	Wall	Street	reform	bills	in	
County	resident	was	driving	an	automo-            highway	and	were	returning	from	their	                                         T
                                                                                                    the	 House	 and	 Senate.	 	 he	 language	
bile	southbound	in	a	“negligent”	manner	          mother’s	home	in	Ventura	when	the	PT	             authorizes	the	new	Consumer	Financial	
and	 struck	 her,	“causing	 her	 to	 suffer	      Cruiser	was	involved	in	a	collision	with	a	       Protection	Bureau	to	ban	forced	arbitra-
severe	physical,	emotional,	and	more	than	                                 T
                                                  tractor-trailer	 unit.	 	 he	 rented	 vehicle	    tion	clauses	in	consumer	contracts	with	
                                   T
$100,000	 in	 mental	 injuries.	 	 his	 case	     burst	into	flames	and	the	two	sisters	lost	       financial	 services	 providers	 like	 banks,	
will	 be	 watched	 closely	 due	 to	 the	         their	 life.	 It	 was	 learned	 that	 Raechel	    credit	 card	 companies,	 payday	 lenders	
involvement	of	Google	as	a	Defendant.	            Houck	lost	steering	ability	because	of	a	         and	mortgage	lenders.	Similar	language	is	
Many	people	use	Google	for	travel	infor-          power-steering	fluid	leak.	Even	though	           now	 being	 used	 by	 the	 Securities	 and	
mation.	                                          Enterprise	blamed	the	crash	on	Raechel’s	         Exchange	Commission.
Source: Salt Lake Tribune                         driving,	their	lawyers	offered	the	parents	          Because	 the	 House	 and	 Senate	 bills	
                                                  $3	 million	 to	 settle	 their	 case	 if	 they	   have	similar	provisions	on	forced	arbitra-
                                                  would	keep	the	matter	confidential.		 he	  T      tion,	there	is	every	reason	to	expect	that	
Jury AWArds $15 million in WrongFul               parents	refused,	saying	they	“didn’t	want	        they	will	be	included	in	the	final	bill	that	
deATh CAse AgAinsT enTerPrise CAr                 Enterprise	to	silence”	them.	Sean	Kane	of	        President	 Obama	 signs	 into	 law.	 Hope-
renTAl                                            Safety	Research	&	Strategies	in	Rehoboth,	        fully	 there	 won’t	 be	 eleventh-hour	
                                                  Massachusetts,	a	company	that	examines	           attempts	by	the	big	banks	and	the	U.S.	
   A	jury	has	awarded	$15	million	to	the	         vehicle	safety	issues,	had	this	to	say	about	     Chamber	of	Commerce	to	strip	the	provi-
parents	 who	 filed	 a	 wrongful-death	           recalls	and	Enterprise’s	duty:                    sions.	So	far	it	appears	Public	Citizen	has	
lawsuit	against	Enterprise	Rent-A-Car	of	
                                                                                                    won	a	major	battle	in	this	war.	
San	 Francisco	 after	 their	 daughters,	           Any recall is a safety-related recall.
                                                                                                       In	 a	 related	 development,	 the	 U.S.	
Raechel	and	Jacqueline	Houck,	died	in	a	            It needs to be handled before the
                                                                                                    Supreme	 Court	 granted	 certiorari	 last	
fiery	motor	vehicle	crash	in	2004.	Enter-           customer gets a car. It shouldn’t be
                                                                                                    week	in	AT&T Mobility v. Concepcion.	In	
prise,	 the	 nation’s	 largest	 rental	 car	        the consumer’s responsibility. It
                                                                                                    this	case,	the	Court	will	decide	whether	
company,	and	its	corporate	parent,	fought	          should be the company’s responsi-
                                                                                                    lower	courts	can	continue	to	strike	down	
the	 lawsuit	 for	 five	 long	 years,	 playing	     bility. That’s what missing in this
                                                                                                                                   A
                                                                                                    class-action	bans	as	unfair.		 T&T	argues	
hardball.	Finally,	just	before	trial	of	the	        equation.
                                                                                                    that	the	Federal	Arbitration	Act	preempts	
case	was	to	start,	the	Enterprise	defen-
                                                    This	 case	 revealed	 some	 very	 bad	          such	 rulings.	 Public	 Citizen	 Litigation	
dants	admitted	fault	and	said	“their	negli-
                                                  conduct.	 Renting	 recalled	 vehicles	 to	        Group	represents	the	Plaintiff	and	will	
gence	was	the	sole	proximate	cause	of	
                                                  folks	 and	 letting	 them	 run	 the	 risk	 of	    argue	before	the	Supreme	Court—for	the	
the	fatal	injuries.”	Up	to	that	point,	the	
                                                  being	badly	injured	or	killed	is	intolera-        57th	time	in	its	history—this	fall.		 his	case	
                                                                                                                                        T
defendants	 had	 been	 blaming	 Rachael	
                                                  ble.	Hopefully,	this	company	has	learned	a	       could	preserve	or	sharply	limit	corpora-
Houck,	the	driver	of	the	rented	vehicle.
                                                  lesson	and	will	change	its	policy.	Larry	         tions’	 use	 of	 class-action	 bans	 in	 con-
                                                  Grassini	of	the	Woodland,	California	firm	        sumer	and	employment	contracts.	



26	                                               www.BeasleyAllen.com
u.s. suPreme CourT grAnTs revieW oF                 ARBITRATION WILL NO LONGER                      FdA reQuires liver-inJury WArning on
ClAss ACTion WAiver CAse                            BE USED TO RESOLVE NEW DISPUTES:                WeighT-loss drugs
                                                    We are removing the Arbitration
   The	U.S.	Supreme	Court	has	agreed	to	            sections from your Credit Card                     The	U.S.	Food	and	Drug	Administration	
review	a	case	that	will	decide	whether	             Agreement.                                      is	requiring	a	new	warning	about	liver	
the	 Federal	Arbitration	Act	 (FAA)	 pre-                                                           injury	 to	 be	 placed	 on	 the	 weight-loss	
empts	state	court	decisions	holding	that	           While	 this	 is	 a	 welcomed	 change	 in	       drugs	Xenical	and	Alli.	Xenical	is	a	pre-
a	class	action	waiver	in	a	consumer	arbi-         policy,	I	really	am	not	sure	what	brought	        scription	 weight-loss	 drug	 made	 by	
tration	agreement	is	unconscionable	or	           this	change	on.	I	can	only	assume	Bank	of	                                A
                                                                                                    Roche	 Holding	AG.	 	 lli	 is	 an	 over-the-
otherwise	violates	state	law.	In	the	case	        America	 now	 realizes	 that	 consumers	          counter	version	of	the	same	drug	mar-
(AT&T Mobility LLC v. Concepcion),	the	           don’t	like	forced	arbitration.                    keted	by	GlaxoSmithKline	PLC	at	a	lower	
U.S.	 Court	 of	 Appeals	 for	 the	 Ninth	                                                                T
                                                                                                    dose.		 he	FDA	said	the	warning	is	based	
Circuit	affirmed	the	district	court’s	denial	                                                       on	rare	reports	of	liver	injury	associated	
of	AT&T’s	 motion	 to	 compel	 arbitra-           XXI.                                              with	 the	 products.	 From	April	 1999	 to	
      T
tion.		 he	Ninth	Circuit	agreed	with	the	                                                           August	2009	the	FDA	said	it	received	12	
district	 court’s	 conclusion	 that	AT&T’s	       HEALTHCARE                                        reports	 of	 liver	 injury	 associated	 with	
arbitration	agreement	was	unconsciona-            ISSUES                                                                               A
                                                                                                    Xenical	 from	 outside	 the	 U.S.	 	 nd	 one	
ble	 under	 California	 law	 because	 it	                                                                                                A
                                                                                                    U.S.	report	associated	with	Alli.		 mong	
required	customers	to	arbitrate	small-dol-                                                          those	reports,	two	people	died	and	three	
lar	 consumer	 claims	 on	 an	 individual	        viTAmins should Be regulATed                      people	needed	a	liver	transplant.	
basis.	It	also	rejected	AT&T’s	argument	                                                            Source: Associated Press
that	 California’s	 unconscionability	 law	          Vitamins	 and	 mineral	 supplements	
was	expressly	or	impliedly	preempted	by	          sales	bring	in	billions	of	dollars	annually	
the	FAA.                                                                    T
                                                  in	 the	 United	 States.	 	 he	 industry	 has	    Poor inFeCTion ConTrol Found AT mAny
   This	 action	 by	 the	 Supreme	 Court	         done	a	tremendous	job	making	the	con-             surgery CenTers
follows	 its	 ruling	 on	April	 27,	 2010,	 in	   suming	public	believe	that	these	supple-
Stolt-Nielsen, S.A. v. AnimalFeeds Int’l          ments	are	both	necessary	and	safe.	Many	             A	new	federal	study	finds	many	same-
Corp.,	 08-1198,	 that	 the	 FAA	 prohibits	      folks	 take	 supplementar y	 vitamins	            day	surgery	centers—where	patients	get	
class	procedures	from	being	imposed	on	           because	they	have	been	convinced	these	           such	things	as	foot	operations	and	pain	
parties	whose	arbitration	agreement	is	           vitamins	 are	 safe	 ways	 to	 ensure	 good	      injections—have	serious	problems	with	
silent	on	that	issue.	It	also	closely	follows	    health.	 What	 the	 manufacturers	 and	           infection	control.	Failure	to	wash	hands,	
the	 Court’s	 May	 3,	 2010,	 order	 (No.	        sellers	 of	 these	 products	 don’t	 tell	 the	   wear	 gloves	 and	 clean	 blood	 glucose	
08-1473)	 granting	 certiorari	 in	 In re         public	is	that	some	of	the	potential	side	        meter s	 were	 among	 the	 reported	
American Express Merchants Litigation,	           effects	associated	with	vitamins	are	very	        breaches.	Clinics	reused	devices	meant	
554	F.3d	300	(2d.	Cir.	2009),	vacating	the	       serious.	Vitamins	can	cause	toxicity	when	        for	one	person	or	dipped	into	single-dose	
Second	 Circuit	 opinion,	 which	 invali-         taken	in	excessive	doses.		 hey	also	can	
                                                                                T                                                            T
                                                                                                    medicine	vials	for	multiple	patients.		 he	
dated	 a	 class	 action	 waiver	 under	 the	      interact	with	prescription	and	over-the-          findings,	appearing	in	last	month	in	the	
federal	antitrust	laws,	and	remanding	the	        counter	medications.	If	you	would	like	           Journal	of	the	American	Medical	Associa-
case	to	the	Second	Circuit	for	reconsider-        more	 information	 on	 this	 subject,	 I	         tion,	suggest	lax	infection	practices	may	
ation	in	light	of	Stolt-Nielsen.                  suggest	you	go	to	www.worstpills.org.	Dr.	        pervade	 the	 nation’s	 more	 than	 5,000	
   Federal	 and	 state	 courts	 throughout	       Sidney	Wolfe,	who	is	with	Public	Citizen,	                              T
                                                                                                    outpatient	centers.		 his	is	the	first	report	
the	 country	 are	 sharply	 divided	 with	        is	 also	 an	 excellent	 source	 of	 Informa-     from	a	push	to	more	vigorously	inspect	
respect	 to	 the	 validity	 of	 class	 action	           T
                                                  tion.		 here	is	an	excellent	article	in	the	      U.S.	 outpatient	 centers,	 a	 growing	
waivers.		 his	case	presents	an	important	
          T                                       February	2010	Annals	of	Pharmacother-             segment	of	the	health	care	system	that	
issue	to	the	Supreme	Court	and	that	is	           apy	on	whether	vitamins	should	be	regu-           annually	performs	more	than	6	million	
whether	an	express	class	action	waiver	in	        lated	as	drugs.	                                  procedures	and	collects	$3	billion	from	
a	consumer	arbitration	agreement	can	be	                                                            Medicare.	Procedures	performed	at	such	
enforced	under	the	facts.	                                                                          centers	include	exams	of	the	esophagus,	
                                                  lABels urged For Food ThAT CAn Choke              colonoscopies	and	plastic	surgery.
                                                  Children                                             In	the	study,	state	inspectors	visited	68	
BAnk oF AmeriCA TAkes ArBiTrATion ouT                                                               centers	in	Maryland,	North	Carolina	and	
oF CrediT CArds                                      The	American	Academy	of	Pediatrics,	                        T
                                                                                                    Oklahoma.		 hey	used	a	new	audit	tool	
                                                  the	nation’s	leading	pediatricians’	group,	                                            A
                                                                                                    focusing	 on	 infection	 control.	 	 t	 each	
  Any	person	who	has	a	credit	card	has	           has	called	on	the	Food	and	Drug	Adminis-          site,	 inspectors	 followed	 at	 least	 one	
an	arbitration	agreement,	but	most	Ameri-         tration	to	require	warning	labels	on	foods	       patient	 through	 an	 entire	 stay.	 Inspec-
cans	don’t	know	it.	Bank	of	America	gave	         that	are	known	choking	hazards,	and	to	           tions	weren’t	announced	ahead	of	time,	
notice	to	its	credit	card	customers	last	                                                T
                                                  evaluate	and	monitor	food	for	safety.		 he	       but	 staff	 was	 notified	 once	 inspectors	
month	that	it	will	no	longer	require	arbi-        group	 wants	 food	 to	 be	 subject	 to	 as	                T
                                                                                                    arrived.		 he	new	study	found	67%	of	the	
tration.		 he	company	said	in	a	written	
         T                                        much	scrutiny	as	toys.	                           centers	had	at	least	one	lapse	in	infection	
notice:                                           Source: New York Times                            control	and	57%	were	cited	for	deficien-



	                                          www.JereBeasleyReport.com	                                                                         27
       T
cies.	 	 he	 study	 didn’t	 look	 at	 whether	     safety	 equipment.	 Kiddie	 pools	 were	               Between	1999	and	2001,	and	without	
any	of	the	lapses	actually	led	to	infections	      most	likely	to	be	the	germiest,	from	fecal	        the	approval	of	Massachusetts	environ-
               A
in	 patients.	 	 	 few	 centers	 in	 the	 study	   matter	and	improper	chlorination.		 he	    T       mental	 regulators,	 Exxon	 Mobil	 made	
hadn’t	been	inspected	in	12	years.	State	          report	 is	 based	 on	 more	 than	 120,000	        changes	 to	 the	 vapor	 collection	 and	
agencies	have	the	main	responsibility	for	         inspections	of	public	swimming	pools	in	           recovery	 system	 used	 to	 control	 emis-
making	sure	centers	comply	with	federal	           2008,	including	those	in	parks	and	hotels.	        sions	of	volatile	organic	compounds	at	its	
standards,	 but	 states	 often	 fall	 behind.	     It’s	 the	 largest	 study	 of	 the	 topic	 ever	   Everett	terminal.	Changes	included	the	
States	now	are	required	to	use	the	new	            done	by	the	Centers	for	Disease	Control	           removal	 of	 certain	 emissions	 controls	
audit	tool	to	inspect	centers	participating	                            T
                                                   and	Prevention.		 he	new	study	is	pub-             required	under	state	air	permits.	Exxon	
in	Medicare.	Of	surveys	using	the	tool	so	         lished	by	CDC	in	the	Morbidity and Mor-            Mobil	 also	 failed	 to	 control	VOC	 emis-
far,	61%	of	centers	have	been	cited	for	an	        tality Weekly Report.	                             sions	during	the	degassing	of	a	storage	
infection	control	deficiency.	                     Source: Associated Press                                                                 T
                                                                                                      tank	 in	 Everett	 in	 2008.	 	 he	 state	 also	
Source: Associated Press                                                                              alleged	that	Exxon	Mobil	did	not	prop-
                                                                                                      erly	control	emissions	of	VOCs	from	gaso-
                                                                                                      l i n e 	 t a n k 	 t r u ck s 	 d u r i n g 	 l o a d i n g	
FdA PosTs sAFeTy inFormATion on neW
                                                   XXII.                                              operations	 and	 failed	 to	 comply	 with	
drugs                                              ENVIRONMENTAL                                      emissions	monitoring,	repair	and	report-

   The	Food	and	Drug	Administration	has	
                                                   CONCERNS                                           ing	requirements	at	both	locations.	Bulk	
                                                                                                      terminals	are	facilities	where	large	quanti-
announced	 that	 it	 will	 begin	 posting	                                                            ties	of	gasoline	are	stored	before	distribu-
safety	data	on	recently	approved	drugs	               Our	 firm’s	Toxic	Torts	 Section	 has	 a	       tion	to	gas	stations.	
and	biologics	on	its	website	in	an	effort	         number	 of	 very	 important	 projects	             Source: Associated Press
to	better	educate	patients	and	health	care	        ongoing	relating	to	environmental	con-
                T
professionals.		 he	agency	released	safety	               T
                                                   cerns.		 he	BP	oil	spill	and	the	TVA	litiga-
summaries	 on	 26	 approved	 drug	prod-                                                   T
                                                   tion	are	two	of	our	major	projects.		 he	
ucts	based	on	reports	from	manufactur-             firm	has	dedicated	adequate	resources	to	          XXIII.
ers,	 consumers	 and	 others	 who	 have	           these	two	projects	so	we	can	get	the	job	          THE CONSUMER
used	products	since	they	were	approved	
to	market.		 he	summaries	include	safety	
            T
                                                   done.	Rhon	Jones	heads	up	the	section.	In	
                                                   addition	to	Rhon,	the	following	lawyers	
                                                                                                      CORNER
problems	and	adverse	events	that	have	             work	 in	 the	 section:	 Chris	 Boutwell,	
been	reported	in	association	with	each	            David	 Byrne,	 John	Tomlinson,	 Meggan	
                                                                                                      more ThAn 2 million CriBs reCAlled
drug,	 as	 well	 as	 any	 actions	 or	 surveil-    Huggins,	 Parker	 Miller,	 Rick	 Stratton,	
lance	activities	the	FDA	has	undertaken	           Brantley	 Fry,	 and	 Chenoa	Vick.	 If	 you	           More	than	2	million	cribs	from	7	differ-
in	response	to	the	reports.                        would	like	more	information	about	the	             ent	 companies	 were	 recalled	 last	
   The	 Food	 and	 Drug	Administration	            work	 of	 this	 section,	 you	 can	 contact	                 T
                                                                                                      month.		 his	came	because	of	concerns	
Amendments	 Act	 of	 2007	 (FDAAA)	                Rhon	Jones	at	800-898-2034	or	by	email	            that	 babies	 can	 suffocate,	 become	
requires	the	FDA	to	prepare	the	safety	            at	Rhon.Jones@beasleyallen.com.	                   trapped	or	fall	from	the	cribs.	Most	of	the	
summaries	 within	 18	 months	 after	 a	                                                              cribs	were	drop-sides,	which	have	a	side	
product’s	approval	or	after	it	has	been	                                                              rail	that	moves	up	and	down	so	parents	
used	 by	 10,000	 patients,	 whichever	            mAssAChuseTTs reAChes $2.9 million                 can	 lift	 children	 from	 them	 more	
comes	 later.	 	 he	 information	 that	 the	
               T                                   seTTlemenT WiTh exxon moBil                                T
                                                                                                      easily.		 hat	movable	side,	however,	can	
summaries	are	based	upon	comes	from	                                                                  malfunction	or	detach	from	the	crib,	cre-
reports	made	to	the	FDA’s	Adverse	Event	                                    A
                                                      Exxon	Mobil	Corp.		 nd	two	affiliates	
                                                                                                      ating	 a	 dangerous	 gap	 where	 babies’	
Reporting	 System,	 the	Vaccine	Adverse	           have	agreed	 to	 pay	a	$2.9	 million	 civil	
                                                                                                      heads	 can	 become	 trapped,	 leading	 to	
Event	Reporting	System	maintained	by	              penalty	 to	 resolve	 allegations	 that	 the	
                                                                                                      suffocation	or	strangulation.
the	 FDA	 and	 the	 Centers	 for	 Disease	         company	violated	Massachusetts	air	pol-
                                                                                                         The	companies	involved	in	the	recall	
Control	and	Prevention,	periodic	safety	                           T
                                                   lution	 laws.	 	 he	 settlement	 requires	
                                                                                                      were	 Evenflo,	 Delta	 Enterprise	 Corp.,	
information	 manufacturers	 submit,	               Exxon	 Mobil	 to	 reduce	 gasoline	 vapor	
                                                                                                      Child	 Craft,	 Jardine	 Enterprises,	 LaJobi,	
medical	literature	and	data	from	ongoing	          emissions	by	updating	and	improving	air	
                                                                                                      Million	Dollar	Baby	and	Simmons	Juve-
studies.                                           pollution	control	systems	at	its	bulk	gaso-
                                                                                                      nile	Products.	So	far,	no	deaths	have	been	
Source: Lawyers USA Online                         line	terminals	in	Everett	and	Springfield.	
                                                                                                      linked	 to	 the	 recalled	 cribs.	 But	 there	
                                                   Laurie	 Burt,	 commissioner	 of	 the	 state	
                                                                                                      were	more	than	250	reports	of	drop-sides	
                                                   Department	of	Environmental	Protection,	
                                                                                                      detaching	or	failing	and	at	least	16	entrap-
sWimming Pools Closed For A good                   observed:	
                                                                                                      ments	of	infants.	In	one	case,	a	child	was	
reAson                                               “Big oil can no longer marginalize               found	unconscious	and	later	hospitalized.	
                                                     environmental compliance while                   In	 the	 announcement	 from	 the	 Con-
  A	new	government	report	shows	one	
                                                     increasing their gasoline sales and              sumer	 Product	 Safety	 Commission,	 all	
in	 eight	 public	 swimming	 pools	 were	
                                                     distribution in Massachusetts.                   seven	companies	recalled	drop-side	cribs.	
shut	down	two	years	ago	because	of	dirty	
water	 or	 other	 problems,	 like	 missing	



28	                                                www.BeasleyAllen.com
Delta	and	Child	Craft	also	acknowledged	        ing	 of	 cribs	 has	 been	 outsourced	 to	            While	we	are	not	involved	in	the	Penn-
problems	with	fixed-side	cribs.                 foreign	factories	and	as	a	result,	in	trying	      sylvania	case,	our	firm	is	involved	in	other	
   These	 cribs	 and	 many	 others	 con-        to	 drive	 costs	 down	 and	 production	           litigation	involving	the	very	same	defect.	
structed	in	a	manner	that	babies	and	very	      levels	up,	they	have	substituted	hardware	         If	 you	 need	 more	 information	 on	 this	
small	children	can	be	trapped	are	very	         that	is	just	not	as	durable.”	Don	Mays	is	         subject,	contact	Chris	Glover	at	800-898-
dangerous.	Hopefully,	the	CPSC	will	stay	       the	senior	director	of	product	safety	at	          2034	or	by	email	at	Chris.Glover@beasley	
                          T
on	top	of	this	situation.		 he	risks	are	far	   Consumers	 Union,	 publisher	 of	 Con-             allen.com.	
too	great	to	allow	the	manufacturers	to	        sumer	Reports.	He	believes	the	cribs	“are	         Source: Lawyers USA Online
continue	 using	 the	 drop-side	 design	        inferior	with	regard	to	durability	and	infe-
without	remedying	the	safety	issues.            rior	with	regard	to	performance.”	The	CU	
Source: Associated Press                        lab	tests	about	20	cribs	a	year,	and	has	          TWo hoT Fuel CAses geT ClAss
                                                been	testing	cribs	for	more	than	20	years.         CerTiFiCATion sTATus
                                                   Older	cribs	had	metal	rods	that	guided	
lAWmAkers should BAn droP-side CriBs            the	drop-side	up	and	down.	Newer	cribs	              Recently,	 two	“hot	 fuel”	 lawsuits	 in	
                                                have	plastic	tracking	guides	for	the	drop-         Kansas	 became	 the	 nation’s	 first	 to	
   We	 have	 written	 on	 crib	 safety	 in	     side	 that	 Mays	 says	 is	 more	 prone	 to	       receive	certification	as	class	actions.	U.S.	
several	issues	over	the	past	year.		 his	has	
                                    T           breaking.	When	the	hardware	malfunc-               District	Judge	Kathryn	Vratil	of	Kansas	
been	a	very	active	area	of	concern.	Now	        tions,	the	drop-side	rail	can	detach	par-          City,	Kansas,	ruled	that	the	two	suits	meet	
legislative	 bodies	 are	 looking	 at	 the	     tially	 from	 the	 crib.	 	 hat	 creates	 a	
                                                                           T                       the	class	standards	to	represent	not	just	
problem.	Cribs	with	a	side	rail	that	moves	     dangerous	“V”-like	gap	between	the	mat-            the	few	individuals	named	in	the	suits,	
up	and	down	so	parents	can	lift	children	       tress	and	side	rail	where	a	baby	can	get	          but	other,	unnamed	consumers	affected	
from	them	more	easily	would	be	banned	          caught	and	suffocate	or	strangle.	Manu-                                        T
                                                                                                   by	the	hot-fuel	practice.		 his	is	a	signifi-
under	legislation	aimed	at	reducing	infant	     facturers	 also	 have	 seen	 cases	 where	         cant	ruling	and	a	major	step	towards	res-
deaths.	 Sen.	 Kirsten	 Gillibrand,	 (D-NY),	   parents	installed	the	drop-side	improp-            olution	 of	 the	 entire	 litigation,	 which	
has	introduced	a	bill	to	outlaw	the	sale	       erly,	 sometimes	 upside	 down,	 or	 they	         spans	nationwide	and	encompasses	26	
and	manufacture	of	the	cribs	following	         have	reassembled	a	crib	for	a	second	or	           “hot”	states.	
the	deaths	of	at	least	32	infants	and	tod-      third	child	with	some	of	the	screws	or	              As	we	have	reported	in	previous	issues,	
dlers	who	suffocated	or	were	strangled	in	      other	hardware	missing—which	can	also	             the	 oil	 industry	 transfers	 motor	 fuel	
drop-side	cribs	since	2000.		 he	cribs	are	
                              T                 lead	to	detachments	of	the	drop-side.              within	 the	 industry	 based	 on	 the	 U.S.	
suspected	in	another	14	infant	fatalities	      Source: Associated Press                           Petroleum	Gallon—an	established	stan-
during	 that	 time.	 Rep.	 Joe	 Crowley,	                                                          dard	that	measures	motor	fuel	based	on	a	
(D-NY),	has	introduced	similar	legislation	                                                                                       T
                                                                                                   temperature	of	60	degrees.		 he	purpose	
in	the	House.	                                  ClAss ACTion Filed AgAinsT Ford over               of	the	standard	is	to	compensate	for	loss	
   The	 industr y	 has	 already	 started	       minivAn deFeCT                                     in	energy	that	occurs	in	each	231	cubic-
phasing	out	drop-sides	and	big	retailers	                                                          inch	 gallon	 as	 the	 fuel	heats.	However,	
such	as	Babies	R	Us	and	Wal-Mart	have	             Owners	of	Windstar	minivans	are	suing	          the	oil	industry	has	consistently	fought	
taken	them	off	sale	floors.	Yet	there	are	      Ford	Motor	Company,	alleging	that	the	             against	 providing	 the	 same	 benefit	 to	
still	plenty	for	sale	on	the	Internet	and	      rear	axles	of	their	vehicles	have	a	design	        consumers,	who	are	purchasing	fuel	in	
being	used	in	homes	and	day	cares.		 he	T       defect	 that	 can	 cause	 them	 to	 fail.	 It’s	   hot	states	where	the	fuel’s	temperature	
Consumer	 Product	 Safety	 Commission,	         contended	that	the	1999	to	2003	models	            can	 exceed	 100	 degrees.	 Based	 on	 a	
which	regulates	cribs,	has	warned	about	        of	 the	 Ford	Windstar	 minivan	 have	 a	          series	of	2006	stories	and	a	Congressional	
the	 problem.	 	A nd	 its	 chairman,	 Inez	     design	defect	that	traps	water	and	other	          study,	 it	 has	 been	 estimated	 that	 the	
Tenenbaum,	has	pledged	to	ban	the	man-          corrosive	 agents	 inside	 the	 rear	 axle,	       industry	practice	of	selling	hot	fuel	costs	
ufacture	and	sale	of	cribs	by	the	end	of	                                           T
                                                rusting	it	from	the	inside	out.		 he	axle	         consumers	$2.3	billion	annually.
the	year	with	a	new	standard	that	would	        can	 then	 split	 apart	 during	 operation,	         Judge	Vratil	said	if	the	Plaintiffs	prevail	
make	fixed-side	cribs	mandatory.	It	could	      putting	the	occupants	of	the	car	at	a	risk	        on	the	liability	and	injunctive	portions	of	
be	several	months	into	2011	before	the	                                              T
                                                of	severe	injury	and	even	death.		 he	suit	        their	claims,	she	would	consider	whether	
standard	 becomes	 effective.	 Sen.	 Gilli-     was	 filed	 in	 U.S.	 District	 Court	 for	 the	                                     T
                                                                                                   to	certify	a	class	for	damages.		 he	Defen-
brand	hopes	to	accelerate	efforts	for	a	        Eastern	District	of	Pennsylvania.                  dants	 in	 the	 Kansas	 case	 include	 BP,	
ban,	whether	it	be	from	Congress	or	the	           The	named	Plaintiff,	Aaron	D.	Martin,	          Casey’s	General	Stores,	Chevron,	Circle	K,	
CPSC.                                           contends	that	the	axle	of	his	2001	Wind-           Citgo,	ConocoPhillips,	7-Eleven,	Shell	Oil,	
   More	 than	 7	 million	 drop-side	 cribs	    star	minivan	broke	due	to	internal	rust	           Valero,	 Kum	 &	 Go,	 QuickTrip	 and	Wal-
have	 been	 recalled	 in	 the	 past	 five	      damage	while	he	was	driving	in	May.	It’s	          Mart.	
        T
years.		 he	industry	says	drop-side	cribs	      alleged	that	more	than	949,000	Windstars	            Beasley	Allen	lawyers	Rhon	Jones	and	
that	haven’t	been	recalled	are	safe	as	long	    were	 manufactured	 with	 a	 defective	            Parker	Miller,	who	are	in	our	firm’s	envi-
as	they	are	used	and	assembled	properly.	             T
                                                axle.		 he	law	firm	of	Golomb	&	Honik	of	          ronmental	section,	have	played	a	major	
Consumer	advocate	Don	Mays	says	drop-           Philadelphia	filed	this	suit,	claiming	that	       role	in	the	progression	of	the	hot	fuel	liti-
sides	these	days	are	not	as	sturdy	as	those	    Ford	 breached	 its	 implied	 warranty	 of	        gation.	 If	 you	 want	 more	 information,	
of	the	past.	He	says	that	“the	manufactur-      merchantability	and	its	express	warranty.	         please	 contact	 Rhon	 Jones	 and	 Parker	



	                                        www.JereBeasleyReport.com	                                                                          29
Miller	 at	 800-898-2034,	 or	 by	 email	 at	     always been rare to die this way.              pool	safety	advocates	to	make	presenta-
Rhon.Jones@beasle yallen.com	 and	                But the bigger point is that it’s pre-         tions	to	the	commission.	On	behalf	of	the	
Parker.Miller@beasleyallen.com.	                  ventable and it’s a violent and hor-           pool	industry,	pool	equipment	manufac-
                                                  rible way for a small child to die.            turer	 Leif	 Zars	 argued	 that	 redesigned	
                                                  How many kids have to die or be                drain	 covers	 were	 enough	 to	 prevent	
A BAd deCision relATing To Pool drAin             maimed in that way for the CPSC?               pool	suction	accidents.	When	I	learned	
sAFeTy lAW                                                                                       that	a	majority	of	the	CPSC	commission-
                                                   Members	of	Congress	aren’t	the	only	          ers	agreed	with	the	pool	industry’s	posi-
  I	really	thought	tremendous	progress	         ones	putting	pressure	on	the	CPSC.	On	           tion	I	was	shocked.	Now	public	and	hotel	
had	been	made	in	2007	when	Congress	            June	9th,	Mrs.	Baker	signed	a	letter	from	       pools	won’t	have	to	install	a	secondary	
passed	 legislation	 designed	 to	 make	        the	group	Safe	Kids	to	Robert	Adler,	one	        anti-entrapment	system	in	order	to	be	in	
swimming	 pools	 safer.	 Now	 four	             of	the	three	commissioners	who	voted	to	         compliance	 with	 the	 Pool	 Safety	Act’s	
members	of	Congress	have	sent	letters	of	       interpret	the	law,	urging	him	to	change	         clear	wording	of	“unblockable	drain.”	Pool	
protest	 to	 the	 federal	 commissioners	       his	 vote.	 Paul	 Pennington	 of	 the	 Pool	     safety	 advocates	 argue	 that	 larger,	
who	they	say	weakened	that	safety	law	          Safety	 Council	 has	 also	 launched	 an	        rounded	drain	covers	are	not	enough	and	
which	was	meant	to	prevent	deaths	from	         on-line	 petition	 that	 targets	 Commis-        I	 agree	 with	 them.	 Rep.	 Wasserman	
pool-drain	suction.		 he	commissioners	
                      T                                         T
                                                sioner	Adler.	 	 he	 letters	 signed	 by	 the	   Schultz,	who	introduced	and	pushed	for	
were	asked	in	the	letters	to	reverse	their	     four	members	of	Congress	went	to	Adler	          the	passage	of	the	Pool	Safety	Act,	had	
decision.		 he	letters,	which	were	identi-
           T                                    and	Anne	Northup	and	Nancy	Nord,	the	            this	to	say:	
cal,	stated	in	part:	                           two	other	commissioners	who	voted	to	
                                                reinterpret	the	Act.	                              This ruling leaves children’s lives
  We are sorely disappointed to learn              The	 vacuum	 effect	 in	 pool	 drains	 is	      only as safe as the first layer of pro-
  that [the Consumer Product Safety             powerful	 enough	 to	 hold	 swimmers,	             tection, which leaves them vulnera-
  Commission] has chosen to inter-              especially	 children,	 to	 the	 bottom	 of	 a	     ble to human error and mechanical
  pret the law in the most egregious            pool.	Contact	between	human	skin	and	a	            failure, with no further layer of pro-
  and narrow way possible, eliminat-            flat	pool	drain	can	create	suction	equal	to	       tection.
  ing the requirement for pools and             hundreds	of	pounds	of	pressure.	In	one	
  spas to be equipped with back-up              horrific	 instance,	 four	 adult	 men	 were	       The	CPSC’s	decision	even	went	against	
  systems. The swimming season is               unable	to	pull	a	young	girl	from	the	grasp	      the	 position	 of	 Chairman	Tenenbaum,	
  upon us. We are writing to you to             of	a	deadly	drain.	Swimmers	can	die	from	        who	stated:
  urge you in the strongest possible            drowning	or	evisceration.	From	1999	to	            In my role as Chairman I am not
  way to reverse these rulings.                 2008,	according	to	CPSC	data,	there	were	          willing to gamble the safety of our
   The	letters,	signed	by	Democratic	Rep-       83	reports	of	suction	entrapment,	includ-          children in the hope that drain
resentatives	Debbie	Wasserman	Schultz	          ing	11	deaths	and	69	injuries.	Experts	say	        covers throughout the nation that
of	 Florida	 and	 James	 Himes	 and	 John	      the	number	of	deaths	and	injuries	may	be	          are commonly removed for mainte-
Larson	of	Connecticut,	and	Republican	          much	 higher,	 however,	 because	 police	          nance always will be reinstalled
Frank	Wolf	of	Virginia,	are	the	latest	devel-   and	medical	records	don’t	always	list	spe-         correctly or that a missing or
opment	in	a	pool-season	push	to	get	the	        cific	causes	for	drowning.	                        broken drain cover will be immedi-
CPSC	to	enforce	what	safety	advocates	             In	December	2007,	in	a	rare	bipartisan	         ately noticed by an observant pool
consider	to	be	the	original	intent	of	a	law	    vote,	 Congress	 passed	 the	 Virginia	            operator who will then shut down
passed	in	2007	to	prevent	deaths	from	          Graeme	Baker	Pool	And	Spa	Safety	Act	to	           the pool before any children are at
drain	suction.	In	March,	the	CPSC	voted	        provide	basic	drain	safety	standards	and	          risk.
to	 interpret	 the	Virginia	 Graeme	 Baker	     layers	of	backup	protection	from	danger-
                                                ous	drain	suction	for	the	nation’s	public	          Hopefully,	the	Commission	will	reverse	
Pool	 and	 Spa	 Safety	Act,	 named	 for	 a	
                                                and	 hotel	 pools	 and	 hot	 tubs.	 	 he	 law	
                                                                                    T            what	I	consider	to	be	a	very	bad	decision	
seven-year-old	who	died	in	a	pool-drain	
                                                mandates	that	drains	in	about	300,000	of	        and	 will	 follow	 the	 law	 as	 Congress	
incident	 in	 2002,	 to	 no	 longer	 require	
                                                the	nation’s	public	and	hotel	pools	and	                    T
                                                                                                 intended.		 he	public	interest—and	safety	
back-up	anti-entrapment	systems	in	the	
                                                hot	tubs	be	covered	with	larger,	rounded	        concerns—in	combination,	should	cause	
drains	of	as	many	as	150,000	public	and	
                                                covers	 that	 do	 not	 create	 suction,	 and	    the	commissioners	who	weakened	the	
                              T
hotel	pools	and	hot	tubs.		 hat	action	is	
                                                that	 there	 be	 a	 back-up	 mechanical	         intent	of	the	Act	to	change	their	votes.	
indefensible	and	should	be	reversed.	
                                                system	 installed	 in	 drains	 to	 prevent	      Since	the	summer	months	are	here,	time	
   The	 decision	 outraged	 pool-safety	
                                                suction	in	those	pools	that	have	a	single	       is	of	the	essence.	
advocates	 and	 the	 parents	 of	 children	
                                A
killed	by	pool-drain	suction.		 fter	Nancy	                   A
                                                main	drain.		 s	many	as	half	of	the	pools	       Source: ABC News

Baker,	mother	of	Virginia	Graeme	Baker,	        and	hot	tubs	covered	by	the	Pool	Safety	
read	comments	from	the	commissioners	           Act	have	single	main	drains.	
who	voted	to	reinterpret	the	law,	she	had	         New	 CPSC	 chairwoman	 Inez	Tenen-            Johnson & Johnson FACes lAWsuiTs And
                                                baum	 asked	 for	 a	 review	 of	 the	 Pool	      FederAl ProBes over reCAlls
this	to	say:	
                                                Safety	Act	shortly	after	taking	the	helm	of	
  They say the problem [of pool-drain           the	commission	last	year.	She	called	on	            On	April	30th,	Johnson	&	Johnson	faced	
  suction] is small and rare. It’s              representatives	of	the	pool	industry	and	        a	recall	of	more	than	136	million	bottles	



30	                                             www.BeasleyAllen.com
of	pediatric	Tylenol,	Motrin,	Benadryl	and	     alties	 to	 settle	 a	 case	 in	 which	 the	    infant	in	a	curled	position	bending	the	
Zyrtec	due	to	manufacturing	problems.	          company	was	accused	of	overcharging	            chin	toward	the	chest,	the	airways	can	be	
While	so	far	investigators	haven’t	linked	      California	 customers	 and	 neglecting	         r e s t r i c t e d ,	 l i m i t i n g 	 t h e 	 o x y ge n	
the	 defects	 in	 the	 medication	 to	 any	                              T
                                                animals	in	its	stores.		 he	settlement	has	                  T
                                                                                                supply.		 he	baby	will	not	be	able	to	cry	
health	problems,	the	U.S.	Food	and	Drug	                                      T
                                                received	 court	 approval.	 	 he	 case	 was	    for	help	and	can	slowly	suffocate.	CPSC	
Administration	 said	 the	 division	 of	 the	   prosecuted	by	the	San	Diego	County	Dis-         has	 determined	that	a	mandatory	stan-
company	responsible	for	quality	control	        trict	Attorney’s	Office,	the	San	Diego	City	    dard	is	needed	for	infant	sling	carriers.	
at	the	Pennsylvania-based	plant,	McNeil	        Attorney’s	Office	and	district	attorneys	       While	 a	 mandatory	 standard	 is	 being	
Consumer	Healthcare,	had	a	pattern	of	          from	Marin,	Los	Angeles,	San	Mateo	and	         developed,	CPSC	says	its	staff	is	working	
violations	and	delayed	reporting	of	prob-       Santa	Barbara	counties.	It	was	filed	as	a	      with	ASTM	International	and	concerned	
lems	to	the	FDA.                                result	of	state	and	county	inspections	of	      companies	such	as	Infantino	to	quickly	
   While	 Johnson	 &	 Johnson’s	 troubles	      Petco	 stores	 around	 the	 state	 between	     develop	an	effective	voluntary	standard	
have	drawn	less	attention	than	those	of	                            A
                                                2005	 and	 2008.	 	 ccording	 to	 prosecu-      for	slings.	Currently	there	are	no	safety	
companies	 like	 BP	 and	Toyota	 Motor	         tors,	an	investigation	revealed	that	Petco	     standards	for	infant	sling	carriers.		 hat	           T
Corp.,	the	company	is	facing	legal	prob-        failed	to	remove	expired	price	tags	from	       must	be	changed	and	effective	standards	
                          T
lems	on	several	fronts.		 wo	class	actions	     store	 shelves	 and	 did	 not	 instruct	 its	   promulgated	and	enforced.
have	been	filed	against	the	McNeil	divi-        employees	on	weighing	and	charging	for	         Source: CPSC Release
sion—one	in	the	Northern	District	of	Illi-      bulk	sale	items	such	as	dog	biscuits.
nois	and	the	other	in	the	Eastern	District	        The	court	order	requires	each	Petco	
of	 Pennsylvania—trying	 to	 force	 it	 to	     store	to	deduct	$3	from	the	lowest	adver-       BAnk oF AmeriCA seTTles TelemArkeTing
broaden	the	recall	and	offer	cash	refunds	      tised	or	posted	price	of	the	item	if	a	cus-     lAWsuiT
instead	 of	 coupons	 for	 new	 products.	      tomer	is	overcharged,	prosecutors	said.	If	
Shareholders	filed	suit	against	Johnson	&	      the	item	is	$3	or	less,	the	customer	would	        Bank	of	America	has	agreed	to	pay	the	
Johnson	in	New	Jersey,	alleging	that	the	       receive	one	of	the	items	free.	Petco	must	      state	of	Missouri	$195,000	to	settle	allega-
company	breached	its	good-faith	duty	by	        also	 conduct	 regular	 pricing	 audits,	       tions	 that	 it	 violated	 telemarketing	
failing	to	act	after	the	FDA	had	expressed	     according	to	the	settlement.	Inspections	              A
                                                                                                laws.		 ttorney	General	Chris	Koster	said	
earlier	 concerns	 about	 quality	 control	     of	 Petco	 stores	 in	 Marin	 County	 by	       some	 Missouri	 residents	 whose	 phone	
and	manufacturing	practices	at	the	plant.       humane	 society	 officials	 revealed	 that	     numbers	are	on	the	do-not-call	list	com-
   Meanwhile,	 the	 FDA	 is	 considering	       some	 animal	 habitats	 were	 not	 being	       plained	about	receiving	unwanted	calls	
criminal	 penalties	 against	 McNeil.	 	 he	
                                       T        properly	 cleaned	 and	 maintained.	 In	        from	 Bank	 of	 America	 and	 its	 affili-
House	Committee	on	Oversight	and	Gov-           some	 instances,	 sick	 animals	 were	 not	           T
                                                                                                ates.		 he	Attorney	General	said	his	office	
ernment	 Reform,	 which	 has	 held	 a	          identified	 and	 removed	 from	 the	 sales	     has	reached	an	“assurance	of	voluntary	
hearing	on	the	recalls,	is	still	checking	      floor,	authorities	said.                        compliance”	with	Bank	of	America	that	
into	the	issue.	Edolphus	Towns,	(D-NY),	           As	a	condition	of	the	settlement,	Petco	     has	been	filed	in	St.	Louis	Circuit	Court.	
the	Committee	Chair,	plans	to	introduce	        agreed	 to	 conduct	 daily	 animal	 and	        Besides	paying	the	state,	Bank	of	America	
legislation	 giving	 the	 FDA	 mandatory	       habitat	inspections	and	comprehensive	          will	 maintain	 a	 comprehensive	 do-not-
recall	authority.	But	getting	much	done	        employee	training,	and	to	provide	prompt	       call	program	for	its	telemarketers.
involving	drug	companies	in	Congress	is	        veterinary	care	for	sick	or	injured	animals.	   Source: Associated Press
never	 easy.	 Johnson	 &	 Johnson	 has	 a	      Prosecutors	 said	 Petco	 paid	 more	 than	
steady	 roster	 of	 Washington	 lobby-          $850,000	 to	 resolve	 a	 case	 involving	
ists.		 he	company’s	lobbying	expenses	
      T                                         similar	allegations	in	2004.		 he	company	
                                                                              T                 FdA Fines red Cross $16 million For
were	$2.1	million	in	the	first	quarter	of	      operates	23	stores	in	San	Diego	County	         sAFeTy lAPses
2010,	before	the	recall,	and	nearly	$6.4	       and	about	160	throughout	the	state.
million	 in	 2009.	 Its	Washington	 office	     Source: Signonsandiego.com
                                                                                                   The	Food	and	Drug	Administration	has	
includes	14	in-house	registered	lobbyists.	                                                     fined	the	American	Red	Cross	$16	million	
Eleven	outside	lobbying	firms	have	regis-                                                       for	violating	blood	safety	laws	and	other	
tered	 Johnson	 &	 Johnson	 as	 a	 client,	     A WArning messAge From The CPsC                 regulations.	 Fortunately,	 it	 appears	 no	
including	 some	 of	 the	 real	 heavy	                                                          patients	 were	 harmed	 and	 the	 blood	
weights.		 ll	of	these	lobbyists	are	being	
           A                                  The	CPSC	issued	a	warning	on	March	                                         T
                                                                                                supply	 is	 still	 safe.	 	 he	 Red	 Cross	 was	
paid	very	well.	                           12,	2010	about	sling	carriers	for	babies.	           fined	for	violating	federal	law	during	col-
Source: Law.com                            Slings	can	pose	two	different	types	of	suf-          lection	and	processing	of	blood	in	2008	
                                           focation	hazards	to	babies.	In	the	first	few	                   A
                                                                                                and	2009.		 mong	the	problems	were	mis-
                                           months	 of	 life,	 babies	 cannot	 control	          labeling	of	blood,	failing	to	record	com-
PeTCo PAys $1.75 million in                their	 heads	 because	 of	 weak	 neck	               plete	 information	 about	 donors	 and	
overChArging PenAlTies                     muscles.	 	 he	 sling’s	 fabric	 can	 press	
                                                      T                                                                              T
                                                                                                potential	 air	 contamination.	 	 he	 FDA,	
                                           against	an	infant’s	nose	and	mouth,	block-           which	 periodically	 inspects	 Red	 Cross	
  Petco	Animal	Supplies,	which	has	many	 ing	the	baby’s	breathing	and	rapidly	suf-              operations,	notified	the	charitable	organi-
locations	throughout	San	Diego	County,	 focating	 a	 baby	 within	 a	 minute	 or	               zation	last	October	of	the	failure	to	inves-
California,	has	paid	$1.75	million	in	pen- two.		 dditionally,	where	a	sling	keeps	the	
                                                A                                               tigate	 and	 identify	 problems	 and	 take	




	                                        www.JereBeasleyReport.com	                                                                                    31
preventive	action	during	its	blood	pro-          Wranglers	 from	 the	 2006	 through	         gm reCAlling 1.5 million vehiCles
cessing	operations.                              2010	model	years	due	to	a	potential	         over Fire ConCerns
   With	 four	 million	 blood	 donors,	 the	     brake	fluid	leak.	It	also	is	recalling	
Washington,	 D.C.-based	 organization	 is	       284,831	Dodge	Grand	Caravan	and	             General	Motors	is	recalling	about	1.5	
the	largest	supplier	of	blood,	plasma	and	       Chrysler	Town	&	Country	minivans	            million	 vehicles	 worldwide	 to	
other	 blood	 products	 in	 the	 United	         from	the	2008	and	2009	model	years	          address	 a	 problem	 with	 a	 heated	
States.		 he	$16	million	fine	is	only	the	
         T                                       because	a	wiring	problem	can	cause	          windshield	wiper	fluid	system	that	
latest	penalty	assessed	against	the	organi-      a	fire	inside	the	sliding	doors.                                   T
                                                                                              could	lead	to	a	fire.		 he	recall	affects	
zation.	 	 he	 FDA	 has	 already	 sent	 12	
          T                                                                                   several	 pickup	 trucks,	 sport	 utility	
letters	 to	 the	American	 Red	 Cross	 and	      Neither	 problem	 has	 caused	 any	          vehicles	and	passenger	car	models	
imposed	over	$21	million	in	fines	since	         crashes	 or	 injuries,	 according	 to	       from	the	2006	to	2009	model	years.	
2003,	 not	 including	 this	 most	 recent	       Chrysler.	 On	 the	 Jeeps,	 the	 front	      GM	 conducted	 a	 similar	 recall	 in	
fine.		 ccording	to	the	FDA,	the	Red	Cross	
      A                                          inner	fender	liners	can	rub	against	         2008	but	came	across	new	reports	of	
has	taken	significant	steps	to	correct	the	      the	 brake	 fluid	 tubes	 and	 cause	 a	     fires	in	vehicles	that	had	been	fixed.
problems.                                        leak.	NHTSA	says	the	leak	could	lead	
                                                 to	a	partial	brake	loss.		 he	minivans	
                                                                           T                  GM	 plans	 to	 disable	 the	 heated	
Source: Reuters                                                                               washer	 fluid	 system	 module	 that	
                                                 can	 have	 improperly	 placed	 wires	
                                                 that	 can	 come	 into	 contact	 with	        could	 lead	 to	 fires.	 GM	 will	 pay	
                                                 sliding	door	hinges.		 hat	could	cut	
                                                                         T                    owners	 and	 those	 leasing	 vehicles	
XXIV.                                            through	the	insulation	and	in	some	          $100	since	the	feature	is	being	dis-
                                                                                              abled.	GM	says	there	are	no	known	
RECALLS UPDATE                                   cases	 cause	 a	 fire	 inside	 the	 door,	
                                                                                              injuries	or	crashes	reported.	GM	says	
                                                 according	to	Chrysler	and	NHTSA.
                                                                                              it	 is	 aware	 of	 five	 fires.	 Nearly	 1.4	
   There	have	been	a	number	of	product	          Chrysler	 will	 notify	 owners	 and	         million	vehicles	are	in	the	U.S.	More	
recalls	 which	 will	 be	 reported	 in	 this	    dealers	about	the	repairs,	which	will	       than	100,000	vehicles	are	in	Canada,	
issue.		 he	following	are	some	of	the	more	
       T                                                                     T
                                                 be	made	free	of	charge.		 he	recall	         Mexico	and	elsewhere.
significant	recalls	since	those	reported	in	                           T
                                                 was	to	start	in	June.		 he	Wranglers	
our	last	issue.	                                 affected	 by	 the	 recall	 were	 made	
                                                 from	May	15,	2006	through	August	9,	         BmW issues reCAll
                                                                              T
                                                 2010,	according	to	NHTSA.		 he	mini-
                                                 vans	were	made	from	February	2007	           BMW	 has	 recalled	 vehicles	 in	 the	
  volvo reCAlls 60,000 TruCks                                                                 United	States	for	defects	that	could	
                                                 through	September	2007.
  Volvo	Trucks	North	America	is	recall-                                                       cause	 fires.	 BMW	 recalled	 1	 Series	
  ing	more	than	60,000	tractor	trailer	                                                       luxury	cars	for	the	model	years	2008	
  trucks	to	address	potential	steering	          nissAn To reCAll 48,000 TruCks               to	2011	for	a	flaw	in	front-seat	safety-
  problems.	 NHTSA	 says	 there	 have	           And suvs                                                                        T
                                                                                              belt	retractors	that	could	ignite.		 he	
  been	23	reported	crashes	and	two	                                                           notice	didn’t	say	how	many	vehicles	
             T
  injuries.	 	 he	 safety	 recall	 affects	      Nissan	Motor	Co.	is	recalling	48,700	        are	affected.	
  certain	VNL	 and	VNM	 trucks	 from	            trucks	and	SUVs	for	problems	with	a	
  the	2001	to	2006	model	years.		 he	 T          suspension	part	that	could	lead	to	a	
  government	says	a	ball	socket	could	           rough	ride.	It	will	cover	some,	but	         volksWAgen reCAlls rouTAn
  separate	 in	 the	 steering	 system,	          not	all,	2010	Nissan	Armadas,	Fron-          minivAns
  causing	the	truck	to	completely	lose	          tiers,	Titans,	Pathfinders	and	Xterras	
                                                 and	 Infiniti	 QX56	 models.	 	T he	         Volkswagen	AG	 is	 recalling	 nearly	
                       T
  steering	 control.	 	 he	 steering	 loss	                                                   16,000	Routan	minivans	to	address	
  could	result	in	a	crash.	Volvo	dealers	        Armada,	Titan	and	Infiniti	QX56	are	
                                                 produced	at	the	company’s	Canton	            fire	 concerns	 involving	 latches	 on	
  will	inspect	and	repair	the	compo-                                                                             T
                                                                                              the	sliding	doors.		 he	German	auto-
  nents	 in	 the	 steering	 if	 neces-                   T
                                                 plant.	 	 he	 Frontier,	 Pathfinder	 and	
                                                 Xterra	 are	 produced	 at	 its	 Smyrna,	     maker	 says	 the	 recall	 affects	 2009	
        T
  sary.		 he	recall	is	expected	to	begin	                                                     minivans,	 which	 are	 jointly	 devel-
  in	mid	August.	Owners	can	contact	                            T
                                                 Tenn.,	plant.		 he	problem	centers	on	
                                                 a	 lower	 suspension	 control	 link,	        oped	with	Chrysler	LLC	and	built	at	
  Volvo	Trucks	 at	 (800)	 528-6586	 or	                                                      Chrysler’s	Windsor,	 Ontario,	 plant.	
  (800)	528-6586.                                which	 may	 not	 have	 been	 welded	
                                                 properly.	It	could	cause	the	bushing	        Chr ysler	 has	 recalled	 vehicles	
                                                 collar	 to	 crack,	 leading	 to	 a	 rough	   recently—as	reported	in	this	issue—
                                                 and	noisy	ride.	So	far	no	accidents	         dealing	with	similar	problems.	Volk-
  Chrysler To reCAll ABouT 600,000                                                            swagen	spokesman	Kerry	Christopher	
  JeePs, minivAns                                have	been	reported.
                                                                                              said	the	automaker	was	aware	of	“a	
  Chrysler	is	recalling	nearly	600,000	                                                       couple	of	incidents”	indicating	over-
  minivans	 and	 Jeep	 Wrangler s	                                                            heating	 in	 the	 minivans	 and	 the	
  because	of	brake	or	wiring	problems	                                                        company	contacted	Chrysler	when	
  that	could	create	safety	issues.		 he	
                                   T                                                          it	received	the	reports.	No	injuries	or	
  automaker	is	recalling	288,968	Jeep	                                                        crashes	have	been	reported.



32	                                             www.BeasleyAllen.com
    PFizer reCAlls iv drugs ThAT                  The	smell	was	caused	by	contamina-            tion	on	how	to	locate	the	date	code	
    Could kill PATienTs                           tion	from	a	chemical	byproduct	of	a	          on	your	tree	step.
                                                  substance	 used	 to	 treat	 wooden	
    Pfizer	is	recalling	intravenous	drugs	        transport	 pallets,	 the	 company	
    with	 f loating	 matter	 in	 them,	           said.		 lthough	risk	of	serious	medical	
                                                        A                                       ikeA reCAlls Blinds due To risk
    warning	they	could	potentially	kill	          problems	was	remote,	the	company	             oF sTrAngulATion
    weakened	patients,	after	U.S.	regula-         said,	 people	 should	 stop	 using	 the	
    tors	had	warned	about	the	worries	            products.	 Refund	 requests	 can	 be	         IKEA	 Home	 Furnishings,	 of	 Con-
                          T
    prior	to	the	recall.		 he	products—           made	 using	 a	 company	Web	 site,	           shohocken,	Pennsylvania,	has	issued	
    made	by	Claris	Lifesciences	and	dis-          mcneilproductrecall.com,	or	toll-free	        a	recall	of	Roller,	Roman,	and	Roll-Up	
    tributed	 in	 the	 U.S.	 by	 Pfizer—are	      number:	888-222-6036.	                                T
                                                                                                blinds.		 his	recall	expands	previous	
    the	 antibiotics	 metronidazole	 and	                                                       recalls	 of	 Roman	 and	 roller	 blinds	
    ciprofloxacin	 and	 a	 drug	 used	 to	        McNeil	is	already	under	scrutiny	by	          and	has	added	its	name	to	the	retail-
    prevent	nausea	and	vomiting	caused	           the	House	Committee	on	Oversight	             ers	 joining	 the	 voluntary	 recall	
    by	 surger y	 and	 chemotherapy,	             and	 Government	 Reform	 over	 a	             announced	in	December	2009	of	ALL	
    named	ondansetron.                            recall	 in	April	 of	 an	 estimated	 136	     R o m a n 	 s h a d e s 	 a n d 	 r o l l - u p	
                                                  million	 bottles	 of	 liquid	 pediatric	               T
                                                                                                blinds.	 	 his	 recall	 includes	 about	
    The	Food	and	Drug	Administration	             Tylenol,	Motrin,	Benadryl	and	Zyrtec.	        3,360,000	 of	 the	 binds.	 	A bout	
    warned	doctors	and	hospitals	not	to	                                                        790,000	Roman	blinds	were	recalled	
    use	the	drug	because	of	worries	the	                                                        in	November	2008	and	August	2009	
    floating	matter	meant	the	products	
                                                  PrimAl vAnTAge exPAnds reCAll oF              and	 about	 533,000	 Roller	 blinds	
    weren’t	sterile.	Pfizer	says	non-steril-      PlAsTiC Tree sTePs                            were	recalled	in	October	2009.	
    ity	 in	 intravenous	 drugs	 could	 be	
    fatal	 for	 patients	 with	 weakened	         Primal	Vantage	Co.,	Inc.,	of	Randolph,	       The	Roller	Blinds:	Strangulations	
    immune	systems.	In	addition	to	the	           New	 Jersey,	 has	 recalled	 about	           can	occur	if	the	blind’s	looped	bead	
    recall,	Pfizer	is	halting	its	distribution	   17,800	Ameristep	 Plastic	 Strap-On	          chain	is	not	attached	to	the	wall	or	
    of	all	sterile	injectable	products	and	                   T
                                                  Tree	Steps.		 he	plastic	portion	of	the	      the	 floor	 with	 the	 tension	 device	
    IV	bags	licensed	from	Claris.	                steps	can	break,	posing	a	fall	hazard	        provided	and	a	child’s	neck	becomes	
                                                  to	 the	 user.	 Primal	 Vantage	 has	         entangled	in	the	free-standing	loop.	
                                                  received	 six	 complaints	 of	 step	
    Johnson & Johnson uniT reCAlls                breakage,	including	two	reports	of	           The	Roman	Blinds:	Strangulations	
    AddiTionAl over-The-CounTer                   consumer s	 being	 br uised	 and	             can	occur	when	a	child	places	his/
    drugs                                         cut.		 he	product	is	a	plastic	tree	step	
                                                       T                                        her	neck	between	the	exposed	inner	
                                                  that	 attaches	 to	 a	 tree	 via	 a	 nylon	   cord	and	the	fabric	on	the	backside	
    The	Johnson	&	Johnson	unit	whose	                                                           of	the	blind	or	when	a	child	pulls	the	
                                                  strap	and	a	large	metal	buckle.	It	is	
    recall	of	liquid	children’s	Tylenol	and	                                                    cord	out	and	wraps	it	around	his/her	
                                                  used	to	climb	a	tree	in	order	to	hunt	
    other	pediatric	medicines	is	under	                                                                A
                                                                                                neck.	 	 n	 additional	 hazard	 exists	
                                                  from	 an	 elevated	 position.	 Models	
    Congressional	investigation	is	recall-                                                      when	the	Roman	blind	has	a	contin-
                                                  105	 and	 155	 both	 have	 either	 a	
    ing	 additional	 over-the-counter	                                                          uous	looped	bead	chain	that	is	not	
                                                  10/08	or	12/08	date	code,	which	is	
    drugs.	McNeil	Consumer	Healthcare,	                                                         attached	to	the	wall	or	floor,	which	
                                                  stamped	 on	 the	 plastic	 portion	 of	
    the	Johnson	&	Johnson	unit,	is	recall-                                                      poses	a	strangulation	hazard	to	chil-
                                                  the	step.	
    ing	 four	 lots	 of	 certain	 Benadryl	                                                     dren.	
    allergy	tablets	and	one	lot	of	Extra	         The	 Tree	 Steps	 were	 sold	 from	
    Strength	Tylenol	gel	pills.	                  December	2008	through	November	               The	Roll-up	Blinds:	Strangulations	
                                                  2009	at	various	outdoor	and	sporting	         can	occur	if	the	lifting	loops	slide	off	
    The	 company	 said	 in	 a	 statement	                                                       the	 side	 of	 the	 blind	 and	 a	 child’s	
                                                  goods	 retailers	 nationwide	 as	 a	
    that	“the	 products	 were	 inadver-                                                         neck	becomes	entangled	in	the	free-
                                                  3-step	package	in	model	105	or	as	a	
    tently	 omitted”	 from	 an	 earlier	                                                        standing	loop	or	if	a	child	places	his/
                                                  single	step	in	model	155.	Consumers	
    recall—one	preceding	the	children’s	                                                        her	 neck	 between	 the	 lifting	 loop	
                                                  should	 stop	 using	 the	 tree	 steps	
    drug	 recalls—involving	 medicines	                                                         and	the	roll-up	blind	material.
                                                                 T
                                                  immediately.	 	 hey	 should	 contact	
    made	at	a	company	plant	in	Puerto	
                                                  Primal	Vantage	for	details	on	how	to	         CPSC	 and	 IKEA	 received	 a	 new	
    Rico.	 Since	 last	 November,	 McNeil	
                                                  obtain	a	full	refund.	Consumers	are	          report	 of	 a	 1	 ½-year-old	 boy	 in	
    has	 recalled	 about	 11.7	 million	
                                                  asked	not	to	return	the	product	to	           Lowell,	 Mass.,	 who	 suffered	 a	 near	
    bottles	of	various	Motrin	products	
                                                  retail	stores	as	refunds	can	only	be	         strangulation	in	February	28,	2010.	
    and	 about	 6.3	 million	 bottles	 of	
                                                  provided	by	Primal	Vantage.	For	addi-         On	April	4,	2008,	a	one-year-old	girl	
    Tylenol	Arthritis	Pain	caplets	made	at	
                                                  tional	 information,	 contact	 Primal	        in	Greenwich,	Connecticut,	became	
    that	Puerto	Rico	plant,	according	to	
                                                  Vantage	toll	free	at	(866)	972-6168	          entangled	 in	 the	 inner	 cord	 of	 an	
                            T
    the	 FDA’s	Web	 site.	 	 he	 company	
                                                  or	visit	their	website	at	www.trees-          IKEA	 Roman	 blind	 and	 strangled.	
    began	the	recall	after	receiving	con-
                                                  tandcustomerservice.com	to	print	a	           CPSC	 and	 IKEA	 also	 received	 a	
    sumer	 complaints	 about	 a	 moldy	
                                                  return	form	or	for	further	informa-           report	of	a	two-year-old	boy	who	suf-
    odor	emanating	from	some	products.	



	                                            www.JereBeasleyReport.com	                                                                        33
                                T
  fered	a	near	strangulation.		 he	last	        target.com	 from	 February	 2009	            machine	 and	 make	 contact	 with	 a	
  two	 incidents	 prompted	 previous	           through	April	2010	for	between	$50	          metal	part	on	the	washtub	while	the	
  recalls.	 No	 incidents	 have	 been	          and	$130.	Consumers	should	imme-             machine	is	operating,	posing	fire	and	
  reported	 for	 the	 Roll-up	 or	 Roller	      diately	 stop	 using	 the	 recalled	         shock	hazards	to	consumers.	GE	is	
  blinds.	                                      storage	 trunks	 and	 return	 them	 to	      aware	of	seven	incidents	in	which	
                                                any	Target	store	for	a	full	refund	or	       flames	escaped	the	units	and	caused	
  This	recall	involves	roller	blinds	that	      replacement	product.	For	additional	         minor	 smoke	 damage.	 No	 injuries	
  do	 not	 have	 a	 tension	 device	            information,	contact	Target	at	(800)	                                   T
                                                                                             have	 been	 reported.	 	 his	 recall	
  attached	 to	 the	 bead	 chain,	 all	         440-0680,	 or	 visit	 their	 website	 at	    involves	 GE	 front-load	 washing	
  Roman	 blinds	 and	 all	 roll-up	             www.target.com.	                             machines	 without	 auxiliary	 water	
          T
  blinds.		 he	blinds	were	sold	at	IKEA	                                                     heating.	Model	and	serial	numbers	
  stores	nationwide	from	January	1998	                                                       are	listed	in	the	chart	below.	Recalled	
  through	June	2009	for	between	$5	             slings mAde By sProuT sTuFF                  washing	 machines	 were	 manufac-
  and	$55.	Consumers	should	immedi-             reCAlled                                     tured	between	December	2006	and	
  ately	stop	using	the	roller	blinds	that	                                                                     T
                                                                                             February	2010.		 he	model	and	serial	
  do	 not	 have	 a	 tension	 device	            The	 U.S.	 Consumer	 Product	 Safety	        numbers	are	located	on	the	bottom	
  attached	 to	 the	 chain,	 all	 Roman	        Commission	 has	 announced	 the	             right	side	and	on	the	bottom	door	
  blinds	 and	 all	 roll-up	 blinds	 and	       recall	of	about	40	Sprout	Stuff	infant	      frame	of	the	washers.
  return	them	to	any	IKEA	store	for	a	          ring	slings.	CPSC	advises	consumers	
  full	refund.	In	a	previous	recall,	IKEA	      to	 immediately	 stop	 using	 these	         The	washing	machines	were	sold	at	
  reminded	 consumers	 who	 have	               slings	due	to	a	risk	of	suffocation	to	      department	and	various	retail	stores	
  roller	blinds	with	a	tension	device	          infants.	 CPSC	 and	 Sprout	 Stuff	 are	     nationwide	 from	 December	 2006	
  attached	to	the	bead	chain	to	make	           aware	of	one	report	of	a	death	of	a	         through	 May	 2010	 for	 about	 $700.	
  sure	the	tension	device	is	installed	         tenS-day-old	boy	in	the	recalled	sling	      Consumers	should	immediately	stop	
  into	 the	 wall	 or	 floor.	 If	 the	 con-    in	Round	Rock,	Texas	in	2007.	               using	the	recalled	washer,	unplug	it	
  sumer	 has	 difficulty	 installing	 the	                                                   from	 the	 electrical	 outlet	 and	
  tension	 device,	 contact	 IKEA	 for	         The	Sprout	Stuff	infant	ring	sling	is	       contact	GE	for	a	free	repair.	Consum-
  additional	information.	For	additional	       fabric/natural	 muslin	 and	 comes	          ers	should	not	operate	the	washer	
  information,	contact	IKEA	toll-free	at	       with	or	without	a	shoulder	pad.		 he	T       until	it	has	been	repaired.	For	addi-
  (888)	966-4532	anytime,	or	visit	their	       sling	is	worn	by	parents	and	caregiv-        tional	information,	contact	GE	toll-
  website	at	www.ikea-usa.com.	                 ers	to	carry	a	child	up	to	two	years	        free	 at	 (888)	 345-4124	 or	 visit	 the	
                                                of	 age.	“Sprout	 Stuff”	 is	 printed	 on	   firm’s	website	at	www.geappliances.
                                                the	 back	 side	 of	 the	 tail’s	 hem.	      com.	
  TArgeT reCAlls sTorAge Trunks                 Sprout	Stuff	sold	the	recalled	infant	
  due To sTrAngulATion hAzArd                   slings,	 which	 were	 made	 in	 the	
                                                United	States,	directly	to	consumers	        mAyTAg reCAlls 1.7 million
  About	350,000	woven	storage	trunks	           between	 October	 2006	 and	 May	            dishWAshers
  have	been	recalled	by	Target	Corp.,	          2007	 for	 between	 $35	 and	 $45.	
                          T
  of	Minneapolis,	Minn.		 he	lid	of	the	        Sprout	 Stuff	 is	 directly	 contacting	     Maytag	Corp.	is	recalling	about	1.7	
  trunk	 can	 drop	 suddenly	 when	             known	 purchasers	 of	 the	 recalled	        million	dishwashers	because	of	a	fire	
  released,	 posing	 a	 strangulation	          infant	slings.                               hazard.	 	T he	 Consumer	 Product	
  hazard	to	small	children	opening	or	                                                       S a fe t y 	 C o m m i s s i o n ,	 s ay s 	 t h e	
  reaching	into	the	trunks.	CPSC	has	           Consumers	should	immediately	stop	           company	has	received	12	reports	of	
  received	two	reports	of	injuries	that	        using	the	recalled	slings	and	contact	       electrical	failures	in	the	dishwasher	
  occurred	when	the	storage	trunks’	            Sprout	Stuff	to	return	the	sling	for	a	      heating	element	that	led	to	fires	and	
  lids	 suddenly	 closed	 on	 children,	        full	refund.	Contact	Sprout	Stuff	toll-      damage,	including	one	kitchen	fire	
  including	one	report	of	an	18-month-          free	at	(877)	319-3103	anytime,	email	       that	 caused	 extensive	 damage.	 No	
  old	 girl	 who	 reportedly	 suffered	         the	company	at	sproutstuffrefunds@           injuries	have	been	reported.
  brain	damage	when	the	trunk’s	lid	            gmail.com	or	contact	them	by	mail	
  came	down	on	the	back	of	her	neck	            at	Sprout	Stuff	Refunds,	P.O.	Box	612,	      The	recall	includes	Maytag,	Amana,	
  and	 pinned	 her	 throat	 against	 the	       Buda,	Texas	78610.	Do	not	attempt	to	        Jenn-Air,	Admiral,	 Magic	 Chef,	 Per-
  rim	of	the	trunk.		 he	recall	involves	
                    T                           fix	these	carriers.                          forma	by	Maytag	and	Crosley	brand	
  14	 different	 models	 of	 the	 storage	                                                                                     T
                                                                                             dishwashers	with	plastic	tubs.		 he	
  trunks	made	of	woven	rattan,	abaca	                                                        recalled	 dishwashers	 were	 made	
  or	 banana	 leaf	 with	 standard	             ge reCAlls FronT loAd WAshers                with	black,	bisque,	white,	silver	and	
          T
  hinges.		 hey	measure	more	than	1.1	          due To Fire And shoCk hAzArds                stainless	steel	front	panels	and	sold	
  feet	in	length,	width	and	depth	and	                                                       at	department	and	appliance	stores	
                                                GE	Appliances	&	Lighting,	of	Louis-          nationwide	 from	 February	 2006	
                                     T
  are	 brown	 or	 natural	 color.	 	 he	        ville,	 Kentucky,	 is	 recalling	 about	
  trunks	 were	 sold	 at	Target	 stores	                                                     through	 April	 2010	 for	 between	
                                                181,000	 GE	 Front-Load	 Washing	            $250	 and	 $900.	 CPSC	 advises	 con-
  nationwide	and	on	the	Web	at	www.                         A
                                                Machines.		 	wire	can	break	in	the	



34	                                            www.BeasleyAllen.com
    sumers	 to	 immediately	 stop	 using	      told	 to	 stop	 using	 the	 glasses	 and	   pose	a	choking	hazard	to	young	chil-
    the	recalled	dishwashers	and	discon-       visit	 www.mcdonalds.com/glasses	                 T
                                                                                           dren.		 his	recall	involves	the	Beado	
    nect	the	electric	supply	by	shutting	      beginning	June	8th	for	instructions	        hand-held	 beaded	 play	 toy	 with	
    off	the	fuse	or	circuit	breaker	con-       on	 how	 to	 return	 them	 and	 get	 a	     model	number	1501	and	date	code	
    trolling	it.                               refund.	 Customers	 can	 also	 call	                           T
                                                                                           02910	 04323A.	 	 he	 product	 mea-
                                               McDonalds	toll-free	number	at	1-800-        sures	six	inches	in	diameter	and	is	
    Consumers	 can	 schedule	 a	 free	                      T
                                               244-6227.	 	 he	 Shrek	 Forever	After	      composed	of	four	blue	plastic	hubs,	
    in-home	repair	or	receive	a	rebate	of	     glassware	was	offered	in	four	glass	        six	white	plastic	“wires”	and	twelve	
    $150	or	$250	toward	the	purchase	          designs	 at	 McDonalds	 restaurants	        multi-colored	beads	that	slide	along	
    of	 select	 new	 Maytag	 dishwash-         beginning	May	21st.		 he	four	designs	
                                                                     T                     the	wires.	
    ers.	 	T he	 amount	 of	 the	 rebate	      include	Puss	n’	Boots,	Shrek,	Princess	
    depends	on	the	type	of	model	to	be	        Fiona	and	Donkey.	                          The	 model	 number	 and	 date	 code	
    purchased.	More	information	on	the	                                                    are	 printed	 on	 the	 bottom	 of	 the	
    numerous	serial	numbers	involved	in	                                                   packaging	and	the	date	code	is	also	
    the	recall	can	be	found	at	the	com-        some deFiBrillATor BATTery PACks            inside	of	the	blue	hubs.	Beados	that	
    pany’s	website	or	the	website	for	the	     reCAlled                                    have	 a	 date	 code	 different	 than	
    Consumer	Product	Safety	Commis-                                                        02910	or	have	a	date	code	of	02910	
    sion.                                      The	U.S.	Food	and	Drug	Administra-          and	 an	 inspection	 sticker	 on	 the	
                                               tion	 has	 announced	 the	 recall	 of	      bottom	of	the	packaging	and	a	black	
                                               battery	 packs	 used	 in	 some	 auto-       mark	 by	 the	 date	 code	 inside	 the	
    WAl-mArT reCAlls ‘ToxiC’ miley             mated	external	defibrillators	manu-         blue	 hub	 are	 not	 included	 in	 this	
    Cyrus JeWelry                                                            T
                                               factured	by	Defibtech	LLC.		 he	FDA	                 T
                                                                                           recall.		 he	beads	were	sold	at	spe-
                                               said	 the	 Guilford,	 Connecticut,	         cialty	toy	and	juvenile	retailers	from	
    U.S.	retail	giant	Wal-Mart	announced	      company	 initiated	 the	 voluntary	         March	2010	through	May	2010	for	
    that	it	is	recalling	Miley	Cyrus-brand	    recall	 of	 5,418	 DBP-2800	 battery	       about	$12.	Consumers	should	imme-
    jewelry	 after	 learning	 it	 contains	    packs	 because	 they	 might	 falsely	       diately	stop	using	this	recalled	toy	
    high	 levels	 of	 cadmium—a	 toxic	        detect	 an	 error	 condition	 during	       and	return	it	to	the	store	where	it	
    metal	 known	 to	 cause	 kidney	           charging	for	a	shock	and	then	cancel	       was	 purchased	 to	 receive	 a	 full	
             T
    failure.		 he	Miley	Cyrus	&	Max	Azria	                   T
                                               the	 charge.	 	 he	 recalled	 batteries	    refund	or	a	replacement	Beado	hand-
    jewelry	which	was	sold	in	Wal-Mart	        are	used	in	the	company’s	Lifeline-         held	beaded	toy.	For	additional	infor-
    stores	across	the	country	has	been`	       model	and	Revive-model	defibrilla-          mation,	 please	 contact	 Rhino	Toys	
    deemed	unsafe	due	to	the	carcino-          tors.	Officials	said	the	recall	affects	    toll	 free	 at	 (877)	 887-4433	 or	 visit	
    genic	properties	of	cadmium,	a	state-      all	DBP-	2800	units	shipped	prior	to	       their	website	at	www.rhinotoys.com.	
                                       T
    ment	on	Wal-Mart’s	website	said.		 he	     June	4,	2007.
    jewelry	is	especially	dangerous	for	
    children	 because	 they	 are	 more	        The	recalled	battery	packs	were	dis-        kiWi indusTries reCAlls inFAnT
    likely	to	touch	their	hands	with	the	      tributed	 worldwide	 to	 fire	 depart-      APPArel due To Choking hAzArd
    product	and	put	their	hands	in	their	      ments,	 emergency	 medical	 service	
    mouth.		 he	cadmium	in	the	jewelry	
              T                                units,	health	clubs,	schools	and	other	     Holtrop	 &	 McIndoo	 LLC	 dba	 Kiwi	
    can	also	be	absorbed	into	the	skin.        organizations.		 he	company	said	it	
                                                                T                          Industries,	 of	 Albuquerque,	 New	
                                               mailed	users	recommendations	that	          Mexico	has	recalled	about	450	infant	
    The	 Miley	 Cyrus	 &	 Max	Azria	 line	     allow	the	battery	packs	to	remain	in	       onesies	and	rompers.	Snaps	on	the	
    was	not	for	children.	It	is	sold	in	Wal-   service	 until	 the	 problem	 is	 cor-      onesies	 and	 rompers	 can	 detach	
    Marts	ladies	apparel	section	and	it	       rected.	 	 hose	 procedures	 are	 also	
                                                        T                                  from	the	garment,	posing	a	choking	
    was	 designed	 for	 and	 marketed	 to	     available	 at	 www.defibtech.com/	                                      T
                                                                                           hazard	to	young	children.		 he	firm	
                          T
    older	consumers.		 he	giant	retailer	      batteryFA1.	 Consumers	 with	 ques-         has	 received	 two	 reports	 of	 snaps	
    says	it	is	”possible	that	a	few	younger	   tions	 can	 contact	 the	 company	 at	      detaching.	 No	 injuries	 have	 been	
    consumers	may	seek	it	out	in	stores.”	     877-453-4507	or	203-453-4507.                          T
                                                                                           reported.		 he	onesies	and	rompers	
    Wal-Mart	 has	 removed	 all	 of	 the	                                                  were	sold	in	eight	colors	and	prints.	
    jewelry	from	shelves	while	it	investi-                                                 “Kiwi	industries”	is	printed	on	a	tag	
    gates,	the	statement	added.                rhino Toys inC. reCAlls BeAd Toy            sewn	inside	the	garment’s	collar.
                                               due To Choking hAzArd
                                                                                           The	onesies	were	sold	at	children’s	
    mCdonAlds is reCAlling ‘shrek’             About	5,500	Beado	handheld	bead	            specialty	 stores	 nationwide	 from	
    drinking glAsses                           play	toys	have	been	recalled	by	the	        March	2010	through	May	2010	for	
                                               importer	 Rhino	Toys	 Inc.,	 of	 Santa	     between	 $24	 and	 $28.	 Consumers	
    McDonalds	is	recalling	its	four	“Shrek	                        T
                                               Cruz,	 California.	 	 he	 toys’	 plastic	   should	immediately	stop	using	the	
    Forever	 After”	 drinking	 glasses	        wires	can	detach	from	the	hubs	due	         garments	 and	 contact	 Kiwi	 Indus-
    because	they	were	found	to	contain	        to	insufficient	adhesive,	allowing	the	                            T
                                                                                           tries	for	an	exchange.		 he	company	
    the	toxic	metal	cadmium,	which	can	                             T
                                               beads	to	slide	off.		 he	loose	beads	       will	provide	a	postage-free	package	
    pose	 health	 risks.	 Customers	 were	



	                                         www.JereBeasleyReport.com	                                                                 35
  for	 the	 return	 of	 the	 recalled	                 return	 them	 to	 any	Target	 store	 to	       Section	Administrator	of	our	Toxic	Torts	
  garment.	For	additional	information,	                receive	a	full	refund.	For	additional	         Section.	 In	 this	 position,	 Sandra	 assists	
  contact	Kiwi	Industries	toll-free	at	                information,	contact	Target	at	(800)	          Rhon	Jones,	who	heads	up	the	Section,	in	
  (877)	509-4891	or	visit	the	compa-                   440-0680	or	visit	the	firm’s	website	          a	number	of	areas.	For	example,	Sandra	
  ny’s	website	at	www.kiwiindustries.                  at	www.target.com.	                            works	to	make	sure	all	support	staff	have	
  com.	Consumers	can	also	email	the	                                                                  what	they	need	to	get	their	jobs	done	in	
  company	at	info@kiwiindustries.com                                                                  toxic	tort	cases.	Without	a	doubt,	Sandra	
                                                       regAl lAger reCAlls inFAnT                     plays	an	important	role	in	the	day-to-day	
                                                       CArriers due To FAll hAzArd                    activities	of	the	Section.
  sPAgheTTios reCAll By CAmPBell                                                                        Sandra	 is	 married	 to	 Johnny	Walters	
                                                       Regal	 Lager	 Inc.,	 of	 Kennesaw,	            and	 they	 have	 three	 children:	 Melanie	
  Campbell	 Soup	 Co.	 is	 recalling	 15	              Georgia,	has	recalled	CYBEX	2.GO	              Seithalil,	Holly	Busler,	who	also	has	been	
  million	pounds	of	SpaghettiOs	with	                                    T
                                                       Infant	Carriers.		 his	includes	about	         employed	by	our	firm	for	ten	years,	and	
  meatballs	due	to	possible	underpro-                  2,700	in	the	United	States	and	400	in	         Hunter	Walters.	She	also	has	six	grand-
  cessing.	 	 he	 company	 is	 recalling	
            T                                          Canada.	 	A 	 shoulder	 strap	 slider	         children.	Sandra	is	a	strong	supporter	of	
  certain	lots	of	three	varieties	of	the	              buckle	can	break,	posing	a	fall	hazard	        the	March	of	Dimes,	having	had	a	prema-
  pasta	 product	 often	 consumed	 by	                            T
                                                       to	babies.		 he	company	has	received	          ture	grandson	born	in	March	2009	weigh-
  children:	SpaghettiOs	with	Meatballs,	               three	reports	of	broken	buckles.	No	           ing	 1	 lb.	 5	 oz.	 Her	 favorite	 activity	 is	
  SpaghettiOs	A	to	Z	with	Meatballs,	                                                      T
                                                       injuries	 have	 been	 reported.	 	 his	        spending	time	with	her	family	and	sup-
  and	 SpaghettiOs	 Fun	 Shapes	 with	                 recall	involves	CYBEX	2.GO	infant	             porting	 her	 son,	 Hunter,	 in	 local	 drag	
  Meatballs	(Cars).		 he	recalled	prod-
                     T                                 carriers.	“CYBEX”	is	embroidered	on	           racing	 events.	We	 are	 blessed	 to	 have	
  ucts	 have	“EST	 4K,”	 as	 well	 as	 a	              the	fabric	covering	on	the	top	of	the	         Sandra	with	the	firm.	She	is	a	dedicated	
  use-by	date	between	June	2010	and	                   head	support.	“2.GO”	is	printed	on	            employee	who	works	very	hard.	
  December	 2011	 printed	 on	 the	                    an	 orange	 ta g	 near	 the	 head	
  bottom	of	the	can.	So	far	there	have	                           T
                                                       support.		 hey	were	sold	in	the	fol-           MARy	JAne	SMITheRMAn
                                  T
  been	no	reports	of	illnesses.		 hese	                lowing	 colors:	 chili,	 indigo,	 purple	         Mary	Smitherman,	who	was	with	the	
  products	should	not	be	eaten.	Return	                and	 slate.	 Baby	 furniture	 and	 baby	       firm	as	a	temp	for	over	a	year	and	a	half,	
  them	 to	 the	 store	 where	 you	 got	               product	stores	nationwide	sold	the	            became	a	full-time	employee	in	January.	
  them	for	an	exchange	or	full	refund.                 carriers	 and	 they	 were	 sold	 on	                                                T
                                                                                                      She	is	now	a	Relief	Receptionist.		 he	firm	
                                                       various	websites	from	August	2009	             employs	 six	 receptionists	 who	 handle	
                                                       through	April	2010	for	about	$100.	            the	 tremendous	 number	 of	 incoming	
  TArgeT reCAlls Children’s BelTs                      Consumers	should	immediately	stop	             calls	each	day.	When	Mary	is	not	assisting	
  due To leAd PAinT violATion                          using	 the	 recalled	 carriers	 and	           the	Receptionists,	she	works	as	a	clerical	
                                                       contact	Regal	Lager	to	receive	a	free	         assistant	in	the	Personal	Injury	depart-
  Target	 has	 recalled	 about	 105,150	               replacement	carrier.	For	additional	           ment.	 She	 assists	 the	 PI	 staff	 with	 any	
  boys’	 and	 girls’	 belts.	 	T he	 belt	             information,	contact	Regal	Lager	at	           clerical	duties	they	may	need	help	with.	
  buckles	contain	excessive	levels	of	                 (866)	678-8940,	visit	the	company’s	           Mary	is	a	single	mother	of	a	16-year-old	
  lead,	violating	the	federal	lead	paint	              website	 at	 www.regallager.com/               son,	 Billy	 Smitherman,	 who	 will	 be	 a	
               T
  standard.	 	 his	 recall	 involves	 two	             recalls	 or	 email	 the	 company	 at	          senior	at	Brewtech	next	year.	Billy,	who	
  types	 of	 belts:	The	 Cherokee	 boys’	              info@regallager.com,                           attends	St.	Luke	United	Methodist	Church	
                                   T
  belts	and	Circo	girls’	belts.		 he	Cher-                                                            regularly,	 hopes	 to	 attend	 college	 at	
  okee	 belts	 are	 black	 and	 brown	                 If	you	need	more	information	on	any	of	        Auburn	University.	Mary	enjoys	reading	in	
  reversible	belts	with	heavy	stitching	             the	 recalls	 listed	 above,	 or	 would	 like	   her	spare	time.	She	is	a	good	employee	
  in	 sizes	 M-XL.	 	 he	 belts	 came	 in	 a	
                    T                                information	on	a	recall	not	listed,	you	can	     and	we	are	pleased	to	have	her	with	the	
  pack	 of	 two	 with	 the	 numbers	                 go	to	our	firm’s	web	site	at	www.Beasley-        firm.	
  202/08/0018,	 202/08/0019	 or	                     Allen.com/recalls.	You	may	also	contact	
  202/08/0020	 embossed	 on	 the	                    Shanna	Malone	at	Shanna.Malone@beas-             SCoTT	GUnn
  belt.		 he	girls’	Circo	belts	are	pink	
         T                                           leyallen.com	for	more	recall	information.	       Scott	 Gunn,	 who	 has	 been	 with	 the	
  and	white	with	heart	buckles	in	sizes	                                                           firm	for	over	five	years,	works	as	a	Staff	
         T
  XS-L.		 hey	were	sold	in	a	2-pack	with	                                                          Assistant	 in	 the	 Mass	Torts	 Section.	 He	
  t h e 	 n u m b e r s 	 2 0 2 / 0 5 / 0 0 7 1 ,	
  202/05/0072,	 202/05/0073	 or	
                                                     XXV.                                          works	on	many	different	cases	and	is	a	
                                                                                                   contact	person	with	clients.	Scott	helps	
  202/05/0074	listed	on	the	product	                 FIRM ACTIVITIES                               to	keep	them	advised	and	up	to	date	on	
  label	 attached	 to	 the	 inside	 of	 the	                                                       their	claims.	He	began	working	on	Vioxx	
         T
  belt.	 	 he	 belts	 were	 sold	 at	Target	                                                       cases	 in	 2004	 by	 recording	 intakes	 for	
  stores	and	on	Target.com	nationwide	               emPloyee sPoTlighTs                                               T
                                                                                                   potential	clients.		 hat	work	has	contin-
  from	 December	 2008	 through	                                                                   ued	to	the	present	as	we	are	now	disburs-
  December	2009	for	between	$7	and	                  SAndRA	WAlTeRS                                ing	settlement	payments	to	our	clients.	
  $9	Consumers	should	immediately	                      Sandra	Walters,	who	has	been	with	our	 Scott	has	also	helped	with	Bextra,	Cele-
  stop	 using	 the	 recalled	 belts	 and	            firm	 for	 18	 years,	 currently	 serves	 as	 brex,	and	other	Mass	Torts	projects.	He	



36	                                                  www.BeasleyAllen.com
also	has	done	new	client	intakes	for	Mass	        ACCess To JusTiCe: A rePorT CArd               a new executive director and
Torts	for	multiple	pharmaceuticals.                                                              Board, and helped 38% more
   Scott	is	married	to	Kathy	Gunn,	who	is	        I want to thank everyone who has               people than last year.
one	of	the	firm’s	Receptionists.	Scott	and	       worked so hard this year. In particu-
Kathy	have	been	married	for	almost	25	            lar, I want to thank President-Elect        • T he Montgomer y County Bar
years	and	they	have	four	children:	three	         Alyce Spruell and Vice President              started a monthly Pro Bono Clinic.
girls	 and	 one	 boy.	 	 he	 eldest	 are	 twin	
                       T                          Phillip McCallum. Their hard work
                                                  and dedication were an integral             • The Mobile County Bar continued
girls,	one	of	whom	just	graduated	from	                                                         to lead the state with its VLP, and it
college.		 he	others	are	now	in	college.
         T                                        part of the success of our programs
                                                  and initiatives.                              helped 24% more people than last
   Scott	graduated	from	Austin	Peay	State	                                                      year.
University	 with	 a	 B.S.	 in	 Biology	 and	      Choosing a focus for our work this
Chemistry	and	from	Auburn	University	             past year was easy. In July 2009,           • Legal Services helped 15,000 people
with	 an	 M.S.	 in	 Systematic	 Botany.	 He	      Alabama stood dead last in                    in 2009, an increase of 4,000
worked	over	25	years	as	a	biologist	and	          funding for Access to Justice in civil        people from the previous year.
has	 written	 or	 published	 a	 number	 of	       matters. As a result there have been        • We hired a lawyer to work with
technical	articles.	Scott	enjoys	hunting,	        a lot of hurting people without               Legal Services, to handle domestic
fishing,	gardening,	and	faithfully	serving	       legal representation. Ensuring legal          violence cases that our VLP could
in	his	church.	He	is	a	very	good	employee	        help for the poor in these cases was,         not handle.
and	we	are	blessed	to	have	him	with	us.           and still is, a matter of the utmost
                                                  importance.                                 • We celebrated Pro Bono Week and
ChRIS	AldeRTon
                                                                                                drew public attention to the need
   Chris	Alderton,	who	has	been	with	the	         We attacked this problem by secur-            for Access to Justice. Alabama
firm	for	two	years,	currently	serves	as	a	        ing additional funding for Access to          lawyers were mentioned positively
          A
Runner.		 	runner’s	duties	at	our	firm	are	       Justice from Alabama lawyers and              every day in publications, on televi-
                  T
very	important.		 he	work	covers	a	wide	          from the Legislature, and by                  sion and radio throughout the state.
range	of	activities	and	I	understand	there	       increasing participation in our Vol-
is	never	a	dull	moment.	Courier	services,	        unteer Lawyer Program (VLP). We             • We had the biggest Law Day cele-
purchasing	and	stocking	supplies,	serving	        have made significant progress in a           bration in recent memory, with a
subpoenas	 and	 summons,	 filing	 court	          lot of areas. The following is a              theme of “And Justice for All,” and
documents,	traveling	with	the	trial	team,	        report card of our progress:                  again drew public attention to this
and	 providing	 help	 for	 miscellaneous	                                                       area.
tasks	are	all	involved.	                          • Alabama lawyers gave their money.
   Chris	 and	 his	 wife,	 Kathr yn,	 are	          Lawyers agreed to make voluntary          What a great start we’ve made in
extremely	 dedicated	 to	 their	 church,	           donations of $850,000 for Access to       ensuring Access to Justice for all. We
Courts	 of	 Praise	 in	 Millbrook,	 where	          Justice.                                  have not yet earned an “A” for our
Chris	serves	as	the	Music	Leader.	Chris	                                                      performance in this area. That is
                                                  • Alabama lawyers gave their time.          our goal, not just for our lawyers,
enjoys	music	and	plays	the	guitar,	bass,	
                                                    More than 1,450 new lawyers have          but for the poor in Alabama who
piano	 and	 drums	 and	 he	 also	 enjoys	
                                                    joined our VLP and agreed to repre-       desperately need our help. So many
singing.	He	spends	his	free	time	playing	
                                                    sent the poor for free.                   lawyers have given so much to this
golf,	fishing,	swimming,	and	most	of	all,	
playing	video	games.	We	are	fortunate	to	         • The Alabama Legislature gave us a         effort. I firmly believe we can go to
have	 Chris,	 a	 ver y	 good,	 dedicated	           12% increase in funding for Access        new heights if we keep focusing on
employee,	with	the	firm.	                           to Justice, even though funding was       this over the next five years. I have
                                                    cut for most other things.                enjoyed being a part of this effort
                                                                                              for Access to Justice. With your con-
                                                  • Our Mortgage Foreclosure program,         tinued effort, we can achieve.
XXVI.                                               which provides a free lawyer to        Source: This article is reprinted from the July 2010
SPECIAL                                             those who need one, has helped         edition of The Alabama Lawyer magazine.

RECOGNITIONS                                        more than 3,000 people.
                                                                                              It	 is	 widely	 recognized	 that	Tom	 has	
                                                  • Lawyers worked 23,231 volunteer        done	an	outstanding	job	as	State	Bar	Pres-
                                                    hours in 2009.                         ident.	 He	 has	 brought	 to	 the	 public’s	
   It	seems	like	only	yesterday	when	Tom	                                                  attention	the	fact	that	low	income	Ala-
Methvin	from	our	firm	was	elected	presi-          • The Huntsville/Madison County          bamians	have	been	largely	shut	out	of	the	
dent	of	the	Alabama	Bar	Association.	But	           VLP completely turned around with                               T
                                                                                           civil	 justice	 system.	 	 om	 has	 involved	
it’s	been	a	full	year	when	Tom	completes	           a new executive director and           hundreds	of	lawyers	across	the	state	in	an	
                                  T
his	term	as	president	this	month.		 om	has	         Board, and helped 67% more             effort	to	right	a	wrong.	Lawyers	have	vol-
had	a	most	successful	term	and	he	has	              people than last year.                 unteered	 their	 time	 to	 help	 solve	 this	
                            T
accomplished	a	great	deal.		 he	following	                                                                           T
                                                                                           most	serious	problem.		 om—who	is	com-
is	Tom’s	final	message.                           • The Birmingham/Jefferson County
                                                                                           passionate	about	helping	folks—is	to	be	
                                                    VLP completely turned around with



	                                          www.JereBeasleyReport.com	                                                                             37
commended	for	his	service.	He	has	been	 most	distinguished	 career.	Mac,	a	great	                you have; for He has said “I will
a	most	effective	spokesman	for	folks	who	 person,	is	one	of	the	most	knowledgeable	              never leave you nor forsake you.”
generally	 have	 no	 real	 voice	 when	 it	 folks	around	when	it	comes	to	Alabama	
comes	to	obtaining	justice	and	fair	treat- history.	He	especially	is	an	expert	on	our	           Hebrews 13:1-5
ment.	                                          state’s	political	history.	Mac	should	write	     My	 good	 friend	 Joyce	 Spear	 tells	 me	
                                                another	book	on	that	subject.	                 her	favorite	Bible	verse	is	one	that	gives	
                                                   Many	 observers	 say	 Mac	 wrote	 the	      her	comfort	when	times	get	tough.	Joyce	
John Wooden WAs more ThAn JusT A                rules	of	the	Senate,	but	that	really	isn’t	    and	 her	 husband,	 Cecil,	 have	 been	 our	
greAT CoACh                                     true.	But	he	does	know	them	better	than	       good	friends	for	years	and	they	attend	St.	
                                                any	Senator	who	has	ever	served	in	that	       James	United	Methodist	Church	with	us.	
   Even	 those	 who	 have	 never	 kept	 up	 body.	It’s	well	known	that	Mac	has	had	to	
                                                                                               Joyce	 was	 originally	 from	 Crenshaw	
with	 sports	 know	 who	 John	Wooden	 bail	out	a	number	of	presiding	officers	
                                                                                               County	where	some	of	my	kinfolks	live.	
      T
was.		 he	very	successful	basketball	coach	 when	they	found	themselves	in	a	difficult	
                                                                                               She	will	tell	you	exactly	what	she	thinks	
at	UCLA	was	much	more	than	just	a	great	 spot,	having	to	resolve	disputes	dealing	
                                                                                               and	believes	and	I	like	that	trait.	Joyce’s	
coach.	He	was	a	great	man	and	a	person	 with	rules	that	might	not	be	of	the	ordi-
                                                                                               contribution	 to	 the	 Report	 this	 month	
who	affected	in	a	positive	way	the	world	 nary	sort.	I	can	speak	from	experience	on	
                                                                                               comes	from	Matthew:
around	 him.	 Coach	Wooden,	 who	 died	 that	front.	 Mac	 bailed	 me	out	 on	more	
last	 month	 at	 the	 age	 of	 99,	 has	 been	 than	one	occasion	and	he	has	never	let	           Come to Me, all you who labor and
described	as	one	of	the	greatest	coaches	 me	forget	it.	                                         are heavy laden, and I will give you
                            T
and	humans	of	all	time.		 he	man,	who	             I	am	firmly	convinced	that	one	of	the	        rest.
won	more	national	championships	than	 best	traits	any	person	can	have	is	loyalty	
any	 coach	 ever,	 came	 from	 a	 humble	 to	friends.		 ll	who	have	known	Mac	over	              Matthew 11:28
                                                            A
beginning.	 He	 never	 lost	 the	 common	 the	years	will	tell	you	that	he	tops	the	list	           Several	of	the	youngsters	who	attended	
touch	even	though	he	became	a	living	 when	it	comes	to	being	loyal	to	his	many	                a	summer	camp	in	Montgomery	operated	
         T
legend.	 	 he	 following	 are	 a	 few	 of	 the	 friends.	When	Mac	leaves	the	Senate,	he	       by	 Common	 Ground	 last	 month	 fur-
statements	made	by	Coach	Wooden:                will	do	so	with	class	and	dignity.	But	he	     nished	their	favorite	verses	for	this	issue.	
•	 Never	mistake	activity	for	achievement. will	be	sorely	missed	and	in	my	opinion	            I	 really	 appreciate	 Shanijer	 Miller	 (five	
                                                nobody	will	be	able	to	replace	him.	His	       years	old),	Keanete	Shipper	(seven	years	
•	 Be	more	concerned	with	your	charac- departure	will	be	the	state’s	loss	and	that	            old)	and	Latrierra	Davis	(seven	years	old),	
   ter	than	your	reputation,	because	your	 can’t	 be	 denied.	 I	 consider	 my	 friend,	       taking	 time	 to	 send	 me	 their	 pic-
   character	is	what	you	really	are,	while	 Charles	McDowell	Lee	of	Barbour	County,	                   T
                                                                                               tures.	 	 hey	 also	 sent	 some	 great	 draw-
   your	reputation	is	merely	what	others	 to	be	a	great	American	and	truly	a	legend	           ings.	 	T his	 verse	 was	 sent	 by	 these	
   think	you	are.                               in	his	own	time.	                              children:	
•	 Be	prepared	and	be	honest.                                                                    But Jesus said, “Let the little chil-
                                                                                                 dren come to Me, and do not forbid
•	 You	can’t	let	praise	or	criticism	get	to	     XXVII.                                          them; for of such is the kingdom of
   you.	It’s	a	weakness	to	get	caught	up	in	
   either	one.	
                                                 FAVORITE BIBLE                                  heaven.”
                                                 VERSES                                          Matthew 19:14
•	 You	 can’t	 live	 a	 perfect	 day	 without	
   doing	something	for	someone	who	will	                                                 Bryan	Kelly,	with	Common	Ground,	is	
   never	be	able	to	repay	you.                 Rev.	Mike	McKnight,	who	now	serves	 doing	a	tremendous	job	with	young	folks	
                                             as	Pastor	of	the	Fairhope	United	Method- in	West	Montgomery.	Bryan	also	sent	in	a	
•	 Success	comes	from	knowing	that	you	 ist	Church,	sent	in	his	favorite	Bible	verse	
                                                                                      verse	for	this	month:
   did	your	best	to	become	the	best	that	 this	month.	Mike	and	I	became	friends	
   you	are	capable	of	becoming.              several	years	ago.	                         Oh, magnify the LORD with me,
                                                                                         And let us exalt His name together.
•	 Talent	is	God-given.	Be	humble.	Fame	is	    Let brotherly love continue. Do not
   man-given.	Be	grateful.	Conceit	is	self-    neglect to show hospitality to            Psalm 34:3
   given.	Be	careful.	                         strangers for in doing so some have
                                                                                         I	can	think	of	no	organization	that	does	
                                               enter tained angels unaware.
Source: CoachWooden.com                                                               more	for	young	folks	than	the	FCA.	Les	
                                               Remember those in prison as
                                                                                      Steckel,	who	is	president	of	FCA,	sent	us	
                                               though you were with them; and
                                                                                      the	following	verses:
                                               those who are ill-treated since you
The end oF An erA in The AlABAmA
                                               are in the body. Let marriage be          Strengthened with all might,
sTATe senATe
                                               held in honor and the marriage            according to His glorious power, for
   Charles	 McDowell	 Lee,	 a	 native	 of	     bed undefiled for God will judge          all patience and longsuffering with
Barbour	County,	has	served	as	Secretary	       those who practice unfaithfulness.        joy;
of	the	Alabama	Senate	since	1963.	He	will	     Keep your life free from the love of
                                               money and be content with what            Colossians 1:11
retire	from	this	important	position	after	a	



38	                                              www.BeasleyAllen.com
    He who began a good work in you                   being	emotionally	and	sometimes	perma-               XXIX.
    will perfect it until the day of Christ           nently	 scarred	 when	 they	 play	 these	
    Jesus.                                            games.	It’s	not	like	just	watching	some-             PARTING WORDS
                                                      thing	 bad	 or	 evil,	 children	 are	 actually	
    Phil 1:6                                          participating	in	the	event.	Some	of	the	               The	disaster	in	the	Gulf	of	Mexico	is	
  Larry	Wilson,	a	very	good	lawyer	from	              events	are	murder,	rape,	and	other	violent	         affecting	folks	in	all	of	the	states	along	
Houston,	Texas,	says	he	enjoys	reviewing	             acts.	 Could	 you	 imagine	 a	 very	 young	         the	 Gulf	 Coast	 and	 it	 will	 eventually	
the	 Jere	 Beasley	 Report	 each	 month.	             child	having	access	to	a	video	game	with	           affect	 folks	 outside	 the	 region.	 People	
Larry	 says	 he	 particularly	 likes	 this	           that	 sort	 of	 content?	 Surely	 not	 in	 the	     have	 lost	 their	 ability	 to	 make	 a	 living	
section	on	the	Bible	verses	and	sent	in	              United	States.	                                     along	 the	 coast	 and	 they	 badly	 need	
the	following	verse:                                    But,	children	of	all	ages	can	rent	these	         hope.	Unfortunately,	there	doesn’t	seem	
                                                      games—even	 though	 they	 are	 rated	                                                          T
                                                                                                          to	be	any	end	in	sight	to	this	crisis.		 he	
    Then I heard the voice of the Lord                Mature	 (M)	 without	 the	 knowledge	 or	           damage	done	to	an	entire	region	of	our	
    saying, ‘Whom shall I send, and                   consent	of	their	parents	or	guardians.	Sci-         country,	and	the	losses	that	will	be	in	the	
    who will go for Us?’ Then I said,                 entific	and	clinical	research	has	linked	           tens	 of	 billions	 of	 dollars,	 are	 almost	
    ‘Here am I. Send me!                              the	playing	of	these	games	to	a	harmful	            impossible	to	comprehend.	It’s	difficult	
                                                                                             T
                                                      and	 lasting	 impact	 on	 children.	 	 his	 is	     to	get	a	handle	on	how	terrible,	vast	and	
    Isaiah 6:8
                                                      why	 the	 Parents	Television	 Council	 is	          lasting	the	effects	of	this	disaster	are,	and	
  Larry	says	this	verse	shows	an	attitude	            leading	a	national	campaign	to	prevent	             to	fully	understand	what	the	future	holds.	
that	all	Christians	should	have	in	terms	of	          video	game	retailers	from	selling	these	            But	our	Nation	and	its	people	have	sur-
reaching	 out	 to	 the	 lost	 world.	 	 hat	 is	
                                      T               ultra-violent	products	to	children.	If	you	         vived	major	problems	of	all	sorts	over	the	
absolutely	true	and	badly	needed	in	these	            want	 more	 information,	 you	 can	 go	 to	         years	and	I	am	confident	we	will	eventu-
trying	times.	                                        www.parentstv.org.	 It’s	 high	 time	 that	         ally	survive	this	man-made	disaster.	We	
                                                      folks	who	want	to	protect	children	from	            must	never	lose	sight	of	the	fact	that	God	
                                                      evil	influences	get	involved	and	let	our	           is	still	on	His	throne	and	always	hears	our	
                                                      political	leaders	know	this	sort	of	thing	
XXVIII.                                               can’t	be	tolerated	in	the	Untied	States.	
                                                                                                          prayers.	Sometimes	I	forget	this	and	have	
                                                                                                          to	be	reminded.	Our	prayers	are	with	all	
CLOSING                                                                                                   of	the	victims,	regardless	of	where	they	
OBSERVATIONS                                                                                              are	located,	and	we	must	support	them	in	
                                                      A monThly reminder                                  any	manner	possible.	

An imPorTAnT messAge For PArenTs                        If my people, who are called by my
                                                        name, will humble themselves and
  Many	parents	fail	to	realize	that	young	              pray and seek my face and turn
children	 have	 access	 to	 some	 popular	              from their wicked ways, then will I
video	 games	 that	 can	 do	 long-term	                 hear from heaven and will forgive
damage	 to	 them.	 Unfortunately,	 most	                their sin and will heal their land.
parents	don’t	even	know	anything	about	
the	content	of	these	games.	If	they	did,	               2Chron7:14
they	 would	 be	 shocked.	 Children	 are	




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                           Jere Locke Beasley, founding shareholder of the law firm Beasley, Allen, Crow,
  Jere Locke Beasley, founding shareholder of the is one of the most successful litigators of all Miles,
                     Methvin, Portis & Miles, P.C., law firm Beasley, Allen, Crow, Methvin, Portis & time,
                     with successful litigators of all time, with any lawyer in America. Beasley’s law firm,
  P.C. is one of the most the best track record of verdicts of the best track record of verdicts of any lawyer
                     established established in 1979 with the mission of those who need need it most,”
  in America. Beasley’s law firm, in 1979 with the mission of “helping “helping those whoit most,” now
                     employs 44 lawyers and support staff. Jere Beasley has always been has always
  now employs 44 lawyers and more than 200more than 200 support staff. Jere Beasley an advocate
                     been an advocate for victims of wrongdoing
  for victims of wrongdoing and has been shareholder of the and has been helping those who need
  Jere Locke Beasley, founding helping those who need it most for over 30 years.
                                                                        law firm Beasley,
                 it most for over 30 years.                                                                                 Allen, Crow,
  Methvin, Portis & Miles, P.C., is one of the most successful litigators of all time,
  with the best track record of verdicts of any lawyer in America. Beasley’s law firm,
  established in 1979 with the mission of “helping those who need it most,” now
  employs 44 lawyers and more than 200 support staff. Jere Beasley has always
  been an advocate for victims of wrongdoing and has been helping those who need
                    representation is made
  it most for overNo30 years. that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

								
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