April 27, 2010 - In a 5-3 ruling that dealt another blow to consumer rights, the U.S. Supreme Court ruled arbitration panels may not allow arbitration on a class-wide basis unless the arbitration agreement expressly authorizes it. Although the parties in Stolt-Nielsen S.A. v. AnimalFeeds International Corp. were businesses, not consumers, the effects of the ruling will directly impact consumers who have signed loan agreements and other contracts containing arbitration clauses. Now, if a company cheats a million of its customers out of $5 each, it will be able to keep the $5 million in unjust gain if it had the foresight to enter into contracts with its customers which require arbitration and which don’t allow class actions. No consumer can afford to arbitrate a $5 claim. If a consumer were allowed to file for arbitration on a class-wide basis, the consumer would be able to find attorneys to represent the class in arbitration proceedings. This is just another in a long line of Supreme Court rulings that have put the rights of businesses ahead of the rights of consumers. [click to continue…]
Tagged as:
arbitration,
class action,
Consumer Protection,
consumers,
Supreme Court
According to a Nov. 3, 2009 Reuters article, Knauf Plasterboard (Tianjin) Co., Ltd. (KPT), one of the Chinese drywall manufacturers, has agreed to waive service of process through the Hague Convention, and will accept service of process of an Omnibus Class Action Complaint which is to be filed in the Chinese drywall MDL litigation on or before December 9, 2009. In order for their clients to be included in the Omnibus Complaint, individual Chinese drywall attorneys must provide Arnold Levin (Plaintiffs’ lead counsel) evidence establishing that their clients homes contain the KPT brand of Chinese drywall. The deadline for submitting this evidence is December 2, 2009. Plaintiffs who are included in the Omnibus Complaint must also submit a fully completed and executed Plaintiff Profile Form to Russ Herman, Plaintiffs’ Liaison Counsel, by December 14, 2009.
Before the agreement, KPT had insisted on service of process complying with the Hague Convention, which requires the translation of legal documents into Chinese and imposes other hurdles for plaintiffs. It is estimated that complying with the Hague Convention typically costs about $15,000 per plaintiff.
“This agreement is the equivalent of an invitation to all claimants, that were reluctant before, to get their claims on record without the hassle, delay or expense of service through the Hague,” said Arnold Levin of Levin, Fishbein, Sedran & Berman, Plaintiffs’ Lead Counsel for all Chinese drywall cases.
It should be emphasized to unrepresented individuals who have Chinese drywall claims that time is of the essence when it comes to participating in this agreement. Individuals can’t expect to call lawyers on December 1, 2009 and say they want to be included in the Omnibus complaint. They need to hire a lawyer now, if they want to participate in this complaint, because any competent, busy lawyer will require a period of time to arrange for inspection of the client’s home, and the submission of evidence to Arnold Levin. The article calls this a “breakthrough agreement,” but it’s only a breakthrough for those who act quickly enough to take advantage of it. [click to continue…]
Tagged as:
Chinese drywall,
Chinese drywall attorneys,
Chinese drywall lawsuit,
Chinese drywall lawyers,
Chinese drywall MDL,
Chinese drywall problems,
Chinese sheetrock,
Consumer Protection,
knauf,
KPT,
Mass torts,
Toxic Chinese drywall,
Video,
websites
The New York Times reported September 24, 2009 that the Food and Drug Administration (FDA) admitted “that four New Jersey congressmen and its own former commissioner unduly influenced the process that led to its decision last year to approve a patch for injured knees, an approval it is now revisiting.” [Blogger's note: all emphasized text throughout this post is mine.]
This admission by the FDA may shock some, but it will come as no surprise to lawyers for consumers who were killed or injured by dangerous drugs and medical devices approved by the FDA under the previous administration. To lawyers engaged in the heated drug and medical-device litigation, it became obvious that some business men and women were willing to sit in their offices and boardrooms and take actions that would kill and permanently injure people. The motive was greed, and the perpetrators were secure in their knowledge that, if the litigation went awry, the damages would be paid from the profits of the shareholders. There was little or no personal responsibility for the decision-makers. Sadly, some executives inside Big Pharma are still enjoying high compensation and fancy corporate perks after killing and injuring hundreds. Contrast that with the day-to-day existence of someone serving prison time for killing or injuring just one person during a robbery, and it becomes clear why some became so outraged at the FDA under the previous administration.
The New York Times article goes on to report:
The agency’s scientific reviewers repeatedly and unanimously over many years decided that the device, known as Menaflex and manufactured by ReGen Biologics Inc., was unsafe because the device often failed, forcing patients to get another operation.
But after receiving what an F.D.A. report described as “extreme,” “unusual” and persistent pressure from four Democrats from New Jersey — Senators Robert Menendez and Frank R. Lautenberg and Representatives Frank Pallone Jr. and Steven R. Rothman — agency managers overruled the scientists and approved the device for sale in December.
All four legislators made their inquiries within a few months of receiving significant campaign contributions from ReGen, which is based in New Jersey, but all said they had acted appropriately and were not influenced by the money.
The New York Times later wrote an editorial about the corrupting effect of lobbying and political contributions on patient safety, concluding:
This shabby episode carries an important warning for policy makers as they debate health care reform. Decisions on what treatments work best have to be insulated from political lobbying. Otherwise there will be little hope for reining in spending on unproven treatments that may be ineffective or harmful.
Later the business press began to describe the story. An Oct. 8, 2009 Wall Street Journal article discussed the effect of the FDA’s potentialy more stringent approval process on various medical-device manufacturers. And, surprise, surprise, a securities analyst voiced the opinion that he is “‘very much concerned’ about tighter regulations that could slow the pace of innovation.” Even the pro-business Journal immediately followed that quote with this observation: “Device companies commonly rely on upgraded products cleared through 510(k) [the "fast-track approval process] that can fetch higher prices from hospitals.”
My thoughts after reading this disgusting saga:
- Some people in a few big drug and medical-device companies really will kill you for your money, as some consumer attorneys have claimed for years.
- Patients are safer under the current FDA Commissioner, but the bad guys are still out there, and they won’t quit trying simply because it’s gotten tougher.
- Just because four congressmen from New Jersey wear the label “Democrat,” don’t expect them to protect consumers when business lobbyists are throwing money at them. There are a few Republicans (Charles Grassley comes to mind) who seem to care more about patient safety and what’s going on at the FDA than the four guys from Jersey who ReGen’s money and pressured the FDA to approve an unsafe knee patch. This isn’t a defense of Republicans; it’s more of an indictment of the current political and regulatory system, and my belief that a politician’s personal integrity and stand on the issues is more important than party labels.
Tagged as:
Consumer Protection,
FDA,
Patient Safety,
Politics
My favorite project right now is ConsumerNews.com, which I am developing as a news site after having spent decades representing plaintiffs. I firmly believe that huge corporations (who often find themselves as defendants in lawsuits) have funneled money into “think tanks” and the Chamber of Commerce to fund a decades-long attack on trial lawyers. I call this campaign “high-tech, high-priced jury tampering.” This unrelenting campaign has been so effective that people in some states have voted to give away their own Constitutional rights under the guise of “tort reform,” and some professional organizations have changed their names to get rid of the words “trial lawyers.” I still believe that it’s an honorable thing to represent individuals who have been injured or wronged by huge corporations.
That’s one of the reasons I’m interested in developing ConsumerNews.com. My vision for ConsumerNews is to build a reliable news site that will take an openly pro-consumer approach to reporting the news. Does this mean that the facts will be twisted to create pro-consumer news articles? Not at all. But it does mean that the articles will be factual, will be chosen to coincide with the concerns of individual consumers (including concerns that go beyond legal issues), and we will have no apologists standing ready to write an article justifying anything corporate America wishes to do. The plain, unvarnished truth is what is needed. As the masthead of the old Rocky Mountain News said: “Give light, and the people will find their own way.”
I’m learning that getting the bugs out of a substantial website can take longer than expected. In any event, we continue to make progress (though slower than we would like) and will announce the launch (when it comes) on this site.
Tagged as:
Consumer Protection
Nancy Nord, the acting chairwoman of the Consumer Product Safety Commission, will be stepping down from her leadership of the CPSC, reports Aaron Kessler of the (Sarasota, FL) Herald-Tribune. Nord, a former Eastman Kodak Co. lobbyist who has come under fire over the CPSC’s response to defective Chinese drywall and other consumer issues, says she plans to stay on as a member of the Commission until her term expires in 2012.
Tagged as:
Consumer Product Safety Commission,
Consumer Protection,
CPSC