Missouri Legislature Proposal Draws Ire from Pro-American Rule Advocate.
Brett Emison, in a February 20, 2012 post at injuryboard.com, is steaming mad about a Missouri bill pending to change “American rule” fee-shifting in personal injury cases for purposes of discouraging frivolous suits. Even though Mo. Rev. Stat. § 514.205 seems to already have frivolous lawsuit sanctions, the proposed legislation (HB 1342) appears to permit a winning defendant to invoke the “British rule” but prevents winning plaintiffs from doing so. He also describes some disparities in the proposed legislation in which winning parties may have to pay opponent fees in certain circumstances. Interestingly enough, Mr. Emison cites to research by law professor John Vargo suggesting that the British rule (winner gets fees and costs no matter what) escalates legal expenses and upends settlements. He also indicates that the Florida Medical Association, while initially lobbying for imposition of the British rule, later recanted and wanted a repeal because the rule caused expensive losses for doctors and hospitals.
Texas State Appeals Court Finds 1 Multiplier Enhanced Lodestar in Class Action Case Was An Abuse of Discretion.
In a shareholder class action arising from Exxon Mobil’s acquisition of XTO Energy in 2010, a Texas state appeals court earlier this month more than doubled the fee originally awarded by a trial court to plaintiffs’ lawyers for a settlement in which nothing went to shareholders. The final award: about $8.6 million. The Texas appellate court found exceptional results based on what defendants did agree to correct in a settlement, such that it found a 1 multiplier-enhanced lodestar to be an abuse of discretion. Rather, it agreed with plaintiffs’ attorneys that a 2.17 multiplier was correct, which coincided within about $500 of the maximum amount that Exxon agreed to pay anyway under the settlement agreement.
Georgia Federal Judge Orders E-Discovery Sanctions Against Delta in Antitrust Case.
In In re Delta/AirTran Baggage Fee Antitrust Litig., 2012 U.S. Dist. LEXIS 13462 (N.D.Ga. Feb. 3, 2012) [Doc. No. 263 on the case docket], U.S. District Judge Timothy C. Batten, Sr. decided that Delta needs to pay attorney’s fees and costs for e-discovery issues in consolidated antitrust cases claiming Delta and AirTran Holdings, Inc. conspired to charge customers $15 to check their first bag. The district judge reopened discovery against defendants based on untimely production of records and proof suggesting that there was overwriting of backup tapes, inconsistencies in deposition testimony and documents on what happened, and neglect in searching and producing documents from hard drives. District Judge Batten determined Delta had violated F.R.Civ.P. 26(g) early disclosure requirements and failed to supplement discovery so as to justify sanctions under F.R.Civ.P. 37(c)(1). Although not precluding introduction of documents as sanctions, Judge Batten did decides that Delta needed to pay plaintiffs’ fees and costs in bringing the discovery motions and for extended discovery activities. He strongly suggested that both sides meet and confer to see if these fees and costs could be agreed to. Ouch!
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