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LF&W Attorneys Obtain Per Curiam Opinion from the 11th Circuit Court of Appeals
Lightfoot Franklin & White obtained a per curiam opinion from the 11th Circuit Court of Appeals, affirming a summary judgment that was obtained on behalf of Lincoln National Life Insurance Company dismissing a nationwide class action challenging the pricing structure and adequacy of the disclosures in relation to bonus fixed annuities sold by Lincoln. The lawsuit was brought by the Beasley Allen firm out of Montgomery, Alabama. Glenn Waldrop and Ivan Cooper represented Lincoln in the case.

06-28-2007

Los Angeles Superior Court Judge Upholds $50 Million Punitive Damage Award Against DaimlerChrysler
Lieff Cabraser Heimann & Bernstein, LLP and the Law Offices of Charles D. Naylor announced that a Los Angeles Superior Court Judge denied two post-trial motions submitted by DaimlerChrysler Corporation. The motions were filed in response to a recent jury verdict which ordered the automaker to pay $50 million in punitive damages to Adriana Mraz and her three children for the wrongful death of San Pedro longshoreman Richard Mraz. The punitive damage award is near the maximum amount allowed based on the $5.2 million awarded by the jury in compensatory damages.

The motions submitted by DaimlerChrysler included a request for the court to overturn the jury's verdict, order a new trial and reduce the punitive damage award to less than $1 million. Los Angeles Superior Court Judge Mel Red Recana, who presided over the month long trial earlier this year, denied DaimlerChrysler's motions. In his ruling, Judge Recana found that the evidence presented at trial was so persuasive that "the court or jury could not have reached a different decision or verdict."

"The trial judge is the first judicial officer to express his view on the punitive damage award," said Charles D. Naylor, a San Pedro-based attorney and plaintiff's co-council with expertise in maritime litigation. "We're gratified that the judge who heard all the witness testimony felt that the punitive damages were not only justified but required."

"I am deeply grateful to the judge for strongly affirming the jury's message to DaimlerChrysler that it must finally fix the defect in millions of its vehicles," said Adriana Mraz, widow of Richard Mraz. "Many people have been injured, and some killed, by the same defect. DaimlerChrysler needs to be held accountable."

In March 2007, a Los Angeles Superior Court jury awarded $50 million in punitive damages to the family of 38-year-old longshoreman Richard Mraz who died after being hit and run over by a run away Dodge Dakota while working at the American President Lines terminal in the Port of Los Angeles. The jury found that a "park-to-reverse" defect in the Dakota's automatic transmission caused Mraz's death. They also found that DaimlerChrysler acted with malice in failing to warn of the defect and adequately recalling or retrofitting the vehicle. Mraz, a San Pedro native, left behind his wife, Adrianna, a three-year-old daughter, and two teenage stepsons.

"We are confident that the jury and the judge's decision will be upheld if challenged on appeal," said Robert J. Nelson, of Lieff Cabraser Heimann & Bernstein, LLP, a San Francisco-based law firm and plaintiff's co-council with expertise in vehicle defect litigation. "This decision by the trial judge confirms the jury's decision which was based on the evidence we presented in court and that substantial punitive damages were warranted. DaimlerChrysler's conscious disregard of consumer safety caused the wrongful death of Mr. Mraz."DaimlerChrysler could still appeal the verdict or choose to pay the $50 million punitive damages.

06-28-2007

SAN DIEGO COUNTY SUPERIOR COURT PERMITS CLAIMS AGAINST SCRIPPS HEALTH FOR OVERCHARGING TENS OF THOUSANDS OF UNINSURED PATIENTS TO ADVANCE AS A CLASS ACTION
Kelly M. Dermody of Lieff Cabraser Heimann & Bernstein, LLP, announced that San Diego County Superior Court Judge Steven Denton yesterday entered an order granting class certification to claims by Phillip Franklin that Scripps Health charges its uninsured patients unreasonable and unconscionable prices. This Order means that the case will continue on behalf of potentially one hundred thousand uninsured patients, most living in the San Diego and Southern California region, who challenge alleged price gouging by Scripps hospitals since 2002.

Phillip Franklin, Cross-Complainant, and Court-appointed Class Representative said, “After Scripps overcharged me, I attempted to work it out with Scripps informally. I only got the run-around. Then Scripps sued me in collections for the full price of the bill. Knowing what I went through, I realized that Scripps must be doing the same thing to other uninsured patients, and I wanted to do something about it. I am delighted that the Court is allowing me to pursue these claims on behalf of other uninsured patients at Scripps. I am not trying to get a free ride for uninsureds here. I’m just trying to seek fairness in pricing across the board so that I and other uninsured patients don’t get charged so much more than Scripps charges its other patients with insurance for the very same treatment.”

“We are pleased that the Court recognized that Scripps has engaged in systemic pricing practices toward the uninsured which are suitable for systemic review. California law prohibits companies, like Scripps, from price gouging, and we intend to prove at trial that Scripps' pricing practices toward these financially vulnerable uninsureds were unreasonable, unconscionable, and violated California law,” said Kelly M. Dermody, a partner at Lieff, Cabraser, Heimann & Bernstein, LLP, lead attorneys for Mr. Franklin.

06-28-2007

EPA and U.S. Army Corps of Engineers Offer New Guidance on Wetlands and Tributary Regulation
The Supreme Court announced a new standard for determining whether tributaries and wetlands are under the jurisdiction of the Clean Water Act in Rapanos v. United States, 126 S. Ct. 2208. On June 5, 2007, the Environmental Protection Agency and U.S. Army Corps of Engineers responded by releasing a guidance memorandum describing the waters the agencies have authority to regulate pursuant to the Clean Water Act in light of the Rapanos decision.

Sections 402 and 404 of the Clean Water Act limit the discharge of pollutants into or filling in the "waters of the United States." In Rapanos, the Supreme Court determined which waters are subject to Clean Water Act regulation. (See prior article.) Following Rapanos, waters subject to sections 402 and 404 of the Clean Water Act include:

Traditional navigable waters
*
Permanent tributaries of traditional navigable waters and wetlands with a surface connection to such tributaries
*
Any waters, including wetlands and non-permanent tributaries, with a "significant nexus" to traditional navigable waters

The Act does not completely ban discharges into such waters. Rather, compliance with the Clean Water Act consists of obtaining a permit from the United States Army Corps of Engineers prior to building over or discharging into protected waters. Due to the length of time and cost involved in obtaining a permit, however, it is extremely important for builders and property owners to know exactly what constitutes the "waters of the United States."

For the purpose of Clean Water Act regulation, the Corps of Engineers defines "the waters of the United States" based on the language of the Clean Water Act and supporting case law. In interpreting the language and case law, the Corps has been given great deference to determine the extent of the "waters of the United States." In Rapanos, the Supreme Court set forth new limits as to the determination of "waters of the United States." Rapanos essentially set forth three different standards, and any water that meets any one of these standards is subject to the Clean Water Act as a "water of the United States." On June 5, 2007, the EPA and the U.S. Army Corps of Engineers released a joint guidance delineating how they will enforce the standards set forth in Rapanos to determine whether certain waters are "waters of the United States."

06-28-2007

Bill Haug Receives Walter E. Craig Distinguished Service Award
William F. Haug, a partner with the Firm, received the Walter E. Craig Distinguished Service Award at the Arizona Foundation for Legal Services & Education's annual award luncheon held concurrently with the State Bar of Arizona Convention. Bill Haug was instrumental in the creation of the Foundation in 1981. The Foundation works to level the playing field, so that all in Arizona have knowledge and access to the justice systems. The Walter E. Craig Distinguished Services Award is the Foundation's award presented to the attorney who has manifested adherence to the highest principles and tradition of the legal profession and service to the public in the community in which he lives. Please join his partners and family in congratulating Bill Haug on receiving such an important award. Bill Haug continues with his full time practice, providing representation to all members of the construction and surety industry and serving as an arbitrator and mediator in complex construction disputes in Arizona, Nevada and the Southwest.

06-28-2007

Mike Foster and Gretchen Callas Named Firm’s New Management Team
Mike Foster and Gretchen Callas assumed their responsibilities as Managing Member and Assistant Managing Member of Jackson Kelly PLLC, the two senior management positions in the Firm.

Mike assumes the role of Managing Member after serving as Assistant Managing Member from 2002 ?" 2007.

As Assistant Managing Member, Gretchen will be the first woman to be elected to either of these positions in the Firm’s 185 year history.

Al Emch, who has been the Firm’s Managing Member since 2002, will return to his practice as a full-time litigator. “Serving the Firm as CEO was a great honor for me. It was challenging and remarkably rewarding,” Emch said. He identified two aspects of his tenure that were most satisfying to him. First, was continuing Jackson Kelly’s unwavering commitment to excellence in its people and all aspects of its service to clients and others. Second, he was pleased to have been a part of the Firm’s extensive involvement in, and support of community and professional organizations, higher education, and charitable groups and causes.

Noting Emch’s accomplishments, Foster said, “During Al’s tenure, Jackson Kelly has seen steady growth, and redoubled its efforts to serve the Firm’s clients and the local communities where we have offices.”

Under Mr. Emch’s leadership, Jackson Kelly accomplished many things.

The Firm implemented a number of programs designed to improve and enhance the work environment and well-being of attorneys and staff, including:

· Establishing a Firm-wide wellness program;

· Expanding health benefits to cover more employees;

· Extending health coverage to periodic physicals and other preventive measures;

· Implementing an EAP and paying for Smoking Cessation programs;

· Pursuing various staff recognition and appreciation events, activities, and programs; and

· Creating and empowering a Diversity Committee.

Facilities at virtually all of the Firm’s offices were improved. Jackson Kelly:

· Moved to new and expanded offices at Waterfront Place in Morgantown, WV, Denver Place in Denver, CO, and a home on the National Historic Registry in Martinsburg, WV;

· Renovated and expanded its offices in Clarksburg and Wheeling, WV, and Washington, D.C.;

· Completed a year-long, full renovation of the Firm’s headquarters in Charleston, WV. This renovation included the opening of a conference center floor that the Firm makes available to clients, community organizations, and charitable groups for meetings, receptions, and seminars; and

· Recently began a major renovation of its Lexington, KY Offices that will be finished this fall.

06-28-2007

Workers’ Compensation Reform Bill Signed into Law
Governor Mark Sanford signed into law the workers' compensation reform bill which many businesses and consumers view as a measure aimed at curbing recent business insurance cost increases harmful to both businesses and consumers. The bill makes significant changes in South Carolina Workers’ Compensation law and will affect how we, as lawyers handle workers’ compensation claims. Some of the more important aspects of the bill include a stricter standard for proving medical causation, the addition of the shoulder and hip to the list of “scheduled members,” and the gradual abolishment of the Second Injury Fund

06-28-2007

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