'Claim Splitting' in Class Actions: Should Defense Counsel Care?
Imagine that you represent a manufacturer who is being sued in a putative class action alleging that one of your client's products is defective. Although some consumers who used the product were injured as a result of the defect, the class action complaint does not make any claims for personal injury. Instead, the complaint asserts claims for economic damages only (<i>eg</i>, refunds of the purchase price of the product). Conventional wisdom would say that you should be thankful. Economic damages usually pale in comparison to personal injury damages, so if putative class counsel has chosen to forego a potentially larger verdict, so be it. Unconventional wisdom, on the other hand, would recognize that the class plaintiffs are "splitting" their claims, and claim splitting presents a number of unique issues for defense counsel.
Case Notes
Highlights of the latest product liability cases from around the country.
Online: Web Site Offers 'Quality' Services
The American Society for Quality (ASQ), <i>www.asq.org,</i> headquartered in Milwaukee, was formed Feb. 16, 1946. The purpose of the 104,000-member professional association is to create better workplaces and communities worldwide by advancing learning, quality improvement, and knowledge exchange to improve business results. ASQ makes its officers and member experts available to inform and advise Congress, government agencies, state legislatures, and other groups and individuals on quality-related topics. ASQ representatives have provided testimony on issues such as training, health care quality, education, transportation safety, quality management in the federal government, licensing for quality professionals, and more.
Case Briefs
Highlights of the latest insurance cases from around the country.
Insurance Coverage for Silica Claims
While continuing to fight the decades-old battle with asbestos, corporate policyholders increasingly are confronting another substance that plaintiffs allege can cause serious injury if inhaled: silica — a common mineral found in sand, granite and concrete, among other materials.
Rogue Online Drugstores
In last month's newsletter, we looked at the problems posed by online pharmaceutical distributors that do not follow good pharmacy practice. These "rogue" pharmaceutical sites may be buying expired, substandard, contaminated or counterfeited products. Some sell without requiring customers to present prescriptions. The consumer may not be receiving proper medical oversight, which can result in administration of incorrect dosages, wrong or contraindicated drugs, or medication without adequate directions for use. These activities risk the reputations of pharmaceutical manufacturers and put them in greater peril of being sued by consumers whose adverse medical reactions could have been avoided. So, what can be done about it? Part Two of a Two-Part Article.
Reducing Frivolous Litigation
Frivolous lawsuits are one of the most problematic issues facing drug and medical device companies today. Many frivolous lawsuits are either ultimately dismissed for lack of causation after years of litigation and the expenditure of exorbitant sums of money in defense costs, or settled by corporations that are not culpable, but "litigation-weary." This waste of time and resources easily could be avoided if plaintiffs were required to submit an affidavit of merit with respect to product defect and/or causation at the inception of the case. Part One of a Two-Part Article.
Making the Case for the Benefits of Uniformity and Predictability
Uniformity and predictability are often lacking from judicial treatment of cases involving vicarious liability claims against franchisors, yet uniformity and predictability are the hallmarks of a successful franchise system, and the engines that have driven franchising to occupy such a prominent position in the domestic and worldwide economy.
A Primer on Insurance Options for Intellectual Property
In the last several years, a number of insurance companies including Chubb, AIG, InsureTrust (through Lloyd's of London), Venture Programs, Intellectual Property Risk Management ("IPRM"), and Litigation Risk Management, Inc. ("LRM") have begun offering insurance that pays costs associated with infringement of patents only, or infringement of some combination or all of patents, trademarks, trade dress, copyrights and trade secrets. For purposes of this article we will refer to these polices covering intellectual property as "IP infringement policies." IP infringement policies vary by carrier and property covered. The following descriptions are necessarily general.
