September 30, 2009

SEARS TAKES A HIT

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Sears Roebuck & Co. recently agreed to a record settlement in an Equal Employment Opportunity Commission[EEOC] lawsuit alleging the retailer illegally fired disabled workers. The $6.2 million dollar settlement amount is the largest settlement for a disability-related case in EEOC history. The case arose from allegations made by John Bava, former Sears technician who was seriously injured after a fall at a customer's home. Bava took took some time off under Workers Compensation, but was still disabled when he tried to return to work. Sears refused to reinstate him, or make accomodations for his disability. When Bava's leave expired, he was terminated. EEOC lawyers indicated they uncovered 100 similar cases where injured employees sought accomodations upon their return, only to be terminated.

Sears issued a statement insisting that they reasonably accomodated employees and settled the case because of the cost of litigation. In other words, the tried and true "We are innocent but lawyers are just so damn expensive" explanation. Sears lawyers must be very, very expensive.

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September 28, 2009

ILLINOIS SUPREME COURT OPINION A MAJOR ROADBLOCK FOR OLDER VICTIMS OF CLERGY SEX ABUSE

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The Illinois Supreme Court recently handed down an opinion that poses a major hurdle for older victims of clergy sexual abuse. Separate and apart from the legal aspect of the opinion, the undisputed facts again demonstrate an appalling neglect on the part of the Church when faced with evidence they had an abuser in their ranks.

In Doe v. Dallas, the plaintiff was was sexually abused by Kenneth Roberts, a Catholic priest, in 1984. The plaintiff was just 14. At the time, he was an eighth grader at a Catholic school in Belleville, Illinois. Father Roberts was a guest lecturer at the school. Among his topics was sex education. Roberts was allowed to speak, even though church officials were aware he had previously engaged in the inappropriate sexual behavior on at least two occasions.

Roberts, a former flight attendant, was a prolific author, and well known in the Catholic community. His published works included books like Playboy to Priest and Nobody Calls It Sin Anymore. After hearing Roberts speak, plaintiff came to admire him and sought advice on how to become a priest. Roberts agreed to assist the victim, and then of course, abused him.

Plaintiff didn't disclose the abuse until 1998, when acute psychological problems forced him to leave work. He filed his lawsuit in 2003. Roberts moved to dismiss, arguing that the allegations were time-barred. Roberts argued that the case was governed by 735 ILCS 13-202.2(1994), which stated that in actions for sex abuse that took place before the plaintiff was 18, the case had to be filed within 2 years after the person abused discovered, or through reasonable diligence should discover the abuse. Roberts argued that as plaintiff disclosed the abuse in 1998, he had to file suit within 2 years of that date.

In response, plaintiff argued that his cause of action was governed by 13-202.2, as amended in 2003. The amendment provides that actions for sexual abuse must be commenced within 10 years of the 18th birthday or within 5 years of the date the person discovers (a) an act of childhood sexual abuse and (b) that an injury was caused by the abuse. Interestingly the amendment provided that it applied to all actions pending as of July 24, 2003, as well as all actions commenced after that date. Plaintiff argued that the suit was timely as it was filed within 5 years of when he first reported the abuse.

In response, Roberts argued that because plaintiff's suit was already time-barred under the prior law before the amendment, allowing the lawsuit to be revived violated his constitutional rights. The trial court agreed with Roberts and dismissed the case. On appeal, the Appellate Court held the the amendment was to be applied both retroactively as well as prospectively - and reversed the trial court's ruling.

The Supreme Court ruled that once a claim is time-barred, reviving it through subsequent legislation would offend the due process protection of the Illinois Constitution. The Appellate Court was reversed and the ruling of the trial court affirmed.

Attorneys involved in local and national sex abuse cases have suggested that victims in their 40's may face a significant obstacle in seeking recovery as a result of the ruling.

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September 23, 2009

NEVER THOUGHT YOU WOULD NEED TO REMEMBER RES JUDICATA? THINK AGAIN.

Recently read a decision from the First Appellate District that sends a clear message to lawyers electing to take voluntary dismissals - PROCEED WITH CAUTION!!!!

In Kiefer v. Rust-Oleum, plaintiff Colin Kiefer filed a complaint in the Circuit Court of Cook County against Rust-Oleum, an Illinois corporation. Kiefer, a resident of British Columbia, alleged that he was seriously injured when a can of aerosol spray paint sold by Rust-OIeum exploded. The incident happened while Kiefer was working for a company located in British Columbia. The complaint was in two counts, strict product liability and negligence. The case was then transferred to Lake County, pursuant to forum non conveniens motion.

While the case was pending, Rust-Oleum moved to dismiss, arguing that the law of British Columbia governed the claim, and British Columbia does not recognize the law of strict product liability. On November 5, 2003, the trial court agreed, and dismissed those counts based upon strict liability. Leave was given to plaintiff to file a second amended complaint. There was no reference to the order being "with prejudice" or "without prejudice".

Kiefer ultimately did file amended pleadings, sounding in negligence. There were additional motions filed but plaintiff got past them. Just a few weeks before trial, plaintiff voluntarily dismissed his remaining negligence claims pursuant to 5/2-1009 of the Illinois Code of Civil Procedure.

In August, 2006, Keifer refiled his negligence claims in Cook County against Rust-Oleum and U.S. Can. Both defendants moved to dismiss, arguing the claims were barred by res judicata. The trial court agreed, and dismissed both counts "with prejudice" on September 28, 2008, applying the Supreme Court's recent ruling in Hudson. Plaintiff appealed.

The Appellate Court first looked at the Hudson decision which held that where a plaintiff asserts multiple claims arising from the same set of operative facts in a single action and one of those claims is dismissed on the merits, res judicata will bar the plaintiff from not only refiling those claims but also any claims the could have been determined as part of that action.

The Court then considered, but dismissed Kiefer's arguments that his claims were not barred - with some pretty broad language that trial lawyers should remember. Kiefer's arguments that he was given leave to amend and that the order was not "with prejudice" made little impact. The Court noted that "...a trial court's description of a final judgment as being "without prejudice" or "with prejudice" is not determinative. The Court emphasized that the res judicata impact of the November 5, 2003 order extends "...not only to every matter that was actually determined in the first suit, but also every matter that might have been raised and determined in that first suit." Negligence claims could have been raised, and in fact were raised in the initial complaint. As a result, they were barred by res judicata

Moral of the story - res judicata is broader than you might think. Be afraid. Be very afraid.

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September 8, 2009

ANOTHER ONE BITES THE DUST

Pleased to report settled a long-running dental malpractice case today. Pardon the pun, but getting case settled was like pulling teeth. In any event, it is over, onto the next one...

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September 2, 2009

TOYOTA NOT HAVING A GOOD WEEK

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Toyota was recently hit with a couple of lawsuits that could spell VERY BIG TROUBLE for the company. First, former Toyota attorney, Dimitrios Biller recently filed a racketeering lawsuit against Toyota, alleging that his former employer concealed and destroyed evidence that should have been produced to lawyers representing people injured in rollover accidents. Biller claims the company regularly withheld data and allowed witnesses to testify the records did not exist. Toyota has called Biller's allegations "inaccurate" and "misleading". And then they promptly requested that the Court records be sealed.

But wait - there's more. Shortly after Biller's lawsuit was filed, a class action was filed in federal court in Los Angeles. The class action seeks to represent all plaintiffs who lost or settled cases where Toyota allegedly withheld evidence.

Biller's allegations, if true, could have enormous repercussions for the company. First, there would be serious consequences for those persons who knowingly destroyed, and or lied about the existence of the records in question. Most judges in the United States take a rather dim view of that type of behavior. In addition, if there is merit to Biller's claims, it is likely any defense verdict for Toyota in a rollover case can be attacked and possibly overturned. Additionally, lawyers who settled with Toyota in rollover cases will likely seek to vacate the settlements and seek significantly higher awards. Then there is the additional litigation expense, which will be staggering.

Finally, again, assuming the allegations are true, there are evidentiary questions which could lead to significant gastrointestinal discomfort for Toyota lawyers. First, if Toyota was aware of certain defects and did not address them, then there is the specter of punitive damages. In addition, if documents were destroyed or concealed, are those facts admissible? You can bet the plaintiffs' lawyers will argue they are.

Yeah, this was definitely not a red letter week for Toyota.

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