Legal system tries to get a grip on upsurge in mass-injury suits.

The Cincinnati Enquirer, November 13, 1994
By Ben L. Kaufman


In courtrooms, a "tort" is an injury.

It can be an individual tort, such as being rear-ended by another driver when you're waiting at a stop light. Or it can be a mass tort, such as many people killed in a jetliner crash, a faulty heart valve or the contamination of property by a nearby industry.

Courts know how to treat individual cases. What's new is the explosion in mass-tort litigation and growing concern about the courts' ability to cope.

How to handle these massive cases was the focus of 300 top lawyers, scholars and judges at the Omni Netherland Plaza. Today, they are wrapping up a four-day national conference - the first devoted to mass tort litigation.

Convened by state and federal courts, participants argued about judges' powers to control cases, division of spoils between victims and their attorneys, and the relative virtues of class actions and other approaches.

Participants also sought ways to avoid clogging courts when hundreds, thousands or more than 1 million potential victims threaten efforts to balance efficiency and fairness.

"Those two goals conflict in the context of mass tort," said Francis McGovern, a University of Alabama scholar. "It's mind-boggling to the traditional judge."

There always have been mass torts, McGovern said. For centuries, individuals rarely understood they were involved or pressed their legitimate claims.

Even if they did, their family attorney often was overwhelmed by the defendant's generally greater legal resources.

No longer, with publicity and attorneys advertising for clients. "There is this creation of litigation, and that is recent," said Sheila Birnbaum, a New York lawyer whose clients include Dow Corning Corp. in litigation over breast implants.

When clients join their claims, they "get better lawyering," and potential prizes become much richer, Birnbaum said. In turn, that has prompted settlements such as the $ 5 billion that breast implant makers pledged to resolve a class action embracing hundreds of thousands of claims.

Stunning as the numbers are, hostile jury verdicts could be worse. Going to trial is a "big crap shoot," Birnbaum said. "That's why everyone settles."

Cincinnati experience illustrates that. An advisory jury in the first Fernald class action recommended a $ 136 million verdict against former managers of the uranium processing facility. Rather than face a binding jury trial, the government settled for $ 78 million.

On the other hand, avoiding class actions could pay off. Only half of the women who pursued individual breast implant suits have won, but some awards exceeded what they would get from the mass settlement, Birnbaum said.

Tensions don't end there.

"Everybody from the different sides thinks there are too many litigants," Birnbaum said.

That was her way of describing frauds who claim phony injuries in mass lawsuits, hoping for something.

Another issue was fees. In federal courts, judges determine how much of a verdict or settlement goes to the lawyers. It rarely is more than 25 percent, including related costs.

Things are worse in state courts, according to John D. Aldock, a Washington, D.C., attorney who represents corporate clients in a national asbestos class action.

There, Aldock said, lawyers and clients agree on mass tort fees and judges rarely intervene.

"The claimant is lucky to get half the award." Aldock blames judges' natural sympathy for attorneys. "They were lawyers once."

Worse, he said, is the fear of alienating lawyers who wouldotherwise contribute to judges' campaigns.

No one - not even corporate lawyers paid by the hour, whether they win or lose - denied that victims' lawyers take big risks in mass tort cases.

Attorneys led by Cincinnati's Stanley M. Chesley received nothing for years of work when they lost the Bendectin birth-defects suit to a team headed by another Cincinnatian, Frank Woodside III.

People familiar with that case estimated that the losing lawyers were out more than $ 1 million in uncompensated time, expert witness costs and related expenses.

On the other hand, the $ 78 million settlement in the first Fernald class action was a major coup for Chesley in 1989, a leading figure in mass torts since he successfully represented victims in the 1977 Beverly Hills Supper Club fire in Southgate, Ky.



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