Friday, November 20, 2009

More About The Ex-Smoker's $300 Million Win Against Philip Morris


Google Fast Flip has twostories about the $300,000,000.00 awarded by a Broward County jury to an ex-smoker.  The stories are:

"Ex-Smoker Wins Against Philip Morris" in the New York Times; and

The verdict was previously discussed here.

"Twombleyed in the Iqbals"



You can see the cases referenced at the following links:

The cartoon was created by David E. Mills and is hosted at courtoons.com.  You can view the cartoon and a number of othes here.

Ninth Circuit Chief Issues Order Providing Same-Sex Benefits And Gives The Executive Branch A Lesson On Separation Of Powers

Ninth Circuit Chief Judge Alex Kozinski entered a published order yesterday awarding back pay to a court employee who was harmed when the government refused to provide insurance coverage for her same-sex spouse.  The order in the case of In the Matter of Karen Golinski (09-80173) can be viewed here

The order is interesting for a number of reasons including the same-sex benefits and the lesson on federalism and separation of powers the Chief Judge provides.

On January 13, 2009, Chief Judge Kozinski entered an order requiring the court's health plan to provide benefits to Ms. Golinski's spouse. You can see the January 13, 2009 order here.  However, the Executive Branch's Office of Personnel Management (OPM) ordered the health plan to refuse to provide the coverage "thwarting the relief" the Chief Judge had ordered.  Clearly angered by the actions of OPM, Chief Judge Kozinski stated "the Executive must henceforth respect the Judiciary’s interpretation of the laws applicable to judicial employees." (emphasis added).

The court continued:
OPM has a duty to take care that the laws be faithfully executed, but it may not disregard a coordinate branch’s construction of the laws that apply to its employees. No less than the other branches of government, the Judiciary is dependent on people to carry out its mission. Barring us from determining, within reasonable bounds, the rights and duties of our personnel under the laws providing for their employment would make us a “handmaiden of the Executive.” United States v. Smith, 899 F.2d 564, 569 (6th Cir. 1990). The power both to interpret and execute a law is the power to control those governed by it. Cf. The Federalist No. 47 (James Madison).
Concern about such a fate is particularly acute for the Judicial Branch. We rely on Congress to fund and the Executive to carry out many aspects of our day to day operations. GSA manages the buildings where we work, Treasury cuts our checks, U.S. Marshals provide our security and OPM administers our employee benefits programs. But if the theory of separate powers means anything, it’s that the Executive cannot use its dominance over logistics to destroy our autonomy...
That those rights are not in question here is irrelevant. The power the Executive has arrogated to itself in this case would be enough to sustain those actions as well. Nor is it any answer that OPM could set out a plausible interpretation of the law to support its actions in this case. Some branch must have the final say on a law’s meaning. At least as to laws governing judicial employees, that is entirely our duty and our province. We would not be a co-equal branch of government otherwise.
(emphasis added).  Thanks to How Appealing for the link.

Florida Bar Files Rothstein Disbarment Pleadings In Florida Supreme Court And Lawsuit Filed Against Rothstein and TD Bank

The Florida Bar filed the documents relating to the Scott Rothstein disbarment.  The case, The Florida Bar v. Scott W. Rothstein (SC09-2146), was filed by the Florida Bar today and the Florida Supreme Court entered an order declaring it a high profile case.  The Florida Bar released a press release which can be found here.  A press release was also released by the Florida Bar on November 18, 2009 which can be found here.  The Disbarment on Consent is below:


Mr. Rothstein and RRA were previously discussed everywhere on the internet including on this blog here, here, here, here, here and here.  You can view the latest news from Google News here.  You can view a number of the relevant filings and documents at the links below:

  1. Lawsuit filed by Razorback Funding against TD Bank; Andrew Barnett; Scott Rothstein; Debra Villegas; David Boden; Frank Spinosa; Jennifer Kerstetter; Rosanne Caretsky and Frank Preve;
  2. Exhibits Q through FF (without Y) to Razorback Funding lawsuit;
  3. Todd Snyder's Complaint against Scott Rothstein, RRA and TD Bank;
  4. Andrew Barnett's Letter Confirming Todd Snyder's Money Was Being Held In Trust;
  5. Petition to Accept Disbarment Of Scott Rothstein;
  6. Florida Supreme Court's High Profile Order in Rothstein Disbarment Proceeding;
  7. Disbarment on Consent;
  8. Florida Bar's Affidavit of Costs in Rothstein Disbarment Proceeding;
  9. RRA's Emergency Motion To Enforce Stay in bankruptcy court;
  10. Amended Order in RRA state court receivership action;
  11. Civil Forfeiture Complaint against Scott Rothstein;
  12. RRA Involuntary Bankruptcy Petition;
  13. Emergency Motion for Appointment of Temporary Chapter 11 Trustee;
  14. Eleventh Circuit order allegedly forged by Mr. Rothstein;
  15. District Court Judgment allegedly forged by Mr. Rothstein;
  16. Joint Confidentiality order allegedly forged by Mr. Rothstein.

Investor's Suit Against Scott Rothstein, RRA and TD Bank & RRA Seeks To Enforce Stay

As was reported by the Miami Herald, CBS 4, Michael Mayo at the SunSentinel, Palm Beach Post and the South Florida Business Journal, Todd D. Snyder filed an adversary complaint for Declaratory Relief, Imposition of Equitable Lien and/or Constructive Trust, and Permanent Injunction againt Scott W. Rothstein, Rothstein Rosenfeldt & Adler, P.A., and TD Bank, N.A. The complaint alleges:
Snyder was solicited by RRA, and individuals associated with RRA, to invest Two Million One Hundred Sixty Thousand and 00/100 Dollars ($2,160,000.00) in a future, and yet to be finalized, transaction....As evidenced by a confirming letter from RRA, a copy of which is attached hereto as Exhibit B, the Snyder Trust Funds were intended by Snyder to be kept separate from RRA’s property, Rothstein’s property, and the property of other clients or third-parties.
You can read the entire complaint below, including the exhibit referenced in the quote.
Snyder

You can view the letter from Barnett by itself at this link.  Somewhat interestingly, RRA filed a motion to enforce the bankruptcy stay in the bankruptcy proceeding.  You can see that motion here.  RRA also filed an emergency motion in the state court receivership proceeding indicating to the state court judge that the bankruptcy stay does not apply.  You can see the order in the state court case here.

Mr. Rothstein and RRA were previously discussed on this blog here, here, here, here and here.

Thursday, November 19, 2009

Texas Federal Judge Grants Eleventh Hour Stay Of Execution Of Gerald Eldridge

United States District Court Judge Judge Lee Rosenthal granted an eleventh hour repreive to Texas death row inmate Gerald Eldridge.  Judge Rosenthal stayed the execution for at least 90 days and stated:
The issue now before this court is not whether Eldridge is, or is not, mentally ill or whether he is, or is not, competent to be executed in compliance with the Constitution. The only issue now before this court is whether, based on the record presented, the prisoner has made a 'substantial threshold showing of insanity.' Id. If such a showing is made, the execution must be delayed to permit a “fair hearing” to determine competency to be executed. A fair hearing requires an opportunity to submit evidence and arguments from the prisoner’s counsel, including expert psychiatric evidence to respond to the State’s own psychiatric examination. Id. at 952. The record before this court shows that Eldridge has made that substantial threshold showing. Under the case law, this court must therefore stay his execution to determine whether his condition allows his execution.
The caselaw the court was citing to is Ford v. Wainwright, 477 U.S. 399 (1986) and Panetti v. Quarterman, 551 U.S. 930, 948 (2007).  You can see articles here, herehere,  and here.  You can view Judge Rosenthal's ten page stay order below:
Eldridge v. Thaler

You can also see an unpublished decision from the Fifth Circuit in Eldridge v. Quarterman that was released on April 28, 2009 here

Supreme Court Denies Stay Of Execution Of Robert Thompsn - Texas Governor Rejects Plea By Texas Parole Bard To Grant Clemency - Thompson Executed

Today, the Supreme Court denied a petition for certiorari and application for stay of executon filed by Robert L. Thompson.  You can see the Supreme Court's order here.  Interestingly, the Texas parole board urged Texas Governor Perry to grant clemency.  See here.  The Texas Board of Pardons and Paroles suggested his death sentence be commuted to life in prison because he was not the shooter of the victim.  Mr. Thompson was executed shortly after the Supreme Court denied the stay and after Governor Perry denied clemency.  See here and here.

Broward County JuryAwards 300 Million To Former Smoker - Sister of Former Fort Lauderdale Mayor Jim Naugle

The sister of Fort Lauderdale's former mayor, Jim Naugle, was  awarded three hundred million - yes $300,000,000.00 - by a Broward County jury.  The plaintiff, Cindy Naugle, began smoking at the age of twenty and quit smoking at the age of forty-five.  The jury found her to be ten percent at fault for taking up smoking.  You can view a number of articles, courtesy of Google News, below:

Philip Morris has been ordered to pay a record $326.3 million in damages to a ...

Herald Sun - ‎7 minutes ago‎
From: AP Philip Morris has been ordered to pay $320 million to an ex-smoker in Florida, USA. Source: HWT Image Library TOBACCO company Philip Morris has ...

Philip Morris Told to Pay Smoker Almost $300 Million
Bloomberg - Edvard Pettersson - ‎16 minutes ago‎
Nov. 19 (Bloomberg) -- Altria Group Inc.'s Philip Morris USA, the largest US tobacco company, lost a $300 million jury verdict in a ...

Fla. jury awards $300 million in ex-smoker's suit
The Associated Press - Christine Armario - ‎1 hour ago‎
MIAMI — A South Florida jury on Thursday ordered Philip Morris USA to pay $300 million to a former smoker, agreeing that the tobacco company's negligence ...

Ex-Mayor Naugle's sister wins $300 million tobacco verdict
Sun-Sentinel.com - Brittany Wallman - ‎1 hour ago‎
The sister of former Fort Lauderdale Mayor Jim Naugle on Thursday won a $300 million jury verdict, the largest individual ...

Broward Jury Awards Former Mayor's Sister $300 Million in Fraud Case Against ...
PR Newswire (press release) - ‎1 hour ago‎
FORT LAUDERDALE, Fla., Nov. 19 /PRNewswire/ -- A Broward Circuit Court Jury returned a $300 million verdict against Philip Morris USA within hours of ...

All 6 related articles »

Sun-Sentinel.com - ‎1 hour ago‎
By AP FORT LAUDERDALE, Fla. (AP) — Philip Morris has been ordered to pay $300 million in damages to a former smoker in Florida, the largest award to date ...

Broward County Judicial Reassignments

Last week, Broward County Chief Judge Victor Tobin entered administrative order 2009-106. The order provides the division assignment for all Broward County Circuit Court and County Court judges, inluding a number of transfers.  The order can be viewed at this link.

Wednesday, November 18, 2009

Fourth District Agrees With Third District Regarding PIP IME Issue

In Central Magnetic Imaging Open MRI of Plantation v. State Farm Fire and Casualty Insurance Company(4D09-1457), the Fourth District stated:
The issue that warrants discussion in this case is whether section 627.736(7)(a), Florida Statutes, requires an insurer to obtain an IME before denying a PIP claim or whether a “valid report” under the statute may be based on an expert’s review of the claimant’s treatment records, a so-called “peer review report.” Circuit and county court judges have interpreted the “valid report” requirement of the PIP statute differently.  We conclude, in line with the Third District Court of Appeal, that the “valid report” required by the statute does not require an insurer to order an IME before denying a claim for PIP benefits. See United Auto. Ins. Co. v. Metro Injury & Rehab Ctr., 16 So. 3d 897 (Fla. 3d DCA 2009); United Auto. Ins. Co. v. Bermudez, 980 So. 2d 1213 (Fla. 3d DCA 2008), receded from on other grounds by United Auto. Ins. Co. v. Santa Fe Med. Ctr., 34 Fla. L. Weekly S2051 (Fla. 3d DCA Oct. 7, 2009) (en banc).
United Auto. Ins. Co. v. Santa Fe Med. Ctr., 34 Fla. L. Weekly S2051 (Fla. 3d DCA Oct. 7, 2009) (en banc) was previously discussed here.

Fourth District Grants Certiorari And Orders Complaint Dismissed For Failure To Comply With Presuit Affidavit Requirement Of Section 766.106(2), Florida Statutes

In Dr. Navarro’s Vein Centre of the Palm Beach, Inc. v. Miller (4D09-2407), the Fourth District granted a petition for certiorari and quashed the trial court's order based upon the plaintiff/appellee's failure to comply with section 766.106(2), Florida Statutes (2008).  The court stated:

The plaintiff filed a complaint against the defendant doctor and her professional association for damages arising from a laser hair removal procedure. The plaintiff alleged that the doctor’s negligence in performing the procedure caused severe burns. The complaint specifically alleged that the doctor was not performing medical treatment, but rather cosmetic electrolysis as defined by section 478.42(5), Florida Statutes (2008).
***
The well-accepted general rule is that the allegations of a complaint must be accepted as true for purposes of a motion to dismiss. Gowan v. Bay County, 744 So. 2d 1136, 1138 (Fla. 1st DCA 1999). However, when the factual allegations belie the conclusory legal allegations, the trial court is permitted to, indeed must, apply the law to the well-pleaded factual allegations and decide the legal issue of whether the complaint sounds in simple or medical negligence. Brandon v. Pinellas County, 141 So. 2d 278, 279 (Fla. 2d DCA 1962) (“Mere statements of opinions or conclusions unsupported by specific facts will not suffice.”).
***
While we normally do not review orders denying motions to dismiss because there is an adequate remedy at law in the final appeal, declining to do so in this case would cause irreparable harm. The Medical Malpractice Reform Act was designed to provide cost-saving pretrial procedures as a response to the medical malpractice crisis. To allow this case to proceed to a possible judgment, only to be reversed would eliminate the very cost-saving procedures for which the Act was created. Here, “relief by direct appeal would be no relief at all.” Pearlstein, 500 So. 2d at 587. We therefore find the requisite irreparable harm.
We grant the petition, issue the writ, quash the order, and remand the case to the trial court for dismissal of the plaintiff’s complaint for failure to comply with the presuit screening process of section 766.106(2).

Supreme Court Denies Two Requests For A Stay Of Execution - Both With Three Dissents


The Supreme Court denied two requests for stay of execution this week: Elliott v. Kelly (09-444) was denied Monday and Simpson v. Thaler (09-7505) was denied on today.  In both cases, Justice Stevens, Justice Ginsburg, and Justice Sotomayor would have granted the requests.

Mr. Elliott was executed tonight by electrocution [see an article here].  The decision to die by electrocution was his own as Virginia gives the person the choice of how they would like to be killed.  

Mr. Simpson was executed tonight by the State of Texas. The Dallas Morning News states that "A convicted killer who volunteered for execution but in recent weeks changed his mind was put to death Wednesday evening for the abduction-slaying of an 84-year-old east Texas woman who was weighted down with a cinder block and thrown into a river."  You can read the Dallas Morning News article here.

Proposal For Settlement That Addressed A Complaint That Included Non-Damage Claims Is Invalid

In Palm Beach Polo Holding, Inc. v. Equestrian Club Estates Property Owners Association, Inc. (4D08-2250), the Fourth District reversed a trial court order awarding attorneys fees pursuant to the proposal for settlement/offer of judgment statute. The issue was an issue of first impression for the Fourth District, "whether a general offer applying to an entire case that includes both claims for damages and other claims can be binding upon the unsuccessful party."

The facts of the case were discussed in a prior opinion from the court, Palm Beach Polo Holdings, Inc. v. Equestrian Club Estates Property Owners Ass’n, Inc., 949 So. 2d 347 (Fla. 4th DCA 2007). Generally, the facts are:

Appellee, Equestrian Club Estates Property Owners Association, Inc. (Association) owns a private road which the appellant, Palm Beach Polo Holdings, Inc. (Palm Beach Polo) wanted to use to access an otherwise landlocked parcel of property know as the “one hundred acre lot.”
After a non-jury trial, which was affirmed by the 2007 decision linked above:
The defendant moved for attorney’s fees based, in part, on three proposals for settlement dated December 4, 2001, February 1, 2002 and April 30, 2004. Each proposal for settlement was pursuant to Rule 1.442, Florida Rules of Civil Procedure and Section 768.79, Florida Statutes (2008), and offered to pay $1,001.00 as complete and final resolution and settlement of all claims. The Association’s April 30, 2004 proposal offered the payment “as a complete and final resolution and settlement of all claims asserted by [Palm Beach Polo] against [Association] in this action.” The February 1, 2002 proposal for settlement used similar language. It stated “the proposal for settlement is for all claims brought against defendant, Equestrian Club Estates Property Owners Association, Inc., a Florida corporation, by the plaintiff, Palm Beach Polo Holdings, Inc., arising out of the litigation in this lawsuit.”
The trial court awarded attorneys fees pursuant to the offer of judgment statute, leading to this appeal. "Section 768.79 provides the substantive law concerning offers of judgment and proposals for settlement, while Rule 1.442, provides its procedural mechanism. Saenz v. Campos, 967 So. 2d 1114, 1116 (Fla. 4th DCA 2007)."

The offer of judgment statute applies only to civil actions “for damages.” § 768.79. In this case, the action brought by Palm Beach Polo involved three essential Counts, two seeking declaratory judgment and only one seeking damages. One of the declaratory counts sought a way of necessity to obtain access to the “one hundred acre lot.” As pointed out by the trial judge, this claim served as a predicate for the tortious interference action, but it also had significant value independent of any monetary recovery for tortious interference.
In the instant case, the complaint contained two independent, significant claims, such that it could be characterized only as an action for both damages and non-monetary, declaratory relief. In order to determine whether the trial court erred in finding that the defendant is entitled to attorney’s fees pursuant to the offer of settlement, it must be determined whether a general offer applying to an entire case that includes both claims for damages and other claims can be binding upon the unsuccessful party. This issue has not yet been addressed by this court.
(emphasis added). After an analysis of the statute, the court concluded:

Here, the proposals for settlement did not state whether the association was agreeing to entry of any injunctions, or declaration of Palm Beach Polo’s grant of way of necessity, yet it claimed to be a proposal to settle all claims. If the statute were read to permit a proposal for settlement to apply to a case in which there were claims for noneconomic relief as well as for damages, the offeree would be forced either to accept the proposal and continue to litigate the request for injunctive and non-economic relief or to give up their non-damage claims. The purposes of section 768.79 include the early termination of litigation. A proposal for settlement in a case such as this one does not satisfy that purpose, as its acceptance would not terminate the litigation nor resolve those claims not seeking damages. Because the proposals for settlement addressed a complaint that included non-damages claims, they do not comply with the statute, and we find them invalid and reverse the trial court’s order awarding fees.

Rothstein Accepts Being Disbarred As Opposed To Being Disbarred After A Hearing


There have been a number of news stories the past twenty-four hours about Scott Rothstein "suggesting" he be disbarred.  See here, here, here, and here.  The official statement from the Florida Bar, which can be found here, states:
"The Florida Bar and Scott W. Rothstein have agreed to his permanent disbarment – subject to the approval of the Supreme Court of Florida – in lieu of Rothstein defending himself against allegations of disciplinary violations. Rothstein was under investigation for violations of The Rules Regulating The Florida Bar, including misappropriation of funds from trust accounts.

"The Florida Bar has been monitoring the federal investigation of Mr. Rothstein and we have been in contact with the court-appointed receiver for the firm as well as the U.S. Attorney’s Office. While the case is very complex, it became evident that Bar rules may have been violated.

"This is a terribly unfortunate and tragic situation, but it is also a rare circumstance in the legal profession. The great majority of Florida attorneys serve their clients admirably and in accordance with the Bar’s rules of professional conduct. However, rule violations are not tolerated and the Bar takes appropriate actions to protect the public against further harm. The Florida Bar will continue to investigate any violations of its rules by other attorneys who may have been involved in this case.

"Additional details of the disbarment on consent will be available when the document has been received by the Supreme Court."

Interestingly, Mr. Rothstein is still listed as eligible to practice law n the state of Florida and listed without any discipinary history on the Florida Bar web site.  You can see that listing here, however, I am sure they will soon fix this issue.  [Update: As of 10:00pm on November 19, 2009 Mr. Rothstein is still listed as a member in good standing with no disciplinary history]. Mr. Rothstein is also still a member of the Fourth District Court of Appeal nominating committee and the SunSentinel states there are no plans to remove him.  Also, as the time I am posting this, it does not appear as though anything has been filed with the Florida Supreme Court.  However, the Florida Supreme Court has more important things to do than deal with Scott Rothstein. 

Mr. Rothstein was previously discussed everywhere on the internet including on this blog here, here, here and here.

Judge Ryskamp Says Honest Services Fraud Statute Is Unconstitutional

The Palm Beach Post has an article titled "Masilotti seeks early release from prison citing judge's comments on constitutionality of honest services fraud statute."  The article can be found here.  Essentially, Masilotti is arguing that he should be released based upon statements by Southern District Judge Ryskamp that the statute he is is prison for violating is unconstitutional.  The Post said:
His request for relief comes two weeks after U.S. District Judge Kenneth Ryskamp said he believes the honest services fraud statute that sent Masilotti to prison is unconstitutional.

While declining to spring Masilotti before his five-year prison sentence is up on Christmas Eve 2011, Ryskamp wrote that he believes the statute is unconstitutional because "it fails to advise a defendant of what conduct is prohibited" and it also violates the "basic principles of federalism."