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Appeals court blocks FedEx class action

  Class Action  -   POSTED: 2009/07/28 05:06

A federal appeals court ruled Monday that a group of FedEx Corp. employees who claim the company failed to pay them for all hours worked cannot form a class action group.

A three-judge panel of the 11th Circuit Court of Appeals on Monday upheld a federal judge's decision to block the hourly employees from filing a class action lawsuit.

The judge had ruled that the court inquiries into each employee's individual situation would "swamp" any of the group's common issues.

The employees contend that FedEx has engaged in a "pervasive and long-standing policy" of failing to pay hourly employees for all time worked.

FedEx hourly employees are required to manually enter their scheduled start, end and break times into a hand-held tracker. But employees also use time cards as a backup tracking method.

The group claims they frequently worked during unpaid breaks. They also say they weren't paid for the gap periods between punching in or out on a time clock and when they actually started or finished work.

For example, if an employee punched in at 7:45 a.m. but entered a start time of 8 a.m. into the tracker, there would be a 15-minute gap for which the employee would not be paid.

A spokesman for FedEx wasn't immediately able to comment on the ruling Monday.



The Supreme Court will decide whether shareholders can sue pharmaceutical company Merck & Co. because of the failure of its former blockbuster painkiller Vioxx.


The high court agreed Tuesday to review Merck's challenge to a federal appeals court's reinstatement of a class-action securities lawsuit.

Investors had charged Merck with providing misleading information or omitting information about the risks of Vioxx. A U.S. District judge dismissed the November 2003 lawsuit, ruling that all the plaintiffs' claims were time-barred under the statute of limitation.

But the 3rd U.S. Circuit Court of Appeals decided to allow the lawsuits and Merck appealed to the Supreme Court.

Vioxx was pulled from the market Sept. 30, 2004, because it doubled risks of heart attack, stroke and death. That day alone, stockholders lost a collective $28 billion.



Consumers have the right to sue as a group over advertising they believe misled them into buying products, a divided state Supreme Court ruled Monday in reinstating a massive suit against the tobacco industry.

The 4-3 decision rejected business arguments that, if accepted, would have virtually prohibited class-action suits for false advertising by requiring proof that every plaintiff - millions of them, in some cases - had seen an allegedly deceptive ad and relied on it to make a purchase. The court majority said that evidence is required only for the single plaintiff or small group that represents the entire class.

"This gives the consumers rights to protect themselves from fraudulent advertising," said Mark Robinson, a lawyer for the smokers who sued tobacco companies in 1997.

The ruling could make California "the class-action capital of the country," retorted William Stern, a lawyer for business organizations and a co-author of Proposition 64, a 2004 ballot measure at the heart of the case.

The suit accused the companies of waging a long advertising campaign that concealed cigarettes' addictive and harmful effects. Unlike individual suits over illnesses allegedly caused by tobacco company deception, the current suit seeks reimbursement of money spent by every Californian who bought cigarettes during the period covered by the case: June 10, 1993, to April 23, 2001.

The case was filed under California's unfair-competition law, a far-reaching statute that lets private citizens sue on behalf of the general public over illegal business practices, including deceptive advertising. The law was narrowed by the business-sponsored Prop. 64, which requires a plaintiff to show that he or she had actually been harmed by the business practice.

Prop. 64 did not say, however, how the new requirement would affect class actions, in which an individual or a small group sues on behalf of consumers in the same circumstances. The crucial question Monday was whether every member of the class must show harm from the challenged business practice, a virtual impossibility in most cases.





Attorneys representing victims of a 2005 Metrolink train crash that killed 11 said this morning that they have uncovered new evidence that they believe shows the engineer was at fault for the accident.

The crash –- the second-deadliest in Metrolink history behind last September's incident in Chatsworth –- happened in the Glendale area after a train slammed into a sport-utility vehicle that had been left on the tracks.

The engineer noticed the reflection of the vehicle when he was about three-quarters of a mile away, but he waited until he was only 800 feet from the point of impact before applying the train’s emergency brakes, according to attorneys.

“He was duty-bound under the rules of Metrolink to put his train in emergency [braking],” attorney Jerome Ringler told reporters at a news conference. “Had he done so, there would have been no derailment.”

Ringler said his accusation is corroborated by data from the train’s event recorder box.

A spokesman for Metrolink, citing the pending civil case, said the agency had no comment on the allegations.

The driver of the sport-utility vehicle, Juan Manuel Alvarez, was convicted of murder and sentenced in August to 11 consecutive life terms. Prosecutors argued that Alvarez had intended to kill passengers in a twisted effort to gain attention from his estranged wife.

Ringler and attorney Brian Panish have filed a negligence lawsuit on behalf of a dozen victims against Metrolink. The case is scheduled to be heard in June in Superior Court.

Panish said operator error was a factor in the Glendale-area crash and the Chatsworth catastrophe that killed 25.

Federal safety investigators have said that preliminary evidence shows that the engineer in the Chatsworth crash sent and received dozens of text messages while on duty the day of the accident. The multi-agency probe, being led by the National Transportation Safety Board, is expected to take months to complete.

http://www.rkallp.com/metrolink-disaster-lawyers.html




Former Vioxx users getting part of a $4.85 billion settlement ending most personal injury suits over the withdrawn painkiller will get a bigger piece of the pie, thanks to an unusual settlement Thursday with their health insurers.


Insurers who paid medical expenses for claimants in the settlement — one of the largest ever in the pharmaceutical industry — have been trying to recoup their expenses from the claimants. The insurers placed liens against any amounts recovered by thousands of former Vioxx users or their survivors, and unsuccessfully tried to make plaintiff lawyers disclose identities of all Vioxx claimants.

Under an agreement approved Thursday by U.S. District Judge Eldon Fallon in New Orleans, the amount the more than 100 private insurers participating in the deal can recover from liens will be reduced by at least half. There's also a sliding scale that limits the total an insurer can recover from each claimant, attorney Christopher Seeger, who negotiated the agreement, told The Associated Press in an interview.

Insurers could get at most 15 percent of a $100,000 settlement, or $15,000, and 10 percent of any settlements worth more than $250,000. It's the first such settlement with insurers in a mass litigation case, Seeger said.

"It's a great deal for the (insurance) carriers. It's a very good deal for the claimants," said Seeger, co-lead counsel for plaintiffs in the consolidated federal Vioxx cases.

Drugmaker Merck & Co., based in Whitehouse Station, N.J., pulled Vioxx off the market in September 2004 amid mounting evidence it greatly increased the risk of heart attack, stroke and death. That triggered tens of thousands of lawsuits from Vioxx users who claimed they were harmed.



A class action in Manhattan Federal Court claims Tremont Market Neutral Fund was grossly negligent in handing over 27% of its money to Bernard Madoff for his alleged $50 billion Ponzi scheme.
    Here are the defendants in the Tremont Funds case: Tremont Market Neutral Fund LP, Tremont Partners Inc., Tremont Group Holdings Inc., Oppenheimer Acquisition Corp., Oppenheimer Funds Inc., Massachusetts Mutual Life Insurance Co., and Ernst & Young LLP.     

    A class action in Manhattan Federal Court claims these defendants handed over investments in the Rye Select Broad Market Fund to Bernard Madoff for his alleged Ponzi scheme: Rye Select Broad Market Fund LP, Tremont Partners Inc., Tremont Group Holdings Inc., Rye Investment Management, Jim Mitchell, and Robert Schulman.
    
    Three members of the Sciremammano family sued Bernard Madoff, saying he took more than $2 million from them, in Manhattan Federal Court.



Even as the first claim was made against Metrolink in the aftermath of the Chatsworth train disaster, legal experts are already saying the crash is likely to lead to hundreds of millions, if not billions in civil lawsuits.

Metrolink's position, say experts, is further complicated because the agency admitted that its own engineer error was the likely cause - a stance from which it is now attempting to back away from.

On Monday, the family of a 19-year-old woman who died in Friday's Metrolink crash announced it has filed a claim against the agency, alleging the agency failed to employ available safety mechanisms to protect commuters.

The claim made by relatives of Aida Magdaleno, a student at California State University, Northridge, is a precursor to filing a lawsuit against a public agency.

The agency already faces a potentially costly trial in the civil lawsuit brought by almost 200 plaintiffs in the Jan. 26, 2005 Metrolink derailment in which 11 people died and another 180 were injured.

Although that crash was caused by a mentally deranged man who last month was sentenced to 11 consecutive life sentences for his role, plaintiffs' lawyers are set to argue safety issues, including Metrolink's practice of pushing trains with the engine in the rear as it does on southbound trains from Ventura to Union Station.

That lawsuit is scheduled for trial next June 8.

As a governmental agency, lawyers noted, Metrolink cannot be subjected to punitive damages in any civil action - a situation those lawyers said likely protects it from a bankruptcy situation.
A spokesman for Metrolink said the agency would not be making any comments on potential legal issues.

Attorney Jerome Ringler, who served as lead counsel for victims of a Metrolink train derailment in Placentia in 2002, those in a Burbank derailment in 2003, and in the Glendale derailment in 2005, said the Chatsworth crash could expose further fault with Metrolink.

"I suspect the real reason these tragedies occurred is due to either simple inattentivenesss on the part of the engineers or a failure on the part of the railrood industry to allow these engineers adequate rest between shifts so that these kind of tragedies could be avoided," Ringler said.

"This is a horrible tragedy. They are facing hundreds upon hundreds of millions of dollars of exposure."

The latest Metrolink crash set off a flurry of activity from some law firms for clients among the victims' relatives - some already calling victims' families or showing up at their homes.



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