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Alabama Attorney General Speaks Out on Kenneth Feinberg

In Uncategorized on December 29, 2010 at 11:58 am

USA Today ran an editorial piece this morning (December 29, 2010) lauding praise on Kenneth Fienberg and the BP claims process.  In response to that editorial, USA Today ran a commentary by outgoing Alabama Attorney General Troy King, who charges that Mr. Feinberg is not working for the benefit of those injured by the Deepwater Horizon spill.  Instead, Attorney General King argues that Mr. Feinberg and his firm, which is being paid $850,000.00 per month by BP, is doing all that can be done to limit BP’s expenditures. 

Mr. Feinberg continually encourages Gulf Coast residents to avoid filing lawsuits.  As Mr. King states, “Feinberg has exploited the hopelessness and despair that many Gulf Coast residents feel as they face bankruptcy and live in the shadow of BP’s latest broken promises by telling them they will receive a better deal through the claims process than if they go to court – a statement he cannot substantiate.” 

Attorney General King suggests that the process Mr. Feinberg has put in place is not as consumer friendly as what BP had agreed to do.  He also notes that the State of Alabama has gone so far as to issue a “scam alert” warning consumers to proceed with caution when dealing with the claims process Mr. Feinberg is running, and that consumers should consult with counsel before signing any paperwork. 

Mr. King summarizes his position like this: 

Each citizen must give deep and serious thought to his own situation and what is the best way to proceed.  It is unfortunate, but clear to me, that our citizens cannot simply accept Feinberg’s advice, trusting it to be in their best interest – for it may well not be so.

Consumers should heed Mr. King’s advice and proceed with caution.


Apple Sued for Alleged Consumer Privacy Violations

In Legal News on December 29, 2010 at 11:38 am

Bloomberg and Reuters have reported that two class action lawsuits have been filed in California against Apple Inc., alleging that apps for their popular iPad and iPhone transmit users’ personal information without the consent of the consumers using the devices.  Google’s Android platform is also being reviewed for the way its apps transmit personal data. 

Consumer information from such popular apps as Pandora, Weather Channel, Paper Toss, and Dictionary.com is alleged to be shared from the smartphone to third-party advertisers.  Information such as the user’s age, gender, sexual preference, location, political views, income level, and other similar data is being sent to advertisers who then target the users of the apps.  The iPhone and iPad have a Unique Device Identifier (UDID) which users are unable to block.  Apple has amended its developer agreement to try to prevent apps from sending personal data.  However, the lawsuits allege that Apple has failed to implement these consumer protections. 

Smartphone users should be wary of what information they provide through the apps they download.  The cases allege claims for violation of federal computer fraud and privacy laws.  The cases are: Freeman et al., v. Apple Inc., et al., No. 5:10-cv-05881-HRL and Lalo v. Apple Inc., et al., No. 5:10-cv-05878-PSG.  Both are pending in the U.S. District Court for the Northern District of California in San Jose.


Major Food Safety Bill Passes the Senate

In Legal News on November 30, 2010 at 11:39 am

The Washington Post is reporting the passage today of a long-stalled, yet widely supported, food safety bill.  The leadership of the House of Representatives has indicated that they will accept the Senate version of the bill, despite having passed a more stringent version of the legislation over a year ago. 

Under the bill, the Food and Drug Administration will have the authority to order recall of tainted foods (currently only voluntary recalls by producers is allowed).  The bill requires FDA to regularly inspect farms and food production facilities and gives FDA access to processing plant and farm records that it has not had before.  Further, the bill gives the FDA standards, for the first time ever, to verify the safety of imported food products.  Exemptions for small farms that sell directly to consumers at farmers markets and similar points of sale were added to the bill before passage. 

The bill was widely supported by members of both parties, as well as consumer and business groups.  It is anticipated that the bill will go before President Obama before the end of the current legislative session.   

In light of major outbreaks of E. coli and salmonella over the last few years, this legislation is long overdue and a major victory for consumers. 

Cell Phone Case Could Have Major Effect on Consumer Class Actions

In Legal News on November 11, 2010 at 10:59 am

This week, the United States Supreme Court heard oral arguments in a case that could have a major effect on the options consumers have to protect their rights.  The case involves a California couple who were charged $30.00 in taxes for a “free” cell phone when they signed up for service with AT&T Mobility.  The fine print of the purchase contract included language that said any disputes under the contract were subject to arbitration and that the consumers had waived their right to file a lawsuit or to be part of a class action.  California consumer protection laws allow consumers to file class action lawsuits. 

The consumers filed their class action case, and the lower courts found that the provision of the contract attempting to take away the right to participate in a class action was unconscionable and should not be enforced.  This case raises the issue of whether the Federal Arbitration Act trumps state consumer protection laws.  Not surprisingly, civil rights and consumer groups are pitted against business groups in their support for the various interests at stake, and questioning from the Justices demonstrated that a division on the Court on the issue of state’s rights versus federal law will likely come into play in the decision the Court will render.  26 different groups filed “friend of the Court” briefs in support of the various positions in question.  This decision could be far reaching and effect the way consumer complaints are handled across the Country.  However, the Supreme Court could also decide the case on a narrow basis limited to the facts of this specific case.  A decision is expected early next year.   

The case is AT&T Mobility v. Concepcion.


Coupon “Glitch” at Target Stores

In Legal News on November 3, 2010 at 3:06 pm

Recent media reports have called attention to a problem that has been plaguing Target retail stores since summer.  Due to what Target is calling a computer “glitch,” consumers are not receiving full value for certain manufacturers’ coupons when paying for their purchases.  However, when Target redeems the coupons, the retail chain receives full face value for the coupons.  Target has been aware of the problem since at least this past August.  Yet, Target has not corrected the problem. 

The issue appears to be happening with coupons for an amount off of multiple items.  An article in the Chicago Tribune cited an example of a client with a $1.00 off coupon with the purchase of eight containers of yogurt.  When the eight containers were purchased and the coupon presented, the register was programmed in such a way to apply the discount to only one container.  Since Target, as is common with most retailers, will not apply the value of a coupon below the price of the item (making “free” the best deal you can get) the $1.00 coupon was only applied to the cost of one container of yogurt – or $0.39.  The customer was short-changed $0.61 – an amount Target would receive as a bonus when is submitted the coupon to the manufacturer and was paid the full $1.00 face value. 

While Target states that they are working diligently on the problem, there has yet to be a fix implemented.  Target suggests that consumers check their receipts carefully, and if any discrepancy is found, to take the receipt and the merchandise to the customer service counter for a refund of the difference. 

Consumers should pay extra attention when checking out at retailer stores with coupons.  The retailer is receiving full value for the coupon – they do not lose money on a coupon purchase.  Consumers need to make sure they are getting the deal they expect and that they are not short-changed for their purchases.


Updates on the BP Litigation

In Legal News on October 19, 2010 at 2:21 pm

The last several days have brought some important announcements in the BP litigation.  As reported by the AP last Friday, the judge overseeing the Multidistrict Litigation brought against BP, U.S. District Judge Carl Barbier, announced his intention to hold the first trial for damage claims as early as June of 2011.  This test case will have a very large impact on how the overall litigation moves forward.  The Court has not announced what case will be tried.  A separate trial date has been set for February of 2012 to assign percentages of fault between BP and the other companies involved in the operation of the Deepwater Horizon oil platform. 

Yesterday, BP formally notified Judge Barbier that it is waiving a $75 million cap on its liability.  In making its announcement, BP re-stated the company’s intention to pay all legitimate claims arising from the explosion of the Deepwater Horizon and the subsequent oil spill.  However, BP did couch this waiver of the damages cap with a denial of “gross negligence” in an outward attempt to avoid the possibility of being assessed with punitive damages.  Future rulings from Judge Barbier will address those issues. 

Both of these developments are important for those who have suffered as a result of the Deepwater Horizon explosion and will hopefully lead to the eventual positive resolution of these claims.

 


Alabama Homes Included in Chinese Drywall Repair Program

In Legal News on October 18, 2010 at 2:57 pm

Several news sources have been reporting the details of a pilot program which, if successful, could provide the model for bringing resolution to the claims of thousands of homeowners whose homes were constructed with tainted drywall manufactured in China. 

The program calls for 300 homes, which includes homes in Alabama, to be repaired at the expense of the drywall manufacturer, Knauf Plasterboard Tianjin Co., as well as various suppliers, builders and insurers.  Since the defective drywall has proven to cause corrosion to wiring, pipes, and other metals throughout the homes in which it was installed, the repairs will include tearing walls down to the studs and rebuilding them, along with new electrical wiring, gas line plumbing, alarm systems, damaged appliances and fixtures.  Homeowners will also be compensated for housing expenses incurred as a result of the repairs and for damaged personal property.  It is expected that the cost to repair one house could exceed $100,000.  A final inspection by an environmental engineer will be required before the home is deemed problem-free. 

Lawyers on both sides of the litigation hope this will provide a model for resolving the claims of the 2,000 to 3,000 homes built with defective Knauf drywall.  Homeowners who have undertaken repairs on their own may be entitled to compensation out of a possible future settlement.   

Homes in Florida, Louisiana and Mississippi are also included in this pilot project.  To be eligible, each home had to  have almost all of its drywall manufactured by Knauf.  All sides hope that this model will prove to be efficient and effective in addressing the damages suffered by the effected homeowners.  Look for more information to come as the repairs progress.


Anti-Bullying Campaign Announced

In Legal News on October 4, 2010 at 10:26 am

TIME, Inc., is launching an anti-bullying campaign today – here is their announcement: 

PEOPLE Magazine, CNN and Cartoon Network have teamed up for a very important anti-bullying initiative, featuring a special multi-platform report on the bullying epidemic facing young people in America. 

Anderson Cooper 360°, in conjunction with PEOPLE Magazine, will air a week-long series on bullying, beginning tonight at 10 pm EST/PST. The reports will include interviews with mothers of children who have killed themselves after being the victims of excessive bullying, a look into the world cyber-bullying and an update on the latest in the Phoebe Prince case, another teen suicide as a result of bullying.  Dr Sanjay Gupta will explore the different techniques used to increase empathy to stop bullying amongst kids.  Also, families struggling with this painful and important issue will discuss how bullying has become so prevalent and what parents and children can do to stop it.   

The week of reporting will culminate with a one-hour special town hall on Anderson Cooper 360°., titled  Bullying: No Escape; an AC 360 Special Report with PEOPLE Magazine and Cartoon Network, airing Friday, October 8th  at 10pm EST/PST on CNN.   

The town hall participants will include author and psychologist Dr. Phil McGraw and Rosalind Wiseman, author of the best-selling book “Queen Bees and Wannabees”, which inspired the movie “Mean Girls”.  American Idol finalist Crystal Bowersox will reveal how being bullied fueled her creative passion and PEOPLE managing editor Larry Hackett will share insights gathered from the extensive reporting the magazine has conducted on the bullying epidemic.  Also, families struggling with this painful and important issue will discuss how bullying has become so prevalent and what parents and children can do to stop it.  Cartoon Network Bullying Prevention Board members Kevin Jennings, Assistant Deputy Secretary of Education for the Office of Safe and Drug-Free Schools, and Dr. Susan Limber of the Institute on Family and Neighborhood Life, Clemson University, also will participate with the AC 360 town hall to discuss the latest understandings and response options for bystanders, who represent 75-85% of students in schools considered witnesses to bullying.   

Please tune in for this very important series. 

PEOPLE Magazine has dedicated significant coverage to the bullying epidemic over the last several years.  The magazine’s October 18 issue, on newsstands Friday, will include a special editorial section on bullying featuring interviews with residents of South Hadley, MA, Phoebe Prince’s hometown, confessions of a former bully, stories from students who were tormented in school and much more.


Mortgage Foreclosures Called Into Doubt

In Legal News on September 27, 2010 at 1:56 pm

Articles today in Bloomberg (9/27 Woellert, Campbell ) and USA Today (9/27 Armour) report disturbing practices by major home mortgage lenders in processing foreclosures.  Litigation against JP Morgan Chase & Co., and Ally Financial Incorported’s GMAC Mortgage has uncovered managers who signed off on thousands of mortgage foreclosures without reviewing the documents – despite representations to the courts handling the foreclosures that those documents had been reviewed by the managers before being signed.  One manager for GMAC Mortgage admitted to signing off on 10,000 documents per month, while a manager at JP Morgan Chase testified a group of eight managers signed off on over 18,000 foreclosures per month – and only reviewed them if an employee asked a specific question or raised a concern. 

The shoddy practices of these lending giants call into question many thousands of foreclosures, evictions, sales and titles.  Attorneys general across the country are beginning investigations into the practices of GMAC Mortgage, which had halted foreclosure proceedings in 23 states after their employees’ practices were brought to light.  Lawsuits brought by homeowners who were wrongfully foreclosed upon by these lenders are pending in several states. 

If you have questions about a foreclosure proceeding, please go to our “about us” page and contact The Law Offices of Brian Turner, LLC.

Contaminated Baby Formula Recalled for Beetle Infestation

In Legal News on September 24, 2010 at 10:35 am

Abbott Laboratories and the Food and Drug Administration have announced a recall of certain lots of Abbott’s popular Similac powdered infant formula.  This recall involves formula produced at the company’s Chicago, Illinois manufacturing plant.  Under routine examination, a beetle infestation was discovered in the plant.  The FDA has determined that while the formula containing these beetles poses no immediate health risk, there is a possibility that infants who consume formula containing the beetles or their larvae could experience symptoms of gastrointestinal discomfort and refusal to eat as a result of small insect parts irritating the GI tract.  The recalled products include powdered formula sold in the 8 ounce, 12.4 ounce, or 12.9 ounce cans. To determine if a specific product or container is affected parents or caregivers should contact Abbott’s consumer hotline, (800) 986-8850, 24 hours a day, seven days a week or check the website at www.similac.com/recall/lookup

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