Critical Mass: Shutdown Closing in on MDLs? Plus, J&J Short-Circuits Talc Trial
As a Jan. 31 date when federal courts are projected to run out of money looms, multidistrict litigation is beginning to feel the effects of the partial government shutdown.
January 23, 2019 at 12:34 PM
6 minute read
Welcome to Critical Mass, Law.com's weekly briefing on class actions and mass torts. Here's what's happening this week: Federal courts are struggling with thegovernment shutdown–and that includes MDLs. Why a talcum powder trial of 13 women with ovarian cancer ended before it began. And serial objector lawyer Christopher Bandas got hit with a big ruling in Illinois.
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Government Shutdown Hitting MDLs
The partial government shutdown has impacted federal courts across the nation, and multidistrict litigation is feeling the effects.
First, an update: The Administrative Office of the U.S. Courts now says there's enough funding to last until Jan. 31. But federal courts, such as Delaware and Pennsylvania, are bracing for a prolonged shortfall in funding that would force them to operate under the Anti-Deficiency Act, which allows “mission critical work” to continue.
Now to MDLs: I checked with the U.S. Judicial Panel on Multidistrict Litigationto find out how it's faring. A court spokesperson told me that if funding ran out, the MDL panel would determine what staff are necessary for “mission critical” work and post potential changes to cases on its website.
The shutdown also has shown up in some specific MDLs. For instance:
➤ In the opioid MDL (Cleveland): U.S. District Judge Dan Polster granted the Justice Department's motion for a stay of discovery for 14 days in light of the shutdown. The DOJ represents the Drug Enforcement Administration, whose drug distribution database is pivotal to the litigation. On Jan. 10, Polster extended the stay until “such time as appropriations funding the federal government are made available.” Last Friday, plaintiffs' lawyers sought to extend a Feb. 9 discovery deadline in part due to the shutdown.
➤ In the Roundup MDL (San Francisco): U.S. District Judge Vince Chhabria remarked on the potential impact the shutdown could have on the first bellwether trial, set to begin in February. “It's all up in the air,” he said, according to a transcript of a hearing earlier this month, “but the main thing is if we can't pay the jurors, we are not going to have a trial.”
➤ In the GM ignition switch MDL (New York): U.S. District Judge Jesse Furman delayed a Jan. 23 status conference to March 1 in part due to “the prospect that the government shutdown may continue.”
I'd love to hear from you: Has the government shutdown impacted your case?
|J&J's 'Hail Mary' Pass Halts Talc Trial
The Missouri Supreme Court halted a talcum powder trial that was set to begin this week in St. Louis. Johnson & Johnson had sought a writ of prohibition over the trial, which would have featured 13 women who got ovarian cancer against defense counsel James Smith (Blank Rome), Debra Pole (Sidley Austin) and Allison Brown (Weil, Gotshal & Manges). Ted Meadows (Beasley Allen) led the plaintiffs' team.
It would have been the second trial with multiple plaintiffs. Johnson & Johnson had a big reason not to want another: The first ended with a $4.7 billion verdict last year. Several more trials involving multiple plaintiffs are scheduled for this year. When asked whether this decision could impact his trials, plaintiffs' attorney Mark Lanier (The Lanier Law Firm) told me: “Our situation is vastly different. We are full speed ahead!”
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Bandas Banned in Illinois
Objector lawyer Christopher Bandas (Bandas Law Firm) admitted he engaged in the unauthorized practice of law in Illinois. Law.com's Scott Flaherty wrote a story about the latest development in the dust-up with plaintiff's attorney Jay Edelson (Edelson PC).
Edelson sued Texas-based Bandas and others he called “serial objectors” alleging they were “extorting” plaintiffs' lawyers in class action settlements. A court judgment last week required that Bandas withdraw all of his objections in Illinois state and federal courts and get court approval for payments to clients. He's also forbidden from allowing local counsel to file his objections for him.
Scott told me the judgment could have repercussions outside Illinois. He said:
“He is required, under the ruling, to show a copy of the decision whenever he seeks pro hac vice admission (and that means not just in Illinois, but in any jurisdiction where he hasn't been admitted to the bar). That means, in turn, the decision could have a deterrent effect outside of Illinois as well.”
Bandas did not immediately respond to Flaherty's request for comment last week.
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Here's more you need to know:
Girardi Sued: A litigation funder has sued plaintiffs' attorney Tom Girardi over more than $15 million in unpaid loans, according to Law.com. Girardi, of Girardi Keese, is best known for his mass tort work, particularly in California, but he's also the husband of singer Erika Jayne, a star on the reality TV show “The Real Housewives of Beverly Hills.” Law Finance Group LLC, repped by Eisner APC, filed the suit. It lists specific cases as collateral, including Avandia, Actos, ASR hip implants and NFL concussion cases.
Empty Tank: The U.S. Court of Appeals for the Ninth Circuit affirmed U.S. District Judge Charles Breyer's decision not to grant a portion of the $175 million in attorney fees in the Volkswagen emissions settlement to 244 law firms that alleged they did substantial work on the case. “We are sympathetic to appellants, and have no doubt that many of them dutifully and conscientiously represented their clients,” Breyer wrote in Tuesday's order. “But appellants' efforts do not entitle them to compensation from the MDL, when the record indicates that they did not perform work that benefited the class, and that they neglected to follow the protocol mandated by the district court.”
MoFo Move: Longtime Morrison & Foerster attorney William Stern has left for Covington & Burling, according to Law.com. Stern, who practices class action defense, had been at Morrison & Foerster for about 14 years. He will be senior counsel in Covington & Burling's San Francisco office.
Thanks for reading Critical Mass! I'll see you next week.
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