Some of the biggest litigation payouts in 2017 didn't even cause a ripple. $105 million here, $44 million there—32 payments totaling $534 million, secured almost entirely by a few lawyers from Pillsbury Winthrop Shaw Pittman; Morgan, Lewis & Bockius; Greenberg Traurig and Jenner & Block.

Because there isn't much glory in these settlements.

The payments are part of years-long hemorrhage by the federal government, which is stuck defending unwinnable breach of contract suits brought by power plants over the storage of spent nuclear fuel.

This year's bill of $534 million is actually on the low side. Last year, such legal settlements cost taxpayers $823 million. The year before, it was $650 million. Since 2011, the running tab totals $5.85 billion, according to an analysis by the Lit Daily of payments in the Treasury Department's Judgment Fund database.

The same lawyers dominate the docket: Alex Tomaszczuk from Pillsbury; Brad Fagg from Morgan Lewis; Jerry Stouck from Greenberg Traurig and Norman Hirsch from Jenner & Block.

And unless the Trump administration figures out how to cut a deal, there's no end in sight to the government's liability. Not when it'll be 24,000 years before the high-level waste decays.

As one lawmaker from Connecticut, where the Millstone Power Station is storing 31 massive canisters of spent fuel, put it, “The status quo is unacceptable.”

The suits stem from a deal struck by the feds and power plant owners under the Nuclear Waste Policy Act. Starting in 1983, the plant owners paid the Department of Energy an annual fee, and in return, the government promised to build a secure facility to permanently store their nuclear waste starting Jan. 31, 1998.

The power plant owners paid their fees, but the government has failed to build a facility. Breach of contract suits don't get much more straightforward than this. Indeed, the only real fights now are over the amount of the checks. (In many instances, the 2017 payments represent a yearly installment on prior settlements.)

In 2010, the Obama administration nixed a proposed depository in Yucca Mountain, Nevada. The move was widely viewed as a favor to then-Senate majority leader Harry Reid.

But the Trump administration has signaled it might revive the site.

According to the Las Vegas Review Journal, Office of Management and Budget director Mick Mulvaney in November acknowledged that he added $120 million to the federal budget to restart the Yucca Mountain licensing process.

“We have to put this stuff someplace,” he said of the waste. “So the $120 million you saw, it was actually very minor. I'm surprised it got that much attention as it did. It's only to explore the possibility of licensing.”

One problem: The project is wildly unpopular with citizens of Nevada—and Republican Senator Dean Heller, considered one of the GOP's most vulnerable, is up for reelection in 2018.

Still, our president fancies himself a dealmaker. If his administration can figure out a way to solve this problem, he'll do us all a great service. Because no one wants to litigate for 24,000 years.

 

And Then There Were Two

Three international airlines on Wednesday agreed to pay a combined $29.4 million to settle an antitrust class action, narrowing the field of remaining defendants in the yet-to-be-certified class.

The lion's share of the settlement—$19.5 million in cash plus $250,000 toward the cost of notice—will be paid by China Airlines, represented by Pillsbury Winthrop Shaw Pittman. 

Philippine Airlines, represented by Covington & Burling, will pay $9 million, and Air New Zealand, represented by Condon and Forsyth, will pay a mere $650,000.

The plaintiffs alleged that the airlines conspired “to fix or stabilize prices for air passenger travel, including associated surcharges, for international flights involving at least one flight segment between the United States and Asia/Oceania.” Hausfeld and Cotchett, Pitre & McCarthy are co-lead counsel.

In 2015, eight airlines settled for a combined $40 million.

Assuming U.S. District Judge Charles Breyer of the Northern District of California approves Wednesday's deal, that will leave All Nippon Airways Co. and EVA Airways Corp. left in the case.

All Nippon is represented by Constantine Cannon's Ankur Kapoor, Alysia Solow, Douglas E. Rosenthal and Gary J. Malone, according to the court docket.

The EVA team from Kirkland & Ellis includes Tammy Tsoumas, Jonathan Faria, Heather Canner and James Mutchnik.

Both China Airlines and Philippine Airlines agreed in the settlement to “cooperate with plaintiffs by providing information related to the existence, scope, and implementation of the conspiracy.”

Buckle up—this could get bumpy.

 

More Legal News

Texas Federal Judge Green-Lights Insurer's Suit Against Schiff Hardin for Failure to Convey Settlement Offer

The Chicago-based law firm allegedly failed to tell the insurer about a $3.25 million settlement offer. Instead, the company was hit by a $34 million jury verdict. Ouch.

 

Finjan Patent Trial Derailed After Federal Circuit Blows Up Damages Theory

The Federal Circuit ruling overall looks like a win for Blue Coat and appellate counsel Durie Tangri.

 

Gillibrand Promises to Block Berman's US Attorney Nomination

That Berman interviewed for the job with Trump was “deeply disturbing considering the conflicts of interest inherent by his potential jurisdiction on matters that could affect the president personally.”

 

Appellate Court Scolds Manatt for Strategic Delay in Anti-SLAPP Appeal

Manatt and its client sought “to extend SLAPP where it has never gone before.”

 

Merged Firm Faces $214M Malpractice Suit Over Kaye Scholer Work

The malpractice suit accuses Kaye Scholer of missteps prior to its union with Arnold & Porter.

 

Sotomayor Confronts DOJ's Noel Francisco About Switched-Up Position in Ohio Voter Case

“Seems quite unusual that your office would change its position so dramatically.”

 

Phila. Trial Judge Throws Out $28M Verdict in Xarelto Case

The judge granted the defense's motion for judgment notwithstanding the verdict, wiping out the first win for the plaintiffs.

 

Judge to Name Carl Levin a Mediator in Flint Water Cases

No doubt his experience as a U.S. Senator taught him all about finding common ground with adversaries and working together for a solution.