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In
this issue:
Suits Against Toyota Say 'Sticky Pedal' Not the Problem
A lawsuit filed in Kentucky against Toyota Motors Inc. is claiming that floor mats and "sticky gas pedals" are not the cause of unwanted acceleration, but instead caused by unreliable electronic fuel control systems in the cars. The lawsuit is one of many that have come on the heels of the massive recall the car company made last month. The lead plaintiffs in the lawsuit say they barely escaped in January 2009 after their car suddenly accelerated into traffic. Other lawsuits filed in the Midwest claim that the car company knew about the potential problems but kept them secret. Toyota officials have denied that throttle control problems cause the dangerous acceleration. Jere Downs, Louisville Courier Journal 02/13/2010
Jury To Rule On Second-Hand Smoke Case
A jury is to rule this week on a lawsuit in which a Boston woman claims she was “smoked out” of her $400,000 condo by the second-hand smoke from the condo below her. Before Alyssa Burrage bought the place, the owner had told her the smell would diminish; it didn’t, so Burrage filed a lawsuit. Burrage, who has asthma, said the smoking made her symptoms much worse, but the neighbor refused to do anything to help her. Tobacco law specialists say this case on one of the first ever of its kind to go to trial in Massachusetts. If Burrage wins in Suffolk Superior Court, it could encourage similar litigation and open a new front in the battle over secondhand smoke, the Boston Globe reports. Jonathan Saltzman, Boston Globe 02/09/2010
Honda Recalls Vehicles With Faulty Airbag Deflator
Honda Motors Inc. has issued another recall of more than 430,000 vehicles to replace a faulty airbag deflator that could rupture and significantly harm the driver. The airbag defect has been linked to one fatality and 11 injuries in the United States. This is the third time Honda will issue a recall for this problem; the first was in November 2008 and then again in June 2009. The latest recall applies to 2001 and 2002 model-year Accord, Civic, Odyssey, CR-V, Pilot and 2002 Acura TL and CL vehicles in the United States. Chang-Ran Kim and Soyoung Kim, Yahoo News 02/09/2010
Roofing Company Settles Organic Asphalt Shingle Class Action Lawsuit
A Pennsylvania roofing company has agreed to an “enhanced settlement” of an undisclosed amount to settle a class-action lawsuit involving the failure of organic asphalt roofing shingles. The shingles, made between 1987 and 2005, used felt reinforcement in contrast to the fiberglass reinforcement now used. The settlement costs should cover the removal and replacement of shingles purchased by plaintiffs. Paul Schweizer, Philadelphia Inquirer 02/08/2010
Illinois Malpractice Caps Ruled Unconstitutional
The Illinois law that placed caps on the amount awarded in a medical malpractice lawsuit was ruled unconstitutional by the state’s Supreme Court last week, the Chicago Tribune reported. The ruling is a huge blow to doctors and hospital officials who claim that malpractice limits are a way to keep health care costs from rising even further. The court said the law violates the state's separation-of-powers clause between the branches of government by allowing lawmakers to interfere with a jury's right to determine damages. Attorneys defending the law cited other states who the same legislation, but the justices said they were not swayed by the “everyone else is doing it” idea. Bruce Japsen and Ameet Sachdev, Chicago Tribune 02/08/2010
Lawsuit Accuses Bank of America of Fraud
A lawsuit filed in New York this week accuses Bank of America and former chief executive Kenneth Lewis of manipulative and deceptive practices during their 2008 purchase of Merrill Lynch. According to the lawsuit, the New York attorney general claims that Bank of America did not accurately portray Merrill Lynch’s financial troubles when their shareholders voted to approve the $50 billion purchase. The lawsuit also alleges that Lewis threatened to back out of the deal at the last moment, prompting the federal government to give Bank of America an extra $20 billion to cover the costs. Andrew Caffrey and Todd Wallack, Boston Herald 02/05/2010
Health Insurer Ordered to Pay Damages for Canceling Coverage
A Boulder County jury awarded a Colorado woman $37 million in a lawsuit after her health insurance company canceled her coverage following a serious car wreck. Time Insurance Co. had refused to pay Jennifer Latham’s $185,000 in medical bills after the accident because they claim she failed to report a previous visit to an emergency room for shortness of breath. Latham’s lawyer said he was hoping the jury would award her around $7 million and was shocked and pleased to receive such a high verdict. Staff Report, Denver Post 01/31/2010
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