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Toyota class action suit to start with Utah case
Legal PR | 2011/06/11 06:54

The first lawsuit to go to trial in a massive class action against Toyota Motor Corp. over acceleration problems that led the company to recall 14 million cars will involve a crash that killed two people in western Utah, a federal judge said Friday.

U.S. District Judge James Selna told attorneys the case of 38-year-old Charlene Jones Lloyd and 66-year-old Paul Van Alfen, whose Toyota Camry slammed into a wall in Utah in 2010, is scheduled to go to trial in February 2013.

The case — Van Alfen v. Toyota Motor Sales, U.S.A., Inc. — will be the first of several bellwether lawsuits, intended to determine how the rest of the litigation will proceed.

Selna wrote in a tentative order that he hoped the selection would "markedly advance these proceedings."

"The Court believes that selection of a personal injury/wrongful death case is most likely the type of case to meet that goal," Selna said.

Toyota said it welcomes the Utah case as the first suit to reach court.

"We are pleased that the initial bellwether will address plaintiffs' central allegation of an unnamed, unproven defect in Toyota vehicles, as every claim in the multi-district litigation rests upon this pivotal technical issue," the company said in a statement.

Toyota has previously argued the plaintiffs have been unable to prove that a design defect in its electronic throttle control system is responsible for vehicles surging unexpectedly. It has instead blamed driver error, faulty floor mats and sticky accelerator pedals.


US appeals court overturns release of detainee
Court Line | 2011/06/11 06:54

A Yemeni detainee ordered to be freed from Guantanamo Bay has to stay now that a U.S. appeals court has overturned his release.

The U.S Court of Appeals in Washington says circumstantial evidence of terrorist ties can be enough to keep a prisoner like Hussain Salem Mohammad Almerfedi at the U.S. naval prison in Cuba.

Almerfedi was captured in Iran after the Sept. 11, 2001 attacks and eventually transferred to U.S. authorities through Afghanistan. Government attorneys argue he was staying at an al-Qaida-affiliated guesthouse, based on the testimony of another Guantanamo detainee. Almerfedi denied it, and a lower court judge found the testimony against him unreliable and ordered him released.

But the appeals court said the judge erred in finding the testimony unreliable and found it was likely Almerfedi was part of al-Qaida.


Pa. appeals court upholds $188M Wal-Mart verdict
Legal Focuses | 2011/06/11 06:53

A $188 million class-action verdict against Wal-Mart Stores Inc. and Sam's Club over payment to employees for rest breaks and off-the-clock work was upheld Friday by a Pennsylvania appeals court.

A three-judge Superior Court panel said there was sufficient evidence at trial to conclude there had been a breach of contract, unjust enrichment and violations of state labor laws.

The judges also ruled in a 211-page opinion that the presiding Philadelphia judge erred in determining some of the plaintiffs' legal fees, and sent that part of the case back for recalculation.

The 2006 trial, which lasted 32 days, resulted in a finding that Wal-Mart did not pay employees for all the work they performed and did not let them take their paid, mandatory rest breaks, the judges wrote. The court awarded $46 million in attorneys' fees.

Wal-Mart spokesman Greg Rossiter said the retail giant believes the court decision was wrong in a number of respects and looks forward to additional review in the courts.


Court says Microsoft must pay in patent case
Court Line | 2011/06/10 06:55

The Supreme Court ruled Thursday that Microsoft Corp. must pay a $290 million judgment awarded to a small Toronto software company for infringing on one of its patents inside its popular Microsoft Word program.

The high court unanimously refused to throw out the judgment against the world's largest software maker.

Toronto-based i4i sued Microsoft in 2007, saying it owned the technology behind a tool used in Microsoft Word. The technology in question gave Word 2003 and Word 2007 users an improved way to edit XML, which is computer code that tells the program how to interpret and display a document's contents.

The lower courts say Redmond, Wash.-based Microsoft willfully infringed on the patent, and ordered the world's largest software maker to pay i4i $290 million and stop selling versions of Word containing the infringing technology.

Microsoft wanted the multimillion dollar judgment against it erased because it claims a judge used the wrong standard in instructing the jury that came up with the award.

The software company said a jury should determine a patent's validity by a "preponderance" of the evidence instead of the more heightened "clear and convincing" evidence standard instructed by the judge.

The Supreme Court said the "clear and convincing" standard was the correct one.

Justice Sonia Sotomayor, who wrote the court's opinion, said the courts have interpreted the law the same way for 30 years. During this period, Congress has often amended the patent law, she said.


Banks lose battle to delay cap on invisible fee
Legal News | 2011/06/10 06:54

Merchants trumped bankers in a battle for billions Wednesday as the Senate voted to let the Federal Reserve slash fees that stores pay financial institutions when customers pay with debit cards.

Whether consumers will see any of that money remains to be seen.

The Fed will now issue its final rules on debit fees, called interchange fees, on July 21. It has recommended cutting the average 44 cents that banks and credit unions charge for each debit card transaction to no more than 12 cents, although the final plan could change slightly.

The fee is now typically 1 to 2 percent of each purchase. It produces $16 billion in annual revenue for banks, credit unions and the credit card companies that operate the huge payment networks, the Fed estimates.

Merchants say lower fees should let them lower prices. Banks warn that they'll have to recoup the lost revenue through other charges that likely will come directly from consumers' pockets, such as higher checking account fees.


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