by Steve Blow
It's a wonderful thing to win a lawsuit. A few days ago, Joel Ray of Dallas got the big payoff from LaFramboise vs. Nissan Motor Acceptance Corp.
His share “ $1.71.
That may not sound like much “ OK, it's not much “ but since Joel didn't know he was part of this lawsuit anyway, he couldn't be too disappointed.
"I just got this check out of the middle of nowhere," Joel said. "I still have no idea what it was about."
A brief letter accompanying the check merely said Nissan had settled the class-action case for $500,000. And the money was being divided equally among all members of the class.
So Joel was one of 291,506 lucky ducks receiving $1.71 checks.
I wonder what it cost to process and mail all those checks. Probably about $1.71 each, I'd guess.
We talked here on Sunday about these class-action lawsuits in which consumers get crumbs and lawyers get millions. The subject is probably worth discussing just a bit more.
"It's an insane thing," Joel said. He had previously received $7 in the settlement of a lawsuit over the disputed size of a computer screen. "I think the lawyers got $40 million on that one."
(The Nissan case involved a printed error on a vehicle leasing agreement, I learned. Consumers got $1.71. Their lawyers got $175,000.)
I got a lot of "attaboys" for that Sunday column, but I also got some sharp criticism accusing me of siding with the big corporations and undermining the ability of our justice system to right wrongs and protect the little guy.
My reply is that I highlight such cases precisely because I care about our justice system. I understand its vital role in righting wrongs and protecting the weak from the strong.
Please don't shoot the messenger. It's not me creating contempt for our legal system.
We recently witnessed a barrage of TV ads over Proposition 12, the Texas constitutional amendment limiting damage awards in medical malpractice cases. Proponents said it was vital to keep doctors practicing in Texas. Opponents said it opened the door to limits in other cases.
Well, let me tell you, I don't think either side's TV ads caused the proposition to pass. No, I think it was a whole different set of TV ads that did the trick.
I've had occasion to see a little more daytime television than normal in recent weeks. And I say it was sleazy lawyer ads that helped create support for Proposition 12.
Over and over, you see these ads with smiling people boasting, "I had a wreck. I got a check!" It's not about getting justice. It's about getting rich.
And lawyers know there's truth to what I'm saying. Before the Prop 12 vote, an e-mail circulated among members of the Texas Trial Lawyers Association.
Among other things, the memo urged lawyers to quit advertising on TV until after the election “ "if not forever." The memo said lawyer ads are "damaging our profession."
"The ads that say 'abc lawyer got me $90k and I wasn't even hurt' are devastating to, and will kill, our cause in this election," the memo said. The ads didn't disappear, and the election was lost.
The good news is that progress may be at hand, at least as far as the class-action lawsuits are concerned. A new law written by state Sen. Bill Ratliff, R-Mount Pleasant, overhauls the rules of class-action suits. Maybe the best part says that if a class-action suit pays off only in coupons, then lawyers have to take their pay in coupons, too.
(Don't be looking for many coupon settlements in the future.)
My critics are right in saying that we must be very careful not to throw the baby out with the bath water. Contempt for lawsuit abuse shouldn't turn into contempt for courts and laws.
But neither should we let the baby drown in bath water.
Let's drain the dirty water.
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