Archive for the ‘Litigation’ Category

RobertWeissman1

It couldn’t be simpler: The president has nominated a U.S. Supreme Court justice. Now the U.S. Senate should provide or withhold its consent through an up-or-down vote on the nominee.

Senate Majority Leader Mitch McConnell said only minutes after the nominee was announced that “The Senate will appropriately revisit the matter when it considers the qualifications of the nominee the next president nominates, whoever that might be.”

Why the next president? Why not wait until the one after that, or the one after that? The United States has a president who was elected fair and square. That president has nominated someone. Now it’s time for the Senate to scrutinize the nominee and take an up-or-down vote on his confirmation.

Americans can take to the streets to advance the demand that the Senate Do Its Job and take an up-or-down vote by joining the Democracy Awakening mobilization, when thousands will converge on Washington, D.C. from April 16-18.

Lawmakers should not set great store by the U.S. Chamber of Commerce’s April testimony from attorney John Beisner before the U.S. House of Representatives’ Committee on the Judiciary. In his testimony, Beisner advocated legislation to prevent what he labels “overbroad” or “no-injury” class actions. A new Public Citizen report, “The Fiction of the ‘No-Injury’ Class Action,” counters his argument case by case.

Because class-action lawsuits are often the only feasible way to bring small-dollar claims, class actions are powerful tools for combating corporate wrongdoing and are frequently a target for corporate interests seeking to limit consumers’ access to court remedies.

In one of its many theories about why consumers’ should not be able to hold bad actors accountable, the Chamber’s lobbyists are pushing the idea that consumers who were duped by misrepresentations into buying products or overpaying for products have suffered “no injury.”

Public Citizen’s report has the goods on the real letter of the law: Consumers conned into buying a product that is defective or mislabeled have suffered economic injury. For example, consumers duped into purchasing worthless cold remedies have suffered an obvious injury, but Beisner’s testimony for the Chamber called their lawsuit a “no-injury” class action.

Public Citizen’s report looks past the façade of Beisner’s arguments and reviews each of the class-action lawsuits referenced in his testimony to show that the cases involved real injuries suffered by consumers who bought defective products or made purchases because of misrepresentations.

Continue Reading

By Scott Michelman, Public Citizen Litigation Group.

Cross-posted from Consumer Law & Policy Blog.

In September, a group of auto safety advocates and parents represented by Public Citizen sued the Department of Transportation over its failure to issue a congressionally-mandated regulation to address the problem of backover crashes, that is, collisions in which a vehicle moving backwards strikes a person (or object) behind the vehicle. Each year on average, according to the Department of Transportation (DOT), backovers kill 292 people and injure 18,000 more — most of whom are children under the age of five, senior citizens over the age of seventy-five, or persons with disabilities.

In November, the court ordered DOT to respond to our petition, which it did two weeks ago. DOT also did something else that the court had not ordered: as the Detroit News reported yesterday, DOT sent a proposed final rule back to the Office of Management and Budget for final review (a step required by executive order before a rule is issued). This means that the regulatory process is moving again, and sooner than expected — six months after DOT withdrew the rule from OMB, now it’s back, and that’s not a very long time to overhaul the proposal (but, to be clear, we don’t know what rule the agency is now proposing). We’re pleased the administration appears to be moving forward in response to our lawsuit.

But before getting too excited, remember that we’ve reached this stage before — DOT sent a proposed rule to OMB back in November 2011, only to have it languish for 19 months before being withdrawn. So progress is not enough: we need the administration to finish the job.

Meanwhile, our lawsuit is still pending. If the administration doesn’t follow through and issue the final rule this time, hopefully the court will order it to do so.

Follow  on Twitter

Recently, the Senate Judiciary Committee held a hearing titled “The Federal Arbitration Act and Access to Justice: Will Recent Supreme Court Decisions Undermine the Rights of Consumers, Workers, and Small Businesses?”

So, will recent U.S. Supreme Court decisions undermine the rights of consumers, workers and small businesses? The answer is a resounding yes.

In fact, the court’s rulings already have begun to have an impact. Thousands of consumer and employment disputes with corporations have and will be dismissed and disregarded because of language buried in the fine print of take-it-or-leave-it terms in everyday consumer and employment contracts.

These provisions, called forced arbitration clauses, require consumers and employees to resolve their disputes in secret, costly arbitration proceedings instead of in court. (See a PDF list of selected cases in which forced arbitration clauses and class-action bans were enforced as a result of recent Supreme Court rulings.)

The Senate hearing highlighted a handful of recent harmful Supreme Court decisions, including AT&T Mobility v. Concepcion and American Express v. Italian Colors. These cases have expanded corporations’ ability to deny consumers their legal remedies. Big businesses can now use forced arbitration clauses to prohibit participation in class actions, even if class actions are the only economically viable way for consumers to pursue their cases.

The evidence has long been clear that forced arbitration is not a legitimate alternative method to resolve disputes, despite what the U.S. Chamber of Commerce and other business entities contend. In practice, forced arbitration is used to squash valid legal claims from ever going forward. As a result, companies are repeatedly let off the hook for egregious and illegal conduct, including discriminatory acts in the workplace, faulty home building, illegal charges and fees on cell phone bills, abusive treatment of the elderly in nursing homes, and other misconduct.

Continue Reading

Plutocracy or democracy; the rich or the rest of us; legalized bribery or law and order; corruption or common sense.

The choice facing the U.S. Supreme Court today in McCutcheon v. Federal Election Commission could not be clearer.

If the court decides to strike down limits on what an individual can give directly to candidates, parties and PACs, the real-world impact is plain enough. A few hundred people will be empowered to spend millions to buy elections.

We will see a rise in corruption both as the public understands the term – meaning the entire political system will shift still more to favor the super-rich – and as the Supreme Court defines it – meaning quid pro quo corruption.

There is reason to hope the court will decide to uphold current giving limits. Striking down the aggregate limit rule will require abandoning the underpinnings of Buckley v. Valeo, the foundation of current campaign spending law.

So, we must hope the court respects precedent and common sense.

But we shouldn’t have to hope. That’s why it’s time for a constitutional amendment to restore our democracy – an amendment that firmly establishes the people’s right to control campaign spending and ensure that we maintain a government of, by and for the people – not the superwealthy and giant corporations.

Editor’s note: See Robert Weissman speaking outside the Supreme Court today. View photos of the event.

© Copyright . All Rights Reserved.