Settlement Archive

A Settlement, a Verdict and a Judgment walk into a bar…

March 4th, 2010. By Kristine B

(Let me preface this by saying this isn’t a legal joke—more of a little vignette. My apologies to those of you “legal purists” out there…this is Pleading Ignorance and it’s for the rest of us lay folk.) Back to the story…

After a few drinks, a hot chick (I’m a woman, so I can write that) walks up; seems she’s looking for romance—and a husband.

She approaches the Verdict first. He’s game, but he has to ask his mother first—he’s a momma’s boy at heart and momma’s the judge. She doesn’t have time for that, so she heads over to the Judgment. They chat a bit, but then she realizes he may want to bail early on—he wants to keep his options open—and she’s wanting more of a final commitment—no chance of an appeal, so to speak. So she starts chatting up the Settlement. She likes that he sounds like he’s “settled” and he’s upfront about things—no baggage—he hasn’t been through the rigmarole. Yup, the Settlement’s her guy. She buys him a drink, and off they go into the sunset.

Love story though it may be, I use the above bit of fiction to describe three legal terms that are often used interchangeably—and incorrectly so: Settlement, Verdict and Judgment.

So let’s do some ‘splaining.

What is a Settlement?

You hear a lot about settlements because, hands down, they win the popularity contest when it comes to lawsuit outcomes. Why? A few reasons. First, they happen before anyone actually goes to trial—so you avoid the possibility of a case being dragged on and on as it goes through the courts. Secondly, as a settlement arises from negotiation, both parties must agree to the terms of the settlement—and that includes the dollar amount of the settlement and terms of the settlement such as whether or not the amount of the settlement is confidential. And third, a settlement is final—there’s no Read the rest of this entry »

Tags: Judgment, Pleading Ignorance, Settlement, Verdict
Posted in Pleading Ignorance, Settlement | 6 Comments »

Gambling Addiction and the Big Win-Win

January 25th, 2010. By LucyC

Last week we posted a settlement of a lawsuit against Loto-Québec, for an undisclosed sum of money—but it will reportedly be in the multi-million dollar range—somewhere between $50 million and $700 million—quite a spread by anybody’s standards. But I’m betting it won’t turn out to be chicken feed. 

The lawsuit was brought against the provincial lottery agency by compulsive gamblers who allege that video lottery terminals—or VLTs—are associated with pathological gambling. The plaintiffs are seeking the cost of their addiction treatments, among other things, at an estimated average cost per person of $5000. And there are an estimated 119,000 plaintiffs. My calculator tells me that’s equal to $595,000,000—that’s a lot of dough—although the final sum will likely be less than that. 

But if you look a little deeper—you start to wonder who actually comes out ahead in all of this. Ironically, it could well be the lottery corporation. Loto-Québec CEO, Alain Cousineau, told the Montreal Gazette recently (1/20/10), that Canadians spent an estimated $675 million just on online gambling in 2008, and revenues are expected to exceed $1 billion in 2012. So, what’s the problem with spending a little on addiction therapy for those people who just can’t help themselves? And let’s be clear here—gambling is an addiction—and as such, you could argue, a guaranteed source of income for the corporations that operate the lotteries. (Wouldn’t that qualify as unfair business practices? Tobacco companies can’t get away with that kind of thing, apparently.) 

But the plaintiffs have also won, even if they don’t succeed at addiction treatment—because they’ve set a precedent. Similar cases are pending in Nova Scotia, Newfoundland and Ontario, so what happens in the Lotto-Quebec case matters—big time. 

The losers, if there are any, are those of us who buy our weekly lottery tickets in the hope of winning our retirement and never win a nickel—but we keep on trying. Does that count as addiction? Or is it the definition of madness—repeating the same action over and over again, each time hoping for a different outcome… 

At the end of the day, if you asked me where I’d put my money going forward, it would be on the lottery corporations—because they will come out ahead—just like Vegas—you can’t beat the house. But maybe, just maybe, this lawsuit has helped redefine some of the rules.

Tags: Compulsive Gambling, Gambling, Loto Quebec
Posted in Settlement | No Comments »

Coakley Loses, but Wins Big for MA Motorcycle Owners

January 21st, 2010. By AbiK

Git your motor runnin’…The Democratic loss in Massachusetts was (is still) all over the news—but one bit of news about MA Attorney General Martha Coakley was not so prevalent: her settlement to the tune of $11.1 million with motorcycle insurers who overcharged riders.

It seems that a few motorcycle insurers—Safety Insurance Company, Liberty Mutual Insurance Company, and Quincy Mutual Fire Insurance Company—were allegedly basing their premiums for motorcycle insurance on incorrect motorcycle values.

Now, if you’ve ever had your heart set on a Harley, and had to wait to save up the money for that Fat Boy or Low Rider (personally, I’d be going for a Sportster 883 or 1200), the last thing you want to do is cough up even more money on a high insurance premium. But you’re typically at the mercy of the insurance company—you need insurance to ride, and motorcycle accidents do happen.

Upon an investigation that, according to insurancenewsnet.com, began over a year ago, it came to light that the insurance companies were basing their collision and comprehensive premiums not on the current book values of the bikes being insured, but on values that were out-of-date and inflated.

An example given was for a 1999 Harley Davidson Road King Classic (which nowadays will set you back about Read the rest of this entry »

Tags: Insurance, Liberty Mutual, Massachusetts, Motorcycles, Quincy Mutual, Safety Insurance
Posted in Settlement | 3 Comments »

Tyson Chicken Settlement Raises Question of Lawyer Compensation

January 20th, 2010. By AbiK

So the Tyson Chicken proposed settlement could give consumers $5 million in refunds and coupons.

The Tyson Chicken proposed settlement could also give the plaintiffs’ attorneys $3 million in fees and court costs. Not.

Not if federal Judge Richard D. Bennett has anything to do with it. And I can’t entirely blame him—but not for the reasons you think.

Before I have a slew of attorneys bashing me, I have previously defended the payments attorneys request as part of settlements. Let’s face it, the attorneys usually put up the money themselves to litigate a case—i.e., there’s zip in cash flow until the case is settled—and won. So all the hours they work, travel they incur, office rent, staff salaries—all of it has to be paid out-of-pocket. Additionally, a case can take years to wind its way through the system—again, while there’s zilch in income. And let’s not forget that there isn’t one attorney pocketing whatever comes their way in a settlement; when we’re talking class actions, we’re talking lots and lots of lawyers, researchers, admin staff…who need to get paid (did I mention the electric bill?).

So when you hear a settlement of $3 million, and think that the first lawsuits in this case were filed in 2008, well, Read the rest of this entry »

Tags: Tyson Chicken, Tyson Foods
Posted in Emerging Issues, Settlement | No Comments »

Ambulance Chasing? Not according to them…

January 16th, 2010. By AbiK

One of the comments we hear from time to time at LawyersAndSettlements.com is…”But aren’t you just ambulance chasing?” And it’s a question class action litigators get all the time, too. So I thought I’d take a moment to reflect on just what it is that brought us here…comments—and pleas for help—like these:

“I want to thank you for writing about Mike and Cipro. Perhaps the story can help someone. I hope so. I’m sure someone working for Bayer has read the story by now. Thank you for not letting them forget what they’ve done to him.”

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“Hello Heidi – Gosh – Your article had been excellent and explained in basic terms that I think a lot of readers will relate to. I know I read all the testimonials to find out what other people are experiencing and that is a big help for me to determine what I will do with certain products. I am very glad to have spoken with you and Thank You for having contacted me”

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“Hi. Can you please send me the information on getting your home checked? I live in a Read the rest of this entry »

Tags: ambulance chaser, Class Action
Posted in Class Action, Settlement | No Comments »