Products Liability Meets Criminal Law

It’s not often that products liability concepts intersect with criminal law. Such was the case in South Carolina last week, when Circuit Judge Roger Young of Charleston, in a 41-page order [PDF], threw out the conviction and granted a new trial to a young man whose defense team “did not appreciate how unlikely the ‘Zoloft defense’ would result in an acquittal.” As a result of that failure, the judge held, the defense team did not seriously pursue negotiations for a plea deal.

The case at issue is one that has drawn national media attention. Christopher Pittman of Chester, South Carolina, was just 12 years old when he reportedly shot his grandparents as they slept in their home, set their house on fire, and fled the scene in their SUV. The nearly three-week murder trial was moved to Charleston County because of the extensive publicity the case had garnered in the Upstate. Pittman was tried as an adult at age 15, was found guilty, and was sentenced to 30 years in the South Carolina Department of Corrections. He lost his appeals to the South Carolina and U.S. Supreme Courts.

For his criminal trial, Pittman’s defense team was reportedly comprised not of criminal defense attorneys, but of “lawyers who specialized in suing pharmaceutical companies.” They blamed the murders on the prescribed anti-depressant Zoloft, saying it clouded Pittman’s sense of right and wrong. Prosecutors argued in response that the premeditated nature of the murders, along with the fact that Pittman subsequently burned his grandparents’ home and thus knew the killings were wrong, discounted the defense’s Zoloft theory. The jury agreed, refusing to buy the defense team’s argument that Zoloft somehow made Pittman commit the murders. According to a 2008 article in The New York Times, Pfizer Inc., the maker of Zoloft, called the case “tragic” but said, “Zoloft didn’t cause his problems, nor did the medication drive him to commit murder.”

In his recent order, Judge Young chastised the defense team’s strategy, noting that the team, led by a civil attorney Andy Vickery, seemed more interested in putting Zoloft on trial than in doing what was best for the defendant. “After Vickery’s team took over the media attention grew exponentially greater,” Judge Young wrote, “in large part because the defense team cultivated it in order to draw attention to the side effects of SSRI (antidepressant) drugs such as Zoloft.”

Interesting, reportedly one year after Pittman’s trial, the FDA began requiring Zoloft and other antidepressants to carry “black box” warnings, the government’s strongest warning short of a total ban, about the increased risk of suicidal behavior in children. It does not, however, extend the warning to include potential homicidal risks.

Recent $2.375 Million Award in South Carolina Crashworthiness Case

A Florence, South Carolina jury recently awarded $2.375 million in actual damages to a girl, now 11, who suffered burns to 15% to 20% of her body when the fuel tank of her family’s Nissan Xterra caught fire following a collision. The highest pre-trial settlement offer reportedly was $450,000. Courtney v. Nissan Motor Co., Ltd., Civil Action No. 2007-CP-21-1449, in the Florence County, South Carolina Court of Common Pleas.

According to South Carolina Lawyers Weekly (see coverage here), the girl, 9 years old at the time of injury, was riding with her family as a passenger in the vehicle outside of their church near Lake City, South Carolina, when they were involved in a collision with a pickup truck. Church members and emergency personnel were able to help remove the family from the vehicle reportedly within seconds of impact, but the child suffered the burns, including facial burns, from her position in the seat just above the fuel tank.

The plaintiff set forth causes of action for strict liability and breach of warranty, arguing that Nissan failed to ensure the crashworthiness of the vehicle because a small metal bracket was likely to puncture the fuel tank in the event of a side collision. The plaintiff reportedly utilized experts from Texas, Utah, California and Japan, among others, to testify to such issues as the alleged foreseeability of the bracket’s puncturing of the fuel tank. Nissan, in turn, argued that the tank rupture was due to the severe and unique circumstances of the collision, which had placed extreme, concentrated energy at the location of the bracket.

The jury apparently was able to overlook two important challenges to the plaintiff’s case: (1) the SUV had complied with all federal standards; and (2) it was the driver of the Nissan Xterra who admittedly was at fault in causing the accident. The plaintiff’s position, according to her attorney, was that if the vehicle had been built according to European standards rather than U.S. standards, whereby the bracket would have been placed no closer than 100 millimeters from the fuel tank, then the fire would not have occurred.

In any event, the jury ultimately sided with the plaintiff, finding the case warranted actual damages without the imposition of a punitive award.

Counterfeiting in the Wine Industry on the Rise; Potential Liability for Manufacturers

Rummaging through an assortment of handbags from the trunk of a car in a New York City alleyway, there’s really no expectation from the consumer that she’s purchasing anything other than a counterfeit product. Counterfeit products are not, however, sold exclusively in alleyways, and makers of counterfeit products are becoming more sophisticated as industry effects to stop them become more widespread.

One industry that has seen an uptick in counterfeiting in recent years, and one that has garnered some significant attention in the press (see here, here), is the wine industry. Wine fraud caught the attention of the media with the 2006 lawsuit of wealthy American businessman William Koch, who alleged that bottles of wine he purchased at auction for approximately $500,000, which were held out to be wines originally owned by Thomas Jefferson, were frauds. Litigation of his claim is ongoing.

Several Freakonomics blog articles in The New York Times highlight some of the issues presented by wine-industry fraud. First, one of the articles examines a study of eBay auctions of empty wine bottles. The sale prices for empty, high-end wine bottles at the online auction site are often the prices full bottles of the wine would fetch in the marketplace. This presents “powerful” evidence that the empty bottles are being purchased to be filled and resold. The second of the articles discusses the fact that while high-end frauds like that alleged by William Koch garner significant attention and likely result in lawsuits, counterfeiting in the low-to-midrange wine market is much easier to get away with. This is true for several reasons, most notably that there’s little incentive for consumers to sue for fraud over what would likely be very little damages.

So how does this translate into manufacturers’ or sellers’ liability? A 2009 legal advisory published by the National Association of Wholesale-Distributors (NAW) notes that wholesalers selling counterfeit products face significant product liability exposure for any injury, business interruption, or other loss in connection with sale of counterfeit products. It notes that the wholesaler is likely the one ultimately to be held liable for the damages, as the “manufacturer” of the counterfeit product may be impossible to find, may be insolvent and/or uninsured.

Finally, a Wine Business Monthly article recently discussed the potential liability of legitimate wine manufacturers, as toxic materials are sometimes incorporated into the counterfeit products. While a company cannot be held liable for a counterfeit product, the articles notes, it can be open to liability if it knew about “an existing health threat to the consumer” and did not actively seek to “inform and protect the public.” An example, it notes, was the recent Colgate toothpaste recall by the manufacturer, where counterfeit tubes containing chemicals used in antifreeze had made it onto store shelves in the United States and South America, causing significant health issues and even death. The author argues that the wine industry would benefit from its trade and professional associations developing shared industry standards and techniques in fighting the fraud, rather than undertaking hundreds of uncoordinated approaches that would be less effective and more expensive.

$8 Million Verdict in Jeopardy Because of Plaintiff’s Counsel’s Closing Statement

In a case against pharmaceutical giant Merck that ended with a mistrial in September 2009 when jurors became hopelessly deadlocked, the jury for the second go-round recently awarded the plaintiff $8 million, which was reportedly $3 million more than her attorneys had asked for.

The case was one of several bellwether cases being tried in federal court in Manhattan involving Merck’s osteoporosis drug Fosamax. The company is reportedly facing more than 1,000 cases in state and federal courts in which plaintiffs allege the drug is defectively designed in that it can cause a jaw-destroying condition known as osteonecrosis. According to The Wall Street Journal, of the so-called bellwether cases, one was thrown out last year, a jury recently found in favor of Merck in a second, and a fourth is set to be tried in November.

United States District Judge John Kleenan oversees the federal Fosamax cases. He has set a hearing for September in which Merck will present post-trial motions to overturn the recent verdict. In this regard, it appears as though the plaintiff’s $8 million verdict may be in jeopardy.

Paul F. Strain, counsel for Merck, reportedly has said in a post-trial statement that he believes the jury’s verdict was a result of “plaintiff’s counsel’s inflammatory and prejudicial remarks.” And it appears as though Judge Keenan agrees. Although Merck unsuccessfully moved for a mistrial, arguing that plaintiff’s counsel improperly used his closing statement to encourage the jury to punish Merck with its verdict, Judge Keenan, 80, reportedly told lawyers of the closing outside of the jury’s presence: “I have never heard a more outrageous summation in my life than the one I heard yesterday.” Encouraging words for Merck officials, who recently issued a statement indicating the company’s intent to challenge the jury’s verdict.

First Month of Summer Brings Number of Food Recalls

In a mix-up I feel certain wouldn’t have happened had the Keebler Elves been in charge of this kitchen, Campbell Soup Company recently recalled 15 million pounds of SpaghettiOs with meatballs after a cooker malfunctioned at one of the company’s plants in Paris, Texas, possibly leaving the meat undercooked. The recall accounts for all cans manufactured at the plant since December 2008 because officials are unsure exactly when the cooker malfunctioned.

The Campbell recall is just one in a series of food recalls happening this month. More recently, cereal giant Kellogg issued a voluntary recall of 28 million boxes of cereal, including its Apple Jacks, Corn Pops, Froot Loops, and Honey Smacks, due to what has been called an “uncharacteristic off-flavor and smell coming from the liner in the package.” Gives the Toucan Sam “Follow Your Nose” tagline a whole new meaning.

Rounding out the food recall news for the month of June are Kroger, Marie Callender, and Lancaster Foods bagged spinach.

Kroger grocery stores recently issued a recall of its Deluxe Chocolate Paradise Ice Cream because the packaging fails to specify that the product may contain tree nuts. Only specific stores reportedly were affected by this recall, including a number of stores in our home state of South Carolina. Marie Callender Cheesy Chicken and Rice frozen meals have been recalled following a salmonella outbreak that has reportedly sickened at least eight people. The Marie Callender recall reportedly affects approximately 800,000 of the single-serve dinners. Finally, 67,000 bags of packaged fresh spinach sold in several states along the East Coast, under names including Krisp-Pak, Lancaster Fresh, Giant, and America’s Choice, have been recalled due to a possible Listeria contamination.

Alas, the start of summer is no time to start a garden. Local farmers’ markets may be the ticket.

American Red Cross Fined $16 Million for Unsafe Blood Practices

After a series of transgressions reminiscent of Kramer’s packing away gallons of his own blood inside Jerry’s Tupperware for storage at his at-home blood bank, the American Red Cross was recently fined $16 million by the FDA for failure to comply with laws and regulations related to the collection and manufacture of blood products.

Since 2003, the Red Cross has reportedly been fined more than $21 million and cited a dozen times in what have been called “chronic” blood safety violations. The American Red Cross, one of several organizations responsible for collecting and managing the country’s blood supply, reportedly accounts for approximately 43% of the blood supply in the United States. It sells blood products including red blood cells, plasma, and platelets to various health facilities.

The majority of this latest fine is reportedly related to the mismanagement of certain blood products and violations in the manufacturing process. However, in spite of these oversights, the FDA has said the organization’s blood supply appears to be safe. In fact, according to an American Red Cross spokesperson, 98% of the violations cited by the FDA occurred prior to 2008, at a time when the organization was overwhelmed with staffing cuts. Since then, according to the Red Cross, the group has made significant improvements.

In sum, it appears as though the nation’s blood supply is – and has been – safe.

Google Failed to Warn Woman Not to Walk into Oncoming Traffic

McDonald’s hot coffee suit, take 2? A California woman blindly followed Google Maps walking directions on her Blackberry, walking directly into oncoming traffic on a four-lane highway where she was struck by an approaching vehicle. She filed suit against Google, in which she seeks actual damages in excess of $100,000, punitive damages, and compensation for lost wages, although she reportedly is unemployed.

Her attorney, Allen K. Young, has tried to justify his client’s actions with the argument that the Plaintiff was walking in an area she had never been before, and at a time when it was “pitch black” outside. As if this somehow diminishes her own negligence. Young argues that Google failed to warn the Plaintiff that walking routes may be missing sidewalks or pedestrian paths. This failure-to-warn claim has been flatly disputed by Google, which has said every software version for mobile devices has had that disclaimer since Google Maps was launched in 2008.

The crux of the Plaintiff’s lawsuit appears to be that the woman crossed the road believing there to be a sidewalk on the other side. According to her lawyer, on the other side of the road was a “totally snowpacked” walkway that was of no use to pedestrians. Irrespective of the existence and condition of the walkway on the other side of the road, the woman, according to her own lawyer, didn’t even make it to the median! She wasn’t half-way across the street before she walked directly into the path of an oncoming vehicle.

Although Young has said that there is “enough fault to go around,” which presumably means he recognizes his client is at least partially responsible for her injuries, the absurdity of some liability arguments, and extent some will go to shift blame, continues to surprise.

Within a Month of "Obscene" Adverse Verdict, Drugmaker Halts Production of Sedative

In the wake of two headline-grabbing hits to its image and to its wallet, Israel-based Teva Pharmaceutical Industries recently announced it will stop production of its sedative propofol, which many worry will intensify an already existing shortage of one of the most widely used anesthetics in the United States.

We here at Abnormal Use previously reported on one of these two potential catalysts to the halt in production here, where we evaluated the Nevada jury’s “insane,” “obscene” $500 million verdict against the drugmaker. Specifically, Teva and its co-defendant were hit last month with the biggest verdict in Nevada history in a case in which the plaintiff alleged he was infected with hepatitis C when nurse anesthetists administering the drug reused vials and syringes among patients already infected with the disease. Although Teva announced plans to appeal, approximately 250 other lawsuits reportedly have already been filed in connection with the hepatitis outbreak.

The other of the two negative events garnering attention from the press: the death of Michael Jackson. Propofol became “infamous” last year when the superstar died from an overdose of the anesthetic, in combination with other sedatives, which were administered by Jackson’s personal doctor to help him sleep. Although the doctor has since been charged with involuntary manslaughter, Michael Jackson fan pages still are following the Teva announcement closely (see here and here).

The effect of Teva’s stop in production will be widespread, as the president of the American Society of Anesthesiologists has said that propofol is used in at least 75% of anesthetics administered throughout the United States. Doctors like it because patients are able to wake quickly after procedures and side effects are rare. Few companies make it because of its highly complicated manufacturing process. With no U.S. companies producing the drug, the FDA has authorized importation of a version of the sedative approved in Europe.

Although there are no doubt a litany of issues considered by a drugmaker prior to its ceasing production of a particular medication, it’s unfortunate to see such an incredibly useful product withdrawn from needy markets as the result, at least partially, of two anomalous events such as these, neither of which has anything to do with an inherent defect in the drug.

Another Plaintiffs’ Friendly Post?

To my dismay, I was recently described as having written a post from a “plaintiff’s perspective.” The comment shook me to the core, as I have been sleepless, listless, and suffering from a psychological malaise deeper than our national debt. I remember reciting proudly with my incoming class at new lawyer orientation, “The plaintiff’s case is never meritorious.” My entire existence has been devoted to ensuring that no stone goes unturned in the search for the truth, which inevitably leads to the defense verdict. To say I am deeply offended at any intimation that I lean to the other side is an understatement of seismic proportions. After all, what is the point of the billable hour, if not to justify my very existence.

See the indecency here, where Polson Enterprises, The Boating Information Company, complimented a previous post concerning a jury’s awarding $3.8 million to a teenager who was struck by a boat propeller when his friend backed over him in the water. I didn’t actually intend to suggest that boat propellers be redesigned to look something like an oscillating fan, which was essentially what Plaintiff’s counsel argued in that case, so perhaps I need to take a more definitive stand when I believe the Plaintiff’s argument is off base. And so while I pledge to do so in future posts, this is not one such topic. A plaintiff I actually could potentially support is one who takes on Miley Cyrus. Not so much because the tween “role model” allegedly gives lap dances in bars or always seems to be involved in some photo scandal, as those issues are outside the scope of this blog. This time, Miley is in the news for a recall of her jewelry line, which was sold exclusively at Wal-Mart stores, after test results showed the jewelry contained high levels of the toxic metal cadmium.

Although Wal-Mart initially continued to sell the jewelry, reportedly telling the Consumer Product Safety Commission that testing items already on store shelves would be too difficult, it eventually changed its approach, issuing a statement that it had pulled “the few products that did not” comply with its new testing regimen. Studies reportedly have shown that girls of the age of most Cyrus fans, ages 6 to 11, are at higher risk for absorbing more cadmium than other children or adults. In any event, the affected items have, at this point, been pulled from the shelves. Only time will tell if this causes future damage to the Miley Cyrus brand.

Biggest Verdict in Nevada History – Perhaps a Case of Misplaced Anger?

A Nevada jury on May 7 handed down what is reportedly the largest punitive damages award in the state’s history and, as the Plaintiff’s lawyer announced at a subsequent press conference, the “largest verdict in Nevada history, period.” The jury awarded $500 million in punitive damages to the Plaintiff, 62, who reportedly contracted hepatitis C because nurse anesthetists assisting with the Plaintiff’s colonoscopy reused between various patients vials of anesthetic, which had become contaminated by syringes that nurses had reused among patients with hepatitis C. Who got hit with the $500 million dollar verdict? The maker of the anesthetic!

Darren McKinney, spokesman for the American Tort Reform Association, reportedly called the verdict “insane.” He said that “to suggest that drugmakers can be held liable for the unhygienic use of a drug is obscene. They went after drug companies because they knew they had the deep pockets.”

The Plaintiff’s theories of liability against the makers of the drug reportedly were: (1) that the drug packaging did not include appropriate warnings against reusing vials between patients; and (2) that 50-milliliter vials of the anesthetic should not have been sold to endoscopy centers because “they tempted nurses to reuse the vials instead of throwing away leftover sedative.” Of note, nurse anesthetists, like those who could not withstand the temptations presented by drug manufacturers here, are trained specialists in the administration of anesthesia and for whom the median annual salary in 2009 was $157,724.00. The doctor and nurses who performed the Plaintiff’s colonoscopy, however, reportedly settled their malpractice claims prior to trial.

Whatever the theory of liability relied upon, it certainly appears as though something inflamed the jury. One possible explanation may be the actions of one of the defendant’s representatives during the trial itself. Reportedly, the jurors were “miffed nobody from the Israel-based [company] attended the trial, and they universally ridiculed” the United States-based company executive who testified about the drug and its uses. The jury forewoman reportedly said of the witness: “Mr. Lea did not impress us. What he said, what he didn’t say, all that stammering. The defendants need to get more aggressive if they want to win some of these cases.”

Both defendants, including the Israel-based Teva Pharmeceutical Industries, have said they will appeal the verdict.