All of us need to have patience and to trust in God and make sure that we are sensitive to His timing. As we wait for God’s Word to come to pass, we must never give up. Keep trusting, because His Word is true, and He keeps His promises. We must continue to seek God’s guidance and wisdom. I know that God is always faithful and that He loves us. That is an assurance that gives us eternal hope. God will help us to be sensitive to His timing. When we commit our lives and all decisions to God, things will eventually work out regardless of the circumstances.

To view this publication online, to add or change an address,

or to contact us about this publication, please

visit our Web site: www.BeasleyAllen.com

SOURCE: Jere Beasley Report › Parting Words

SOURCE: Jere Beasley Report › Bankruptcies by General Motors & Chrysler

Certainly, those in Corporate America who fought regulation and pushed legislation that protected corporate wrongdoers have been silent in the aftermath of the explosion and resulting oil spill. It’s quite apparent that the judicial system will be critically important in the weeks, months and even years ahead to make sure that justice is done both for the victims and for the wrongdoers involved in this unprecedented disaster.

SOURCE: Jere Beasley Report › The crisis in the Gulf makes clear the importance of our Judicial System

Anadarko Petroleum Corporation and Mitsui & Co., Ltd. were partners with BP in the ownership and exploration of the Macondo well location where the spill occurred and Transocean owned and operated the drilling rig that exploded.  Halliburton Energy Services performed crucial operations in connection with constructing the well that failed and Cameron International Corporation supplied the safety device that failed to stop the flow of oil from the well after the explosion.

Not surprisingly, each of these companies has been pointing fingers of blame at one another for causing the spill.  Despite the publicity directed BP’s way, we can’t lose sight of the fact that many companies other than BP had a direct hand in the operations that led to the environmental and economic devastation of the Gulf Coast. These companies share the blame with BP and must be required to participate in the payment of claims.

SOURCE: Jere Beasley Report › Others share the blame with BP

2 Chron 7:14

SOURCE: Jere Beasley Report › Closing Observations

Never tell your neighbors to wait until tomorrow if you can help them now.

Proverbs 3:28

Therefore, as we have opportunity, let us do good to all, especially to those who are of the household of faith.

Galatians 6:10

Dr. Lester Spencer, who is Senior Pastor at St. James United Methodist Church, sent in two verses for this issue. It’s absolutely true that we can rely on God to take care of us and provide our needs regardless of our circumstances. Lester wants to encourage all of us by sending in the verses he selected. He reminds us that – despite the disaster on the Gulf, the weak economy, the wars in the middle East, the prospects of summer storms brewing in the tropics and any other problems that might arise – God is still in control. We can all praise God and be thankful that we have a Creator and a Savior who is bigger than all of our problems, regardless of how big or how seemingly impossible to solve. We can trust Him, and we can be optimistic, hopeful and positive because of our mighty God.

Trust in the LORD with all your heart, And lean not on your own understanding.

Proverbs 3:5

These things I have spoken to you, that in Me you may have peace. In the world you will have tribulation; but be of good cheer, I have overcome the world.

John 16:33

My son, Jere Locke Beasley, Jr., sent in a verse that just happens to be one of my favorites. Jere is with Boosters, Inc., a Montgomery firm specializing in the sale of promotional materials of all kinds. Commercial screen printing service is one of the firm’s specialties. The company’s website is www.boostersinc.net. Jere also is affiliated with Service Printing Company, a firm owned by my good friend Bob Meredith, that has been in business since 1958.

But thanks be to God, who gives us the victory through our Lord Jesus Christ.

I Corinthians 15:57

SOURCE: Jere Beasley Report › Bible verses for the month

SOURCE: Jere Beasley Report › First female lawyer to head the Alabama State Bar

In 2009-2010, the Alabama Legislature agreed to a 12% increase in funding for Access to Justice, even though funding was cut for most other things. Alabama lawyers also agreed to make voluntary donations of $850,000 to help fund Access to Justice.  Also since January 2009, more than 1,450 new lawyers have joined the VLP and agreed to represent the poor for free. Tom had this to say:

So many lawyers have given so much to this effort. I firmly believe we can go to new heights if we keep focusing on this over the next few years. I have enjoyed being a part of this effort for Access to Justice.

Much has been accomplished on the project started by Tom, but there is much left to do. Ensuring legal help for the poor in civil matters is of the utmost importance. Hopefully, this effort to help those who badly need help will continue.

SOURCE: Jere Beasley Report › Tom Methvin ends his term as State Bar President

Gibson has practiced law for more than 17 years and currently focuses in our firm on personal injury litigation and consumer fraud cases. He has served as President of the Montgomery County Bar Association, Montgomery Trial Lawyers Association, the Alabama Civil Justice Foundation, and the Alabama Association for Justice.

Access to the civil justice system is critical to making sure that ordinary folks stand a chance against powerful corporations with equal footing. Ensuring those rights is an essential part of what AAJ works for, and it has been a cornerstone of our firm. Gibson is the only person from Alabama to serve as President of the national association. We’re proud to see Gibson embodying our motto of “helping those who need it most.” I am convinced Gibson will do an outstanding job in this tremendous undertaking.

SOURCE: Jere Beasley Report › Gibson Vance assumes the role as President of AAJ

SOURCE: Jere Beasley Report › Laurie Little

Maureen resides in Prattville with her 24-year-old son Jesse.  She is a native of Toms River, N.J., which is located on the “Jersey Shore.”  Maureen graduated from Toms River North, served as a member of St. Joseph’s Catholic Church and worked as an Administrative Secretary at Ocean County Utilities Authority for a little over 20 years before moving to Alabama. Maureen is a movie buff, a Dallas Cowboy football fan, enjoys decorating, stenciling, cooking and spending time outdoors. Maureen is a good employee who is dedicated to her work. She is an asset to the firm and we are fortunate to have her with us.

SOURCE: Jere Beasley Report › Maureen Manno

SOURCE: Jere Beasley Report › Rita Embry

Rhon is currently leading our firm’s involvement in claims of personal and property damage related to the BP oil spill in the Gulf of Mexico. As all Americans now know, on April 20, 2010, a massive offshore oil rig known as the Deepwater Horizon, owned by Transocean and operated by BP, exploded and caught fire in the Gulf of Mexico, about 50 miles from Louisiana’s coastal wetlands, killing 11 workers and injuring 17 others. Since the rig sank, the spill site has continued to leak oil into the Gulf, creating an environmental and economic disaster affecting the entire Gulf Coast region. This will be the largest disaster of this sort in our nation’s history.

At the time of this writing, almost 200 million gallons of oil have spilled into the Gulf, according to estimates, and approximately 35% of Gulf waters were closed to commercial and recreational fishing. Delicate wetlands were clogged with oil, harming ecosystems essential to the seafood industry and endangered ocean wildlife, birds and fish. Oil spill damage and fears caused tourism along the Gulf Coast to plummet, leaving hotels, rental properties and restaurants empty at what is traditionally the busiest season for these businesses. Our firm has filed a number of lawsuits in federal district courts in Alabama, Florida and Louisiana to help protect businesses and individuals harmed by the oil spill.

Rhon earned his J.D. from the University of Alabama in 1990, after earning his B.A. from Auburn University in 1986. He has taught Torts at Jones School of Law in Montgomery, and he is a regular speaker at national, regional and state seminars on various subjects for both Plaintiff and Defense counsel. In July 2007, Rhon received a Certificate of Recognition from the Alabama State Bar Committee on Volunteer Lawyers Program in tribute to his nomination for the 2007 Alabama State Bar Pro Bono Award. Rhon is also a board member of Public Justice Foundation, a national public interest law organization. He has been selected to Alabama Super Lawyers 2009 and 2010.

Rhon is an Advisory Board Member of the Family Sunshine Center, whose mission is to prevent domestic abuse. Rhon is also a former member of the Board of Directors of the Janice Capilouto Center for the Deaf, which fills special needs for the hearing impaired. He continues to actively support both. He is a member of the First Baptist Church in Montgomery, where he teaches Sunday School. Rhon is married to the former Deanne Rawls, and they have four children.

Rhon is doing a tremendous job for the firm’s clients in the Gulf oil spill disaster. He, as well as other lawyers and section staff, put in long hours each day on this project. All agree that Rhon’s leadership has been the key to our getting the job done. We are blessed to have a person such as Rhon to head up such an important project.

SOURCE: Jere Beasley Report › Rhon E. Jones heads up the firm’s Toxic Torts Section

Codes that will be on the recalled Iams Veterinary Formula are on the sides of the bags. These lots include numbers 01384174B4 0 19014 21405 1 and 101384174B2 0 1901405 1. Customers can call 1-877-894-4498 to get more information on the recall. No other Iams products are affected by the recall.

If you need more information on any of the recalls listed above, or would like information on a recall not listed, you can go to our firm’s web site at www.BeasleyAllen.com/recalls. You may also contact Shanna Malone at Shanna.Malone@beasleyallen.com for more recall information.

SOURCE: Jere Beasley Report › Prescription Cat Food Recalled

The shades were sold exclusively at Smith+Noble online at www.smithandnoble.com and through catalog sales nationwide from 1998 through April 2010 for between $100 and $1,600, depending on custom size and options. Consumers should immediately stop using the Roman shades and contact the Window Covering Safety Council (WCSC) for a free repair kit at (800) 506-4636 anytime or visit www.windowcoverings.org. Consumers should check the roller shades to make sure the tension device provided is attached to the continuous loop cord and installed into the wall. If not attached, consumers should attach the tension device securely to the wall. If they no longer have the tension device, consumers should immediately stop using the roller shades and contact WCSC to receive a free replacement tension device. For additional information, contact Smith+Noble toll-free at (877) 228-7683, or visit its website at www.smithandnoble.com/productrecallinformation.

SOURCE: Jere Beasley Report › Roman and Roller Shades by Smith + Noble Recalled

SOURCE: Jere Beasley Report › Perdue Farms recalls chicken nuggets

Spinach with the Ready Pac label was among dozens of brands pulled from store shelves in 2006 after federal authorities traced a nationwide E. coli outbreak to a San Juan Bautista processing plant that bags its spinach. The Ready Pac Baby Spinach, Spinach Temptations 6 oz. bagged salads included in the recall have use-by dates of July 4^th with the product code 11707B, IR127121 and July 8^th with the product code 12007B, IR130373.The FDA said some recalled bags might still be on store shelves, so this recall extends to retailers, as well as consumers.

The FDA is advising consumers to immediately dispose of the recalled product and contact Ready Pac Consumer Affairs to obtain a full refund. The FDA is asking retailers who receive the recalled product to confirm with their distribution centers and individual stores that no recalled products remain in their inventories or at their store locations. Ready Pac Consumer Affairs phone number: 800-800-7822 (Mon.-Fri., 8 a.m.-5 p.m. (PT)

SOURCE: Jere Beasley Report › Bagged baby spinach salads recalled

SOURCE: Jere Beasley Report › Jewelry from popular tween stores recalled over cadmium

The recall involves the Vaper 90 amp flux wire feed welders with model number 41181. The wire welders are red and black. “Vaper” and “90 amp flux wire welder” can be found on the product’s operation panel. The model number can be found on the top right hand corner of the package and on the first page of the users manual. They were sold by Pep Boys, Auto Zone and various other auto parts and tool centers nationwide from October 2006 through March 2010 for about $170.

Consumers should immediately stop using the wire welders and contact Star Asia to obtain a corrected instructions manual and packaging or for instructions on returning the product for a full refund. Consumer Contact: For additional information, contact Customer Service at (800) 386-0191.

SOURCE: Jere Beasley Report › Wire Feed Welders recalled by Star Asia USA due to burn hazard

The computers can overheat, posing the risk of a burn, according to the commission. The recall involves VPCF11 Series and VPCCW2 Series laptop computers, which were sold in a variety of colors and have “VAIO” on the front outside panel. Consumers were advised to go to http://esupport.sony.com/US/f1cw2update for instructions on how to update BIOS firmware for the recalled products. Consumers were also advised to contact a Sony retail outlet for help upgrading the BIOS firmware. Consumers can call 866-496-7669 for information.

SOURCE: Jere Beasley Report › Vaio laptop computers recalled

SOURCE: Jere Beasley Report › Scope Original Mint Mouthwash recalled by Procter & Gamble

SOURCE: Jere Beasley Report › Children’s Jewelry Recalled By Smilemakers

SOURCE: Jere Beasley Report › Youth Tiara Recalled Due To Lead Exposure Hazard

About 44,900 pacifiers were sold at independent grocery stores in California and Texas from October 2009 through March 2010 for about 25 cents each. No injuries have been reported, but consumers were advised to take the pacifiers away from children and contact Antonio Flores of San Ysidro, California, for a refund or an exchange. Consumer can call 619-395-4543 for information.

SOURCE: Jere Beasley Report › Antonio Flores Pacifiers Recalled

Those model numbers are: 388032, 388060, 388080, 388145, 388260, and 42775. The model number of the air cell can be found on the tag sewn on the center of the air cell or bladder. The inflators were sold at diving stores in the U.S. and Canada from November 2006 through March 2010 for between $53 and $70 for the component and between $280 and $520 for the air cells. Consumers should stop diving with their recalled power inflator and bring it or send it to an authorized Apeks dealer. The dealer will apply a free fix. Consumers may also ask for and receive a free replacement product. For additional information contact the firm toll-free at (877) 253-3483 or visit its website at www.aqualung.com.

SOURCE: Jere Beasley Report › Aqua Lung America Recalls Inflators Due To Drowning Hazard

Power adapters without spring coils are not affected by this recall. The adapters were sold at Pet specialty stores, catalog and online retailers nationwide from September 2006 through April 2010 for between $70 and $110. Consumers should immediately stop using the recalled power adapter and contact the firm to receive a free replacement adapter. For additional information, contact Radio Systems Corporation at (800) 732-2677 or visit its website at www.petsafe.net.

SOURCE: Jere Beasley Report › Radio Systems Corporation Recalls Power Adapters

CPSC is aware of a death of a two-year-old boy in December 2008 in Vinalhaven, Maine. The boy was found hanging with his neck entrapped between the playard frame and the metal base rod of the tent that had been partially tied by pieces of nylon rope and partially attached by clips. The tent was tied to the playard because the child was able to pop off the clips. Apparently, the child became entrapped while attempting to climb out of the playard. In three other incidents, children were able to remove one or more clips and place their necks between the tent and the playard. The children were not injured.

The dome-shaped white-colored mesh tent is designed to fit over playards as small as 28 inches by 40 inches or as large as 31 inches by 44 inches to contain a child. There are 12 plastic clips to secure the base of the tent to the top rail of the playard through button holes along the bottom of the tent. The tent has a zippered side for putting in and taking out the child.

The cribs were made in China and sold at Walmart, Amazon.com and various baby and children’s stores nationwide from January 2005 through February 2010 for about $60. Consumers should immediately stop using the playard tents and contact Tots in Mind to get free replacement clips. Replacement clips will be available in late August or early September 2010. Contact Tots in Mind toll-free at (800) 626-0339 or visit its website at www.TotsinMind.com.

SOURCE: Jere Beasley Report › Portable Playard Tent By Tots In Mind Recalled

The baby walkers have a plastic frame supported by four wheels and eight brake pads, according to the CPSC. The walkers were sold in blue, pink, and green with a white activity tray and patterned, vinyl seat. Item number WK110 or WK112 is printed on the side of the packaging. The recalled walkers were manufactured in China and were sold at children’s product stores in California, Illinois, New York and Texas from January 2007 through December 2009 for between $25 and $30. Suntech and the CPSC are advising consumers to immediately stop using the recalled walkers and bring them to the store where purchased for a full refund.

SOURCE: Jere Beasley Report › 8,400 Baby Walkers Recalled

The recall involves all Pottery Barn Kids drop-side cribs regardless of model number. CPSC says there have been 36 reports of drop-side rails that have malfunctioned or detached. Seven children sustained minor injuries when they fell out of the cribs or got their legs caught between the mattress and side rail. CPSC urges parents to immediately stop using the cribs. Pottery Barn Kids is offering free kits to immobilize the drop-side rail.

SOURCE: Jere Beasley Report › Pottery Barn Kids Recalls 82,000 Drop-Side Cribs

The New Brunswick, New Jersey, company has already made a large recall of those drugs and over-the-counter products, saying about 70 people noticed the smell. Some of them got sick, with symptoms including nausea, stomach pain, vomiting and diarrhea. The odor was linked to a chemical in shipping pallets and traced to a facility in Puerto Rico. The company had planned to stop shipping those products on wooden pallets treated with the chemical, and asked its suppliers to do the same. Johnson & Johnson said the latest recall applies to products made before the January recall.

Johnson & Johnson, the world’s biggest maker of health care products, has dealt with several product recalls since late last year. It withdrew over-the-counter drugs in November and December 2009 before issuing a much larger recall in January. Federal regulators said McNeil was told about the problem in early 2008 but made a limited investigation and failed to tell the FDA quickly. The original withdrawal also included other types of Tylenol, Benadryl, Rolaids, Simply Sleep, and St. Joseph’s aspirin. In late April, McNeil recalled more than 130 million bottles of children’s medicines like Tylenol, Benadryl, and Motrin because of manufacturing problems at a plant in Fort Washington, Pa. Some of the drugs had the wrong ingredient levels, and others contained tiny particles of metal.

SOURCE: Jere Beasley Report › Tylenol Recall Widens

SOURCE: Jere Beasley Report › Christy Is Recalling Women’s Robes

This recall involved Baja Motorsports mini bikes with model numbers beginning with HT65, MB165, WR65, MB196, DB30, WR90 and DR90 and go-carts with model numbers BB65, SD65, DN65 and TR65. The model number is located on the mini bikes’ fenders and/or decorative fuel tank and on the go-carts’ roll cage. They both have black plastic gas caps. The bikes were sold at various mini bike and go-cart retailers nationwide from November 2004 through June 2010 for between $200 and $2000. They were also available from the following web sites: Costco.com; Amazon.com; toysrus.com; northerntool.com; sears.com; and kmart.com. Consumers should immediately stop using the recalled mini bikes and go-carts and contact Baja Motorsports for a free replacement gas cap and to schedule a free repair of the fuel line and throttle cable. For additional information, contact Baja Motorsports toll-free at (888) 863-2252 or visit its website at www.bajamotorsports.net.

SOURCE: Jere Beasley Report › Baja Motorsports Recalls Mini Bikes And Go-Carts

SOURCE: Jere Beasley Report › Nissan Recalls 46,000 Cubes Over Fuel Spillage

SOURCE: Jere Beasley Report › Ford Recall

Chrysler says its recall affects certain 2010 Dodge Nitro, Dodge Ram, Jeep Liberty and Jeep Wranglers that could have defective brake tubes. The problem could lead to the loss of brake fluid, making it difficult to brake and posing the threat of a crash. Chrysler says owners should be notified in August.

SOURCE: Jere Beasley Report › Chrysler Is Recalling SUVs And Vans

SOURCE: Jere Beasley Report › 2010 Suzuki Kizashi Recall

The world’s top automaker claims it previously thought the problem was caused by a foreign substance entering during manufacturing of the valve springs, and beefed up checks so that wouldn’t happen. When the complaints started climbing, Toyota decided there was a design defect.

SOURCE: Jere Beasley Report › Toyota To Recall Another 270,000 Vehicles

The primary winners ran clean campaigns and that obviously paid off for them. Now we should all look forward to a campaign in the fall with real issues being debated. If I had to single out the main issues the two nominees should address, those would be: the creation of good paying jobs; improving public education at every level; and providing adequate health care to all Alabama citizens. Each candidate will have to explain to the voters that if no additional revenues are to be provided, exactly which state programs will be cut and within those programs exactly where the specific cuts will be made. Nobody who really understands the operations of state government and our system of public education can truthfully say that there are sufficient revenues coming in to fund existing programs without massive cuts. It will be interesting to see how this issue is handled this fall by the candidates as they approach the November 2nd Election Day.

SOURCE: Jere Beasley Report › A Positive Gubernatorial Campaign Would Be Good For Alabama

If Bradley Byrne had left us alone, we would have been only slightly involved in the governor’s race. Basically he called us out. He threatened to burn our house down.

The Byrne campaign zeroed in on AEA in an $8 million attack campaign that ended in a double-digit run-off loss to Dr. Robert Bentley. Paul told Bob Lowery, a very good reporter with the Huntsville Times, that AEA normally devotes its political work to the legislative arena and that the organization will return there in the general election. Paul said that the leaders at AEA “made a decision that it was time to bring Bradley’s threat to their folks to the voters’ attention.” It became obvious that Paul believed Bradley “was serious about doing damage” to the association and its members.

I would have to agree with Paul that the Republican primary, rather than involving a legitimate debate on issues, became “a referendum on Bradley Byrne’s feelings toward AEA.” That was a losing proposition with voters who were more concerned about the state’s unemployment rate and jobs than “insider politics” in Montgomery. A number of lessons should have been learned from the GOP and Democratic primaries by campaign consultants.

Sources: AL.com and The Huntsville Times

SOURCE: Jere Beasley Report › Bradley Byrne Threatened To Burn Down AEA’s House

SOURCE: Jere Beasley Report › A Victory For The People In Senate District 28

SOURCE: Jere Beasley Report › James Anderson Wins The Runoff

When the race for Governor started in the GOP primary, only folks in his house district even recognized Dr. Robert Bentley’s name. Within that group, only a few really believed the retired Tuscaloosa doctor had even a slight chance of becoming the Republican nominee. Have things ever changed! Dr. Bentley swept to a most impressive 62-38% win over the man who most experts believed at the outset would be the winner. Some even felt early on that Bradley Byrne would win without a runoff. It appears that Dr. Bentley had only the people and perhaps the AEA on his side and it paid off. Unfortunately, Bradley hasn’t been a very gracious loser and that has caused even more internal problems within the party.

SOURCE: Jere Beasley Report › A Candidate Supported By Only The People Wins

Never tell your neighbors to wait until tomorrow if you can help them now.

Proverbs 3:28

Therefore, as we have opportunity, let us do good to all, especially to those who are of the household of faith.

Galatians 6:10

Dr. Lester Spencer, who is Senior Pastor at St. James United Methodist Church, sent in two verses for this issue. It’s absolutely true that we can rely on God to take care of us and provide our needs regardless of our circumstances. Lester wants to encourage all of us by sending in the verses he selected. He reminds us that – despite the disaster on the Gulf, the weak economy, the wars in the middle East, the prospects of summer storms brewing in the tropics and any other problems that might arise – God is still in control. We can all praise God and be thankful that we have a Creator and a Savior who is bigger than all of our problems, regardless of how big or how seemingly impossible to solve. We can trust Him, and we can be optimistic, hopeful and positive because of our mighty God.

Trust in the LORD with all your heart, And lean not on your own understanding.

Proverbs 3:5

These things I have spoken to you, that in Me you may have peace. In the world you will have tribulation; but be of good cheer, I have overcome the world.

John 16:33

My son, Jere Locke Beasley, Jr., sent in a verse that just happens to be one of my favorites. Jere is with Boosters, Inc., a Montgomery firm specializing in the sale of promotional materials of all kinds. Commercial screen printing service is one of the firm’s specialties. The company’s website is www.boostersinc.net. Jere also is affiliated with Service Printing Company, a firm owned by my good friend Bob Meredith, that has been in business since 1958.

But thanks be to God, who gives us the victory through our Lord Jesus Christ.

I Corinthians 15:57

SOURCE: Jere Beasley Report › Favorite Bible Verses

Gibson has practiced law for more than 17 years and currently focuses in our firm on personal injury litigation and consumer fraud cases. He has served as President of the Montgomery County Bar Association, Montgomery Trial Lawyers Association, the Alabama Civil Justice Foundation, and the Alabama Association for Justice.

Access to the civil justice system is critical to making sure that ordinary folks stand a chance against powerful corporations with equal footing. Ensuring those rights is an essential part of what AAJ works for, and it has been a cornerstone of our firm. Gibson is the only person from Alabama to serve as President of the national association. We’re proud to see Gibson embodying our motto of “helping those who need it most.” I am convinced Gibson will do an outstanding job in this tremendous undertaking.

SOURCE: Jere Beasley Report › Gibson Vance Assumes The Role As President Of AAJ

Panel members voiced great skepticism about the company’s trustworthiness after questions were raised about its clinical trials. Internal company documents reveal that GlaxoSmithKline kept crucial safety information about Avandia from the public for years. On the critical vote, which was on what the FDA should do, ten members voted that the drug’s sales should be restricted and the warnings on its label enhanced. Twelve voted that Avandia should be withdrawn, but seven voted only to support enhanced warnings on the drug’s label.

Approved in 1999, Avandia helps control blood sugar levels in diabetics by making patients more sensitive to their own insulin. It is one of a class of three drugs, the first of which, Rezulin, was withdrawn because it caused liver damage. The other drug in the class, Actos, made by Takeda, has appeared relatively safe. The sales of Avandia, which was once the biggest-selling diabetes medicine in the world, abruptly declined in 2007. That came after a study by Dr. Steven Nissen, a noted Cleveland Clinic cardiologist, found that Avandia increased the risk of heart attacks. An advisory committee in 2007 decided that Avandia did increase heart risks, but voted to keep it on the market.

Many of the same experts who decided to keep the drug on the market in 2007 voted that it should be withdrawn or restricted. Those restrictions could mean that patients would have to apply for special permission to use the drug. Reactions to the panel’s vote have been as mixed as the vote itself. The FDA generally undertakes programs to restrict a drug’s sales only when a drug offers a unique benefit, something not one study has shown about Avandia. A majority of the committee found that Avandia increased the risk of heart attacks, but a majority also said that studies had failed to prove it increased the risk of death.

A majority decided that if Avandia were to continue to be sold, the company should complete a clinical trial to prove it was safe. But several members said that the vote probably made a trial impossible because patients would not want to risk taking Avandia. You might now wonder how in the world the committee, which should put a drug’s safety at the top of its priority list, could have come up with so many different conclusions. If so, I share your concern.

It’s quite obvious that the manufacturer of Avandia has not been honest with the FDA. Marketing seems to have been the driving force when critical decisions were made by the company. It was said during the panel’s hearings that studies were not completed because the company feared that the results might hurt sales. This information came from internal company documents.

Sources: New York Times and USA Today

SOURCE: Jere Beasley Report › FDA Panel Votes To Restrict Avandia

According to Mr. Michaels, defense consultants have increasingly worked to skew scientific literature and magnify scientific uncertainty to distort public opinion and prevent public policy changes that would require manufacturing and products to become safer. To increase public confusion, according to Mr. Michaels, the strategy is to dismiss research conducted by the scientific community as “junk science” and elevate science conducted by product defense specialists as “sound science.” It now appears that Toyota may be taking the same approach in its public relations battle to win the hearts and minds of the public as well as those in Congressional oversight positions related to the crisis over sudden unintended acceleration events (SUA’s).

A recent Wall Street Journal article claims that a number of Toyota electronic data recorders (EDR’s) have been examined from vehicles that were claimed to have experienced a sudden unintended acceleration event. The WSJ article says that the National Highway Traffic Safety Administration (NHTSA) has examined these EDR’s and found that the SUA’s were caused by driver error not electronic design problems. According to Sean Kane, President of Safety Research & Strategies, Inc., a safety research consulting firm, this information was leaked by Toyota to the Wall Street Journal in a plan to get public opinion on its side, i.e., to create “Doubt”.

Despite the WSJ article, the Department of Transportation told the Product Safety and Liability Reporter that it has “neither drawn conclusions in the ongoing investigation of the Toyota vehicles sudden unintended accelerations, nor released data,” some of which found its way into a July 13th story in the Wall Street Journal. That article claims that data from dozens of Toyota event recorders suggested “driver error and not an electronics problem with the electronic throttle control system used by Toyota.” Oddly, it seems that the Journal article prompted a 1% rise in Toyota stock according to the Product Safety and Liability Reporter.

Kane pointed to complaints from Toyota owners about incidents of sudden unintended acceleration of lengthy duration, at highway speeds, where the driver already was using the accelerator, and multiple incidents in the same vehicle with different drivers at the wheel as evidence that floormats and sticky pedals are not the cause for the many Toyota SUA events. According to Kane, Toyota’s reported analysis of dozens of event data recorders, out of more than 37,000 customer complaints, does not explain how driver error could be the source of incidents nor why the large jump in complaints occurred when the company began equipping its vehicles with electronic throttle control systems in 2002. Kane stated further:

Toyota has always stated that the accuracy of the black boxes (EDRs) has never been scientifically validated. In fact, the company (Toyota) fights to keep the data from being used in litigation because it says EDR data isn’t reliable.

Kane also noted that many of the SUA events that have been reported would not activate the EDR system. The EDR generally only records data in crashes where the crash is severe enough to deploy or nearly deploy an air bag. Unfortunately, there hasn’t been a great deal of reporting about the Toyota SUA crisis lately. Kane believes that “advertising pressure” and increased media focus on the BP disaster in the Gulf have led to a lull in reporting on sudden acceleration events. However, Kane says that his firm “gets reports every day, so the problem is still very much out there.” The television ad campaign by Toyota – which had to cost tens of millions and is designed to repair Toyota’s tarnished image – has been effective.

In the late 1980s, Audi faced a similar problem of sudden unintended acceleration events in its cars. As a result, Audi sponsored a good bit of “scientific” research that pointed to driver error rather than vehicle design as the cause for the unintended accelerations. No doubt, Toyota is attempting to link its problems to this research and driver error. Many believe the WSJ article is just the tip of the “Doubt” iceberg.

Toyota and the public may not remember that a number of NHTSA recalls on Audi vehicles resulted from the Audi SUA crisis of the late 80’s and early 90’s. Few folks recall that Audi changed the design of its vehicles. Hopefully, NHTSA will not allow Toyota to create enough “Doubt” to escape responsibility for the safety problems in its vehicles. Probably some of the best evidence that Toyota is making an effort to create “Doubt” is the fact that Toyota told Congressional leaders that it had hired an independent company, Exponent, to evaluate its SUA events. Congressional leaders quickly discovered in documents and interviews, however, that Toyota had not in fact hired Exponent to help “independently” evaluate SUA events in its vehicles. Instead, Toyota’s lawyers hired Exponent to help it defend Toyota in litigation related to SUA events.

Even more telling, documents and testimony provided to Congressional members revealed that Exponent, as part of its analysis process, made no written notes of any research it conducted for Toyota. Neither did Exponent have any written testing or analysis protocol or plan in place to determine the cause of Toyota SUA’s. How can anything other than “junk science” masquerading as legitimate scientific research be created if the results are not written down and there is no written scientific method for analysis in place? Despite the lack of an organized plan, Exponent reported more than 11,000 man hours of work on the SUA project for Toyota. Clearly, Toyota is not trying to solve the problem, but is attempting to produce a new product – DOUBT – and that product is a clever defense strategy. So it’s quite evident that Toyota is using its old ploy of blaming drivers who are victims of their safety-related problems.

Sources: Associated Press, Wall Street Journal and Product Safety and Liability Reporter

SOURCE: Jere Beasley Report › Toyota Has A New Product

While the victims of the massive oil spill are suffering and see little hope for their future, BP has been busy planning its defense to their victims’ claims. For the last few weeks, BP has been offering signing bonuses and lucrative pay to prominent scientists from public universities in the Gulf Coast states to work on its defense against spill litigation. Part of the defense plan is to put in a conflict situation all potential experts who might work for victims’ lawyers. For example, BP tried to hire the entire marine sciences department at The University of South Alabama. To its credit, the university declined because of confidentiality restrictions that BP sought on any research done.

The Mobile Press-Register obtained a copy of a contract offered to scientists by BP. It prohibits the scientists from publishing their research, sharing it with other scientists or speaking about the data they collect for at least the next three years. Bob Shipp, head of marine sciences at the University of South Alabama, told the Mobile paper:

We told them there was no way we would agree to any kind of restrictions on the data we collect. It was pretty clear we wouldn’t be hearing from them again after that. We didn’t like the perception of the university representing BP in any fashion.

There is no telling how many scientists and universities have been approached by BP. Some will accept the offers and take BP’s money. Why would the company impose confidentiality restrictions on scientific data gathered on its behalf? BP will pay tremendous amounts in an attempt to corner the market on available experts. That is an indication of the oil giant’s arrogance and its true intent when it comes to paying claims and cleaning up the mess it has caused.

The Press-Register reported that scientists from Louisiana State University, Mississippi State University and Texas A&M have already accepted BP’s proposals. Scientists who study marine invertebrates, plankton, marsh environments, oceanography, sharks and other topics have been solicited. The contract makes it clear that BP is seeking to add scientists to the legal team that will fight the Natural Resources Damage Assessment lawsuit that the federal government will bring as a result of the Gulf oil spill. Individual claims will also be affected.

Richard Shaw, associate dean of LSU’s School of the Coast and Environment, says that the BP contracts are hindering the scientific community’s ability to monitor the effects of the Gulf spill. The contract requires scientists to agree to withhold data even in the face of a court order if BP decides to fight such an order. It stipulates that scientists will be paid only for research approved in writing by BP. The contracts have the added impact of limiting the number of scientists who would be available to work with federal agencies.

Source: Mobile Press-Register

SOURCE: Jere Beasley Report › BP Is Planning Its Legal Defense

• BP is planning its legal defense (PDF page 4)
• FDA panel votes to restrict Avandia (PDF page 10)
• Oil spill cleanup workers reporting illnesses (PDF page 25)
• Gibson Vance assumes the role as President of AAJ (PDF page 37)

These are just a few of the subjects reviewed in the August 2010 issue of The Jere Beasley Report, distributed monthly by Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.

Jere Beasley Report, August 2010

http://www.jerebeasleyreport.com/2010/08/

SOURCE: Jere Beasley Report › Jere Beasley Report, August 2010

To date, there is little information on the long term effects of the dispersants, especially given the large quantities being pumped into and sprayed in the Gulf. The New York Times has reported that the “EPA’s testing has yet to examine the toxicity of dispersants when mixed with crude oil,” EPA Administrator Lisa Jackson told Senators that she is “unaware of any research” on the effects of applying the chemicals in the massive volume that has entered the Gulf region. She said further that “It’s not the body of testing you would want, given the historic nature of the ongoing oil leak.” There are some studies that reveal the constituents of the oil and the dispersants are cancer causing. For example, 2-butoxyethanol is a component of Corexit, the dispersant being used in the Gulf. This chemical is a pesticide that is highly toxic to humans and wildlife, causing cancer, liver and kidney damage, birth defects and other reproductive side effects. The dispersant also contains arsenic, cadmium, copper, lead and mercury, among other chemicals.

As a result of the unprecedented volume of oil and dispersants in the Gulf, the people and the environment in the region are now part of a giant science experiment where the long-term effects will not be known for some time. Our firm’s Toxic Tort Section is actively investigating claims for clean-up workers and others who have become ill after exposure to the oil and dispersants.

If you need additional information regarding illnesses associated with the oil spill cleanup, contact Rhon Jones, Parker Miller or Brantley Fry in our firm at 800-898-2034 or by email at Rhon.Jones@beasleyallen.com, Parker.Miller@beasleyallen.com or Brantley.Fry@beasleyallen.com.

Sources: New Orleans Times Picayune, U.S. CDC, NY Times

SOURCE: Jere Beasley Report › Oil Spill Cleanup Workers Reporting Illnesses

So if the Feinberg projection is accurate, a few claims should have been paid by the time this issue is received. Hopefully, the process will work and all legitimate claims will be paid. However, before BP gets any full releases of liability there must be a process in place that actually pays all claims for losses to date, and provide for full payment of all future losses. I am concerned that the fund will not pay for all of the losses incurred, either past or future, and that poses a major problem. There must be a procedure built into the claims-handling process ensuring that individuals and businesses will be fully compensated for their losses. I also believe somebody with authority must monitor the man operating the fund to make sure BP is not having too much influence on who is paid and how much. Ultimately, I believe the judicial system will have to be involved to assure that individuals and businesses are treated fairly.

Source: Associated Press

SOURCE: Jere Beasley Report › $20 Billion Oil Spill Fund May Start Payments In August

Attorney General Hood says Holder recognized the flaws in the Feinberg plan. Holder apparently understands fully that the effects of the oil spill will be going on for years after the leak is stopped. I believe it will affect the region for at least 25 years and perhaps longer. Hopefully, I am wrong and the period of time will be much shorter. Holder is putting together a panel of lawyers and officials, with heavy representation from the Gulf Coast, to draft a new proposal to submit to Feinberg. I agree with Troy that “the focus should be on protecting the Gulf states and making sure everyone is made whole.” I don’t trust BP to do the right thing by its victims based on the oil giant’s past record and our experience with the oil industry. BP must be held accountable for the full extent of losses suffered by individuals, businesses, and governmental entities.

Source: AL.com

SOURCE: Jere Beasley Report › State Attorney Generals Challenge BP Claims Plan

The automobile industry and auto dealerships advertise reclining seats as an inexpensive luxury accessory for passenger comfort on the road and highway. They tell car buyers that the family can lay back, rest, and even sleep. But for dozens of years there’s been growing evidence that reclining seats kill or cause severe injury such as paralysis in car accidents.

Sarah Goodner, who was 19-years-old, was killed in a 2007 car accident when she was ejected from the reclined seat of the Hyundai Tucson SUV. Sarah was taking a nap in the front passenger reclining seat when she was thrown out of the car when it rolled over on a West Texas highway. The federal jury returned a $1.8 million verdict against Hyundai for using a defective reclining seat system. Evidence presented during the trial showed that the lap seat belt was supposed to provide the primary safety protection, but it failed to prevent the young victim from sliding out from under the lap seat belt when the seat was fully reclined. Sarah was wearing the seat belt lap and shoulder restraint.

Hyundai told the jury that its reclining seat was only supposed to be used when the car was not moving. In fact, the carmaker blamed Sarah for not reading the fine print in the owner’s manual. Hyundai has failed to use available accident safety technology that would prevent reclining seats from being tilted back at more than a 45-degree angle. A life could have been saved if Hyundai had used a system currently used by another automobile company that automatically returns a reclining seat to the upright position in the event of a car accident. Todd did a very good job for Sarah’s family and should be commended for his hard work and efforts to bring a serious safety defect to the public’s attention.

SOURCE: Jere Beasley Report › Reclining Seats Are A Hidden Danger

One lawsuit has been filed against Cooper Tire & Rubber Co., Ford Motor Co. and two other Defendants. It was alleged in the suit that Cooper had an “outrageously high number of tread separations.” The company’s manufacturing process was also blamed in the crash. There have been numerous lawsuits filed against the company. But Cooper still hasn’t corrected the safety issues with its tires. Folks have been dying all over the United States for a number of years because of defective Cooper Tires. Florida Highway Patrol investigators found no indication the tires weren’t properly inflated and no nails or other objects were found that might have damaged it. The Explorer’s owners had taken the vehicle for service and replaced two tires two weeks earlier at a Cooper distributor.

Source: Jacksonville.com

SOURCE: Jere Beasley Report › Cooper Tire Involved In Tragic Highway Crash

It isn’t clear whether NHTSA will order a timeliness investigation. An automaker is required to notify NHTSA about a defect within five days of determining that one exists. I’m not sure what more NHTSA needs. NHTSA now has linked 16 crashes, three deaths and seven injuries to the steering rod defect. When a steering rod snaps, the driver cannot control the vehicle because the front wheels will not turn.

After the 2004 Japanese recall, Toyota claimed initially that it had very little evidence of a steering rod problem among U.S. trucks and SUVs. But the AP found that the automaker had received at least 52 reports from U.S. drivers about the defect before vehicles were recalled in Japan. It’s interesting – and perhaps telling – that the Associated Press seems to be doing a better job than NHTSA.

Source: Associated Press

SOURCE: Jere Beasley Report › Toyota Plays Games With The Public

According to the Center for Responsive Politics, the five oil companies whose top executives traveled to Capitol Hill in Washington to testify about the gulf oil spill have spent $18.7 million lobbying so far in 2010. Those firms account for about 50% of the $38.2 million the oil industry has spent on K Street (the home of lobbyists) so far in 2010. As a point of reference consider that in 2009 the oil giants spent $175 million for lobbyists and in 2008 the total spent was $92.5 million. Unfortunately, most Americans haven’t had a clue about how things are done in Washington, but they are beginning to find out. But until we figure out a way to stop the flow of money from Corporate America – and specifically the oil, drug, and insurance industries – the public will continue to have little say on what happens in Congress.

Source: Center for Responsive Politics

SOURCE: Jere Beasley Report › Big Oil Pours Money Out To The Politicians And Lobbyists By The Millions

Many of the regulatory agencies suffer from a shortage of funds and staffing problems. In others the industry actually controls the regulators. Also there are agencies that lack the statutory authority to carry out their responsibilities. Consider that OSHA, which is responsible for workers’ safety, doesn’t have enough inspectors to visit all of the workplaces in the United States more than once every 130 years. We need to give the agencies adequate funding and staffing and pass laws necessary to give them authority to do their jobs.

SOURCE: Jere Beasley Report › Poor Regulation Hurts The Public Badly

SOURCE: Jere Beasley Report › Powerful Corporations Work To Deny Justice To Victims

SOURCE: Jere Beasley Report › The Natalee Holloway Resource Center

SOURCE: Jere Beasley Report › More On The Dangers Of 15-Passenger Vans

Big oil can no longer marginalize environmental compliance while increasing their gasoline sales and distribution in Massachusetts.

Between 1999 and 2001, and without the approval of Massachusetts environmental regulators, Exxon Mobil made changes to the vapor collection and recovery system used to control emissions of volatile organic compounds at its Everett terminal. Changes included the removal of certain emissions controls required under state air permits. Exxon Mobil also failed to control VOC emissions during the degassing of a storage tank in Everett in 2008. The state also alleged that Exxon Mobil did not properly control emissions of VOCs from gasoline tank trucks during loading operations and failed to comply with emissions monitoring, repair and reporting requirements at both locations. Bulk terminals are facilities where large quantities of gasoline are stored before distribution to gas stations.

Source: Associated Press

SOURCE: Jere Beasley Report › Massachusetts Reaches $2.9 Million Settlement With Exxon Mobil

Source: Associated Press

SOURCE: Jere Beasley Report › Swimming Pools Closed For A Good Reason

The Food and Drug Administration Amendments Act of 2007 (FDAAA) requires the FDA to prepare the safety summaries within 18 months after a product’s approval or after it has been used by 10,000 patients, whichever comes later. The information that the summaries are based upon comes from reports made to the FDA’s Adverse Event Reporting System, the Vaccine Adverse Event Reporting System maintained by the FDA and the Centers for Disease Control and Prevention, periodic safety information manufacturers submit, medical literature and data from ongoing studies.

Source: Lawyers USA Online

SOURCE: Jere Beasley Report › FDA Posts Safety Information On New Drugs

Source: Associated Press

SOURCE: Jere Beasley Report › $15 Million Settlement For Injured Worker

The manufacturer of the ozone generator used in the system argued that it could not be held liable because its product was not defective. But the Court decided that the Plaintiff produced sufficient evidence showing that the generator was defective because it didn’t have an automatic shut off sometimes installed in other generators. Moreover, the Court adopted the “component-parts doctrine,” under which a manufacturer of a non-defective product may be liable for the design defects of a system. The Court said in an opinion:

Liability for failure to install a safety device … depends on whether the component manufacturer was in a position to control the decision making involved in the design of the integrated product. The act of ‘simply design[ing] a component to its buyer’s specifications’ or ‘providing … technical services or advice’ about the component does not in and of itself constitute substantial participation in the design of the integrated product. However, if the specifications provided are obviously unreasonably dangerous, the component manufacturer may be deemed to have control over the integrated product and therefore be deemed to have substantially participated.

The case was remanded to the lower court so that the Plaintiff would have the opportunity to develop the case under a component-parts theory. This case will be watched closely by safety advocates.

Source: Lawyers USA Online

SOURCE: Jere Beasley Report › Component Maker May Be Liable For Defect In System

An employee, James Lee Candler, was killed during the explosion and three of his co-workers injured. OSHA levied these fines against the companies listed: Mustang Engineering $65,000; Grand Bluff Construction Co., of Beckville, Texas $38,500; and Priority Energy Services, of Chicago $49,000. Clyde Payne, of OSHA, stated:

There were known issues employees shouldn’t have been exposed to. There should have been steps taken to protect employees.

There has been a rash of pipeline explosions over the past year. Most of them involved testing the pipelines.

Source: Associated Press

SOURCE: Jere Beasley Report › OSHA Fines Three Companies For Fatal Pipeline Explosion

Reverse settlements, also characterized as “pay for delay” settlements, were criticized by President Obama during his campaign when he promised to “ensure that the law effectively prevents anticompetitive agreements that artificially retard the entry of generic pharmaceuticals onto the market.” California Representative Henry Waxman has stated, “As coauthor of the Hatch-Waxman Act, I can tell you that I find these type[s] of reverse payment collusive arrangements appalling.”

Now the Second Circuit has begun to weigh in. In Ciprofloxacin, purchasers of the antibiotic Cipro sued Cipro’s manufacturer, Bayer, as well as generic manufacturer Barr Laboratories, for violating antitrust laws by entering into a reverse settlement as described above. The Plaintiffs alleged that Bayer settled its patent infringement case against Barr by paying off Barr in exchange for Barr’s agreement to withhold release of its generic version of Cipro.

The Department of Justice Antitrust Division joined the Ciprofloxacin Plaintiffs to argue that reverse settlement agreements in the pharmaceutical industry should be treated as “presumptively unlawful” under Section 1 of the Sherman Act. This represented a marked departure from the longstanding Department of Justice position under the Bush Administration, which essentially turned a blind eye to reverse settlements.

In an opinion released April 28, 2010, the Second Circuit noted that “there are compelling reasons to revisit [precedent]” with respect to reverse settlements, including the substantial increase in the number of reverse settlements in pharmaceutical patent cases, as well as the federal government’s recent about-face on the legality of reverse settlements. The Court invited the Ciprofloxacin Plaintiffs and the government to petition for an in banc hearing to consider whether prior precedent condoning reverse settlements should be overturned.

This U-turn by the federal government with respect to reverse settlements, not to mention the potential for reversal of Second Circuit precedent, represent a most interesting development in antitrust law. We expect that reverse settlements will receive increased scrutiny from the Department of Justice and also the Federal Trade Commission going forward. If the Second Circuit reverses Ciprofloxacin, we foresee that reverse settlements will be the subject of increased litigation in the federal courts. If you need additional information on this subject contact Archie Grubb at 800-898-2034 or by email at Archie.Grubb@beasleyallen.com.

SOURCE: Jere Beasley Report › A Look At Reverse Settlements In Pharmaceutical Patent Cases

The history of class action litigation is over 1,000 years old. America’s present class action system was born when law and equity merged in 1937. That year the Supreme Court adopted the Rules of Civil Procedure, and Rule 23, “Class Actions,” was included. Rule 23 has been adjusted in favor of and to the detriment of Plaintiffs. In 1966, substantial changes in the process added “opt out” language that changed the landscape of class actions. Class action litigation through 2005 was generally limited to state or federal cases only; removal was difficult due to diversity limitations.

In 2005, the Class Action Fairness Act (CAFA) was enacted, relaxing the rules of diversity and removal, enabling most large class cases to be filed in, or removed to, federal court; restricted the practice of “coupon settlements”; and transformed the procedures for settling class actions in federal courts. Ever-changing interpretation and application in class actions continues to be evident even today in recent Court decisions, such as the Supreme Court’s decision in Ashcroft v. Iqbal, 129 S. Ct. 1937 (2009).

Throughout these changes, whether substantive or procedural in nature or effect, class actions have stayed true to their purpose: to provide the group of injured persons with relatively small claims with a way to come together and take action against the entities that harmed them. These injuries were real and painful to Plaintiffs, but because of their position in relation to those who harmed them, their voices were silent without class litigation. No one should be allowed to injure thousands of people without being held accountable for their actions. Often those who champion “tort reform” say that because these actions result in large awards, but are then split among many, they are only injuring businesses and helping lawyers. This is simply not true.

Big business cannot be allowed to enjoy huge profits while it injures consumers. Consumers shouldn’t be forced to take on these massive companies alone. By banding together in a “class,” consumers can force these businesses to stop their actions and repay the ill-gotten gains. In many cases, these consumers successfully punish the wrong-doers so they understand that their behavior cannot be tolerated in the future. Without this type litigation, how could individuals stand up against Big Tobacco companies? Asbestos manufacturers? Insurance companies? Financial companies, such as Enron? What about today? Could a single person take on Toyota or BP? In theory yes, but in reality no. This subtle fact is known by the large and irresponsible entities when they do harm to individuals. Folks need to be able to associate themselves with other people who have suffered common injuries and utilize the skills of experienced lawyers who can adequately represent their interests. Lawyers in our firm continue to champion the causes of individuals and groups. Through the efforts of our highly-skilled lawyers and support staff members, we continue to fight to keep the scales of justice balanced. If you need additional information on class action litigation, contact Dee Miles or Tim Fiedler at 800-898-2034 or by email at Dee.Miles@beasleyallen.com or Tim.Fiedler@beasleyallen.com.

SOURCE: Jere Beasley Report › The Past, Present, And Future Of Class Actions

On average, 120 people die and over 4,300 are seriously injured each year from clothing-related burns. Remarkably, the textile and clothing industry has done very little over the past half century to decrease the flammability of the clothes and minimize this safety issue. Instead, the industry chooses to manufacture its clothes to conform to an outdated and minimum standard. The majority of the clothing or textile products sold in this country are regulated by the Flammable Fabrics Act. The Act was passed by Congress in 1953. The vast majority of all clothing-related injuries and deaths occurred with fires involving apparel that complied with this standard.

Since 1953, the Flammable Fabric Act has essentially been unchanged. It was enacted to remove from the market only those garments that were the most highly flammable. The vast majority of textile products subjected to the standard’s test readily pass and are designated as “Class one normal flammability.” This result unfortunately implies that the textiles are safe to use in clothing. The concept of “normal flammability” in the context of this test is misleading as a measure of safety. “Normal flammability” is merely a term defined by the general wearing apparel standard. Ordinary news print paper passes this test. Consumers need to be aware that a “does not ignite” result under these test conditions does not mean that a fabric will not ignite under real world conditions. In addition, just because the fabric passes the standard does not mean that it will prevent a fairly rapid spread of flames up the fabric. Furthermore, the standard only measures the rate of flame spread up the fabric test specimen, but permits a rapid flame spread.

There can be no doubt that the industry can design and test its clothes to decrease the injuries and deaths caused by flammable clothing. The textile industry could utilize the more stringent Flammability Standards for children’s sleepwear. In the 1970s, Congress enacted the Children’s Sleepwear Standard Act which had as its goal to protect young children up to twelve years of age from the unreasonably risk of thermal burns caused by burning sleepwear. The Children Sleepwear Standards Act brought about certain changes to the materials and construction of children’s sleepwear in order to reduce the risk of cloth-related burns. The standards required the fabric, once ignited, to extinguish before burning seven inches. Those changes resulted in safer sleepwear and contributed to a reduction in burn injuries and deaths for the public at large.

Everyday in this country, people are subjected to burns and die in clothing-related fires. Many of these losses are preventable, yet, the Federal standard regulating the flammability of these products remains unchanged. Regulators could build on the proven approach of the Children’s Sleepwear Standard Act, and develop a modernized clothing flammability standard that equally protects the public. The textile and apparel industry could move towards the production of safer garments by re-designing its products. In addition, greater use of effective, visible, clothing fire warning labels would help. Historically, it’s been proven that most consumers don’t recognize or appreciate that much of the clothing they purchase can be so easily ignited.

Clothing-related causalities will undoubtedly continue unless changes are made to the way clothing is manufactured and labeled. The effects of the Children’s Sleepwear Standards demonstrate that the frequencies of deaths and injuries will decline if changes are made to the fabric and apparel. It is time that the textile, apparel, and retailing industries respond by producing safer clothing. If you need more information on this subject contact Rick Morrison in our firm at 800-898-2034 or by email at Rick.Morrison@beasleyallen.com.

SOURCE: Jere Beasley Report › The Overlooked Problem Of Clothing-Related Burn Injuries And Deaths

Automobile manufacturers have been well aware of the dangers of reclining seats for nearly four decades. At a 1964 Stapp Car Crash Conference, two safety-equipment engineers presented a report analyzing the effect lap belts have on reclined-seat occupants. The report discussed sled testing in which the seatback was reclined almost fully. When the sled stopped suddenly, the test dummy submarined under the lap belt almost ten inches, driving the belt into the dummy’s abdominal cavity.

In 1988, the National Transportation Safety Board conducted a safety study where one of the issues was the effect of reclining seatbacks. The NTSB examined 167 collisions involving passengers who had worn three-point restraints. The result showed that three-point restraints offered good protection only if worn properly. An occupant who wears a seatbelt while his seat is reclined is not “centered” in the belt, rendering the belt ineffective for spreading crash forces over the body.

The NTSB stated that the protection offered by any type of seatbelt is compromised when the seat is reclined presenting a “potentially dangerous combination in a moving vehicle.” It was noted by the NTSB that, “since vehicles had been marketed with reclining seats, most adults and children were tempted to combine belt use with a reclined seat.” The study concluded that, “at best, lap/shoulder belts, indeed, any type of seatbelt, offered reduced effectiveness when used with a reclined seat. At worst, a lap/shoulder belt in a reclined seat may be a potentially dangerous combination in a moving vehicle – proper fit is impossible.”

Although some vehicle owner’s manuals warn of the dangers of reclined seatbacks in moving vehicles, the warnings do not state specifically what degree of recline is dangerous. Further, the NTSB pointed out that, since the manufacturers advertised their cars by showing a passenger in a reclined seat, while wearing a seatbelt, these advertisements undermine the already limited effectiveness of owner’s manuals warnings (especially if the warnings are unclear, as in advertising not to recline the seat “any more than as needed for comfort”).

The NTSB submitted safety recommendations to NHTSA based on the findings in the study. The report recommended that manufacturers limit the angle of inclination allowable in a reclining seat to no greater than the maximum angle that can safely be used in combination with a seatbelt. The report further requested that NHTSA determine to what degree a seatback could be reclined and still allow an occupant to be properly and safely restrained by a lap/shoulder belt combination. In March 1989, the NTSB stated that:

• Warnings and owner’s manuals are not effective for preventing passengers from misusing lap/shoulder belts and reclining seats;

• It is not known at what point the lap/shoulder belt becomes dangerous with reclined seats; and

• Testing is required to determine the safe limits of reclined seats.

NHTSA also noted that “it is likely that most people who ride with the seatback reclined are not aware of the associated risks; they are simply using the added comfort the reclining seatback affords.” In response to NHTSA’s initial position and NTSB’s findings, the auto manufacturers claim that the owner’s manuals effectively “discourage” the use of reclined seats while a vehicle is in motion, and that “common sense” indicates that an upright seat is safer than a reclined one. Clearly, the industry’s response was to blame the motoring public and ignore the problem.

It is shameful that the automobile industry has taken this position. There are ways for the industry to address this dangerous problem. A simple warning that points out the danger of reclining seats can be inexpensively incorporated into a vehicle design, and yet, it would convey the needed information to alert the passengers of the danger. A warning label can be the first step towards educating the public. But a warning would be unnecessary if the industry would start designing its restraint system in such a manner to alleviate the problem.

For example, GM has incorporated into some of its current vehicles, a seat design that mounts the seatbelt system within the seat itself. Known as the “all belts to seat,” this design allows the shoulder harness to stay in position even when the occupant reclines the seat. Automakers could also add a device that would warn the vehicle passengers of the hazards of reclined seats. In fact, years ago, a major manufacturer of seatbelts patented a device that would give a visual or audible warning if a passenger were to recline his seat to a dangerous degree.

Folks are being needlessly injured and killed as a result of the automobile industry’s inaction on this subject. The industry knows that the motoring public does not understand or recognize the danger of reclining the seat while the vehicle is in motion. The industry knows that millions of families drive millions of miles on the road every year. The industry knows that occupants in their vehicles will recline their seats to take naps, and by doing so, the occupants are all at great risk of serious injury or death in an accident. But, the automobile manufacturers turn a blind eye to this danger even though there are simple approaches they could take to educate the public and prevent such needless injuries and deaths each year. If you need more information please contact Dana Taunton at 800-898-2034 or by email at Dana.Taunton@beasleyallen.com.

Source: Portions of the above article were taken from the PR Newswire, “Hyundai Reclining Seat Kills in Car Accident, Injury Attorney Todd Tracy Issues Car Safety Alert,” April 23, 2010.

SOURCE: Jere Beasley Report › A Look At What The Carmakers Have Known

If my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then will I hear from heaven and will forgive their sin and will heal their land.

2Chron7:14

SOURCE: Jere Beasley Report › A Monthly Reminder

But, children of all ages can rent these games – even though they are rated Mature (M) without the knowledge or consent of their parents or guardians. Scientific and clinical research has linked the playing of these games to a harmful and lasting impact on children. This is why the Parents Television Council is leading a national campaign to prevent video game retailers from selling these ultra-violent products to children. If you want more information, you can go to www.parentstv.org. It’s high time that folks who want to protect children from evil influences get involved and let our political leaders know this sort of thing can’t be tolerated in the Untied States.

SOURCE: Jere Beasley Report › An Important Message For Parents

Let brotherly love continue. Do not neglect to show hospitality to strangers for in doing so some have entertained angels unaware. Remember those in prison as though you were with them; and those who are ill-treated since you are in the body. Let marriage be held in honor and the marriage bed undefiled for God will judge those who practice unfaithfulness. Keep your life free from the love of money and be content with what you have; for He has said “I will never leave you nor forsake you.”

Hebrews 13:1-5

My good friend Joyce Spear tells me her favorite Bible verse is one that gives her comfort when times get tough. Joyce and her husband, Cecil, have been our good friends for years and they attend St. James United Methodist Church with us. Joyce was originally from Crenshaw County where some of my kinfolks live. She will tell you exactly what she thinks and believes and I like that trait. Joyce’s contribution to the Report this month comes from Matthew:

Come to Me, all you who labor and are heavy laden, and I will give you rest.

Matthew 11:28

Several of the youngsters who attended a summer camp in Montgomery operated by Common Ground last month furnished their favorite verses for this issue. I really appreciate Shanijer Miller (five years old), Keanete Shipper (seven years old) and Latrierra Davis (seven years old), taking time to send me their pictures. They also sent some great drawings. This verse was sent by these children:

But Jesus said, “Let the little children come to Me, and do not forbid them; for of such is the kingdom of heaven.”

Matthew 19:14

Bryan Kelly, with Common Ground, is doing a tremendous job with young folks in West Montgomery. Bryan also sent in a verse for this month:

Oh, magnify the LORD with me, And let us exalt His name together.

Psalm 34:3

I can think of no organization that does more for young folks than the FCA. Les Steckel, who is president of FCA, sent us the following verses:

Strengthened with all might, according to His glorious power, for all patience and longsuffering with joy;

Colossians 1:11

He who began a good work in you will perfect it until the day of Christ Jesus.

Phil 1:6

Larry Wilson, a very good lawyer from Houston, Texas, says he enjoys reviewing the Jere Beasley Report each month. Larry says he particularly likes this section on the Bible verses and sent in the following verse:

Then I heard the voice of the Lord saying, ‘Whom shall I send, and who will go for Us?’ Then I said, ‘Here am I. Send me!

Isaiah 6:8

Larry says this verse shows an attitude that all Christians should have in terms of reaching out to the lost world. That is absolutely true and badly needed in these trying times.

SOURCE: Jere Beasley Report › Favorite Bible Verses

With four million blood donors, the Washington, D.C.-based organization is the largest supplier of blood, plasma and other blood products in the United States. The $16 million fine is only the latest penalty assessed against the organization. The FDA has already sent 12 letters to the American Red Cross and imposed over $21 million in fines since 2003, not including this most recent fine. According to the FDA, the Red Cross has taken significant steps to correct the problems.

Source: Reuters

SOURCE: Jere Beasley Report › FDA Fines Red Cross $16 Million For Safety Lapses

Source: Associated Press

SOURCE: Jere Beasley Report › Bank Of America Settles Telemarketing Lawsuit

Source: CPSC Release

SOURCE: Jere Beasley Report › A Warning Message From The CPSC

ARBITRATION WILL NO LONGER BE USED TO RESOLVE NEW DISPUTES: We are removing the Arbitration sections from your Credit Card Agreement.

While this is a welcomed change in policy, I really am not sure what brought this change on. I can only assume Bank of America now realizes that consumers don’t like forced arbitration.

SOURCE: Jere Beasley Report › Bank Of America Takes Arbitration Out Of Credit Cards

A lawsuit was filed against Quicksilver Resources, the owner of the gas plant, and Hanover Compression, which sold the gas processing plant to Quicksilver. Hanover Compressions is now known as Exterran Energy Solutions. It was alleged in the suit that Hanover, which owned the plant when it was located in Oklahoma, had the responsibility of relocating the plant to Texas, refurbishing and restoring the plant and its equipment, and then reconstructing the plant and reinstalling the equipment at the Texas site in accordance with specific safety standards and plan specifications. The Defendants argued that Petrie’s own negligence caused the heater to explode.

Hanover failed to install purge systems and safety valves in the oil heater that would have prevented gas from building up inside and causing the explosion that killed the worker. That failure violated the National Fire Protection Association standard. Both Hanover and Quicksilver were on notice about the absence of purge systems and safety valves back in 2005. Purge systems would have gotten the gas out of the furnace.

The Plaintiffs also claimed that the heater was not properly installed. The worker went through the proper steps to start the furnace, and each time gas was introduced inside. Since it wasn’t installed properly, the furnace wouldn’t light. The Plaintiffs’ lawyers focused on OSHA records and witness testimony to explain the proper safety standards and prove their case.

The plant relocation “was a turnkey project,” meaning that Hanover had to reconstruct and transfer the plant to Quicksilver in a ready-to-use condition. Delays in the job cost the companies money. It appears the companies sidestepped safety standards in order to cut costs, despite the fact that the two companies agreed to adhere to NFPA standards in their agreement to sell and relocate the plant.

The jury found Hanover 80% at fault and Quicksilver 20% at fault for the incident. Jurors concluded that the worker was not negligent. The verdict consisted of $57.5 million in compensatory damages for the Plaintiffs’ past and future pecuniary loss, and loss of companionship and mental anguish, as well as $25 in punitive damages. Ammons said the verdict shows other gas processing companies that they will be held accountable if they fail to keep their workers safe.

Three additional Defendants who were involved in various ways with the refurbishing, relocating or installing of the heater were dismissed from the lawsuit as a result of a confidential settlement reached with each. Robert E. Ammons, a lawyer from Houston, Texas, represented the family and did a very good job.

Source: Lawyers USA Online

SOURCE: Jere Beasley Report › Jury Returns $82.5 Million Verdict In Gas Plant Blast Case

The incident that killed Chupin and injured another 18 workers occurred during construction of a pedestrian walkway designed to give visitors a view of the garden from 40 feet above ground. The men were hurt when part of the elevated path crumbled, causing workers to fall dozens of feet to the ground. Several workers suffered fractures and spinal injuries. Mr. Chupin was killed. An Occupational Safety and Health Administration report determined the incident may have been caused by two support towers that were placed too far from each other. OSHA also referenced a failure to properly inspect the shoring equipment before the concrete pour as a factor in fines ranging from around $5,000 to $15,000 issued against three of the companies involved in the walkway’s construction. Mike Moran, a very good lawyer from Atlanta, represents Mrs. Chupin. The family wants to recover the full value of this man’s life. Hopefully, they will be successful in this case.

Source: Atlanta Journal Constitution

SOURCE: Jere Beasley Report › Lawsuit Filed Over Atlanta Bridge Collapse

In the other race, Justice Mike Bolin defeated Dothan lawyer Tracy Carey, a lifelong Republican and a good man, by labeling him a “trial lawyer.” That was the sole message of Bolin’s heavy television ad campaign. Most folks never got to know Tracy – a military veteran, a family man, a strong Christian, and a very good lawyer. As a result, he lost the race and probably never even had a chance to win once the Bolin attacks started on television. Both Bolin and Parker will face strong Democratic opposition in the fall. The word on the street is that Bolin, if reelected, will run for Chief Justice in 2012.

SOURCE: Jere Beasley Report › Mike Bolin And Tom Parker Survive The Primary

SOURCE: Jere Beasley Report › Democratic Candidates Were All Unopposed In The Supreme Court Races

It was rather interesting that Big Luther’s background as a Washington lobbyist, and his most interesting list of “clients,” never really surfaced in this race. While both should have been real issues in the campaign, neither issue ever developed. Troy wound up having to defend himself – causing a good record over his tenure as Attorney General to be lost in the shuffle and virtually ignored by the voters – and in reality he never really had a chance to win. When you get down to it, there were just too many things for Troy to overcome. It will be interesting to see how the GOP nominee, who has very close ties to big oil companies like BP, will fare in November.

SOURCE: Jere Beasley Report › The Worst Performance Of All Was In The GOP Race For Attorney General

While some of the funding was spent serving special interest partnerships like veterans’ health organizations, the bulk of the money was spent on aspects of the legislation that could lead to greater use of the company’s products, including insurance coverage for smoking cessation products like Chantix. This action has sent up a red flag to many health advocates, who expressed concern that increased prescription and availability of Chantix could lead to a rash of suicides.

These concerns stem from a 2007 black box warning about potentially dangerous Chantix side effects, including aggression and suicidal thoughts. The drug works by blocking nicotine receptors in the brain – a factor which can greatly exacerbate pre-existing psychiatric conditions like suicidal thoughts and aggression. The FDA has reported roughly 491 cases of suicidal tendencies or behavior directly linked to usage of Chantix. So long as the weak laws relating to lobbyists go unchanged, companies like Pfizer will continue to control what happens in Washington. Over the past few months the Obama Administration and Congressional leaders have had to focus their attention on issues like the gulf oil spill and Toyota’s safety issues. As a result, all reform efforts have been delayed and that is certainly understandable. Hopefully, the reform measures will soon get back on track.

Source: LAS Newswire

SOURCE: Jere Beasley Report › Pfizer Spends Millions On Lobbyists Despite Chantix Warnings

SOURCE: Jere Beasley Report › Pfizer Receives Warning Letter From FDA

According to the U.S. Occupational Safety and Health Administration, BP has ignored worker safety in relation to the clean up. OSHA made this known to the Coast Guard and requested help in communicating the agency’s “growing concern over significant deficiencies in BP’s oil response operations related to worker safety.” The oil giant’s failures to adequately protect workers involved in the oil spill cleanup efforts pose “potentially grave consequences” for their health. The failure by BP to look out for workers’ safety isn’t too surprising, considering its past record.

Thus far it appears BP has done nothing to seriously and systematically address OSHA’s concerns. According to reports, OSHA field representatives have witnessed “numerous deficiencies at several work sites and staging areas throughout the Gulf Coast region.” They say these problems were not isolated incidents. Another source of “grave concern and frustration” on OSHA’s part is that BP has failed to share critical health and safety information relating to the exposure and injuries of its cleanup workers.

SOURCE: Jere Beasley Report › BP Fails To Protect Cleanup Workers

It appears clear that the special interests “call the tune,” and when they do, the GOP leaders start to dance. The special interests, and especially Big Oil, Big Banks, Big Insurance and Big Pharma, call the shots and their political friends in the Republican Party do their bidding. That’s truly a sad state of affairs for the American people. The people in our great nation expect our political leaders to work together and to cross party lines when necessary to get good things done for the American people. That is especially true in times of national crisis. It’s time for the Republican leaders in Congress to step up to the plate and start cooperating with the Democratic leaders on good programs.

SOURCE: Jere Beasley Report › A Political Party With No Answers

As we have reported, the December 22, 2008, spill began when a dike collapsed at a retention pond at the TVA power plant in Kingston, about 35 miles west of Knoxville. The mixture of water and ash was enough to fill nearly 800 Olympic-sized swimming pools, spreading across more than 300 acres of land and fouling the adjacent Emory River. The spill contained toxic chemicals, such as arsenic, selenium, and lead, as well as radioactive materials like chromium and barium. About 60% of the 1.1 billion gallon spill has been removed from the river in the first phase of cleanup. The entire operation may take another three to four years, according to Commissioner Fyke and that may be a conservative estimate.

Source: CNN

SOURCE: Jere Beasley Report › TVA Is Fined $11.5 Million By Tennessee

The public is now beginning to see how federal agencies lack the resources to adequately protect and safeguard the American people. Folks have finally come to realize that powerful corporate lobbyists control Congress and that’s not good for ordinary folks and really not good for businesses. Large corporations brag about the millions of dollars saved by limiting their recalls and they ignore industry guidelines in spite of the need for consumer safety. Millions are spent on public relations efforts to make bad conduct look and sound good. A case in point is BP’s handling of the ongoing crisis in the Gulf of Mexico.

Americans are entitled to safe products, fewer preventable injuries and a restoration of checks and balances that give people a fair chance to obtain justice when a corporation is guilty of wrongdoing. Unfortunately, it’s only after tragic accidents that our government closely analyzes the agencies and systems that failed. It is only then that emphasis is put on taking the necessary steps to correct things. There is only one institution that consistently protects consumers and holds wrongdoers accountable and that’s the American civil justice system. This system has constantly been under attack with the so-called “tort-reformers” focusing on “trial lawyers” and a system they claim is “broken.” They know that the victims of corporate wrongdoing and abuse can’t be attacked, so they do the obvious – they attack the lawyers who represent them, and attack the jury system.

There is no shortage of examples of corporations letting profits override safety and basic consumer protections. The marketing arms of the companies continue to run over sound safety engineering judgment. You can list corporation after corporation that have committed massive wrongs and tried their best to get away with it. Large corporations like BP, Toyota and Massey Energy put lives at risk, expecting no real consequences. They attempt to evade accountability for their actions. Yet once the scandals of these corporations fade away, it will be telling to see whether some lawmakers continue with their fixation on “tort reform” — or hand out immunity to the very same corporations responsible for injuring and killing consumers in the first place.

The barons of Corporate America, and their hired guns at the U.S. Chamber of Commerce, have dedicated millions of dollars to demonize trial lawyers. Yet each corporate scandal and dangerous product show that when the first lines of defense fail to protect the safety of consumers, that leaves only the civil justice system to hold corporate wrongdoers accountable and restore justice. At the end of the day, it is trial lawyers — not the big corporations that put profits ahead of safety — who speak for ordinary citizens and seek justice for victims of corporate wrongdoing and abuse.

Meanwhile, the tort system is now, and always has been, a vehicle for effecting change, enhancing safety, and holding wrongdoers accountable. The next time cries of “tort reform” ring out from the usual suspects, remind those hired-guns about BP, Toyota, Wall Street, Enron, Massey Energy and the legions of corporate wrongdoers. Americans should think twice before they let Congress and state legislative bodies continue to shield corporate profits at the expense of their own safety and well-being.

Source: American Association for Justice

SOURCE: Jere Beasley Report › The Civil Justice System And Justice

SOURCE: Jere Beasley Report › Parting Words

Many observers say Mac wrote the rules of the Senate, but that really isn’t true. But he does know them better than any Senator who has ever served in that body. It’s well known that Mac has had to bail out a number of presiding officers when they found themselves in a difficult spot, having to resolve disputes dealing with rules that might not be of the ordinary sort. I can speak from experience on that front. Mac bailed me out on more than one occasion and he has never let me forget it.

I am firmly convinced that one of the best traits any person can have is loyalty to friends. All who have known Mac over the years will tell you that he tops the list when it comes to being loyal to his many friends. When Mac leaves the Senate, he will do so with class and dignity. But he will be sorely missed and in my opinion nobody will be able to replace him. His departure will be the state’s loss and that can’t be denied. I consider my friend, Charles McDowell Lee of Barbour County, to be a great American and truly a legend in his own time.

SOURCE: Jere Beasley Report › The End Of An Era In The Alabama State Senate

• Never mistake activity for achievement.

• Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are.

• Be prepared and be honest.

• You can’t let praise or criticism get to you. It’s a weakness to get caught up in either one.

• You can’t live a perfect day without doing something for someone who will never be able to repay you.

• Success comes from knowing that you did your best to become the best that you are capable of becoming.

• Talent is God-given. Be humble. Fame is man-given. Be grateful. Conceit is self-given. Be careful.

Source: CoachWooden.com

SOURCE: Jere Beasley Report › John Wooden Was More Than Just A Great Coach

The court order requires each Petco store to deduct $3 from the lowest advertised or posted price of the item if a customer is overcharged, prosecutors said. If the item is $3 or less, the customer would receive one of the items free. Petco must also conduct regular pricing audits, according to the settlement. Inspections of Petco stores in Marin County by humane society officials revealed that some animal habitats were not being properly cleaned and maintained. In some instances, sick animals were not identified and removed from the sales floor, authorities said.

As a condition of the settlement, Petco agreed to conduct daily animal and habitat inspections and comprehensive employee training, and to provide prompt veterinary care for sick or injured animals. Prosecutors said Petco paid more than $850,000 to resolve a case involving similar allegations in 2004. The company operates 23 stores in San Diego County and about 160 throughout the state.

Source: Signonsandiego.com

SOURCE: Jere Beasley Report › Petco Pays $1.75 Million In Overcharging Penalties

While Johnson & Johnson’s troubles have drawn less attention than those of companies like BP and Toyota Motor Corp., the company is facing legal problems on several fronts. Two class actions have been filed against the McNeil division – one in the Northern District of Illinois and the other in the Eastern District of Pennsylvania – trying to force it to broaden the recall and offer cash refunds instead of coupons for new products. Shareholders filed suit against Johnson & Johnson in New Jersey, alleging that the company breached its good-faith duty by failing to act after the FDA had expressed earlier concerns about quality control and manufacturing practices at the plant.

Meanwhile, the FDA is considering criminal penalties against McNeil. The House Committee on Oversight and Government Reform, which has held a hearing on the recalls, is still checking into the issue. Edolphus Towns, (D-NY), the Committee Chair, plans to introduce legislation giving the FDA mandatory recall authority. But getting much done involving drug companies in Congress is never easy. Johnson & Johnson has a steady roster of Washington lobbyists. The company’s lobbying expenses were $2.1 million in the first quarter of 2010, before the recall, and nearly $6.4 million in 2009. Its Washington office includes 14 in-house registered lobbyists. Eleven outside lobbying firms have registered Johnson & Johnson as a client, including some of the real heavy weights. All of these lobbyists are being paid very well.

Source: Law.com

SOURCE: Jere Beasley Report › Johnson & Johnson Faces Lawsuits And Federal Probes Over Recalls

We are sorely disappointed to learn that [the Consumer Product Safety Commission] has chosen to interpret the law in the most egregious and narrow way possible, eliminating the requirement for pools and spas to be equipped with back-up systems. The swimming season is upon us. We are writing to you to urge you in the strongest possible way to reverse these rulings.

The letters, signed by Democratic Representatives Debbie Wasserman Schultz of Florida and James Himes and John Larson of Connecticut, and Republican Frank Wolf of Virginia, are the latest development in a pool-season push to get the CPSC to enforce what safety advocates consider to be the original intent of a law passed in 2007 to prevent deaths from drain suction. In March, the CPSC voted to interpret the Virginia Graeme Baker Pool and Spa Safety Act, named for a seven-year-old who died in a pool-drain incident in 2002, to no longer require back-up anti-entrapment systems in the drains of as many as 150,000 public and hotel pools and hot tubs. That action is indefensible and should be reversed.

The decision outraged pool-safety advocates and the parents of children killed by pool-drain suction. After Nancy Baker, mother of Virginia Graeme Baker, read comments from the commissioners who voted to reinterpret the law, she had this to say:

They say the problem [of pool-drain suction] is small and rare. It’s always been rare to die this way. But the bigger point is that it’s preventable and it’s a violent and horrible way for a small child to die. How many kids have to die or be maimed in that way for the CPSC?

Members of Congress aren’t the only ones putting pressure on the CPSC. On June 9th, Mrs. Baker signed a letter from the group Safe Kids to Robert Adler, one of the three commissioners who voted to interpret the law, urging him to change his vote. Paul Pennington of the Pool Safety Council has also launched an on-line petition that targets Commissioner Adler. The letters signed by the four members of Congress went to Adler and Anne Northup and Nancy Nord, the two other commissioners who voted to reinterpret the Act.

The vacuum effect in pool drains is powerful enough to hold swimmers, especially children, to the bottom of a pool. Contact between human skin and a flat pool drain can create suction equal to hundreds of pounds of pressure. In one horrific instance, four adult men were unable to pull a young girl from the grasp of a deadly drain. Swimmers can die from drowning or evisceration. From 1999 to 2008, according to CPSC data, there were 83 reports of suction entrapment, including 11 deaths and 69 injuries. Experts say the number of deaths and injuries may be much higher, however, because police and medical records don’t always list specific causes for drowning.

In December 2007, in a rare bipartisan vote, Congress passed the Virginia Graeme Baker Pool And Spa Safety Act to provide basic drain safety standards and layers of backup protection from dangerous drain suction for the nation’s public and hotel pools and hot tubs. The law mandates that drains in about 300,000 of the nation’s public and hotel pools and hot tubs be covered with larger, rounded covers that do not create suction, and that there be a back-up mechanical system installed in drains to prevent suction in those pools that have a single main drain. As many as half of the pools and hot tubs covered by the Pool Safety Act have single main drains.

New CPSC chairwoman Inez Tenenbaum asked for a review of the Pool Safety Act shortly after taking the helm of the commission last year. She called on representatives of the pool industry and pool safety advocates to make presentations to the commission. On behalf of the pool industry, pool equipment manufacturer Leif Zars argued that redesigned drain covers were enough to prevent pool suction accidents. When I learned that a majority of the CPSC commissioners agreed with the pool industry’s position I was shocked. Now public and hotel pools won’t have to install a secondary anti-entrapment system in order to be in compliance with the Pool Safety Act’s clear wording of “unblockable drain.” Pool safety advocates argue that larger, rounded drain covers are not enough and I agree with them. Rep. Wasserman Schultz, who introduced and pushed for the passage of the Pool Safety Act, had this to say:

This ruling leaves children’s lives only as safe as the first layer of protection, which leaves them vulnerable to human error and mechanical failure, with no further layer of protection.

The CPSC’s decision even went against the position of Chairman Tenenbaum, who stated:

In my role as Chairman I am not willing to gamble the safety of our children in the hope that drain covers throughout the nation that are commonly removed for maintenance always will be reinstalled correctly or that a missing or broken drain cover will be immediately noticed by an observant pool operator who will then shut down the pool before any children are at risk.

Hopefully, the Commission will reverse what I consider to be a very bad decision and will follow the law as Congress intended. The public interest – and safety concerns – in combination, should cause the commissioners who weakened the intent of the Act to change their votes. Since the summer months are here, time is of the essence.

Source: ABC News

SOURCE: Jere Beasley Report › A Bad Decision Relating To Pool Drain Safety Law

As we have reported in previous issues, the oil industry transfers motor fuel within the industry based on the U.S. Petroleum Gallon – an established standard that measures motor fuel based on a temperature of 60 degrees. The purpose of the standard is to compensate for loss in energy that occurs in each 231 cubic-inch gallon as the fuel heats. However, the oil industry has consistently fought against providing the same benefit to consumers, who are purchasing fuel in hot states where the fuel’s temperature can exceed 100 degrees. Based on a series of 2006 stories and a Congressional study, it has been estimated that the industry practice of selling hot fuel costs consumers $2.3 billion annually.

Judge Vratil said if the Plaintiffs prevail on the liability and injunctive portions of their claims, she would consider whether to certify a class for damages. The Defendants in the Kansas case include BP, Casey’s General Stores, Chevron, Circle K, Citgo, ConocoPhillips, 7-Eleven, Shell Oil, Valero, Kum & Go, QuickTrip and Wal-Mart.

Beasley Allen lawyers Rhon Jones and Parker Miller, who are in our firm’s environmental section, have played a major role in the progression of the hot fuel litigation. If you want more information, please contact Rhon Jones and Parker Miller at 800-898-2034, or by email at Rhon.Jones@beasleyallen.com and Parker.Miller@beasleyallen.com.

SOURCE: Jere Beasley Report › Two Hot Fuel Cases Get Class Certification Status

The named Plaintiff, Aaron D. Martin, contends that the axle of his 2001 Windstar minivan broke due to internal rust damage while he was driving in May. It’s alleged that more than 949,000 Windstars were manufactured with a defective axle. The law firm of Golomb & Honik of Philadelphia filed this suit, claiming that Ford breached its implied warranty of merchantability and its express warranty.

While we are not involved in the Pennsylvania case, our firm is involved in other litigation involving the very same defect. If you need more information on this subject, contact Chris Glover at 800-898-2034 or by email at Chris.Glover@beasleyallen.com.

Source: Lawyers USA Online

SOURCE: Jere Beasley Report › Class Action Filed Against Ford Over Minivan Defect

David Sanford, who was one of the Plaintiffs’ lawyers, said the findings “sent a message to Novartis and all other corporations in America that they cannot continue to get away with the discrimination and the systemic problems that have gone on for so long. That day has come and we’re absolutely delighted.” During the trial, the Plaintiffs portrayed one district manager as particularly abusive, so much so that he showed women pornographic images and invited them to sit on his lap. Novartis admitted that it might have been slow to investigate the claims against the manager, who incidentally was fired two years after the lawsuit was filed in 2004.

A lawyer for Novartis told the jury, “he wasn’t that bad a manager. He was just terrible with women.” It was a comment that I suspect had best not been made. The Plaintiffs’ lawyers repeatedly reminded the jury about it during closing arguments. I agree with David Sanford, who represented the women, when he told the jury, “You can’t be a good manager if you’re terrible with women.” This appears to be a verdict that will be upheld by the appeals court in the event Novartis goes forward with the appeal.

Source: Associated Press

SOURCE: Jere Beasley Report › $250 Million In Damages Awarded Against Novartis In Bias Case

According to the federal court, the settlement was “fair, reasonable and adequate” to the more than 21,000 claimants. The court has scheduled a hearing for September 21st to consider final approval of the settlement.

Source: Hartford Concurrent

SOURCE: Jere Beasley Report › Hartford To Pay $72.5 Million To Settle Class-Action Lawsuit

Hartford said that it stopped paying on the $7 million claim after it became suspicious. The insurer alleged that the owners of Genesis Press enlisted the aid of an alcoholic family member to perform “surgical strikes” on the presses and inflict damage to computer drives to make the arson appear to be a crime of passion. The owners of the business said Hartford’s investigators failed to adequately pursue other leads in the case, including one involving a former disgruntled employee.

After Genesis Press sued Hartford for bad faith, Hartford filed a counterclaim seeking to recover $2 million paid out before denying the insurance claim. The jury found that Hartford was wrong to deny the printing company’s claim and found for the business owners. Hartford plans to appeal.

Source: Insurance Journal

SOURCE: Jere Beasley Report › $14.5 Million Jury Verdict Against Hartford

The cross-market trading pause was proposed last month in response to the May 6th “flash crash” that saw the Dow Jones Industrial Average plummet almost 1,000 points before partially recovering. All exchanges will halt trading for five minutes in an individual stock when its price moves 10% or more, up or down, in the previous five minutes. The pause is designed to give traders time to catch their breath and assess whether a stock’s price change stems from a real shift in value or an unrelated market hiccup.

SEC Chairman Mary Schapiro said that the “new rules will ensure that all markets pause simultaneously and provide time for buyers and sellers to trade at rational prices.” The SEC considers the stock-by-stock circuit breaker rule to be the first step of several to curb damage caused by unusual market fluctuations like those seen on May 6th. Regulators haven’t pinpointed a single cause for the incident and are saying it was caused by a confluence of events.

The financial industry generally supports the circuit breaker, but most observers and regulators agree that it alone won’t stop another flash crash from occurring. Right now, the circuit breaker applies only to stocks contained in the S&P 500 index. It doesn’t cover smaller cap stocks or index-based products such as exchange-traded funds, which were some of the stocks most dramatically affected on May 6th. “It is my hope to rapidly expand the program to thousands of additional publicly traded companies,” Schapiro said.

Rep. Melissa Bean (D-IL), in a letter to the SEC, said “I am concerned that by limiting the rules to the issuers in the S&P 500, other issuers will be vulnerable to continued market volatility.” The Issuer Advisory Group suggested that regulators include an “opt-in” provision that would permit non-S&P 500 companies to elect to participate. Other people commenting about the rule are concerned about the market disruptions outside of the 9:45 a.m. to 3:45 p.m. EDT (1345-1945 GMT) window when the circuit breaker would be in effect. TD Ameritrade Holding Corp. (AMTD) said 10% to 15% of its trades on any given day are placed overnight to be executed at market open, leaving those stocks vulnerable for 15 minutes.

As a next step, the SEC is looking to ban “stub quotes,” which are placeholder prices that tend to be far from an actual market price. Normally, those trades won’t get executed. But investigators believe that on May 6th some trades were executed unintentionally at stub-quote prices. The SEC also is working with exchanges to create a unified and predictable policy for breaking erroneous trades. Regulators and exchanges alike have said they are dissatisfied with the decision to cancel hundreds of trades that occurred during the height of market volatility on May 6th. After the flash crash, the exchanges decided to cancel all trades executed at prices that were more than 60% above or below those printed before 2:40 p.m. EDT (1840 GMT).

The SEC is eyeing certain types of buy and sell orders for further regulation. Schapiro has identified two of these types: market orders (orders to buy or sell at market price without regard to fluctuations) and stop-loss orders (orders to sell when a stock falls to a certain price). Investigators of the flash crash believe those types of orders could have accelerated the market drop. If you need more information on this subject contact Scarlette Tuley in our firm at 800-898-2034 or by email at Scarlette.Tuley@beasleyallen.com.

Source: Wall Street Journal

SOURCE: Jere Beasley Report › New Rules Passed To Avoid Another Flash Crash

Source: Associated Press

SOURCE: Jere Beasley Report › Merck Hit With $8 Million Verdict In Fosamax Trial