Lieff Cabraser: Consumer Law Newsletter Issue No. 11

Consumer Law Newsletter:
Issue No. 11

February 7, 2003

Top News

Proposed Federal Legislation Would Undermine Right of Citizens to Pursue Class Action Claims
Hundreds of Millions of Dollars in Class Action Settlement Funds Still Available for Homeowners with Defective Hardboard Siding
A Continuing National Tragedy: 15 Passenger Van Accidents

Introduction

The Consumer Law Newsletter is published quarterly by the national law firm of Lieff Cabraser Heimann & Bernstein, LLP. It is sent to persons who have contacted our firm via the internet and provided their e-mail address. We do not share e-mail addresses with any third party.

Top News

Proposed Federal Legislation Would Undermine Right of Citizens to Pursue Class Action Claims

A class action is a type of lawsuit in which one or several persons sue on behalf of a similarly affected larger group of persons. Examples of class action lawsuits include claims by:

employees of a corporation who have suffered from a pattern of racial, age or gender discrimination;
homeowners and residents affected by a toxic spill or an environmental injury to their neighborhood;
consumers who purchased the same defective product or were harmed by similar unfair business practices committed by a corporation;
patients prescribed a medicine with undisclosed, dangerous side-effects; and
merchants and consumers who pay inflated prices for products caused by the anti-competitive activities of large corporations.

A class action is a type of lawsuit in which one or several persons sue on behalf of a similarly affected larger group of persons. Examples of class action lawsuits include claims by:

Presently, employees, homeowners, consumers, and patients may seek compensation for economic and personal injuries that they and other persons similarly situated suffered through class action lawsuits prosecuted in their local state courts.

A new bill, S. 274, introduced recently in the United States Senate and sponsored by Senator Chuck Grassley would largely eliminate the right of citizens to prosecute their class action claims in state courts. Purportedly in the name of “class action reform,” the bill permits defendant corporations to remove almost all class action lawsuits to federal courts. In certain situations, the federal court to which the state court class action would be removed would be located in states far distant from where the suit was originally filed and where the plaintiffs and witnesses are located, all adding to the expense of litigation. The large corporations and other business groups behind Senate Bill 274 believe that federal judges are more conservative and friendly to their interests than judges in state courts.

In addition, Senate Bill 274 seeks to discourage citizens from safeguarding their rights through class action lawsuits by denying the named plaintiffs in these suits any additional compensation, called “incentive awards.” Incentive awards are payments to the class representatives approved by the court after the suit has been successfully resolved as a reward for having stepped forward and undertaken substantial service to the class by agreeing to serve as the class representative.

America's unique civil justice system results from a carefully crafted constitutional compromise which allows the federal and state court systems to work side by side. Lieff Cabraser Heimann & Bernstein, LLP, rejects the view that state court judges treat corporations unfairly, and that federal judges are biased in favor of big business. Judges in both state and federal courts are hard-working, conscientious and fair.

Moreover, the proponents of Senate Bill 274 fail to appreciate the effect that the legislation would have on our federal courts. The bill includes no funding for additional federal court judges or staff to cope with the thousands of class action lawsuits that would be transferred to federal court. If enacted, Senate Bill 274 would paralyze the already back logged federal court system. The ability of employees, homeowners, consumers, and patients to hold corporations that have committed misconduct accountable for their misdeeds would be delayed for years.

We encourage you to contact your U.S. senators and state your objection to Senate Bill 274. Please feel free to cut and paste text from this page in any email message you write. You can obtain the email addresses and other contact information for the U.S. Senate by visiting http://www.senate.gov/

If you would like to learn more about class action lawsuits and how they operate, and read about the experiences of one person represented by Lieff Cabraser in a class action lawsuit, please click here.

Hundreds of Millions of Dollars in Class Action Settlement Funds Still Available for Homeowners with Defective Hardboard Siding

Lieff Cabraser has obtained compensation for homeowners across America from manufacturers of home building products such as hardboard siding and roof shingles that failed to perform as promised. Hundreds of millions of dollars in settlement funds are currently available to qualified class members. In particular, homeowners should be aware of two class action settlements involving allegedly defective hardboard siding.

The first settlement covers owners of structures on which Weyerhaeuser-brand exterior hardboard siding was applied at any time from January 1, 1981, through December 31, 1999. Weyerhaeuser will pay all timely and qualified claims (known as "claims-made" settlement) for damages associated with its siding. There is no cap, or limit, on the total monetary damages to be paid.

Under the Weyerhaeuser settlement, three different deadlines govern the submission of claims. The more recently your siding was installed, the longer you will have to file your claim. Property owners whose siding was installed January 1, 1981, through December 31, 1987, have until December 2003 to submit their claim. For Weyerhaeuser siding installed between January 1, 1988, and December 31, 1993, claims are due December 2006. Finally, for siding that was installed between January 1, 1994, and December 31, 1999, the deadline is December 2009.

For complete information on the Weyerhaeuser settlement, and to request claim forms, please visit http://www.weyerclaims.com.

The second nationwide class action settlement, approved in 1998, compensates homeowners for the cost of repairing and replacing failing Masonite hardboard siding installed on homes and other structures between January 1, 1980, and January 1, 1998. To date, the settlement, valued at up to $1 billion, has paid out hundreds of millions of dollars to homeowners.

Like the Weyerhaeuser settlement, the Masonite settlement also has staggered deadlines for submitting claims. If you own Masonite hardboard siding installed between January 1, 1980, and December 31, 1989, you must file your claim by January 2005. Persons with Masonite hardboard siding installed between January 1, 1990, and January 15, 1998, have until January 2008 to file a claim.

To learn more about the Masonite settlement, please visit http://www.masoniteclaims.com or call the claims administrator toll-free at 1-800-330-2722.

California Appeals Court Denies Attempt to Halt Lawsuit Against Japanese Corporation for Using Forced Labor During World War II

During World War II, Jae Won Jeong was one of thousands of Korean civilians forced by Japanese companies to perform labor during World War II for refusing to fight for the Japanese Imperial Army. On behalf of Mr. Jeong, who is now a U.S. citizen and resident of California, Lieff Cabraser filed a class action lawsuit in California state court against the corporation for whom he was forced to work.

On January 15, 2003, in a landmark ruling, the California Court of Appeal upheld the right of Mr. Jeong and other Californians to sue corporations that subjected them to slave labor during World War II. The Court rejected the position of the U.S. State Department that the case should be dismissed because it interfered with the President's exclusive power over foreign affairs.

"This is a major human rights victory, vindicating the public policy of California to open its courts to hear claims for restitution by elderly individuals exploited as slave laborers during World War II," commented a Lieff Cabraser partner. “It is a victory not only for Mr. Jeong and other former slave laborers of Korean and Chinese descent, but also for the principle that citizens have the right to seek redress for violations of individual rights. We look forward to a speedy trial for Mr. Jeong, who is now 80 years old and in poor health."

A Continuing National Tragedy: 15 Passenger Van Accidents

Fifteen-passenger vans have seating positions for a driver and 14 passengers. They are widely used by churches and community organizations to take members on short trips and outings. Colleges use them to drive sports teams to games. Many businesses also employ the vans for transporting commuters.

It is estimated that 500,000 of the vans are in use in the United States. The vans include certain models of the Ford Econoline or E-Series, such as the Ford E350 and Club Wagon E350, the Dodge Ram Wagon B350 and Ram Van/Wagon B3500, the Chevrolet Express 3500 and the GMC Savana 3500 and Rally/Vandura G3500. Ford builds and sells most of the 15 passenger vans driven the U.S.

According to government statistics, over 440 persons have been killed and hundreds injured in rollover crashes involving the large, heavy vans since 1990. Recent widely publicized crashes have included an accident on January 31, 2003, in East St. Louis, in which a Ford E350 15-passenger van, used by a local church, fishtailed on wet pavement and rolled over. A thirteen year old boy was killed in the accident, and five other children were seriously injured.

Government safety officials report that fifteen-passenger vans hold a high center of gravity and can become unstable when fully loaded with passengers or cargo and the driver needs to make a sudden maneuver.

The National Highway Traffic Safety Administration (NHTSA) has recommended that:

15-passenger vans be operated by trained, experienced drivers;
All occupants wear seat belts at all times; and
Drivers regularly check tire pressure and treadware to ensure that the tires are properly inflated and the tread is not worn down.

To read NHTSA's recommendations in full and to learn more about this issue please click here.