D.C. Case Serves as Reminder To Involve Outside Counsel in Every Stage of Internal Investigation for Privilege Purposes
Posted on May 21, 2014
If maintaining privilege over the documents generated by an internal investigation is a concern, the involvement of outside lawyers in every step of the process is strongly suggested. The U.S. District Court for the District of Columbia recently provided a reminder of this best practice when analyzing the privilege status of internal investigation documents in a qui tam action. The court, which later characterized the privilege calls as “not close,” held that privilege did not apply to this internal investigation because the majority of the work was conducted by non-attorneys, the internal...
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Failure To Warn Claims (But Not Design Defect Claims) Against Pressure Washer Manufacturer Can Proceed to Jury
Posted on May 20, 2014
In litigation arising from an allegedly defective gasoline-powered pressure washer that caused a large fire in Kansas in 2010, the U.S. District Court for the District of Kansas granted summary judgment to the defendant manufacturer on the plaintiffs’ design defect and manufacturing defect claims, but allowed the failure to warn claims to proceed to the jury. The parties agreed that the pressure washer, which had been turned off and placed in a closet, was the source of the fire. The plaintiffs made three manufacturing/design defect claims, each of which was rejected by the court. First,...
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Tennessee Court Lacks Personal Jurisdiction Over Japanese Manufacturer of Electric Generator
Posted on May 20, 2014
The U.S. District Court for the Middle District of Tennessee granted a Japanese generator manufacturer’s motion to dismiss for lack of personal jurisdiction in a case involving multiple deaths in a camper caused by the emission of carbon monoxide. In response to a suit brought by the decedents’ estates, the Japanese manufacturer claimed the court had no personal jurisdiction because the company does not do business in Tennessee, the plaintiffs’ actions do not arise from any company activities in Tennessee, and the company lacks any systematic and continuous contacts with the state. ...
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Landowners’ Punitive Damage Claims Based on Drilling Activities Allowed To Proceed in Oklahoma
Posted on May 19, 2014
The U.S. District Court for the Western District of Oklahoma denied an oil and gas company’s motion for summary judgment that sought to eliminate the plaintiffs’ punitive damages claims. The plaintiffs alleged property damage based on multiple discharges of oil and gas onto their property from the oil and gas company’s neighboring drilling operations. The company admitted to at least five accidental discharges but argued that punitive damages were inappropriate given that the company conducted regular inspections, acted promptly to rectify reported leaks, and undertook a remediation...
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Railroad Ordered To Reinstate and Pay Worker $244,000 After Alleged Termination for Failure To Perform Required Inspection Because of Hazardous Safety Conditions
Posted on May 16, 2014
Following an inspection, OSHA has ordered a railroad to reinstate a conductor and pay him more than $244,000 in back wages and damages following his termination for allegedly failing to perform an inspection of a passing train under hazardous safety conditions. The damage award includes $100,000 in punitive damages in addition to reasonable attorneys’ fees. The conductor allegedly felt that it was unsafe to perform a required roll-by train inspection in dark, foggy conditions while the train was stopped on a bridge with a steep incline down to a river. The railroad contended he was...
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OSHA Targeting Exposure of Workers to Combustible Dust Hazards
Posted on May 16, 2014
OSHA has issued proposed penalties of $254,000 to an Illinois-based pet food manufacturer after finding the company committed willful and repeat violations for exposing workers to combustible and respiratory dust hazards, which increased the likelihood of an explosion in the manufacturing plant. The plant allegedly had not installed a dust collection system with explosion protection and used electrical equipment and forklifts that were not approved for use in combustible-dust atmospheres. For support for the proposed penalties, OSHA cited a 2010 titanium dust explosion in West Virginia...
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Eleventh Circuit Holds Jones Act Seaman Cannot Recover for Injuries Caused By Work-Related Stress
Posted on May 15, 2014
According to the Eleventh Circuit, the Jones Act does not allow a seaman to recover for injuries caused by work-related stress because it is not a “physical peril” under the Act. This ruling vacated a $590,574.57 judgment in which a jury found that a chief mate and manager of a commercial vessel was entitled to compensation for physical injuries that he sustained as a result of work-related stress. The Eleventh Circuit based its decision on the U.S. Supreme Court decision in Consolidated Rail Corp. v. Gottshall, 512 U.S. 532 (1994), which interpreted the Federal Employers’ Liability Act...
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