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Husband-and-Wife Firm Awarded $218 Million in Fees Despite BigLaw
Objection
By Billy Shields
Daily Business Review
New York Lawyer
April 16, 2008
MIAMI - Miami-Dade Circuit
Judge David C. Miller awarded $218 million in legal fees
Tuesday to Stanley and Susan Rosenblatt for years of work
they put into now-defunct class action litigation against the
nation's biggest cigarette markers.
"I find it very
reasonable," Miller said from the bench, referring to fee
calculations estimating they worked for 77 hours a week on average
at an hourly rate of $274. "These are reasonable and conservative
hours."
"In fact, in some firms
that would not have been acceptable billing," he joked before a
courtroom packed with at least 200 people.
Tobacco attorney Robert
Heim, a partner with Dechert in Philadelphia, told Miller
"it would be wrong under common fund law" to award fees to the
Rosenblatts, saying a guardian ad litem should be appointed to
administer a fund "to protect the interests of the class."
The fees would come out of
a common "guaranteed fund" of about $800 million that Big Tobacco
put up as collateral in 2001 to appeal the record $145 billion
punitive verdict the Rosenblatts won against cigarette makers. The
verdict was later thrown out by the Florida Supreme Court along with
a class certification order uniting sick smokers in a single
lawsuit.
Miller still must determine
how to distribute the rest of the $800 million fund.
Rosenblatt railed against
Big Tobacco as he argued Tuesday before Miller for fees in the case
dating back to 1994. The two-year trial marked the first time
tobacco executives acknowledged in court that smoking causes illness
and is addictive. "For close to half a century, there were all these
high-priced lawyers saying, ‘Ah, it'S all about willpower. It's not
addictive," he said. Describing the industry's legal tactics,
Rosenblatt said, "There's a word in Yiddish. It's chutzpah."
Rosenblatt had little to
say after a ruling on the Miami husband-and-wife firm's huge payday.
Given the industry track record in the case, an appeal is assured.
Plaintiffs and attorneys
from around the state whom Rosenblatt had never met took the podium
to recommend that Miller grant him fees. "It was just incredibly
gratifying," he said. "We were impressed."
The plaintiffs largely
belong to the roughly 8,000 lawsuits dubbed "the Engle
progeny," the offspring of the famous class action filed on behalf
of Miami Beach pediatrician Howard Engle. The case became known as
Engle v. Liggett as it moved through the courts.
A line to speak in support
of the Rosenblatts' fee request ran out of the room. Many people at
the hearing were visibly ill or relatives of deceased smokers. Gene
Anthony Hitchens, for example, came to the hearing with an oxygen
tank and tubes running to his nose. He carried the tank with him
when he spoke before the judge.
Tobacco lawyers argued the
Rosenblatts had no right to the money because the punitive award was
overturned and because the fund might be used for punitive awards in
the Engle spin-offs. "Much of the case, including the entire
$145 billion classwide punitive damages award, has been resolved in
defendants' favor and the ultimate benefit of the litigation to
class members is yet to be determined," Heim wrote for the industry
in opposition to attorney fees.
The fee petition put the
people in the room in a bit of an awkward position. The Rosenblatts
stumped for their own role in starting litigation that other
attorneys are pursuing now, and the Engle progeny attorneys
supported them. "I don't see the problem. He worked hard," said Carl
Grant of Fort Lauderdale. His father, George, smoked for most of his
life and died in 1983 from emphysema and heart disease. "It ain't no
free ride. They earned it." New Engle lawyers, including the
ostentatious Willie Gary, agreed. "When I think of the jobs
they've done for the people, it gives new meaning to the words ‘hard
work,'" he told Miller. The work they did was to lay the groundwork
for much of the litigation against the tobacco industry in Florida.
And while the verdict was tossed and the class disbanded, the
findings of the jury in the case the Rosenblatts litigated can be
used for future cases.
Despite decertifying the
class, the Florida Supreme Court upheld the findings of the Miami
jury in the original Engle case that will guide individual
smoker cases going forward. Juries in individual Engle
progeny cases will be advised to accept as proven that nicotine is
addictive and smoking causes cancer and more than a dozen other
illnesses.
Future juries considering
damages also will be told tobacco companies were negligent, placed
defective and unreasonably dangerous products on the market and
defrauded consumers by misleading them.
But cigarette makers are
not going to accept the findings as mere givens when the individual
cases go to trial. Defense attorneys around the state look at the
jury findings as being open for interpretation.
Attorneys representing
smokers insist tobacco attorneys have employed creative stalling
tactics to allow sick smokers to die before their cases can be
heard, a charge tobacco attorneys dismiss.
Miller said he wants to
expedite the proceedings.
"Justice delayed is justice
denied," he said.
Smokers Get Update on 660 Lawsuits
By Jessie-Lynne Kerr,
The Florida Times-Union
September 27, 2007
Most
of the plaintiffs, who include relatives of those already dead from
various diseases believed to be caused by their cigarette smoking,
were part of the class-action suit that resulted in the largest
damage award in U.S. history - $145 billion - that was struck down
last year by the Florida Supreme Court.
The court ruled that not only was the verdict excessive but that the
lawsuits must be decided on a case-by-case basis.
So two Jacksonville law
firms, Wilner and Block and Farah and Farah, are working
Jon M. Fletcher/The Times-Union
together on the
smokers' behalf and three
Elmer Albritton of DeLand sits with his
weeks ago filed
660 individual lawsuits in
oxygen tank among other plaintiffs in a
the U.S. District Court in
Jacksonville.
failed class-action tobacco lawsuit.
"We have teamed up to bring you some justice," said Norwood "Woody"
Wilner, who gained fame in 1996 with his $750,000 jury award in
Jacksonville against a tobacco company on behalf of ex-smoker Grady
Carter.
It was the first time a
tobacco company had to pay damages.
Wilner said he hopes the
court will assign the suits to one of the four federal judges in
Jacksonville and that the judge will agree to let the cases be tried
25 cases at a time to expedite the litigation.
Wilner said some of the
findings don't need to be proved again, including that the tobacco
companies were negligent and knew their products were dangerous and
addictive.
But the plaintiffs still
will have to prove the extent to which they were damaged by smoking.
A guest at the gathering
was Alan Landers, a former actor and model who was "The Winston Man"
in many of that brand's commercials and advertisements.
He said he has survived
lung cancer twice, double heart bypass, removal of parts of his
lungs and vocal cord reconstruction so he could regain his speech.
"I am too angry at the
tobacco industry to die," Landers said.
Wilner advised the
plaintiffs to keep checking the firms' Web sites for updates:
www.wilnerblock.com and www.farahandfarah.com.
He said it will be about a
year before the first cases go to trial. There is a Jan. 11 deadline
for people who were part of the class-action lawsuit to file an
individual case, he said.
This story can be found on
Jacksonville.com at
http://www.jacksonville.com/tu-online/stories/092707/met_203189041.shtml.
Court
Helps Ill Smokers Filing Individual Suits
Florida's Supreme Court Gave Ailing Smokers a Boost to File
Individual Lawsuits Against the Tobacco Industry, Though it Upheld
an Earlier Decision to Throw out a $145 Billion Award.
By Jay Weaver
The Miami Herald
December 22, 2006
The Florida Supreme Court
Thursday snuffed out the tobacco industry's strategy to slow down
thousands of ailing state smokers in pursuing individual lawsuits
against the country's major cigarette makers.
The high court, in a 4-2
vote, rejected a request by Philip Morris USA and other tobacco
corporations to throw out key legal findings by a Miami-Dade jury in
a landmark class-action case.
Those findings on the
health hazards of smoking, the addictive nature of nicotine and the
industry's deceptive marketing practices will provide an edge for
sick smokers who were part of the lawsuit a decade ago to move ahead
with individual claims.
Damage Award
In July, the state Supreme
Court had delivered a huge blow to the Florida class of smokers by
overturning a $145 billion punitive judgment awarded by a Miami-Dade
Circuit Court jury. The six justices who had heard the appeal -- a
seventh dropped out because of a conflict of interest -- concluded
that the jury's punitive damage award in 2000 was ''excessive as a
matter of law,'' because it was unreasonably high.
The justices also
decertified the class filed on behalf of approximately 700,000
smokers. The justices found that each ailing smoker must prove
individually that cigarettes caused illnesses ranging from cancer to
emphysema. On Thursday, the justices redelivered those twin-barreled
blows -- but they left almost entirely intact critical legal
findings by the Miami-Dade jury in the high-stakes case.
The Miami couple who have
represented the class of smokers hailed the high court's ruling.
''It's a victory for the
class,'' said Miami attorney Stanley Rosenblatt, who worked on the
case with his lawyer-wife, Susan. ``Everything the tobacco industry
asked for was denied with one exception.''
In that instance, the high
court dismissed the Miami-Dade jury's finding of fraud and
misrepresentation by the industry -- its only victory on Thursday.
Appellate Review
Philip Morris said in a
statement that it would seek further appellate review of the state
Supreme Court's latest decision not to reconsider certain portions
of its summer ruling. The company said that no Florida class member
should be allowed to pursue individual damage claims until the next
round of appeals is completed -- though it's unclear where Philip
Morris would make its next appellate move.
''Although we continue to
believe that the Florida Supreme Court's decision to reverse the
punitive damages award and decertify the class was the correct one,
Philip Morris USA believes there are important legal issues that
deserve further consideration,'' said William Ohlemeyer, company
vice president and associate general counsel.
Philip Morris, the nation's
largest cigarette maker, was joined in the appeal by R.J. Reynolds,
Brown & Williamson, Lorillard and the Liggett Group.
All of the tobacco
defendants, which have been embroiled in litigation for years, had
never faced a class action of this kind.
The Florida Supreme Court's
ruling upheld part of a 2003 decision by the Third District Court of
Appeal in Miami-Dade County, which threw out the punitive award and
decertified the class.
High Court's Switch
But the high court differed
with the appeals panel on practically all other issues -- including
an appellate ruling that said trial Judge Robert Kaye had wrongly
allowed the Miami-Dade jury to consider punitive damages for the
class before each member first proved individual claims.
A majority of the state
Supreme Court -- Chief Justice R. Fred Lewis and Justices Harry Lee
Anstead, Barbara J. Pariente and Peggy A. Quince -- ruled that Kaye
did not overstep his authority when he certified the class.
But the justices also said
the Florida smokers have ''highly individualized'' medical histories
that ``do not lend themselves to class-action treatment.''
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