TTLA EClips • TTLA Home • Search Litigation Bank • About November 13, 2008 -  Insurer Settles Term Life Class Action -  Clothing Company Named in Retaliation Suit -  Katrina Victims Accuse Rebuilding Program of Discrimination -  Jury Awards Damages to Demoted Officer -  Prison Abuse Case Yields Damages -  Watchdog: Broker Bilked Children Receiving Malpractice Awards -  Hospital Settles Lawsuit by Whistleblower -  Employment Agencies Preyed on Workers, Inquiry Finds     This Service Sponsored Exclusively by The James Street Group A Member Service of Texas Trial Lawyers Association   Announcements Time is running out to register for TTLA’s Annual Conference Events! Don’t miss our 4 incredible CLE programs, national speakers including Paul Begala, our Annual Party & Auction, List Server reception, Advocates Annual Meeting, Annual President’s Luncheon, Annual Board & Membership meeting, and more! Visit www.ttla.com/annual for more details and to register, or call (512) 476-3852 for more information.   Laws/Cases Insurer Settles Term Life Class Action Northwestern Mutual Life Insurance Co. has agreed to pay $92 million to settle accusations that the insurer used improper sales and marketing practices and failed to pay dividends on some of its term life polices. According to the class-action lawsuit, the insurer used sales materials that misled customers about the payments of dividends. The proposed settlement covers nearly 4 million current and former policy owners who purchased coverage since 1981.  AP, Chicago Tribune  11/13/2008 Read Article: Chicago Tribune     Clothing Company Named in Retaliation Suit In its latest round of legal troubles, American Apparel denied accusations Wednesday by a former employee who claims he was fired after he refused to inflate the company’s balance sheet. In the lawsuit, Roberto Hernandez claims that American Apparel Chief Executive Dov Charney ordered him to exagerate figures in order to help lure investors to the company. The private clothing company disputes whether Charney played any role in Hernandez’s supervision or firing.  Vinnee Tong, Law.com  11/13/2008 Read Article: Law.com     Katrina Victims Accuse Rebuilding Program of Discrimination The program in charge of rebuilding homes destroyed in Hurricanes Katrina and Rita discriminates against black homeowners, a lawsuit filed Wednesday in Washington claims. According to the class-action lawsuit, filed by civil rights groups and New Orleans homeowners, the Louisiana Road Home program provides smaller grants to homeowners in predominantly black neighborhoods than to residents in white neighborhoods. In a statement, the Louisiana Road Home denied allegations of discrimination.  Donna Leinwand, USA Today  11/13/2008 Read Article: USA Today     Jury Awards Damages to Demoted Officer A Los Angeles police officer who claimed he was retaliated against and demoted after complaining about the sexual harassment of another officer should receive $3.6 million in damages, a jury determined Wednesday. Officer Donald Bender lost nearly half of his salary as a result of the demotion, his attorney said. The award is the second sizeable retaliation-related jury verdict against the police force during the last three months.  Victoria Kim, LA Times  11/13/2008 Read Article: LA Times     Prison Abuse Case Yields Damages A jury has ordered the Michigan Department of Corrections to pay $8.45 million to eight former female prisoners who claimed they were raped and harassed by guards while serving sentences at Crane Correctional Facility in Coldwater. The case is the second involving hundreds of current and former female prisoners claiming sexual abuse at Michigan prisons. Earlier this year, a jury awarded $15.4 million over similar claims at another Michigan prison facility.  Free Press Staff, Detroit Free Press  11/13/2008 Read Article: Detroit Free Press     Watchdog: Broker Bilked Children Receiving Malpractice Awards A former Morgan Stanley broker has been sanctioned for making unauthorized trades in the accounts of children receiving medical-malpractice settlements. According to New York Stock Exchange Regulation, Charles Winitch and a colleague exposed customers to unnecessary risks and fees through the transactions. Winitch has been barred from working at a NYSE member firm for five years.  David Scheer, Bloomberg  11/12/2008 Read Article: Bloomberg     Hospital Settles Lawsuit by Whistleblower A Pennsylvania hospital has reached a confidential settlement with a former employee who claimed she was fired for raising questions about record keeping and patient safety. The settlement came after an official admitted to improperly accessing patient records cited in the plaintiff’s dismissal from Magee-Womens Hospital. Related suits by two fired pathologists are still pending against the hospital.  Walter F. Roche Jr., Pittsburgh Tribune-Review  11/13/2008 Read Article: Pittsburgh Tribune-Review     Labor/Employment Employment Agencies Preyed on Workers, Inquiry Finds An 18-month investigation of New York City employment agencies has revealed evidence of illegal or deceptive practices, according to an announcement from the mayor’s office. Common violations among the city’s 330 licensed agencies included the use of English language contracts for non-English speakers and demanding upfront payments from clients. The most blatant violations were committed against low-income or immigrant job seekers, the mayor said.  Anne Barnard, The New York Times  11/12/2008 Read Article: The New York Times     Published by TRIALSMITH, Litigation Tools for Trial Lawyers