The BLT: The Blog of Legal Times

Judge Dismisses Lawsuits Over ATM Fees

A Washington federal judge gave a win yesterday to Visa Inc. and MasterCard Inc., dismissing (PDF) a set of lawsuits that accused the two credit card companies of violating federal antitrust laws in how they set ATM fees.

U.S. District Judge Amy Berman Jackson found that the plaintiffs – ATM operators and consumers who used ATMs – failed to make sufficient claims that they were harmed by how Visa and MasterCard managed ATM fees, and also didn't present enough facts to support a claim that the companies were part of an anticompetitive conspiracy with banks.

A lead attorney for the ATM operators, Washington solo practitioner Jonathan Rubin, said today that his clients are planning to file an amended complaint that would address Jackson's problems with the original case. "This is basically an economic issue that we intend to lay out in greater detail for the court," he said. A lead attorney for ATM users, George Sampson of Hagens Berman Sobol Shapiro, said in an e-mail that his team also believed they could amend the complaint to address the court's concerns.

Appeals Court Affirms $775K Judgment for Injured MLB Umpire

Updated at 1 p.m.

The Wilson Sporting Goods Co., struck out in its appeal of a $775,000 judgment awarded to a Major League Baseball umpire who sued after being injured by a foul ball. The District of Columbia Court of Appeals affirmed the judgment in an opinion (PDF) released this morning.

Edwin Hickox sued Wilson in District of Columbia Superior Court after a foul ball knocked off his Wilson-made face mask during a Washington Nationals game in 2005. A jury sided with Hickox in March 2011 and ordered Wilson to pay $775,000 to Hickox and $25,000 to his wife. Wilson appealed, challenging the admission of an expert who testified for Hickox at trial, among other things.

A three-judge appellate panel upheld the judgment today. Wilson had pointed to flaws in the expert's testimony – such as the fact that he didn't do his own testing of the face masks at issue – but the appeals court found that any deficiencies went to the weight the jury gave that testimony, as opposed to whether it should be admissible.

D.C. Lawyer Pleads Guilty to Stealing $109K

Updated at 12:52 p.m.

A now-disbarred Washington lawyer and former D.C. Council candidate, Deairich Hunter, pleaded guilty this week in federal court to stealing more than $109,000 in funds intended for his clients.

At a plea hearing January 23 before U.S. District Judge Beryl Howell, Hunter, a former solo practitioner, admitted to keeping thousands of dollars in settlements for clients in disability and personal injury cases. In at least one instance cited in court filings, he stole funds that he was supposed to use to pay the medical bills of a client injured in a car accident.

Hunter is scheduled for sentencing before Howell on April 26. He was released on personal recognizance until the hearing, and was ordered to stay in the Washington area and surrender his passport.

Lawyers in LivingSocial Class Action Seek $3M in Fees

Lawyers behind a class action against daily deal company LivingSocial are hoping to collect $3 million in fees, the maximum amount that the two sides agreed to in a settlement. The fees are on top of the $4.5 million that LivingSocial agreed to pay to settle claims that its deal voucher expiration dates and other restrictions violated federal and state laws.

The fee arrangement was spelled out in an agreement (PDF) that U.S. District Judge Ellen Segal Huvelle gave preliminary approval to in October. Under the agreement, LivingSocial said it wouldn't contest a request for attorney fees up to $3 million. On January 18, the plaintiffs filed a motion for attorney fees (PDF), asking Huvelle to order the award.

Plaintiffs in the District of Columbia, Florida, California, Minnesota, and Washington filed class actions in early 2011 against LivingSocial, all alleging similar violations of the federal Credit Card Accountability Responsibility and Disclosure Act and state laws. The cases were consolidated into a single multi-district litigation in D.C. federal court.

D.C. Legal Aid Society Receives $40K Award from Class Action Settlement

The Legal Aid Society of D.C. announced yesterday that it had received a $40,000 award in the form of leftover funds from a class action settlement.

The underlying case involved claims against a company that acquired consumer debt and then pursued legal action against the debtors. The company was accused of purchasing the debt with insufficient proof that the debt was valid and in some cases where there was evidence that the time-limit on the debt had expired, according to Legal Aid.

The company settled with plaintiffs, agreeing to pay each eligible resident $1,500 and not to pursue any debts purportedly owed by class members. The award given to Legal Aid, known as a cy pres award, came from settlement funds that went unclaimed or couldn't be distributed to class members.

D.C. Council Takes Up Tax Sale Reform Bill

District of Columbia Councilmember Jack Evans (D-Ward 2) introduced legislation this week aimed at changing how the city manages the sale of properties with delinquent taxes, from requiring more notice to homeowners to lowering the interest rate and placing caps on attorney fees.

The bill (PDF) stems from a recent push for reform by a relatively new coalition of legal service providers, law firms, and advocates known as the Alliance to Help Owners Maintain Equity, or AT HOME. Proponents say existing laws don't always protect the due process rights of homeowners, especially elderly and low-income residents, and can require them to pay much more than they owed in taxes to redeem their home.

But lawyers for investors who participate in tax sales have warned that making some of the proposed changes, such as lowering the interest rate on unpaid taxes and capping attorney fees, could push away investors who generate revenue for the city.

D.C. Appeals Court Hears Dispute Between K&L Gates and Ex-Partner

The District of Columbia Court of Appeals heard arguments this morning in a dispute between K&L Gates and a former longtime partner at the firm, Robert Ted Parker, who sued the firm for wrongful termination.

The appeals court is weighing whether to uphold a ruling ordering the parties to arbitration. Parker filed his initial lawsuit in a California state court, but the firm filed a motion to compel arbitration in Washington, citing provisions in its partnership agreement.

Arguments today before an appellate panel came down to two issues – first, whether the partnership agreement was clear about which state's law to apply in determining whether a dispute should go to arbitration, and second, whether the D.C. court had jurisdiction to hear the appeal at all.

Banks Settle Home Mortgage Claims

Updated 12:27 p.m.

Bank of America Corp. has agreed to pay $10.3 billion to Fannie Mae to resolve claims related to the sale of home mortgages. Separately,  10 lenders agreed to an $8.5 billion settlement with federal regulators to resolve claims of abuse related to foreclosure processing and mortgage loan servicing.

Under the terms of the Fannie settlement, announced on Monday, the bank will pay the government-sponsored enterprise  $3.55 billion and repurchase 30,000 loans valued at an additional $6.75 billion.

The loans were made through Countrywide Financial Corp. from January 2000 through December 2008 and totaled $11.2 billion in unpaid principal balance as of September 30.

"As we enter 2013, we sharpen our focus on serving our three customer groups and helping to move the economy forward," Bank of America CEO Brian Moynihan said in a written statement. "Together, these agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time."

Animal Rights Group to Pay Circus Producer $9.3 Million Settlement

Twelve years after animal rights groups sued the producer of the Ringling Brothers and Barnum & Bailey Circus over the treatment of elephants, the American Society for the Prevention of Cruelty to Animals has agreed to pay $9.3 million to exit the case.

The settlement announced late last week ended the ASPCA's participation in litigation against circus producer Feld Entertainment Inc. Feld also agreed to dismiss the ASPCA from a racketeering lawsuit the company is pursuing against the animal rights groups involved. In settling, the ASPCA did not admit to any wrongdoing.

The ASPCA and other animal rights groups unsuccessfully pursued claims against Feld in U.S. District Court for the District of Columbia beginning in 2000, accusing the company of mistreating its Asian elephants. U.S. District Judge Emmet Sullivan entered a judgment against the animal rights groups in 2009 and a three-judge appellate panel upheld that ruling in October 2011. The settlement doesn't include any other organization involved in the litigation.

Williams Mullen Bolsters D.C. Antitrust Team with Litigation Partner

Williams Mullen has added a partner to its litigation practice, boosting the firm's antitrust capabilities in Washington.

Eric Berman, formerly a partner at Baker Botts, focuses his practice on competition law, regulatory matters, litigation, counseling and internal investigations. He has represented companies during the merger review process before the Federal Trade Commission and the Department of Justice.

On the international stage, Berman has helped usher antitrust clearance from competition authorities in Brazil, Canada, Mexico, Russia and Korea.

In an interview, Berman said that going from a large antitrust practice at Baker Botts to a regional firm gives him more opportunities to expand his practice and greater accessibility in terms of cost. He said that at Williams Mullen, "a lot of the existing practice strength of the firm jives well with antitrust."