Bottom of the News… Friday, February 22, 2008

Good morning my fellow Rotarians… This morning I am happy to report that the Stella Awards for 2007 were announced this week. You may recall that these awards were inspired by Stella Liebeck. In 1992, Stella, at the age of 79, spilled a cup of McDonald's hot coffee onto her lap, burning herself. A New Mexico jury awarded her $2.9 million in damages.

Ever since, the name "Stella Award" has been applied to any wild, outrageous, or ridiculous lawsuits -- including bogus cases! However, I tell you with great confidence that our crack Rotarian Research Team only seeks out the truth!

2nd Runner Up: Sentry Insurance Company
Sentry Insurance Company provided worker's compensation insurance for a Wisconsin "Meals on Wheels" program. Delivering a meal, a Wheels volunteer (who was allegedly not even wearing boots) slipped and fell on a participant's driveway that had been cleared of snow. Sentry had to pay to care for the volunteer’s resulting injuries. A key point is that the Wheels volunteer did not sue, but rather the insurance company did because they paid the claim and then decided they wanted their money back. So, they sued the 81-year-old homeowner getting the Meals on Wheels service. They could have simply filed for "subrogation" from her homeowner's insurance company, but by naming her in the action they dragged an old lady into court. Ultimately this action reinforces the image of insurance companies only being concerned only about their bottom line and not "protecting" their policyholders from loss.

1st Runner Up: The family of Robert Hornbeck
Hornbeck volunteered for the Army and served a stint in Iraq. After getting home, one night he got drunk, wandered into a hotel's service area (passing "DANGER" warning signs), crawled into an air conditioning unit, and was severely cut when the machinery activated. Unable to care for himself due to his drunkenness, he bled to death.

A tragedy, to be sure, but one solely caused by a supposedly responsible adult with military training. Despite his irresponsible behavior -- and his perhaps criminal trespassing -- Hornbeck's family sued the hotel for $10 million, as if it's reasonably foreseeable that a drunk fool would ignore warning signs and climb into its heavy duty machinery to sleep off his bender.

And the 2007 Stella Winner is… Roy L. Pearson Jr., Attorney & Judge
This 57-year-old Administrative Law Judge from Washington DC claims that a dry cleaner lost a pair of his pants, so he sued the mom-and-pop business for $65 million. That's right, more than $65 million for one pair of pants.

Representing himself, Judge Pearson cried in court over the loss of his pants, whining that there certainly isn't a more compelling case in the District archives. But the Superior Court judge wasn't moved: he called the case "vexatious litigation" (2. brought with intention of annoying: describes legal proceedings put forward on insufficient grounds and with the intention of causing annoyance to the defendant). Pearson was scolded for his "bad faith", and then the Superior Court awarded damages to the dry cleaners.

But Pearson didn't take no for an answer, he is appealing the decision. And he has plenty of time on his hands because he was dismissed from his job and is currently under review to be disbarred. As of last report, Pearson's appeal is still pending. Wow, $65 million for the loss of a pair of pants… That is a true Stella Award!

And there you have it, the top three most absurd law suits of 2007. Truly, the bottom of the news on this Friday, February 22, 2008. ###