Thomson Reuters News & Insight
Featured Content from WESTLAW
Beginning in June, Thomson Reuters News & Insight content will be available exclusively on WestlawNext®, as part of its Practitioner Insights offering. On June 21, the Thomson Reuters News & Insight website, iPhone® app and newsletters will be discontinued. See Frequently Asked Questions to learn more.

Legal

  •  
  •  

The 6th Circuit splits with 2nd and 9th, lowers bar for securities claims  read more »

Calpers goes to the mattresses against bond insurer's law firm  read more »

MBS investors and the ResCap deal: making the best of a bad situation  read more »

Marketing Popup

Ex-clients' complaint vs silicosis lawyers is catalog of misconduct

12/18/2012 COMMENTS (0)

In the history of mass torts litigation, the consolidated federal proceeding alleging serious lung injuries to workers who inhaled silica particles is the plaintiffs' bar's Waterloo. Silicosis litigation was regarded as a potential blockbuster for plaintiffs' firms -- even, perhaps, the long-sought successor to asbestos litigation. But then came the June 2005 decision by U.S. District Judge Janis Jack of Corpus Christi, Texas, that pretty much put an end to any such hopes. Jack, who was presiding over the consolidated litigation of claims by 10,000 alleged silicosis victims, issued a devastating 295-page ruling that thoroughly discredited the plaintiffs' lead expert on silicosis. The judge also held that the Texas plaintiffs' firm prosecuting most of the silicosis claims, then known as O'Quinn, Laminack & Pirtle, had "recklessly" disregarded evidence that not all of its clients actually had the disease. She ordered the firm to pay the cost of the hearings on the credibility of its experts.

But according to a new fraud, negligence and breach of contract suit against lawyers from the O'Quinn firm, Judge Jack's ruling hardly begins to describe the malfeasance of the plaintiffs' lawyers in the silicosis litigation. The suit, filed Friday in federal court in Corpus Christi, alleges that the now deceased John O'Quinn and several of the lawyers who worked with him engaged in all of the dirty tricks that mass tort defendants have suspected -- and cost their clients untold millions, to boot.

Richard Laminack of Laminack Pirtle & Martines, who split from O'Quinn in 2006, said in an email that the allegations in the suit are "ludicrous" and recycled from similar ongoing litigation in Texas probate court in Houston against the O'Quinn firm. According to Laminack, rulings in that litigation, which has been under way for about two years, have gone against the former clients suing the firm. The new suit, he said, is an "attempt to breathe life into a case that has not gone well and certainly does not change the facts." (I asked Laminack to respond to specific claims but didn't hear back from him.)

So keep Laminack's denials in mind. Nevertheless , according to Lance Kassab of The Kassab Law Firm, who represents more than 30 former O'Quinn clients in the new suit, all of the allegations in the complaint are supported by discovery from the probate court case, which was filed on behalf of Texans once represented by the O'Quinn firm. Kassab represents about 50 different plaintiffs who've intervened in the probate court case; Houston lawyer Jerry Pusch represents another 385. Both of them told me that despite Laminack's assertion, they've won major summary judgment rulings in probate court. They also said that there's been extensive discovery on their claims of negligence and fraud against the O'Quinn firm, including depositions of former O'Quinn lawyers; Kassab said that the claims in the new suit, brought on behalf of O'Quinn silicosis clients from Alabama and Mississippi, derive from evidence in the probate case. (The new suit names several former O'Quinn lawyers as individual defendants, unlike the Texas case, which is against only the firm itself.)

What's most remarkable about those allegations is the O'Quinn firm's alleged fleecing of its own silicosis clients. The new complaint asserts claims of unsupported diagnoses that are familiar to anyone who followed the asbestos and fen-phen litigation. There are also assertions about all-too-cozy relationships between the law firm and the medical testing company that checked potential victims for silicosis, with accusations of the O'Quinn firm paying referral fees, akin to bounties, when the testing firm passed on the names of potential clients. We've seen similar allegations about plaintiffs' firms involved in other mass torts. But according to the new complaint, the O'Quinn firm proceeded to charge its own clients for the referral fees it paid to the testing company. And that wasn't the only fee supposedly charged to clients, who are said to have paid an overall 3 percent of settlement proceeds to cover the O'Quinn firm's expenses: Clients also allegedly covered the costs Judge Jack imposed on the firm.

What's more, according to the complaint, the O'Quinn firm allegedly delayed paying out settlement proceeds to clients, sometimes for months after receiving the funds. (The complaint quotes a lawyer from the firm complaining that she was "running out of things to tell these folks," referring to clients who called asking for their money. And in two instances, the complaint said, the O'Quinn firm let multimillion-dollar global settlements slip away because it simply failed to complete paperwork and hold defendants to agreements.)

After O'Quinn's death in 2009, the complaint asserts, a new lawyer at the firm determined that silicosis clients had to be informed of the fees paid to the medical testing company. But according to the complaint, his draft letter to clients was squelched in favor of a version that was nearly impossible for clients to understand. Finally, the complaint claims, when the firm was first sued by former clients in the case now proceeding in Texas probate court, its lawyers "set about a course of conduct to destroy, shred and alter documents contained in all of the silicosis clients' files."

"At the end of the day," the complaint said, "the (O'Quinn) firm and its attorneys placed their interests and the interests of the screening companies involved above those of its clients. This is the sad reality of O'Quinn's approach to mass-tort litigation and this is the story of the residual victims of that approach, their clients."

The truth of the allegations in the complaint will be tested in March, when the first former O'Quinn silicosis clients are scheduled to go to trial in the Texas probate court case, according to Pusch. The trial date follows failed mediation that took place this week between the O'Quinn firm and its former clients.

I called the O'Quinn firm for comment but did not hear back.

Follow us on Twitter @AlisonFrankel@ReutersLegal  | Like us on Facebook


Register or log in to comment.

© 2013 Thomson Reuters