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BANKRUPTCY Diaper-maker IPO costs Weyerhaeuser $460M Federal Way, Wash. (AP)-A federal bankruptcy court in Atlanta has ordered Weyerhaeuser Co. to pay about $460 million in damages for its role in the initial public offering (IPO) of stock in failed diaper-maker Paragon Trade Brands Inc. Weyerhaeuser has said that it will appeal the ruling. The ruling from U.S. Bankruptcy Judge Margaret Murphy follows an earlier finding that Weyerhaeuser is liable to shareholders of Paragon, which went bankrupt a few years after its launch in the public market. In October 2002, Murphy found Weyerhaeuser liable for not telling investors of big risks when it spun off Paragon in 1993. Paragon’s bankruptcy estate filed suit in 1999. The judge found that Weyerhaeuser was attempting to divest itself of patent infringement liability by spinning off Paragon. After the IPO, Procter & Gamble and Kimberley-Clark Corp. sued for alleged unlicensed use of their patents in the Paragon diapers. BREACH OF CONTRACT Baker Botts, bank told to pay widow $71M Houston (AP)-A Texas state judge has said that Baker Botts and Wells Fargo Bank must pay $71 million to the widow of a former chairman of a valve manufacturing company because they failed to disclose a conflict of interest while planning her husband’s estate. Judge Carl Prohl of Kerr County issued a final judgment that said that Houston-based law firm Baker Botts and the bank must pay Kathleen Cailloux $71 million for breaching their duties in handling the estate of her husband, Floyd Cailloux. The sum includes a February jury verdict of $65.5 million and $5.5 million in interest. The Cailloux family claimed that Baker Botts did not disclose that the firm represented the bank and a Wells Fargo-controlled foundation in the Cailloux family’s name when it advised Kathleen Cailloux to transfer $65.5 million from her husband’s estate to the foundation. Baker Botts said it will appeal, and denied any wrongdoing. CIVIL RIGHTS Ex-wrestler gets $2.5M in police brutality suit Easton, Pa. (AP)-A former wrestling champion and his wife could get $2.5 million under a proposed settlement of a lawsuit alleging that city police brutally attacked him in 1997. Jack W. Cuvo Jr. won the state wrestling championship three times while at Easton Area High School and won a gold medal at the Pan-American Games in 1986. He alleged that police attacked him because officers wrongly believed that he had vandalized the home of a police officer who had given him a traffic ticket. Cuvo and his wife, Jennifer, filed a civil rights lawsuit against the city of Easton in a federal court. CONSUMER PROTECTION Dairy wins $7.7 million in animal feed lawsuit Burley, Idaho (AP)-The owners of an Idaho dairy have been awarded about $7.7 million in damages from a subsidiary of conglomerate Cargill Inc. after the company allegedly misrepresented its feed. Randy Robinson, Robert Whiteley and their partners in Acme Dairy of Oakley, Idaho, brought the lawsuit in state court, claiming that Cargill Animal Nutrition pellets gave their animals salmonella and pneumonia, harmed their ability to reproduce and in some cases killed cows. Whiteley claimed the dairy switched from its regular feed when Cargill asked them to try the new pellets. Though the dairy went back to the old feed, the cows had already suffered damage. HAZARDOUS ACTIVITY Phoenix diocese must pay $2.4M in van crash Riverside, Calif. (AP)-A state jury has awarded $2.4 million to six women in their early 20s who were returning from a religious retreat in 2003 when the van they were riding in flipped after a tire failure. The Riverside County jury found that the driver of the 15-passenger van, who was working for the Roman Catholic Diocese of Phoenix, acted improperly in reacting to the failure of the van’s left rear tire. Ford Motor Co., which made the van and was a defendant in the case, reached a confidential settlement in 2003 with the plaintiffs. The plaintiffs had charged that the driver was driving too fast for the conditions and had received improper training. The van was returning from a retreat in Duarte, Calif., in April 2003 on Interstate Route 10 when the tread on the left rear tire separated. The van went off the road and rolled three times. The passengers, all Arizona residents, received a number of serious injuries. LEGAL MALPRACTICE Fitness guru wins $15M from Seyfarth Shaw Los Angeles (AP)-A California state jury handed down an additional $15 million in punitive damages to Seyfarth Shaw in a malpractice case filed against the Chicago law firm by a fitness guru. The verdict comes a week after a Los Angeles County Superior Court jury ordered Seyfarth Shaw to pay Tae Bo creator Billy Blanks $20 million, including $10 million for fraudulent concealment, $9.3 million for professional negligence and $500,000 for breach of fiduciary duty. Seyfarth said it plans to appeal. “We emphatically deny any and all allegations that our firm . . . engaged in any fraudulent or negligent actions,” it said. Blanks hired the firm and partner William Lancaster to sue an unlicensed talent agent who, Blanks claims, improperly billed him for services. The fitness guru accused them of filing the lawsuit in the wrong venue and allowing the statute of limitations to expire before trying to correct the mistake. Blanks claims that Jeffrey Greenfield, a Los Angeles accountant, was soliciting and negotiating appearances by Blanks and charged $11 million for his services in the late 1990s even though he did not hold a talent agent’s license as required by the Talent Agencies Act. Blanks hired Seyfarth Shaw to sue Greenfield but the firm and Lancaster filed the lawsuit in superior court when jurisdiction resided with the state labor commission. When they learned that the deadline for filing a claim was August 2000, the firm and Lancaster failed to correct the mistake in order to continue collecting legal fees. MEDICAL MALPRACTICE Dartmouth-Hitchcock to appeal $2 million award Lancaster, N.H. (AP)-A Coos County Superior Court jury has ordered a New Hampshire hospital to pay the family of a former patient $2 million in a malpractice suit. The center is planning to appeal the award. Donald Kenison Sr., of Lancaster, died in 1997 at age 55, the same day he was released from gastric bypass surgery at Dartmouth-Hitchcock Medical Center in Lebanon, N.H. The suit claimed that the hospital overloaded him with intravenous fluid, “causing his heart to work too hard.” It was the second time a jury found the hospital negligent in Kenison’s death. A jury awarded the family $900,000 in 2002. The court later ordered the case to be retried with more expert testimony. Temporary paralysis victim wins $1M award Des Moines, Iowa (AP)-A Polk County jury has ordered an Iowa hospital and an emergency room physician to pay more than $1 million to a man who suffered temporary paralysis after a blood clot from an injection went undetected. Robert Mark Wilcox, of Osceola, Iowa, was given a steroid injection in the neck by a Des Moines doctor in 2002 for a degenerative spinal condition. He and his wife then drove back to Osceola. By the time they had reached the city limits, he had trouble breathing, and the couple detoured to the Clarke County Hospital. Carl Roleson, an emergency room doctor, ran tests on Wilcox for 2 1/2 hours before calling the doctor in Des Moines. An anesthesiologist testified that she immediately suspected that a blood clot had formed in Wilcox’s spine. Wilcox suffered temporary paralysis from swelling related to the clot and had to delay neck surgery. The jury awarded Wilcox $82,175 for past pain and suffering and slightly less than $1 million for future pain and suffering. RACE DISCRIMINATION Jury awards $2.2 million to Milwaukee cops Milwaukee (AP)-A federal jury has awarded a total of nearly $2.2 million to 17 white police officers who won a discrimination lawsuit against a former police chief and the city. The jury found that Chief Arthur Jones promoted less-qualified women and minorities ahead of the male plaintiffs, all lieutenants who had hoped to be captains. During his seven years as chief, Jones promoted 41 people to captain, 21 of them white men. Compensatory damages ranged from $9,500 to $50,000 each for the officers, while each also should get $102,000 in punitive damages from the city. SEX DISCRIMINATION $29M in damages for Wall Street executive New York (AP)-A federal jury awarded $29 million in damages last week to a Wall Street executive who sued UBS A.G., alleging that she was discriminated against because she was a woman and was retaliated against because she complained about her treatment. Laura Zubulake, 44, a former director for the bank’s Asian equities sales desk, had filed a lawsuit against Europe’s largest bank after she was fired in 2001 from a job she had begun in 1999. The jury awarded $9.1 million in compensatory damages and $20.1 million in punitive damages. SEXUAL ABUSE Diocese to pay $1.4M over abusive priest Fort Worth, Texas (AP)-A Texas man who alleged that a priest now living in Massachusetts molested him when he was a minor will be paid $1.4 million by the Roman Catholic Diocese of Fort Worth, court records indicate. The lawsuit against the dioceses of Fort Worth and Worcester, Mass., contended that Fort Worth Bishop Joseph P. Delaney knew that the Reverend Thomas Teczar posed a threat to children because of a “sexual interest” in adolescents, according to court documents. Before moving to the Fort Worth area, Teczar had worked as a priest in the Worcester Diocese, where he was forced out after being accused of inappropriate behavior with a teenage boy. Teczar worked at parishes from the late 1980s until 1993. TORTS Owens Corning asbestos liability set at $7 billion Toledo, Ohio (AP)-A federal judge in Philadelphia has ruled that bankrupt fiberglass maker Owens Corning is exposed to $7 billion in potential claims from people sickened by asbestos. The decision by U.S. District Judge John Fullham could force Owens Corning to increase a $3.6 billion reserve for asbestos claims. The Toledo-based company, which filed for bankruptcy protection in October 2000, will be absolved of claims once it comes out of bankruptcy. The judge’s valuation will determine how much is placed into an independent trust fund that will pay future claims. The maker of building materials and fiberglass filed for bankruptcy protection because of rising costs from asbestos lawsuits. It stopped selling insulation that contained asbestos 25 years ago.

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