A 67 million lawsuit on a pair of trousers

Several months ago, when I was eating dinner alone and watching ABC evening news, a lawsuit really ‘shocked’ me. The following ABC News Web Site gives the detail.

 

http://abcnews.go.com/TheLaw/story?id=3119381

 

http://blogs.wsj.com/law/2007/04/30/judge-sues-dry-cleaners-for-65-million-readers-respond/

 

A client (who is an administrative judge by himself) of a dry cleaner shop in Fort Lincoln of Washington DC area sued the Korean owners (a couple) because the shop had lost his trousers the day he tried to collect them.

 

I talked to my wife that night and expressed my usual disappointment on the American trial law legal system and its domain on liability issues likely being taken advantage by a tiny fraction of people.

 

However, my main point is that even the verdict will be on the dry cleaner’s side and the plaintiff lost (which appears to be a common sense verdict in almost every country in this ‘galaxy’, with might-be US an exception, just kidding!), the immigrant couple running the dry cleaner shop most likely will turn bankrupt because of the attorney fees. In fact, they were. Meanwhile, it was reported ‘a tort reform group is hosting a fundraiser on July 24 to help the Chungs (the couple) defray their legal expenses’. But think where the public money is going to!

 

The second thing is that other than the personal emotional damage on the Korean couple, it also scares many small businessmen and those who likewise desire to open a small business of their own. As a matter of fact, I am one of those people who have a dream to run a small business, but very afraid of a tiny mistake that can take away the reasonable earning and reward of a life time commitment to hard work.

 

The plain truth is that the dry cleaners did make a mistake. But with thousands of transactions in a business, who could guarantee not a single mistake is to be made (this is where the Insurance System steps in). The magnitude of the compensation asked is by ‘common sense standard’ out of the ordinary norm. This case should have only been limited to the jurisdiction of small claims courts no matter how ‘high sounding’ the plaintiff explains their cases.

 

Quoted from ABC

He (plaintiff) says in court papers that he has endured ‘mental suffering, inconvenience and discomfort.’

He says he was unable to wear that favorite suit on his first day of work.

He's suing for 10 years of weekend car rentals so he can transport his dry cleaning to another store.”

 

My first gut feeling argument is that how could you be so sure that in the next ten years there will be no other dry cleaning shop around the area! Though this is not the point I tried to make, the fact is that, the plaintiff later did modify the claim and sued ‘only’ for 54 millions.

 

The second thought is that I don’t believe the Korean couple has saved so much money to pay (even for a one tenth of the astronomical figure) when they lose. The calculated amount of compensation is just ridiculous in this context. The couple eventually will just file bankrupt and likely choose early retirement.

 

http://www.cnn.com/2007/LAW/06/25/trouser.trial/index.html

 

I intended to follow up the case and in late June, the verdict was made by the District of Columbia Superior Court Judge Judith Bartnoff. God bless American, this time, common sense won. But this is by no means a guarantee that this kind of lawsuits will never happen again. Without the reform of the liability laws, we likely will see similar cases to be on our newsstand.

 

The following is an extract of a blog, which is also what I mean.

 

http://blog.washingtonpost.com/rawfisher/2007/06/pants_verdict_judge_stuffs_the.html

 

In most civilized countries they do have a law which prevents these kinds of abuses. It is often referred to as the "English Law" and states that if you sue somebody and loose, then you pay ALL their expenses. Unfortunately, the American Trial Lawyers Association do not like this law - it would dramatically cut into the profits made by a large number of plaintiff's lawyers - and they also have a HUGE lobby in DC. So you can be sure our politicians will never allow such a law - as long as the ALTA "buys" them off.

By the way, don't think it doesn't cost the consumers - you pay between $500 and $5,000 on the cost of a new car to cover these lawsuits!

Posted by: limey | June 25, 2007 02:24 PM “

 

Also, read the response to the above comment, that follows.

 

The next thought is that whether the plaintiff will appeal to a higher court and this time he will ‘employ’ a more professional trial lawyer (or a group, Vow!) to do the job.

And, can the dry cleaning shop sue back for compensation for attorney fees and emotional breakdown.

 

Lastly, can we sue for being scared so much and not starting our business and so lose a fortune?