Live Free in an Unfree World


May 24, 2008

Cost of Litigation

Filed under: 7. Social, Corporations, Lawsuits, Political — afreevoipworld @ 7:48 am

Back in 2003, 100 people died in a nightclub fire when the band’s pyrotechnics got out of control. Families of victims sued. So far, so good.

Here’s the crazy part. Anheuser-Busch and their local distributor just settled for $21 million. Total settlement so far - $122 million. Others who have paid up include Home Depot and Clear Channel Broadcasting.

Home Depot was sued over insulation. The alleged liability of the others: promoting the concert.

Am I the only one here who doesn’t understand this. No media advertising can exist if the publisher of the advertising, or the sponsor, is responsible for the acts of the companies and individuals who actually caused the harm and death of the concert attendees.

A-B claims the cost of the litigation is running too high, but I can’t imagine a Board of Directors signing off on a $21 million settlement if they did not believe a jury was about to stick them with a larger bill.

One possibility - their insurance company decided to settle, and they have no choice. If they fought on, A-B would take on the additional expense and be liable for any jury award above the settlement amount.

Whoever decided to settle - you are the reason why our legal system is such a mess. If you are not liable - and unless you can explain otherwise, I don’t see how beer or promoting an event contributed to this tragedy - why not take it to the limit? You were being sued in Rhode Island, not Mississippi.

How do your actions compare to a man who spent 27 years in jail for a rape he did not commit? He could have been out of prison a dozen years ago if he had admitted the crime. He chose to man-up and not take the blame for something he did not do. The State of Texas may give him some monetary compensation in the future, but he can never get those years of freedom back.

Sometimes, you have to pay the price for what’s right.

~ Charles Lamm

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