The Federal Government or the State Court System?

David Underhill of the Mobile Alabama Sierra Club protests BP in Panama City, Florida

Legal Analysis
by Glynn Wilson

David Underhill of the Mobile Alabama Sierra Club, who recently protested a public forum sponsored by the U.S. Department of the Interior by wearing duct tape over his mouth since citizens were not allowed to speak like they should have been in a real democratic town hall public hearing, was also party to a stakeholders meeting August 17 with officials from national and local government agencies and environmental groups as well as the British Petroleum corporation.

There were already so many public complaints about the lethargic nature of BP’s response to paying claims to individuals and businesses along the Gulf Coast that the Obama administration stepped in June 15 and seized $20 billion of the oil company’s money, to make sure people receive compensation for losses suffered due to the largest and worst environmental disaster in American history.

By June 16, less than two months after the Deepwater Horizon oil rig blew up in the Gulf of Mexico April 20, killing 11 workers and spreading it’s crude all over the Gulf from the Louisiana marshes to the beaches of Mississippi, Alabama and Florida, President Barack Obama appointed Washington attorney Kenneth Feinberg to act as the arbitrator to lead an independent team to oversee paying out claims from the new $20 billion escrow fund.

But the question on Underhill’s mind at the August 17 meeting was whether Feinberg could truly be independent and fair if he is being paid by BP. So he tried to get an answer from one of the BP representatives at the meeting, Gary Willis. Clearly there is not much trust of BP on the Gulf Coast, since the company has lied time and time again about the amount of oil leaking into the Gulf, about the use of chemical dispersants, even about who has the power to control access to oiled beaches.

The answer Underhill got from the BP official was “fuzzy,” he said, so he and Casi Callaway of the Mobile Baykeeper did a followup interview with BP public relations representative Sam J. Sacco.

In an e-mail exchange obtained exclusively by The Locust Fork News-Journal, Sacco said: “A question was asked by one of your members at the Aug. 17 COAST meeting as to whether BP was paying the appointed claims administrator, Mr. Feinberg,” Sacco said. “The answer to that question is yes.”

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Alabama’s Supreme Court Continues to Screw Citizens

Guest Column
by Roger Schuler

The Alabama Supreme Court apparently was not content to cheat the public with the outrageous ExxonMobil ruling. It pulled pretty much the same fraudulent stunt again the other day, with a few slight variations.

In late 2007, the Alabama Supremes stunned many observers by overturning most of a $3.6 billion jury verdict in a fraud case against oil giant ExxonMobil. That decision robbed state coffers of badly needed funds at the outset of the Bush recession.

The high court was at it again recently, overturning a $274 million verdict in a fraud case against three pharmaceutical companies. The Supreme Court found that AstraZeneca, Novartis, and GlaxoSmithKline did not defraud the state in pricing Medicaid prescription drugs.

This issue goes well beyond Alabama. Similar lawsuits against pharmaceutical companies are pending in other states, including Mississippi, South Carolina, Utah, Hawaii and Alaska.

How did the Alabama Supreme Court come to its conclusion? The key issue was “reliance,” one of four elements in a fraud case. Essentially, the high court found that the pharmaceutical companies tried to cheat the Alabama Medicaid Agency (AMA), but AMA did not “rely” on the misrepresentations, so a fraud did not occur.

That is like saying: “I tried to steal $500 out of your wallet, and I had my hand on the cash and was pulling it out, but you caught me — so I didn’t do anything wrong.”

If you think there is something wrong with that reasoning, join the crowd.

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