Thursday, August 20, 2009

The "Clear and Convincing" Fraud by Lawyers

High-dollar law suits magnetize the devil in some lawyers. I suppose the $39 billion plaintiffs sought from Dole was no exception. US lawyers, mostly from Texas and California flocked to Nicaragua to recruit injured plaintiffs, associate with local lawyers, and setup in-house sperm labs. Seriously, in-house sperm labs.

The claims centered around Dole's use of the pesticide DBCP and the sterility it may have caused to thousands of banana crop workers. Although many, of the claims were legitimate, outright fraud undermined many of the plaintiff's claims. What kind of fraud? Well, ask Juan J. Dominguez, a personal-injury lawyer from now under criminal investigation for his actions. He paid "captains" to find plaintiffs, setup a sterility lab in his law office, and was even awarded damages for people that were later determined to have never been employed at the plantation. A recent Superior Court of California case dismissed a series of DBCP claims based on clear and convincing evidence of fraud by plaintiffs and their lawyers.

Because lawyers jeopardized the integrity of so many claims, many legitimate claims were dismissed. Sterile workers could have had some recovery but for greedy lawyers. What happened to the Professional Code of Conduct that these lawyers swear to? Lawyers are constantly confronted with ethical dilemmas, which is why the bar in each state has a separate set of rules regulating the practice of law. Prohibitions on soliciting clients, collecting fees for referrals, frivolous law suits, tampering with evidence, etc. etc. are all specifically addressed.
But the professional code is nothing for some lawyers who will do anything to collect a hefty fee. Unfortunately, such events taint the integrity of our profession. The impact such impropriety has on the public's perspective of our profession is devastating. Would all lawyers behave in this manner if given the chance? Is fraud in litigation the way cases of this magnitude are won? Do lawyers represent causes, or their own financial interests? The Dole DBCP fraud cases make these questions hard to answer.

To the legal professional, these conflicts are an inherent part of providing legal services--similar to those conflicts that arise in other professions. To the lay person, this IS the profession.

Read the article in WSJ: http://online.wsj.com/article/SB125061508138340501.html

Case opinion: http://online.wsj.com/public/resources/documents/WSJ-Dole_Chaney_ruling.pdf

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