Kentucky

From the Herad Leader, 2/18/2008 is story on Supreme Court committee to take a look at the rules regarding class action and mass tort cases.   Although the incident involving the three attorneys in Northern Kentucky has been in the news regarding the civil, criminal, and ethical implications, there has been little said that the current rules precipitated this action as opposed to the conduct of the individuals. 

Lawyers, judges discuss how to prevent wrongdoing among attorneys

A group of lawyers and judges is reviewing how Kentucky courts handle class action lawsuits and mass torts to see if there's more that can be done to prevent wrongdoing by attorneys.

The meetings come on the heels of criminal charges against three former Lexington-area lawyers, who face federal wire fraud charges related to their handling of a $200 million settlement involving the diet drug fen-phen.

Kentucky's mass tort and class-action litigation committee has been looking at an assortment of issues including better case management and strengthening ethics rules for lawyers. The cases can involve hundreds of clients and millions of dollars.

The committee, which includes lawyers and current and retired judges, will also look at whether the state should change its rules to mirror federal court rules, which are more specific and include a mechanism for moving similar lawsuits into one court or under one judge.

The group hopes to have some recommendations to forward to the state Supreme Court for consideration in the next 12 months. . . .

In an earlier story, from the Herald Leader . . .

Ethics, rules for lawyers spotlighted

More than a dozen lawyers and judges will meet over the next year to determinewhether Kentucky courts could do more to prevent wrongdoing in light of accusations that three former Lexington-area lawyers stole more than $65 million in a diet-drug settlement.

Kentucky is one of several states now looking at how the courts handle class action lawsuits and mass torts that involve hundreds and sometimes thousands of clients and millions of dollars.

In June, Shirley Cunningham Jr., Melbourne Mills Jr. and William Gallion were charged by a federal grand jury with taking money that should have gone to their clients. Attorneys in other states have also faced accusations of ethics violations in class action lawsuits. Last week, a California attorney who represented investors in lawsuits against corporations was sentenced to two years in federal prison for paying people to sign on as lead plaintiffs in investor lawsuits.

Kentucky's mass tort and class-action litigation committee, which began meeting in September, will look at an assortment of issues including improving case management of mass tort litigation and strengthening ethics rules for lawyers who represent hundreds of clients.

The committee will also look at whether the state should change its rules to mirror rules in federal court, which are more specific than state court rules on how cases can be handled -- including a mechanism for moving similar lawsuits into one court or under one judge. The committee includes lawyers and current and retired judges.