| Current Events
The following article concerning the disbursement
of remaining funds of the New Iberia Train Derailment
appeared on November 23, 2004 in the Daily Iberian
$170, 000 goes 4 ways
By HENRI LEJEUNE THE DAILY IBERIAN
Four New Iberia charities were given $170,000
Monday in remaining funds left over from the New
Iberia train derailment settlement.
Attorney David Groner presented the checks to each
charity at his office. The Iberia Homeless Shelter
received $77,000. St. Francis Diner received $60,000.
The ARC of Iberia received $27,000, and Safety Net
for Abused Persons received $6,000.
The money was set aside as part of the 2000 Burlington-Northern
Santa Fe train derailment class-action lawsuit in
a contingency fund. U.S. District Judge Rebecca
Doherty issued the order to give the release of
the money to the charities, but commissioned Groner
prior to the release to find local proposals for
the money.
"It helps us to continue to feed the homeless
and everyone in need of a meal," said Juanita
Lewis, St. Francis Diner executive director. Lewis
said the diner needs a new roof and a van for transportation.
St. Francis Diner Board president Richard Guidry
said the money came at just the right time. He said
the diner had just spent $30,000 on capital equipment,
and the money would help it offset the costs.
Pierre Schwing Sr., of the Iberia Homeless Shelter,
said the money received will help open the shelter
earlier than expected. James Russell Jr., also of
the Iberia Homeless Shelter, said the shelter may
be able to open in January with the help of the
money.
The shelter would be the first for the new organization
and work left on the facility includes repairing
the roof and adding a sprinkler system. "It
will definitely help advance the opening of the
shelter," Russell said. Schwing said the idea
and move to create the shelter originated in the
local ministerial association.
Safety Net for Abused Persons (S.N.A.P.) executive
director Marva Porter said the funds that group
received will go to renovating its building. "It's
going to help us tremendously," she said. "We
have a roof that is in disrepair."
Groner said he was proud to be a part of the effort
to find charities for the funds. He also thanked
Doherty for allowing the funds to be released locally.
It was up to her where the money went, he said.
He also saluted the United Way for assistance in
the process. United Way community impact committee
chairperson Natalie Broussard thanked everyone involved
for making the process run smoothly and quickly.
Thomas Juneau represented his father, Patrick Juneau,
at the event. Patrick Juneau worked as special master
for the case and was unable to attend Monday's event
because of medical problems. Thomas Juneau thanked
the Burlington-Northern Santa Fe railroad company
for its cooperation in the suit. He said the process
could have taken much longer without its help.
Groner said he was proud to be a part of the team
that helped the charities and said the effort was
an example of how litigation can end with betterment
of the community. "There's a lot of positives
to what we do," Groner said.
~~~
The following article concerning the current litigation
regarding the toxic emissions at New Iberia Senior
High School appeared on October 9, 2003 in the Daily
Iberian
NISH fumes change board policy October
9, 2003
By Steve Bandy THE DAILY IBERIAN
Controversy surrounding reports of noxious fumes
at New Iberia Senior High School will change the
way the Iberia Parish School Board contracts out
roof work in the future.Two class action lawsuits
have been filed against the board and Crown Roofing
Inc. in the wake of the mid-September incident in
which faculty members and students reported headaches
and nausea caused by fumes from a chemical being
used to repair the NISH roof."It will not happen
again," said Gerald Gesser, architect for the
board, during Wednesday night's meeting of the School
Board. "We will probably do something else
in the future - same material, same process, different
schedule."Gesser told board members that this
particular roofing method, which uses Armor Flex,
a bonding substance, has been used "for about
15 years" on various school board buildings,
including the administration building in which Wednesday
night's meeting was held."The problem as I
see it," said board member Blaine Meche, "is
that NISH is totally enclosed. Once these fumes
got into the building, they were just ventilated
back through the air conditioning system."Rita
Holmes agreed. "We need to look at the construction
of the building when we're planning future work."
Gesser said he and board officials, including Superintendent
Eugene "Sonny" Baudry, had been at the
high school "for most of the past four or five
days," evaluating the situation and planning
completion of the work yet to be done."The
School Board had (air quality) tests conducted in
the school Saturday and we're planning additional
tests," Gesser said. "I can tell you that
the smell is virtually gone."The architect
said the test results are expected within the next
four to five days "and when they're in we will
be able to give you some direction."Gesser
estimated 10 to 12 days of work remain to complete
the project.Meanwhile, local attorney David Groner,
one of the two who filed class action lawsuits,
told The Daily Iberian Wednesday afternoon that
"people are coming in daily to sign up"
as plaintiffs.Groner also conducted air quality
tests at the school this past Saturday and said
he expects to have his preliminary results in by
the end of this week. He has also consulted with
Dr. Patricia Williams, who he touts as "one
of the leading toxicologists in the state,"
concerning the effects of the exposure to the chemical
fumes.The fumes were first reported on Tuesday,
Sept. 16. However, the bulk of complaints from students
and faculty came on the following Friday."When
we heard about the complaints we had the work shut
down by noon that Thursday," Gesser said. "We
took immediate action."The fumes were determined
to be from the chemical Armor Flex, which can cause
eye and skin irritation and can also cause headache,
dizziness, nausea, drowsiness and irritation to
the respiratory system, according to the chemical's
own warning label.
To view further information regarding the Class
Action lawsuit filed on behalf of all persons affected
by the toxic emissions, click
here.
~~~
The following article concerning assistance we
give to our clients appeared in the 12/28/2002 issue
of the Daily Advocate. This rule, if passed, will
have a significant impact on our clients.
Proposal curbs attorney loans
Court asked to stop advances to clients
NEW ORLEANS -- Lawyers who let clients
borrow against expected legal winnings could not
collect interest, fees or other charges on the loans
under a proposal before the state Supreme Court.
Louisiana lawyers have been allowed to make such
loans for more than 25 years. Sometimes the money
came from their own pockets, but more and more are
high-interest finance company loans made to the
clients and guaranteed by the lawyers.
A committee appointed by the high court says it
should sharply restrict both kinds of loans, and
should forbid lawyers to use such loans as a lure
to clients.
Lawyers should be barred from charging interest,
fees or other charges on advances they make out
of their own money, the committee said.
The changes also would set a limit on the third-party
loans that lawyers could guarantee.
However, some lawyers say they themselves cannot
get the proposed rate of up to 3 percentage points
above the Federal Reserve Board's prime interest
rate.
The Supreme Court is accepting comments through
Jan. 21 on the proposed rules, and other proposed
changes to govern lawyers' financial dealings with
their clients.
In 1976, Louisiana became the first state to bend
a long-standing rule against financial entanglements,
saying lawyers could advance money to needy clients.
Ten states now permit such loans.
"What was supposed to have been the rare exception
to the rule became the rule," said Charles
Plattsmier, head of the court's Office of Disciplinary
Counsel and a member of the committee that has recommended
the lending rule changes.
"Every client was demanding, and receiving,
financial assistance, whether in necessitous circumstances
or not, and sometimes the amounts of advances were
far larger than what ethics would have permitted,"
he said.
Treating the loans as a cost of doing business,
lawyers routinely listed them as expenses against
income, which reduced their tax liability. That
changed in 1983. The Internal Revenue Service ruled
that such loans had to be listed as accounts receivable,
because lawyers had a reasonable expectation of
being repaid.
With the tax incentive gone, lawyers began going
to banks or finance companies for the loans, typically
less than $1,000 a month to cover rent or mortgage
payments and some utility bills.
Plaintiff and defense lawyers on the panel agree
the proposed rules are needed to stop a practice
that can leave some personal injury clients paying
most of their awards in finance company interest
totaling many times the amount borrowed.
Plattsmier said one client, whose case was worth
at most $10,000, wound up with a couple of hundred
dollars after paying the lawyer, litigation expenses
and loan interest.
"Everybody got rich off this deal except the
client," he said.
The proposed rule changes are not well known outside
legal circles. But some finance companies say the
proposed interest rate cap would leave no room for
profit, especially if the clients are poor credit
risks.
Baton Rouge lawyer John DeGravelles, who served
on the committee that recommended the changes, said
the primary goal of the proposed rules is serving
the clients' best interest.
"And if the clients' best interest is served,
and the result of that is that certain finance companies
who are gouging with interest rates are adversely
affected, then so be it," he said.
The committee felt it is a good idea to let lawyers
help injured clients survive financially while their
court cases are pending.
It also agreed that if a lawyer borrows money to
do so, it's fair to pass that cost along, as long
as the interest rate is fair, DeGravelles said.
Trying to come up with an interest rate that wouldn't
gouge clients, the committee settled on three points
above prime.
But several lawyers have written the Louisiana
Trial Lawyers' Association, saying only the wealthiest
lawyers could get loans at that rate.
"To restrict the interest that an attorney
can guarantee would place an undue hardship on the
client," New Iberia lawyer David Groner said.
"Where else would they get the money for a
utility bill or food for their children while out
of work due to an injury?"
Lawyer Dean J. Guidry of Lafayette argued that
the proposed cap "eliminates all of the small
mortgage and lending companies which typically charge
interest rates well above this cap."
"If limits are placed on advances, the premise
being that promises of advances are morally wrong,
then the same morality should apply to the defense
bar, which wines and dines its clients on a regular
basis," Guidry said.
"If advances are limited, then the wining
and dining should be, too. See how well that goes
over with the defense bar."
DeGravelles said the trial lawyers' association
will survey its members and bankers to try to come
up with a rate which most lawyers could get without
being too high for their clients.
But, he said, to justify any kind of loan arrangement,
a lawyer must "make sure you don't spend so
much money on the case, lend so much money on the
case, that the client ends up walking away with
zip, or essentially that."
On the Internet:
Louisiana Supreme Court: www.lasc.org
Louisiana Trial Lawyers Association:
http://www.ltla.org/
Click here to return to story:
http://www.theadvocate.com/stories/123002/new_loans001.shtml
~~~
The following article concerning the settlement
of the New Iberia Train Derailment Class Action
Lawsuit appeared in the December 12, 2002 edition
of The Daily Iberian:
Local News
Suit settled for $5 million
By Jeff Moore THE DAILY IBERIAN
LAFAYETTE - A $5 million settlement was reached
in federal court Tuesday for victims of the 2000
Burlington Northern Santa Fe train derailment in
New Iberia. Judge Rebecca Doherty approved the class-action
settlement and instructed Special Master Patrick
Juneau to oversee the settlement pro-cess.
Juneau will determine how to fairly allocate the
settlement amongst roughly 3,000 people who have
claimed damages. New Iberia attorney David Groner,
one of the attorneys in the class-action suit, said
Juneau will award the claimants based on the severity
of their loss. Juneau was unavailable to explain
how claims would be categorized.
"We have the benefit of a real expert in Pat
Juneau," said Groner.
"He has enormous experience in handling class
actions much larger than this."
Residents who live or work within the designated
area, which is slightly broader than the evacuation
area, are automatically part of the class-action
settlement, Groner said. He said most of those are
currently represented by attorneys or have already
settled their claims with BNSF.
Groner said residents within the designated area
will be notified by mail and two public notices
published in The Daily Iberian over the next 10
days.
The derailment occurred around 7 p.m. on May 3,
2000. Thirteen cars in an 80-car train left the
tracks at the intersection of Jefferson and West
Washington streets, about 300 yards from the Iberia
Parish Courthouse. Five of the 13 cars ruptured,
including one tanker carrying the hazardous material
Xylene. The derailment resulted in the mandatory
evacuation of homes and businesses within a half-mile
area surrounding the accident.
The evacuation area was reduced as the threat decreased
and was lifted completely about two days after the
accident.
According to the lawsuit, the evacuation caused
financial losses for businesses who were forced
to shut down and evacuation-related expenses for
those who had to leave their homes.
Others listed in the suit complained of skin irritation,
head-aches, dizziness and nausea due to exposure
to Xylene fumes.
No injuries were caused by the actual derailment,
but chief nursing officers at Iberia Medical Center
and Dauterive Hospital attributed more than 500
emergency room visits to the derailment during the
following two weeks. Groner said people who claim
long-term health effects will not be considered.
"All the experts who have been analyzing the
case have determined that health consequences due
to the exposure would have dissipated in a short
period of time," said Groner.
Groner said he expected few new claims to be filed.
Groner said anyone who hopes to file a claim must
provide some form of proof, such as receipts from
hospitals, proof that they live or work within the
evacuation area or proof they were traveling in
the evacuation area at the time of the derailment.
Groner said a claims office will be re-opened in
February and March to determine allocations. "If
claimants disagree or don't like the amount of their
award, he (Juneau) will come up with a method for
having a hearing and listening to their evidence,"
Groner said.
The owner of the tank car, GATX, is the only other
defendant in the suit.
Lafayette attorney Jack Mc-Elligot, who is representing
Burlington Nor-thern-Santa Fe, declined to comment
on how much of the settlement GATX would pay..
"Given the circumstances and the number of
people who were inconvenienced and fearful after
the event, we think it's a fair settlement,"
said McElligot.
"My client always wanted to do right thing.
It was always our intent to resolve this as quickly
and fairly as possible."
McElligot noted that BNSF paid for all out-of-pocket
expenses incurred by the city and donated a $5,000
check to purchase haz-mat suits to the New Iberia
Fire Department.
BNSF paid about $920,000 to roughly 4,900 claimants
during the two weeks after the accident, an average
of $188 per claim.
~~~
On November 12, 2002 David Groner delivered a
presentation to the Career Connections class at
Westgate High School in New Iberia. Our thanks to
Ms. Ginger Comeaux and the students of her classes
for inviting us.
Mr. Groner was pleased to share with the students
his vast experiences in the practice of law. Mr.
Groner, who once attended Freshman High School,
which is now Westgate, explained that being a successful
attorney requires a great commitment to representing
clients to your fullest potential. Mr. Groner further
discussed the up-to-date technology which is used
by the Law Offices of David Groner such as network
computer systems, digital photography and imaging
technology, computerized presentation software and
hardware and complex communication hardware. All
of this technology helps the law firm stay on the
"cutting edge" of the practice of law
and able to compete with any firm in the United
States.
David Groner delivers his presentation to the
Career Development class at
Westgate High School.
The students responded well to the
presentation. Several excellent questions were asked
by the students. The law firm of David Groner, P.L.C.
is pleased to participate in this program.
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