July 2010 Archives

July 27, 2010

Federal Financial Reform Law (Dodd-Frank) Includes Whistleblower Protection.

Oregon employees or others who blow the whistle and report violations of securities law to the SEC are now eligible for a bounty of 10% to 30% of money collected by the Securities and Exchange Commission (SEC), so long as the total money collected exceeds $1 million. Section 922 of the Dodd-Frank Law allows the whistleblower to remain anonymous by using an attorney to pass along the information. Also, if the employer knows the identity of the whistleblower, the employer may not discharge or discriminate against the employee because of an honest report.

The SEC may pay a monetary reward if the whistleblower's information is "original information." Original means that the whistleblower came up with the analysis or facts independently, and the SEC does not already have the information from any other source.

The whistleblower must make the claim within 3 years of the date of the time the employee knew or should have known of facts supporting the allegation of wrongdoing.

The whisteblower reward may not be claimed by people convicted of participating or by people whose job it is to uncover problems, such as employees of regulatory agencies, the Department of Justice, or someone who performs audits required by the SEC.

In some ways, the new Federal Law is duplicates Oregon's Whistleblower Protection Law, which protects employees from discharge or discrimination for reporting violations of any law. What's new is the chance to earn a bounty under the Dodd-Frank Law.

The above does not constitute legal advice and does not establish an attorney-client relationship. However, feel free to call me if you are an Oregon whistleblower and feel like you need legal counsel.

Jeff Merrick, Oregon Trial Attorney
Injury and Employment Law
503-665-4234

July 26, 2010

Sexual Harassment Allegations against Bones' Boreanaz: Reading Between the Lines.

Attorney Gloria Allred announced a lawsuit alleging sexual harassment in employment against David Boreanaz, of the TV show Bones. She also announced that she represents another woman, but did not file a lawsuit on her behalf. Instead, she sent the matter to a state agency to investigate. Here's my take on what that means, having used Oregon's State Agency at times and having filed sexual harassment cases in Oregon's courts.

First, we lawyers screen cases based upon whether we believe our clients. I assume that Ms. Allred believes that both of her clients felt victimized.

Next, we look at what evidence is in hand and consider what evidence is likely to be found later. When I file a lawsuit, it is because I believe there is enough evidence in hand to get the case to a jury. I assume that Ms. Allred believes she has enough evidence on Kristina Hagan's case to reach a jury. During the "discovery process" (definition here), she hopes to develop more evidence to win the case.

On the other hand, if an attorney feels like a client was legitimately harmed, but wants more evidence before risking a lawsuit, it makes sense to refer the case to the state agency. The state agency will then conduct an investigation. The agency could turn up more evidence, giving the attorney more confidence before filing a case.

We attorneys want to make sure we win the case, because no client wants to go through the expense and trauma of litigation unless the odds of winning are very good.

Jeff Merrick, Oregon Trial Attorney
503-665-4234

July 18, 2010

Preparing for Deposition: Your Credibility is EVERYTHING.

Credibility is everything when an Oregonian decides to sue, whether it is for car accident personal injuries, sexual harassment, or legal malpractice, or anything. I just withdrew from a case arising in Oregon City before I even filed the lawsuit because I did not trust my client. This post discusses the concept of credibility and why it is so important for an attorney to work with his or her client to make sure the client is 100% credible.

Why is credibility everything?

The most important factor in whether you win your case is whether the jury (or defense attorney or claims examiner) believes you and likes you. Oregon judges instruct jurors that, "If you find that any person has intentionally given false testimony in some part, you may distrust the rest of the person's testimony." But beyond that, jurors are people. People do not empathize with or want to help people who they do not believe or like or relate to. I'd rather represent Mother Theresa with an iffy case than Adolf Hitler with what seems like a slam dunk case. Jurors will find a way to help Mother Theresa and find a way to give Hitler what he deserves.

Credibility is truth PLUS accuracy.

Credibility is not merely avoiding a lie. Just because you do not intend to deceive does not make you credible. Here's why.

At some point, defendant will want your deposition. You will swear to tell the truth, and a court reporter will record every word. If you guess wrong, then, later, the other attorney will call you on it. Even if your misstatement was small and not intentional, people will wonder what else you got wrong.

What you and your attorney should do to improve your credibility.

From the first day forward, there are many steps you can take to make sure your testimony is true, accurate and complete. Here are a few of them:


  • Your attorney should tell you what information is important to keep track of.

  • Keep track of important information in a systematic way; your attorney should help you with this.

  • Before your deposition, you or your attorney should talk with other witnesses who have relevant information, so that you are fully informed. Sometimes, loved ones notice things about the injured person that the injured person does not notice about herself.

  • Prepare and study for your deposition like you are taking the most important exam in your life. Your attorney should tell you about the process, the traps, and how the other attorney might behave. You need to know all of the pertinent dates, issues and facts so that you can give accurate testimony.


Performing well at your deposition shows the other side that you are a credible witness. A good performance dramatically increases the odds that you will achieve a fair settlement. A bad performance could sink you case.

I am shocked when I hear that some attorneys will "prepare" a client for his or her deposition immediately before the deposition begins. I think you should expect more from your own attorney.

Jeff Merrick, Oregon Trial Attorney
Injury & Employment Law
503-665-4234

July 12, 2010

Sexual Harassment of Latinas & Other Immigrants in Oregon & Elsewhere

EEOC press releases show that terrible sexual harassment occurs frequently against immigrants in Oregon, Washington, and the rest of the nation. For example, the EEOC sued Allstar Fitness, which operates in Washington and Oregon, because one of its supervisors forced an employee to choose between sex with him and her job. (Supervisor Forzó Sexo en una Empleada Latina.) The company did not train employees on the laws against discrimination. It produced no written harassment policies and no complaint procedure.

In another case from a Mollala, Oregon nursery (Willamette Tree Wholesale, Inc.), the EEOC charged that Latina workers were sexually harassed, raped, and threatened.

EEOC charged a Washington state apple grower (Evans Fruit) with sexual harassment because supervisors assigned women to isolated jobs so that they could make sexual advances. The court issued an order stopping the company from retaliating against or attempting to influence any potential witnesses or victims during the time the case proceeds.

Other examples include a $260,000 settlement to an employee of Wilcox Farms, in Aurora, Oregon. Schiemer Farms, also of Oregon, fired two workers on their first day of work after they reported sexual harassment, and it cost Schiemer $14,500.

Latinas are not the only vulnerable immigrants who have been victimized. Sexual harassment in the Korean Community in Los Angeles is leading to settlements and educational efforts toward small businesses, to prevent harassment before it happens. The EEOC is hiring investigators who speak different languages in its effort to address discrimination against immigrant women in the workplace.

Jeff Merrick, Oregon Trial Attorney
Injury & Employment Law
503-665-4234

July 6, 2010

Oregon Insurance Company Denials Based Upon Misstatements in Applications.

You make an insurance claim in Oregon. The company reviews it, gathers information, and then denies it based upon some misstatement in your application. Can the insurance company do that? Maybe. Maybe not.

Oregon's insurance law is not well developed. The Oregon State Insurance Division recently issued a bulletin on this topic to insurers as to what it considers proper and improper.

First, Oregon's Insurance Division does not want insurance companies to intimidate people who apply for benefits. Insurance companies should not insert big warnings about fraud or misstatements in claim forms unless it included such warnings in the application for insurance.

Next, if the insurance company wants to cancel the contract, then the misstatement must be serious: either fraudulent or "material to the interests of the insurer." In other words, something minor and not meant to sucker the insurance company should not be the basis to cancel the insurance contract once you need the benefits for which you paid.

Even for simple denials of claims, the insurer should prove that the misstatement or concealment was either intentional or that the insurance company would not have issued the policy if you had filled out the application fully and accurately.

For life insurance and health insurance policies, the companies only have two years in which to contest coverage based upon misstatements in the application. For health insurance, the two-year limitation does not apply to those who procured insurance through fraud.

In addition to the above position of Oregon's Insurance Division, Oregonians also have some common law rights. For example, every contract includes an implied covenant of good faith and fair dealing. If the insurance company is not acting in good faith, that is another basis on which to fight it.

Insurance Companies entice you with happy geckos and daffy clerks. Giddily, they collect your premiums. They become devious and difficult when you actually want them to pay for a serious claim. That's when you need the help of an attorney who knows the tricks they play and whether the insurer's actions are within the bounds of the law.

Jeff Merrick, Oregon Trial Attorney
Injury & Employment Law
503-665-4234

The above is not legal advice. I cannot give you sound advice without knowing more information. It is intended to raise some issues for you to discuss with your own lawyer.