A Latin American judge could soon rule in a case that many believe could be the costliest corporate ecological disaster in world history. The case against Texaco and its parent company Chevron Corp., which has languished in U.S. and Ecuadorian courts for more than a decade, stems from 16 billion gallons of oil drilling byproduct released in the Amazon basin over more than a quarter of a century. Local families claim that the pollution ruined their livelihoods and sickened their families. A court-appointed panel of experts has already recommended that Chevron pay as much as $27 billion in damages.

In a decision that does not bode well for plaintiffs, a federal appeals court has ruled that a 1-1 ratio of compensatory to punitive damages should apply in cases of substantial purely economic damages. The 3rd Circuit Court of Appeals ruling in Jurinko v. Medical Protective Co. slashes $6.25 million in punitive damages to $2 million. The holding is the most recent in support of limiting punitive damages since the Supreme Court’s decision in Exxon Shipping v. Baker.

Lawsuits filed on behalf of hundreds of Gulf Coast hurricane victims who were housed in formaldehyde-laden trailers should not be able to pursue their claims as a class action, a federal judge has ruled. In a 50-page ruling, District Judge Kurt Engelhardt found that the individual claims were too dissimilar to pursue as a class action. Attorneys for the plaintiffs had argued that class status would be the most efficient means to resolve claims against dozens of trailer manufacturers and spanning several states.

Several victims of the worst train accident in the United States in more than a decade filed lawsuits Tuesday alleging negligence on the part of the company that employed an engineer suspected of causing the crash. Investigators hypothesize that the engineer, employed by French-owned Veolia Transportation Services, was distracted as he sent and received cell phone text messages moments before the crash. The Los Angeles-area crash killed 25 people and injured 134 others.

A California jury has ordered the city of San Juan Capistrano to pay $8.3 million to two boys who were injured in a 2005 motorcycle accident. Jurors found that the city was substantially negligent for failing to install safety measures at the intersection where the accident occurred. The award includes $7.2 million to a boy who lost his leg in the crash and $1.1 million for the other rider.

Widespread layoffs stemming from the recent economic downturn could trigger a wave of wrongful-termination suits, labor and employment attorneys say. In expectation of such lawsuits, companies are retaining labor specialists to help them comply with state and federal regulations during downsizing efforts. Additionally, insurers have noted a significant rise in the number of companies purchasing employment practices liability insurance to cover defense costs in the event of wrongful-termination lawsuits.

A lawsuit accusing Ford Motor Co. of mismanaging the retirement funds of current and former non-union workers should be allowed to go forward, a federal judge ruled last week. In the lawsuit, plaintiffs claim that the automaker should not have offered volatile company stock as an investment option for its employees. District Judge Stephen Murphy has ordered Ford to begin settlement talks with the plaintiffs under the supervision of a magistrate.

Defendants in lawsuits stemming from a 2006 auto accident have agreed to pay $1.5 million to settle the claims. According to the lawsuits, the Hawaiian man who allegedly caused the crash was traveling more than 100 mph and was drunk at the time of the accident. Defendants in the case include the driver’s estate, his insurance company and the Kiawe Kitchen restaurant.

The Food and Drug Administration is warning consumers to avoid a variety of diet pills sold primarily on the Internet. According to the FDA, the pills contain unlisted ingredients, including powerful appetite suppressants and a potential carcinogen. The FDA cautioned that exposure to these substances could put users at risk for heart attacks, strokes and heart palpitations

The parents of a teenager killed in a 2007 tiger attack at the San Francisco Zoo have filed a lawsuit against the city and the non-profit group that manages the zoo. According to the lawsuit, the city and the San Francisco Zoological Society were negligent in the attack because they failed to properly build the enclosure that housed the tiger. The lawsuit seeks unspecified damages