Nashville at law: 13 October 2008

Lottery sues over computer snafu, Healthways in phone spat, and more...

Email | Print By E. Thomas Wood

10-13-2008 9:52 AM —

Here are some civil legal cases of note for the week of October 2 - 9:

Davidson County Circuit Court:

Tennessee Education Lottery Corp. v. Smartplay International Inc. and Gaming Laboratories International Inc. Filed October 2. The moment of reckoning arrives after last summer's computerized-drawing fiasco at the Lottery. A simple keystroke error in new software used in choosing Cash 3 and Cash 4 winners meant that some $2 million worth of tickets sold in a three-week period were automatically excluded from winning.

Earlier this year, the Lottery asked technology provider Smartplay and system reviewer Gaming Laboratories to cover the costs it incurred in sorting out the mess. Now it is suing over those costs, which the Lottery pegs at $1.45 million. Plaintiff's attorneys: Aubrey B. Harwell Jr. of and Ronald G. Harris of Neal & Harwell PLC.

Resource Communications Group LLC v. Healthways Inc. Filed October 6. Disease-management leader Healthways contracted with RCG in 2006 to provide telecommunications services. The lawsuit claims Healthways "unilaterally and improperly gave notice it was terminating the agreement in May 2007." RCG claims the contract entitles it to 8 percent of everything Healthways now spends each month on telecommunications. It also wants to be made whole for expenses it incurred in performing the work it did do for Healthways.

Plaintiff's attorneys: Harwell and Harris of Neal & Harwell once more, joined by Jonathan H. Wardle.

Davidson County Chancery Court:

Fred Westfield et al. v. Federal Republic of Germany. Filed October 3. A new legal front opens in a remarkable case that seeks to right some of the wrongs of the Holocaust.

Retired Vanderbilt University economics professor Fred Westfield arrived in Nashville in 1940 as a 12-year-old Jewish refugee from Nazi Germany. He made it out with his father and one uncle, but another uncle, Walter Westfeld, failed in his desperate attempts to escape the country. Walter, who owned a large and famed art collection including works by Rubens and El Greco, was arrested days after Kristallnacht, the night of terror unleashed against Germany's Jews on November 9, 1938. He was eventually murdered at Auschwitz.

The Nazis seized and sold off the art collection after Walter's arrest. In 2004, Fred Westfield learned that one painting, by 17th-century Dutch master Eglon van der Neer, had ended up in the collection of the Boston Museum of Art. With the cooperation of an archivist from the museum, he began researching the fate of the rest of the collection. In early 2007, he and other relatives of Walter Westfeld asked Nashville's probate court to let them reopen Walter's estate for the purpose of trying to gain some recompense for the loss of the art. They had to reach a settlement with members of a German family who claimed to be Walter's rightful heirs, but the court eventually granted their wishes.

Now Fred Westfield is suing Germany, joined by family members living across the U.S. The lawsuit asserts that today's Germany is liable for the action's of Hitler's regime and cannot claim state immunity under the terms of the Foreign Sovereign Immunities Act. It seeks an accounting of the fates of the paintings and tapestries, as well as damages for their loss.

Plaintiff's attorneys: Overton Thompson III of Bass, Berry & Sims PLC and Jeffrey Schoenblum of Vanderbilt University Law School.

Ameris Health Systems LLC v. Russell County Community Hospital LLC. Filed October 3. Hospital operator Ameris has a management contract with RCCH, located in Montgomery, Ala. It claims the hospital owes $1.15 million and has "failed to negotiate in good faith to arrive at a payment schedule." Along with the balance due, Ameris seeks pre-judgment interest of 10 percent on the outstanding amount as well as attorneys' fees. Plaintiff's attorney: H. Frederick Humbracht Jr. of Boult Cummings Conners & Berry.

United States District Court:

Melanie Howard Music Inc. v. Warner Bros. Records Inc. Filed October 6. The music publishing company of Melanie Howard, widow of legendary songwriter Harlan Howard, is locked in a dispute with Warner Bros. over the rights to numerous songs by alt-country fave Lori McKenna. The lawsuit accuses the label of infringing the copyrights of the songs, and it seeks an injunction to force Warner to stop selling McKenna's music and pay damages for what it has sold. Plaintiff's attorneys: John A. Day and Kenneth J. Sanney of Day & Blair PC in Brentwood.

Magotteaux International, SA et al v. Fonderie Acciaierie Roiale, S.p.A. Filed October 8. A Belgian firm sues an Italian company for infringing a U.S. patent. Magotteaux produces "wear-resistant castings and grinding media" for industrial use. It has a factory in Pulaski. Competitor F.A.R., it claims, is selling products that are covered by one of its patents. It seeks an injunction and treble damages for willful infringement. Plaintiff's attorneys: Three lawyers from the Chicago firm Vedder Price PC, with Wallace W. Dietz and Paige Waldrop Mills of Bass, Berry & Sims as local counsel.