Truck driver can seek triple damages in lawsuit over THC content in CBD product, Supreme Court says
The Supreme Court on Wednesday sided with a truck driver who wants to sue for triple damages over a CBD hemp product he says was falsely advertised as being free from marijuana's active ingredient and resulted in him getting fired.
The 5-4 opinion clears the way for the trucker to seek triple damages under an anti-mob law. It doesn't decide his underlying claims that the product's THC content got him fired.
Douglas Horn said he wanted to treat chronic shoulder and back pain after a serious accident. He chose the product because it was advertised as being free from THC, which gives marijuana its high. CBD is a generally legal hemp compound that is widely sold as a dietary supplement.
But lab tests taken after Horn was fired for failing a routine drug test confirmed the product did have THC, he claimed.
Horn sued the Vista, California-based Medical Marijuana Inc. and sought triple damages under the Racketeer Influenced and Corrupt Organizations Act, often known as RICO.
The company pushed back, disputing Horn's account and saying he can't sue for higher damages because he's claiming a personal injury rather than harm to his business.
Horn says his firing was a business injury and he's been financially ruined, and an appeals court allowed Horn's claim to go forward.
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The Independent
35 minutes ago
- The Independent
A Border Patrol agent died in 2009. His widow is still fighting a backlogged US program for benefits
When her husband died after a grueling U.S. Border Patrol training program for new agents, Lisa Afolayan applied for the federal benefits promised to families of first responders whose lives are cut short in the line of duty. Sixteen years later, Afolayan and her two daughters haven't seen a penny, and program officials are defending their decisions to deny them compensation. She calls it a nightmare that too many grieving families experience. 'It just makes me so mad that we are having to fight this so hard,' said Afolayan, whose husband, Nate, had been hired to guard the U.S. border with Mexico in southern California. 'It takes a toll emotionally, and I don't think they care. To them, it's just a business. They're just pushing paper.' Afolayan's case is part of a backlog of claims plaguing the fast-growing Public Safety Officers' Benefits Program. Hundreds of families of deceased and disabled officers are waiting years to learn whether they qualify for the life-changing payments, and more are ultimately being denied, an Associated Press analysis of program data found. The program is falling far short of its goal of deciding claims within one year. Nearly 900 have been pending for longer than that, triple the number from five years earlier, in a backlog that includes cases from nearly every state, according to AP's review, which was based on program data through late April. More than 120 of those claims have been in limbo for at least five years, and roughly a dozen have languished for a decade. 'That is just outrageous that the person has to wait that long,' said Charlie Lauer, the program's general counsel in the 1980s. 'Those poor families.' Justice Department officials, who oversee the program, acknowledge the backlog. They say they're managing a surge in claims — which have more than doubled in the last five years — while making complicated decisions about whether cases meet legal criteria. In a statement, they said 'claims involving complex medical and causation issues, voluminous evidence and conflicting medical opinions take longer to determine, as do claims in various stages of appeal.' It acknowledged a few cases "continue through the process over ten years.' Program officials wouldn't comment on Afolayan's case. Federal lawyers are asking an appeals court for a second time to uphold their denials, which blame Nate's heat- and exertion-related death on a genetic condition shared by millions of mostly Black U.S. citizens. Supporters say Lisa Afolayan's resilience in pursuing the claim has been remarkable, and grown in significance as training-related deaths like Nate's have risen. 'Your death must fit in their box, or your family's not going to be taken care of,' said Afolayan, of suburban Dallas. Their daughter, Natalee, was 3 when her father died. She recently completed her first year at the University of Texas, without the help of the higher education benefits the program provides. The officers' benefits program is decades old and has paid billions Congress created the Public Safety Officers' Benefits program in 1976, providing a one-time $50,000 payout as a guarantee for those whose loved ones die in the line of duty. The benefit was later set to adjust with inflation; today it pays $448,575. The program has awarded more than $2.4 billion. Early on, claims were often adjudicated within weeks. But the complexity increased in 1990, when Congress extended the program to some disabled officers. A 1998 law added educational benefits for spouses and children. Since 2020, Congress has passed three laws expanding eligibility — to officers who died after contracting COVID-19, first responders who died or were disabled in rescue and cleanup operations from the September 2001 attacks, and some who die by suicide. Today, the program sees 1,200 claims annually, up from 500 in 2019. The wait time for decisions and rate of denials have risen alongside the caseload. Roughly one of every three death and disability claims were rejected over the last year. U.S. Sen. Ted Cruz and other Republicans recently introduced legislation to require the program to make determinations within 270 days, expressing outrage over the case of an officer disabled in a mass shooting who's waited years for a ruling. Similar legislation died last year. One group representing families, Concerns of Police Survivors, has expressed no such concerns about the program's management. The Missouri-based nonprofit recently received a $6 million grant to continue its longstanding partnership with the Justice Department to serve deceased officers' relatives — including providing counseling, hosting memorial events and assisting with claims. 'We are very appreciative of the PSOB and their work with survivor benefits,' spokesperson Sara Slone said. 'Not all line-of-duty deaths are the same and therefore processing times will differ.' Nate Afolayan dreamed of serving his adopted country Born in Nigeria, Nate Afolayan moved to California with relatives at age 11. He became a U.S. citizen and graduated from California State University a decade later. Lisa met Nate while they worked together at a juvenile probation office. They talked, went out for lunch and felt sparks. 'The next thing you know, we were married with two kids,' she said. He decided to pursue a career in law enforcement once their second daughter was born. Lisa supported him, though she understood the danger. He spent a year working out while applying for jobs and was thrilled when the Border Patrol declared him medically fit; sent him to Artesia, New Mexico, for training; and swore him in. Nate loved his 10 weeks at the academy, Lisa said, despite needing medical treatment several times — he was shot with pepper spray in the face and became dizzy during a water-based drill. His classmates found him to be a natural leader in elite shape and chose him to speak at graduation, they recalled in interviews with investigators. He prepared a speech with the line, 'We are all warriors that stand up and fight for what's right, just and lawful." But on April 30, 2009 — days before the ceremony — a Border Patrol official called Lisa. Nate, 29, had fainted after his final training run and was hospitalized. It was dusty and 88 degrees in the high desert that afternoon. Agents had to complete the 1.5-mile run in 13 minutes, at an altitude of 3,400 feet. Nate had warned classmates it was too hot to wear their black academy shirts, but they voted to do so anyway, records show. Nate, 29, finished in just over 11 minutes but then struggled to breathe and collapsed. Now Nate was being airlifted to a Lubbock, Texas, hospital for advanced treatment. Lisa booked a last-minute flight, arriving the next day. A doctor told her Nate's organs had shut down and they couldn't save his life. The hospital needed permission to end life-saving efforts. One nurse delivered chest compressions; another held Lisa tightly as she yelled: 'That's it! I can't take it anymore!' Lisa became a single mother. The girls were 3 and 1. Her only comfort, she said, was knowing Nate died living his dream — serving his adopted country. Sickle cell trait was cited in this benefit denial When she first applied for benefits, Lisa included the death certificate that listed heat illness as the cause of Nate's death. The aid could help her family. She'd been studying to become a nurse but had to abandon that plan. She relied on Social Security survivors' benefits and workers' compensation while working at gyms as a trainer or receptionist and dabbling in real estate. The program had paid benefits for a handful of similar training deaths, dating to a Massachusetts officer who suffered heat stroke and dehydration in 1988. But program staff wanted another opinion on Nate's death. They turned to outside forensic pathologist Dr. Stephen Cina. Cina concluded the autopsy overlooked the 'most significant factor': Nate carried sickle cell trait, a condition that's usually benign but has been linked to rare exertion-related deaths in military, sports and law enforcement training. Cina opined that exercising in a hot climate at high altitude triggered a crisis in which Nate's red blood cells became misshapen, depriving his body of oxygen. Cina, who stopped consulting for the benefits program in 2020 after hundreds of case reviews, declined to comment. Nate learned he had the condition, carried by up to 3 million U.S. Black citizens, after a blood test following his second daughter's birth. The former high school basketball player had never experienced any problems. A Border Patrol spokesperson declined to say whether academy leaders knew of the condition, which experts say can be managed with precautions such as staying hydrated, avoiding workouts in extreme temperatures and altitudes, and taking rest breaks. Under the benefit program's rules, Afolayan's death would need to be 'the direct and proximate result' of an injury he suffered on duty to qualify. It couldn't be the result of ordinary physical strain. The program in 2012 rejected the claim, saying the hot, dry, high climate was one factor, but not the most important. It had been more than two years since Lisa Afolayan applied and three since Nate's death. Lisa Afolayan's appeal was not common Most rejected applicants don't exercise their option to appeal to an independent hearing officer, saying they can't afford attorneys or want to get on with their lives. But Lisa Afolayan appealed with help from a border patrol union. A one-day hearing was held in late 2012. The hearing officer denied her claim more than a year later, saying the 'perfect storm' of factors causing the death didn't include a qualifying injury. Lisa and her daughters moved from California to Texas. They visited the National Law Enforcement Officers Memorial in Washington, where they saw Nate's name. Four years passed without an update on the claim. Lisa learned the union had failed to exercise its final appeal, to the program director, due to an oversight. The union didn't respond to AP emails seeking comment. Then she met Suzie Sawyer, founder and retired executive director of Concerns of Police Survivors. Sawyer had recently helped win a long battle to obtain benefits in the death of another federal agent who'd collapsed during training. 'I said, 'Lisa, this could be the fight of your life, and it could take forever,'" Sawyer recalled. "'Are you willing to do it?' She goes, 'hell yes.'' The two persuaded the program to hear the appeal even though the deadline had passed. They introduced a list of similar claims that had been granted and new evidence: A Tennessee medical examiner concluded the hot, dry environment and altitude were key factors causing Nate's organ-system failure. But the program was unmoved. The acting Bureau of Justice Assistance director upheld the denial in 2020. Such rulings usually aren't public, but Lisa fumed as she learned through contacts about some whose deaths qualified, including a trooper who had an allergic reaction to a bee sting, an intoxicated FBI agent who crashed his car, and another officer with sickle cell trait who died after a training run on a hot day. Today, an appeal is still pending In 2022, Lisa thought she might have finally prevailed when a federal appeals court ordered the program to take another look at her application. A three-judge panel said the program erred by failing to consider whether the heat, humidity and altitude during the run were 'the type of unusual or out-of-the-ordinary climatic conditions that would qualify.' The judges also said it may have been illegal to rely on sickle cell trait for the denial under a federal law prohibiting employers from discrimination on the basis of genetic information. It was great timing: The girls were in high school and could use the monthly benefit of $1,530 to help pay for college. The family's Social Security and workers' compensation benefits would end soon. But the program was in no hurry. Nearly two years passed without a ruling despite inquiries from Afolayan and her lawyer. The Bureau of Justice Assistance director upheld the denial in February 2024, ruling that the climate on that day 15 years earlier wasn't 'unusually adverse.' The decision concluded the Genetic Information Nondiscrimination Act didn't apply since the program wasn't Afolayan's employer. Arnold & Porter, a Washington law firm now representing Afolayan pro bono, has appealed to the Court of Appeals for the Federal Circuit. Her attorney John Elwood said the program has gotten bogged down in minutiae while losing sight of the bigger picture: that an officer died during mandatory training. He said government lawyers are fighting him just as hard, 'if not harder,' than on any other case he's handled. Months after filing their briefs, oral arguments haven't been set. 'This has been my life for 16 years,' Lisa Afolayan said. 'Sometimes I just chuckle and keep moving because what else am I going to do?'
The Herald Scotland
an hour ago
- The Herald Scotland
As politicians bicker, Scotland faces losing Alexander Dennis
This is all the more so when it comes to manufacturing job losses in Scotland, perhaps because of the extent to which this sector has dwindled over the decades. The news that up to 400 jobs are at risk at Falkirk bus manufacturing firm Alexander Dennis is first and foremost a massive blow to the people directly affected. It means there is a very real prospect of hundreds more people joining the ranks of the unemployed in an area hit hard by the closure of Scotland's only oil refinery at Grangemouth, with the loss of around 400 job losses. It is always disheartening when concerns over widespread job cuts come a distant second in the minds of those seeking to score political points from corporate decisions taken to reduce workforces. Yet, coming so soon after further job cuts were announced by oil and gas giant Harbour Energy in Aberdeen, a move blamed by the company on the UK Government's energy profits levy, the proposed cuts at Alexander Dennis have led to an impression of decline in Scottish industry. Opponents of the Scottish Government have been quick to assert that events at Alexander Dennis are yet more evidence of the administration's flawed strategy and failure to protect industry and jobs. These critics repeatedly point to the delays and cost over-runs in the delivery by the nationalised Ferguson Marine shipyard of two ferries to serve the west coast and the time it has taken to find a buyer for Prestwick Airport, which was taken into state ownership in 2013, in justification of these claims (even though Prestwick is now regularly making profits and beginning to build a lucrative air freight operation). The Scottish Government has also come under for fire failing to deliver the amount of "green" jobs in the transition from oil and gas production to renewable energy that ministers forecast. Read more: But in the matter of Alexander Dennis, which has been part of NFI Group since the North American company acquired the firm for £320 million in 2019, any culpability on the part of the Scottish Government seems hard to discern. Winnipeg-based NFI, which is listed on the Toronto Stock Exchange, looks simply to have assessed its costs and concluded that it can save money by consolidating its UK bus body building operations into a single site. Unfortunately for Scotland, the site selected for this work is in Scarborough, not Falkirk. Euan Stainbank, the Scottish Labour MP for Falkirk, said the Scottish Government should have done more to support Alexander Dennis by ordering more buses from domestic manufacturers to serve local networks. He said Greater Manchester had bought more than five times the amount of buses from Alexander Dennis than had been purchased to serve the industry in Scotland. But ultimately in Scotland it is down to private bus companies to decide which manufacturers they wish to buy their vehicles from – not the Scottish Government. Naturally, those fighting to prevent the proposed cuts in Falkirk are urging Scottish ministers to do all they can to stop or limit the amount of redundancies during the consultation period that is now under way. Perhaps there is some financial incentive that can be offered to entice NFI to change its mind, but it is hard to be optimistic. Paul Davies, president and managing director of Alexander Dennis, hinted at the limitations of UK policy when the proposed cuts were announced on Wednesday. 'While stakeholders have been sympathetic of the situation, the stark reality is that current UK policy does not allow for the incentivisation or reward of local content, job retention and creation, nor does it encourage any domestic economic benefit,' he said. 'We have warned of the competitive imbalance for some time and would like to see policy and legislative changes that incentivise the delivery of local benefit where taxpayer money is invested. We strongly believe funding that supports public transport should lead to investment in local jobs, domestic supply chains, technology creation and a recurrent tax base.' There is a certain, painful irony to the situation too. While the Grangemouth refinery was declared by Petroineos to be no longer financially viable in the face of global competition and the drive to net zero, the Alexander Dennis site in Falkirk has been involved in the production of buses powered by electrical batteries and hydrogen, in other words at the cutting edge of modern transport technology. As veteran Scottish politician Kenny MacAskill, leader of the Alba Party, noted, it is 'perverse when Scotland is awash with renewable energy and is the base for the UK's green hydrogen that a company specialising in hydrogen buses is forced to relocate elsewhere'. Sadly, past experience in Scotland suggests that once a company decides to close operations, there is no going back. Petroineos could not be persuaded to change course at Grangemouth, and back in 2009 Diageo proceeded to shut down its Johnnie Walker plant in Kilmarnock despite significant protests at the time. It looks for all the world that the proposed cuts at Alexander Dennis are destined to become another sad chapter in Scottish industrial history, and one that will be especially poignant given the company's proud and long manufacturing legacy.
The Herald Scotland
an hour ago
- The Herald Scotland
Scots accountancy chief reveals acquisition plans for Azets
He disclosed the ambition in an exclusive interview with The Herald, in which he underlined the difficulties which the current economic uncertainty was causing clients. Business owners are looking to the firm for advice on how to manage challenges such as the recent rise in employer national insurance contributions and forthcoming changes to inheritance tax against a shifting macroeconomic backdrop that has been rocked by Trump tariffs and geopolitical tensions. The Scottish part of Azets began to take shape in 2017, when Scots accountancy firms Campbell Dallas and Springfords became part of Staffordshire-based Baldwins, which in turn was part of the Cogital Group. Campbell Dallas then merged with long-established Scots accountancy firm Scott Moncrieff under the Cogital umbrella, before Cogital was subsequently rebranded as Azets in 2020. Azets has a presence across the Nordics. Mr Gallanagh had been a partner at Campbell Dallas for nearly 20 years before its acquisition by Azets. Speaking in the Azets office in Braehead, he said the firm's growth over recent years has been powered by a flurry of acquisitions, with turnover on course to reach £330 million in the current financial year. He said the firm will continue to assess potential deals but will be more selective in terms of targets. The most recent deal struck by the firm in Scotland was the acquisition of Paisley-based Milne Craig in August. The acquisition saw more than 90 staff join Azets, lifting the number of people employed at its Braehead base to 320. Read more: Mr Gallanagh, who has been Azets' UK chief executive since 2022, said: 'We are very choosy now on how we acquire. The marketplace is, from a consolidation perspective, getting significantly harder. At one point, we were the only private equity supported firm and now there's about 50 supported in the private equity space. It is getting harder to acquire good businesses, but we are very conscious that we bought some businesses at the outset… that maybe aren't businesses that we would buy now. And we have made some wonderful acquisitions in recent years.' He said that Azets will now only acquire firms that have the potential to enhance its offer or fill a 'geographical white space that we have, and it doesn't take a rocket scientist to see where we are looking at'. Mr Gallanagh declared: 'If you look at the East Anglia side of the UK, you have got a big white gap in there. We are under-represented in London and Birmingham, and we can do a lot more in Manchester, and even in Scotland. There are spaces in Scotland we want to do more. 'We are in discussions with some firms in London and have one in the east side of England. We would be hopeful that we could conclude that before the end of June.' He added: 'It is no longer about just buying businesses for the sake of buying businesses – it is ensuring that they are adding value to what we have and most importantly that their culture is aligned to ours. A lot of our time is spent now on the culture of the business before we acquire, which is really, really key.' Asked to gauge sentiment among the firm's client base, Mr Gallanagh the uncertainty caused by global events and macroeconomic headwinds, including US tariffs, is 'causing concern pretty much across the board'. He said: 'It is across the whole of business, it is not in any particular sector. That uncertainty brings a real nervousness for people. I think the second thing is the changes in tax – the increase in national insurance [and] increase in the living wage which are putting a strain on already strained businesses.' Read more: This pressure has led firms to cut costs, including ESG (environmental, social and governance) and marketing spending, while investment plans are being held back because of changes to agricultural property and business property relief. These changes are part of reforms by the UK Government to raise more money from inheritance tax (IHT). Greig McKnight, Azets' regional managing director for Scotland, said: 'The changing tax environment is on all our clients' minds. Peter referenced the IHT impact – suddenly a lot of business owners have got a change in the landscape. The business property relief is being taken away, so they have got potentially a 20% IHT liability. That is impacting almost all of our clients and that has a knock-on effect on the decisions that they take.' Mr Gallanagh said the IHT changes are seeing family firms 'bringing forward conversations' around inheritance tax, when previously the issue may not have been discussed, in some cases until it was too late. He said: 'Now those conversations can happen up front. We would rather have them upfront without a 20% tax cloud hanging over our heads, but hopefully in the longer term a lot of businesses will have better succession planning in place.'
