Thursday, September 20, 2007

Lose Some, Win Some

While everyone else has been obsessed with OJ's latest legal travails, I have followed that other legal travesty, the case of DC Administrative Law Judge Roy Pearson against his dry cleaners, the Chungs. The Case of the Purloined Pants, as I fondly refer to it, is another one of those stories that I've followed as it progressed through various stages. See,e.g., Hell Hath No Fury . . ., They Beat the Pants off Him, and The Appeal of the Pantload.

This case presents all that is wrong with our legal system. I have been waiting to hear that Pearson has officially lost his job as ALJ, by being denied a reappointment to the court, No Pants, No Job. Instead -- in a sad chapter to the tale, I see that the Chungs have decided to close the dry cleaners establishment, Custom Cleaners. As the Washington Post, Pearson v. Chung The Latest Victim, reports:

The latest victim in the $54 million pants lawsuit is Custom Cleaners itself. According to the Chung's lawyer, Christopher C.S. Manning: they have closed Custom Cleaners dry cleaners due to the revenue losses and emotional toll resulting from the Pearson v. Chung lawsuit. The business has been sold. Having had to close two of their three dry cleaning stores since the initiation of the lawsuit, the Chung family is currently focused only on their Happy Cleaners store located at 1119 7th Street, NW in Washington, D.C. The Chungs hope that a successful Happy Cleaners store will help them someday rebuild their businesses in the aftermath of the lawsuit.
The Post's Marc Fisher has been the source for the story behind the story of this sorry tale. In Pants Update: The Dry Cleaners Shuts Down, he notes:

Roy Pearson, the D.C. administrative law judge whose $67 million lawsuit against his neighborhood dry cleaners turned into a worldwide lesson in how one obsessed person can hijack the American legal system, lost his case in court, but today delivered the crowning blow to the owners of Custom Cleaners:

Bowing to the emotional and financial strains of two years of litigation, Soo and Jin Chung today announced the closing of the dry cleaners that may or may not have lost a pair of Pearson's pants that he put in for a $10 alteration in 2005.

"They were just tired of the whole ordeal," the Chungs' daughter-in-law, Soo Choi, told me today. "A lot of people view this comically because the case is so outrageous, but my mother-in-law has gone down four dress sizes from this whole ordeal. They just want to put this in their past."

As a former litigator (and sometimes participant as corporate counsel even now), I can attest to the devastating toll that a trial can take on the parties. In addition to the ungodly cost of litigation, it is terribly consuming and emotionally draining, no matter the case. When you are dealing with a case like this, that is so drawn out and outrageous in its lack of merit, it causes the defendants to suffer even more. The worst part is the feeling of helplessness -- there is no way to resolve the matter when one party remains steadfast in his unreasonable, intractable position.

In a sort of good news/bad news setup, our legal system is based upon an open system of justice -- the courthouse is open to all. Unfortunately, that presumes that people will act appropriately, which is not always the case. The abusers, like Pearson, cause the system to break down, as occurred here. We need to come up with a way to permit those like Pearson to be penalized for taking advantage of the rules.

What makes the whole things especially difficult in this case is the fact that Pearson has no resources, so any financial action against him is worthless. If the Chungs had pursued their claim for attorneys fees, they no doubt would have prevailed. The Judge make clear that she was inclined to rule that way. However, they would have been wasting additional money even trying, since they couldn't have recovered anything from him anyway -- he's judgment proof.

Another nasty aspect of this case is the reaction of many who have followed it. There is a groundswell of negative sentiment towards Pearson (which I share), but some of it borders on racist, which is unfortunate. He's a jerk, period. Baldness*, as I call it, is not endemic to one particular race or nationality.

Also, I have seen a tendency to blame the Chung's lawyer for the cost involved, which is misplaced anger. The problem is due to Pearson for bringing and aggressively pursuing this matter, to increase the costs involved. I believe that Chris Manning took this case at a reduced rate, but he is part of a small firm, so he cannot afford to do it pro bono (as someone in a similar position, I should know). And I understand that the appeal is being done on a pro bono basis. Plus, there was a generous outpouring by many to cover the legal costs (which is one of the good aspects of this case), so that alone was not the reason for the action of the Chungs. I'm sure it was the emotional cost (and the impact on the business itself) which precipitated the decision to close.

I hope the Chungs are able to slowly put this disaster behind them and move forward. Fisher adds:

The Chungs will now work exclusively at their original shop, Happy Cleaners, on Seventh Street NW, across from the D.C. Convention Center. Soo Chung was there this afternoon, mopping the floor, waiting for customers. For the first time in a very long time, she was able to smile about her work. "This is our first store, first job," she told me. "When we came to America, we worked here. Good job. Good store."

Joe Gandelsman of the Moderate Voice said it best -- Pearson may have lost the battle, but he won the war. Unseemly Pants Suit Ends With Dry Cleaner Closing Shop.

One can only hope that his turn will come -- with the loss of his job.

For the release issued by counsel to the Chungs on the closing, see Breaking (Your Heart) News: Chungs Close Custom Cleaners. For more on this sad story, see Chungs Close Shop after Roy Pearson Suit.

(People with Baldness often suffer from "Big Asshole, Little Dick" syndrome)

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