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GREEN, ETC., C1
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• November 15, 2010 50¢
Mostly cloudy High 56, Low 36 Page B6
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Ridin’ warm Bankrolling lawsuits, sharing in the payoff By Binyamin Appelbaum New York Times News Service
Large banks, hedge funds and private investors hungry for new and lucrative opportunities are bankrolling other people’s lawsuits, pumping hundreds of millions of dollars into medical malpractice claims, divorce battles and class actions against corporations — all in the hope of sharing in the potential winnings. The loans are propelling large and prominent cases. Lenders including Counsel Financial, a Buffalo, N.Y., company financed by Citigroup, provided $35 million for the lawsuits brought by ground zero workers that were settled tentatively in June for $712.5 million. The lenders earned about $11 million. Most investments are in the smaller cases that fill court dockets. Ardec Funding, a New York lender backed by a hedge fund, lent $45,000 in June to a Manhattan lawyer hired by the parents of a baby brain-damaged at birth. The lawyer hired two doctors, a physical therapist and an economist to testify at a July trial. The jury awarded the baby $510,000. Ardec is collecting interest at an annual rate of 24 percent, or $900 a month, until the award is paid. The rise of lending to plaintiffs and their lawyers is a result of the high cost of litigation. Pursuing a civil action in federal court costs an average of $15,000, the Federal Judicial Center reported last year. Cases involving scientific evidence, like medical malpractice claims, often cost more than $100,000. Some people cannot afford to pursue claims; others are overwhelmed by corporate defendants with deeper pockets. But a review by The New York Times and the Center for Public Integrity shows that borrowed money also is fueling abuses, including cases initiated and controlled by investors. See Lawsuits / A5
TOP NEWS INSIDE AFGHANISTAN: U.S. eyes 2014 as possible end to combat, Page A3
Cyclists who brave the cold should have the right gear • SPORTS, D1
Brad Buckley, a Bend High graduate living in Colorado, was feeling fatigued — and then he was gone
The dangers
of hantavirus
Submitted photos
Former Bend resident Brad Buckley died last month in Colorado from hantavirus pulmonary syndrome. He was an avid outdoorsman and a wildlife biologist who worked to help reintroduce lynx to Colorado.
The disease is rare, experts say, but the rapid progression from flu-like symptoms to heart failure makes it potentially deadly, as well By Kate Ramsayer The Bulletin
Brad Buckley, a 35-year-old Bend High School graduate and wildlife biologist, died from hantavirus last month in a mountain cabin in Colorado. Now, his mother is working to spread the word about the rare disease, its causes and its symptoms. “My goal is to prevent this from happening to somebody else that doesn’t even know about it,” said Susie Moon, Buckley’s mother. She doesn’t know where he contracted the virus, which is carried in the urine and
feces of deer mice. Buckley was a parttime contractor who had been tearing down attics and ceilings, so it could have been there, she said. But when he and his friend went hunting a month ago, he just felt tired, Moon said. “The only symptom he had was fatigue,” she said. Buckley and his friend hiked to a cabin in Colorado’s San Juan Mountains on Oct. 15, and Buckley didn’t feel good through the weekend. By Monday, they had decided to get him out of the woods and to seek medical help the next day. But Buckley started getting sicker that
night, Moon said. His friend hiked to a nearby meadow where he could get phone reception and called 911, as well as some friends who had horses. He kept in touch with Buckley, who had a satellite phone. As he was walking back to the cabin, he talked to Buckley, who said he needed to get help immediately. The friend ran back to the meadow to call for a helicopter evacuation, Moon said, and hurried to the cabin. “By the time he got there, Brad was gone,” Moon said. “It’s just unreal to me.” See Hantavirus / A4
INDEX Abby Calendar
C3
Local
Classified
E1-6
Movies
C3
Comics
C4-5
Obituaries
B5
C5
School, a refuge of hope, fights for its life in Haiti
B1-6
Crossword C5, E2
Sports
Editorial
TV listings
C2
Weather
B6
D1-6
By Deborah Sontag New York Times News Service
We use recycled newsprint The Bulletin An Independent Newspaper
Vol. 107, No. 319, 30 pages, 5 sections
MON-SAT
By Hillary Borrud The Bulletin
Two months ago, the Deschutes County commissioners found themselves in the thick of a dispute between the new developer of part of a destination resort, an investor and a bank that had issued a letter of credit for the project. Officially, the commissioners met on Sept. 8 to decide whether to give a developer of Tetherow re- Inside sort, just west • Recent of Bend, anchanges other year to in resort build the tourownership, ist lodging rePage A6 quired under state and local law. The new owner of a portion of the resort where a hotel was originally planned — St. Louis-based Virtual Realty Enterprises LLC — had requested an extension of the September construction deadline, Assistant County Legal Counsel Laurie Craghead told the commissioners. But then it appeared Virtual Realty Enterprises might bring the process to a standstill, when the company refused to sign the extension agreement until Wells Fargo Bank also extended its letter of credit. The county requires bonds or letters of credit to guarantee construction of various elements of resorts. The situation was further complicated because resort investor Joe Weston, who is financially backing the overnight lodging project, threatened to sue the county if it were to draw on the letter of credit, Craghead told the commissioners. See Resorts / A6
U.S. tribes aim to solve intractable problems The Associated Press
Horoscope
B4
In-flux resorts causing county trouble
By Susan Montoya Bryan
C2
Green, Etc. C1-6
DESCHUTES
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Michael Appleton / New York Times News Service
Students attend a half-day orientation at the struggling College Classique Feminin in October on their first day back to the school since Haiti’s earthquake.
PORT-AU-PRINCE, Haiti — In mid-October, when fresh-faced girls in starched uniforms skipped through the gates of the College Classique Feminin to start the first post-earthquake school year, their desire to seek sanctuary inside was palpable. Dashing off a street clogged with vendors hawking car mats and phone chargers, they reconnected with hugs and squeals. They cheered the absence of the stifling tents in which they studied last
spring. And they all but embraced an administrator’s warning that strict discipline would be reinstated after a lax period when “we all were traumatized.” Still, nothing felt normal. The school’s door bore a scarlet stamp, slapped there by engineers who consider it unsafe. The semi-collapsed central building loomed menacingly over eight portable classrooms that clearly would not fit 13 grades. And the all-girl student body had dwindled to almost half its pre-disaster enrollment. See Haiti / A6
ALBUQUERQUE, N.M. — American Indians have won some key victories on Capitol Hill this year and should capitalize on them to start solving some of the problems that have plagued tribal communities for decades, said the leader of the oldest and largest Indian organization in the nation. Jefferson Keel, president of the National Congress of American Indians, said tribal leaders should keep the momentum going following successes such as the Tribal Law and Order Act, recently signed into law by President Barack Obama, and the Indian Health Care Improvement Act, reauthorized as part of the larger health care reform passed by Congress. See Tribes / A5