Greg David at Crain's New York Wants Tort Reform... Why?

Brett Emison
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Posted by Brett EmisonJuly 07, 2010 10:34 AM

Would you give up your rights to protect someone else's negligence?Greg David at crainsnewyork.com wants tort reform in New York. My question is why?

I've written about the dangers of tort "reform" before. I won't retread all of the arguments against it, but I continue to ask: Why are so many people willing to give up a fundamental constitutional right in order to protect someone else's negligence and insurance company profits? Why are we so scared?

Most tort "reform" is limited to the arena of medical malpractice. But according to Scientific American, preventable medical mistakes kill 200,000 Americans every year. Despite all of these preventable deaths, insurance company lobbyists have convinced a great number of Americans to give up their right to a jury trial if one of these "accidents" happens to them or a family member.

The US Constitution and state constitutions grant us the right to a trial by jury.

Article III, Section 2: Trial by Jury, Original Jurisdiction, Jury Trials

7th Amendment: Trial by Jury in Civil Cases

"In Suits at common law..., the right of trial by jury shall be preserved...."

Why then would so many argue for the relinquishment of this fundamental constitutional right? Why would so many suggest we give up a fundamental constitutional right in order to protect negligence that kills 200,000 people each year? Why would so many eager to give up a fundamental right included in the Bill of Rights in order to protect insurance industry profits?

Even those at allbusiness.com reported a study from the Medical Liability Monitor that showed insurance companies do not pass on tort "reform" savings to either doctors or patients.

    • Average liability premiums across internists, general surgeons and OB\GYNs are nearly identical for states with or without caps.

    • Average liability premiums for OB\GYNs are nearly identical for states with or without caps.

    • Average liability premiums for general surgeons are nearly 10% higher in states with caps.

    • Average liability premiums for internists are nearly 10% higher in states with caps.

The allbusiness.com article quoted: "Malpractice insurers promised tort law changes would lower premiums, yet it has not happened."

While tort "reform" laws are not good for lowering insurance premiums for either doctors or patients, they are good at keeping genuine lawsuits from ever being filed. Why? Because tort reformers place little value on the lives of stay-at-home moms, the very young and the very old. Most tort "reform" legislation comes in the form of damage caps... particularly caps on non-economic damages such as pain, suffering and lost enjoyment of life.

Not only are these damages often the most significant damages in a case (ask yourself how much you would charge someone to cut off your toe, or your finger, or your hand, or you leg, or to sever your spinal cord and how much your life would change because of that injury), but for the very young and the very old, these are often the only damages available because Medicare or Medicaid has paid the medical bills and must be repaid from any recovery and there are little or no lost wages.

Plaintiffs attorneys finance cases out of their own pocket. Our own money is on the line. We only get paid if we win a recovery for our clients and, therefore, do not put our money into frivolous cases. Unfortunately, we are also not able to put our money into even very good cases when tort reformers have enacted unreasonably low damage caps. Tort "reform" caps effectively slam shut the courthouse door of all but those with substantial economic losses.

Isn't the life of a stay-at-home mom, a 10-year-old girl, or a 70-year-old grandfather worth as much (if not more) as a corporate executive, or a shop foreman, or a politician? In many states (including Missouri), insurance lobbyists and politicians in the legislature have determined that stay-at-home moms, 10-year-old kids and 70-year-old grandparents are not worth as much.

I ask again, why? No one is "taking" these rights away -- they are being relinquished voluntarily because of an irrational fear of some imaginary boogeyman. Don't be frightened or tricked by an insurance company lobbyist. Stand up for your rights. Protect yourself and your family.

Update: Joe Consumer at ThePopTort commented on expansive new laws supporting an open judiciary and tort liability law that is seen as one of the key laws within the framework of civil rights protection... in China. That's right, China is expanding its tort laws and access to civil justice while the US Chamber of Commerce and insurance industry lobbyists are trying to beat back our pesky 7th Amendment.

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Jim O'Hare AIC AIS VP med mal claims
Posted by Jim O'Hare AIC AIS VP med mal claims
July 09, 2010 10:42 AM

Good morning:

200,000 dead each year directly related to med mal. 548/day? How can this number be credible. Who is in charge of counting and how? The prevailing number of med mal related deaths is usually seen on injuryboard as 96k/yr. The overnight doubling of an insane number is boggling.

If you believe actuaries, 4-5% of all medical incidents become actual claims. With that in mind, some 190,000 people die each year from med mal where no legal action is taken ??$$!! - really? In our litigous society?

RE the value of grandpas life? Subjectively immeasurable, but economically and objectively measurable. It is not the value of granpas life, it is the value of the claim. Value is a vague word. What is the value of a can of coke after you have been wandering the desert for a week?

Wouldnt you like to see any reforms? Loser pays? Why not - you take cases on contingency, so no harm to your client and solid cases get a docket number.

The market is as soft as it has ever been, capacity is saturated with new insurance companies. Hardening should start soon and these companies do not believe that there are 200 thousand potential wrongful death cases out there this year.

regards Jim

Brett EmisonInjury Board Attorney Member
Posted by Brett Emison
July 09, 2010 11:32 AM

Jim,

Thank you for reading and taking time to comment. I'll try to address your questions:

(1) 200,000 dead. I didn't make up this number, I simply reported it. 200,000 dead from medical malpractice was reported in Scientific American (linked above my original post) based on a investigation performed by the Hearst media corporation (linked in the Scientific American report), which can be found here ( LINK ). You can fact-check their basis yourself. To borrow a motto most are familiar with: I report. You decide.

Your comment on this issue raises another question: What if the Scientific American incorrect and the actual number is 96,000 people dying each year from preventable medical mistakes instead of 200,000? 96,000 is 32 times the number of innocent Americans killed on 9/11 and is more than 1.5 times the number of Americans killed in the Vietnam War. Is the 96,000 number acceptable? (At the risk of a misunderstanding, let me be clear: I do not intend to compare negligent doctors to terrorists, communists, etc. I simply use these numbers as familiar reference points.)

What about 50,000 people dying each year?

What about 10,000 dying?

What number of innocent people dying from preventable medical negligence is an acceptable number?

(2) Litigious Society. I suppose this cuts to the core of my post. I do not believe we live in an overly litigious society. This is particularly true in the area medical negligence and malpractice. The simple fact is that most victims of medical negligence do not sue their doctor.

(3) Value of Life. I think that you and I would agree that the value of a wrongful death claim is not "one size fits all". Why then are so many in support of arbitrary caps on damages? Why do we limit (or even eliminate) non-economic damages just because they may be difficult to calculate? Is the value of who we are and the relationships we build limited only to the value of the job we do? If so, that's a pretty sad statement on life.

(4) Potential Reforms. I do not want to see further "reforms". There are a number of mechanisms in place already to weed out frivolous and unsupported claims. All judges in every state can dismiss a meritless case at any time. Most states already require a pre-filing review and affidavit of merit for med mal cases. Most states already provide for a form of loser-pays (for example, in Missouri, if a defendant formalizes a settlement offer as an "Offer of Judgment" and the plaintiff refuses and is awarded less at trial, the plaintiff is responsible for the defendant's costs).

Perhaps the most significant "gatekeeper" against frivolous cases is the contingent fee itself. If a very wealthy client pays by the hour, he can spend his or her own money to pursue baseless and frivolous claims (or defenses for that matter) until the well runs dry.

Injury and negligence victims are rarely (if ever) in that position. A contingent fee arrangement requires the plaintiff's attorney to finance the case with his or her own money. If the plaintiff loses not only does the lawyer not get paid (earn a fee), but he does not get reimbursed for the expenses of the litigation either.

A typical medical malpractice claim may require an attorney to invest more than $100,000 of his own money just to get the case to trial. Do you really think any attorney would make a six-figure investment into a case he did not believe in or thought was frivolous?

Thank you again for reading and taking the time to comment. I encourage thoughtful and courteous debate.

Jim O'Hare AIC AIS VP med mal claims
Posted by Jim O'Hare AIC AIS VP med mal claims
July 09, 2010 12:05 PM

Thanks Brett

I know that you are just reporting the figures of 200k preventable med mal deaths each year. You also provide an opinion based on that number. Why not a gazillion dead. Who has the time and prowess to determine that so and so died form med mal. I think the 96k number equally ludicrous at one half the estimate of 200k. Yes- one is way too many wrongful deaths. Dont tell the other claims guys as I will lose street cred.

RE our society and litigatio:

Following a two day bench trial, the trial court rejected Pearson's $54 million suit against his former dry cleaner over a pair of allegedly lost pants. He is also a judge !!

Leroy Greer has sued 1-800-Flowers for damages and "mental anguish" because the florist inadvertently disclosed Greer's extramarital affair to his wife.

The food critic for the Philadelphia Inquirer was unimpressed by a steak he got at a restaurant called "Chops," and said so in a review. The restaurant, displeased, sued for libel, contending that he received (and knew he received) a steak sandwich without bread, not an actual steak.

When [Clarence Budy] Simons died in July 2002, the Simons family shelled out $1,745 for an Addison 20 gauge casket that was supposed to be leak-proof for 75 years.
But in 2005, Simons' family learned that some "leak-proof" caskets made by Batesville Casket weren't so watertight, according to the family's lawsuit filed in Pulaski County Circuit Court by their attorney, Charles Phillip Boyd Jr. of Little Rock.
In May 2005, the family exhumed Simons to see if the casket had leaked.
Sure enough, the family said, the casket had leaked and didn't preserve Simons.
Why, yes, they have sued:

A few glasses of milk did a body bad after a man in Washington State reported that they gave him a stroke. Norman Mayo, 61, filed a lawsuit against Safeway supermarkets and the Dairy Farmers of Washington in 1997 because the milk Mayo claimed he was addicted to didn't have any warning label indicating that it would clog his arteries.

I could go on for days- With this in mind, I find it difficult to believe that all med mal wrongful deaths do not immediately turn into a lawsuit.

Why arbitrary caps on damages? because all P&S awards are arbitrary and immeasurable, as there is no ruler nor scal to measure, as done with every other cause of action. Why is that arbitrary ok and caps arent? Why is the cap always viewed as a minimum number stonewalling larger numbers. Is there ever pain and suffering worth less than the cap? Not that I have seen in 25 years. It is always a springboard towards a gazillion.

The truth is underwriters and raters cant calculate infinity into their equations, but a cap gives the something to work with. If you agree to a cap, I'll let you pick the number.

Offers of judm't stimulate settlement. that is good.
regards Jim

Brett EmisonInjury Board Attorney Member
Posted by Brett Emison
July 09, 2010 12:24 PM

Jim,

Again, thank you for your thoughtful, respectful and sincere debate.

I understand and acknowledge that you can point to some outlandish cases that have been filed and even some that have made it to trial. There are bad apples in my profession just as there are bad apples in your profession (and all professions for that matter). The folks at ATRA do a very good job at keeping those publicized. Every profession has outliers and, as a profession, we strive to eliminate those kinds of suits while protecting the rights of actual victims to their day in court.

However, the dry cleaning suit actually supports my comment about contingency fees. No reputable lawyer would take that case or invest money in that case and the lawyer who brought it was forced to represent himself (obviously, having a fool for a client as the old saying goes).

I liken the situation to our criminal law philosophy. It is better than 100 guilty men go free than to have a single innocent man imprisoned. It is better that all of our liberties and constitutional rights remain guarded and free rather than have them restricted (or even taken away) because of the outlandish behavior of a few bad apples.

Finally, I don't believe awards for non-economic damages are arbitrary at all. I have had hundreds of clients. Some were widowed or orphaned. Some were paralyzed. Some were burned beyond recognition. Each of them had very real damages for pain, suffering, disfigurement, lost enjoyment of life, etc. Each presented evidence of their loss to the jury. Each jury performed a calculation to measure that loss.

Just because a calculation or is non-formulaic does not make it arbitrary. A jury, having had the benefit of hearing and seeing the evidence, is charged with making a calculation. This is not arbitrary. A legislature, having seen none of the evidence, decides what my client's injuries are worth by essentially pulling a number out of hat. That is arbitrary.

Again, thank you for reading and for your thoughtful debate.

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