April 30, 2008

Lawsuit over Pitch Counts

Overlawyered has a blog post today about the reports of a high school pitcher suing his school district because he wore out his arm throwing 140 pitches in a single game. Here is the gist of the story from the Seattle Times: Seven years ago, Plaintiff was pitching against a rival school. He had no plans to take himself out of the game. In the eighth inning his mother, assuming you believe her story, told coach, "He's at 117 pitches. He's done." (How many mothers out there are keeping exact pitch counts?) You know the rest of the story. The Plaintiff hurts his arm. He thinks he was the next coming of Roger Clemens... better make that Greg Maddux... and files suit claiming the coach should have pulled him out of the game.

Overlawyered and the Maryland Lawyer Blog agree that the possibility of a lawsuit causes people to act differently than they otherwise would. Where we disagree is whether, on balance, this is a good thing for society. For example, football coaches now know that depriving kids of water during practice is a bad thing and their doing so may expose the school to liability. In this area I think coaches already have proper incentive to do the right thing and this will only serve to exaggerate the risk of a "pitch count" lawsuit. Even if this is what I believe is the first lawsuit of its kind in this country. Obviously every baseball coach around the country is going to be talking about this and many are going to become worried about pitch counts.

Awareness of valid lawsuits properly encourages people (including doctors) to proceed with caution and to consider the risks that may cause harm. Frivolous lawsuits like this one have the opposite effect and are going to have some coaches - a small minority but still some - overreacting and limiting kids to ridiculously low pitch counts. But just as free speech requires us to tolerate hate speech, the search for justice requires us to tolerate some level of frivolous lawsuits. Whatever inertia this country has towards tort reform, it comes in no small measure from mainstream media and Internet reports (many of which are simply false) of ridiculous lawsuits.

I’m digressing from this story now, but one of the problems personal injury lawyers have in fighting back against the tort reform movement is their refusal to appreciate valid arguments made by reform advocates. For example, as a student of economics, no one will ever convince me that medical malpractice damage caps don’t decrease doctor’s insurance premiums. So why on earth do we keep arguing this?

I also think we have to concede that there is a “tort tax” and that litigation in pure economic terms is counterproductive. So is social security on many levels but the system stays because it brings about a greater good. According to the Consumer Product Safety Commission, every year about 4,500 deaths and 13.7 million injuries occur as a result of defective products in 15 different categories. Not included in these classifications are motor vehicles, drugs, medical devices, and toxic substances. It seems like the “wild west” with respect to consumer safety even with the risk of lawsuits. What would these numbers be like without tort litigation? The reality is tort litigation costs money but saves lives.

Of course, there is another argument against limiting plaintiffs’ tort recoveries. If you are injured as a result of the negligence of someone else, who should pay for those injuries, the innocent victim or the person responsible? Litigation provides some measure of justice. The problem with using the justice argument to fend off tort reform is that no one sees themselves as the tort victim until they are the tort victim. People who strongly support efforts to reduce jury awards rarely hesitate to file a claim or a lawsuit when they are seriously injured as a result of someone else’s negligence. I’ve represented many of these people. Are they greedy hypocrites? I don’t think so. I think they see the world differently when they step into shoes they never expected to be in and were statistically unlikely to wear: the serious injury victim. It changes the way they think and they no longer care about the “tort tax” but about fairness and justice and the lives saved by personal injury lawyers who help in the battle of keeping corporations focused on what almost everyone agrees should be their first priority: consumer safety.

March 24, 2008

Some Wisdom from West Virginia: The Death of Ad Damnum Clauses

Legislation is pending in West Virginia that would prohibit lawyers from seeking damages in personal injury and wrongful death cases in plaintiffs’ complaint. This bill is receiving universal support from everyone in West Virginia. The legislation passed unanimously in both the West Virginia House and Senate. West Virginia Governor Joe Manchin received the bill last week and it has received support of plaintiffs’ lawyers and defense lawyers alike. West Virginia already has a similar law in medical malpractice cases.

In the Maryland Daily Record last week, I read an article about a police brutality or false arrest case (I can’t remember which) in Baltimore. Plaintiffs sued the state of Maryland for $115 million. So, of course, the $115 million was in the title of the article. This is the exact problem that would be eliminated.

February 14, 2008

Handling Your Own Personal Injury Case

In the vast majority of personal injury cases, injury victims are going to be better off hiring a personal injury lawyer to handle their claim, particularly in serious injury cases. I offer some of the major reasons why here. But many people for a variety of reasons - most of them foolish - are going to chose to handle their own claims. Accordingly, I have drafted a list of things that are generally a good idea to do or not do if you are trying to handle your own personal injury case. You can find these tips on handling your own personal injury case here.

Why do this? Because people are going to handle their own claims so I think personal injury lawyers should try to arm these people with a few weapons to get the best possible outcome. Not only will it help them, but it will help our clients as well because awful settlement are thrown into the pool of data to determine fair value in personal injury cases.

The problem with these tips is that they are not legal advice because legal advice is narrowly tailored to the specific facts of a particular case. So in a small minority personal injury cases, following all of these tips is going to hurt, not help your case because of specific facts that fall outside the general rule.

These tips apply only to personal injury car accident cases. They do not apply to serious injury medical malpractice or product defect cases. These cases, particularly medical malpractice cases, are very difficult to resolve without filing a lawsuit. Offers that injury victims may receive in these kinds of cases are rarely meaningful and this is usually very apparent by the offer.

January 24, 2008

Allstate v. Florida: Allstate Continues of Refuse Florida's Request for Documents

The battle continues to wage between Allstate and the state of Florida’s Office of Insurance Regulation. The problem arose when the Regulation Office began investigating Allstate’s property insurance practices in Florida. Allstate had requested a double-digit increase in the rates for its homeowner’s insurance, and Florida was investigating possible collusion between Allstate and risk-modeling firms, rating agencies and re-insurers to set prices at artificially high levels. When Allstate failed to submit all of the documents Florida had demanded as part of its investigation, the Florida Insurance Commissioner, Kevin McCarty, suspended the rights of 10 of Allstate’s companies to do business in Florida. A Florida appeals court has decided to lift the ban. But I don’t think the state of Florida is done with Allstate.

When insurance companies flash this kind of arrogance to personal injury lawyers, the general public, judges and state regulatory agencies, not surprisingly, often yawn. But when you flout the authority of an entire state, folks are going to take notice. In response to Florida’s subpoena, Allstate has filed 122 objections. Word to the wise: state agencies are not used to being treated with such disdain.

Florida is not the only place where Allstate is under scrutiny. When a Missouri judge ordered Allstate to turn over similar documents to those sought in Florida, Allstate once again ignored the state and has evaded the Missouri court’s contempt order for four months. Allstate scoffs at the $25,000.00 a day fine imposed by the judge and continues to withhold the requested documents.

Here in Maryland, Allstate was fined $750,000.00 in December for improper rate increases and for violating state laws about how it notifies consumers of changes and files notice of those changes with the agency.

There is an obvious question here: what does Allstate have to hide? If you are willing to allow your license to sell insurance to be suspended in a market like Florida and you are willing to fork over $25,000.00 a day in contempt fines (not to mention the ensuing bad publicity) the guess is that Allstate has some pretty disreputable business practices it would like to keep under wraps. As for me, I’m shocked – shocked! – that gambling is going on in this establishment.

January 2, 2008

The Value of Foot Injury Cases: Median National Jury Verdicts

According to a recent Jury Verdict Research analysis, based on plaintiffs’
verdicts nationally over the last ten years, the overall median award for foot injuries is $98,583. Multiple fractures to the same foot increase the median to $144,000. In foot injury cases where both feet are fractured, the median rises to $296,940. In another Jury Verdict Research study back in October, it found that 39% of the foot injuries cases that go to verdict were suffered in auto, truck or motorcycle accidents. In fact, a full 11% of these injuries were in motorcycle accident cases. This is incredibly high given the number of driver miles on a motorcycle versus the number logged in cars and trucks. Then again, your risk of dying in a motor vehicle accident 28 times more likely if you are riding a sports bike than if you are enjoying the comforts of a car or truck. (The lesson, as always: don’t ride a motorcycle.)

Foot and ankle injury cases command quality verdicts because foot injuries are difficult to diagnose and even harder to treat. The foot is composed of 26 “major” bones that are important to mobility and hard to repair. When you add the fact that there are 56 ligaments and 38 muscles in each foot, there is a lot that can and does go wrong for people who suffer a foot injury from trauma.

October 11, 2007

Oklahoma Jury Verdicts

According to a Jury Verdict Research study that came out this week looking at jury verdicts from 2000 to 2006, Oklahoma would at first glance appear to be an awful place for lawyers to try personal injury cases. The median compensation award in trial in Oklahoma is $6,824 and plaintiffs receive a recovery in only 43% of personal injury cases that go to a jury. Compared to the national data, these figures are awful.

If you are an Oklahoma personal injury lawyer with a seriously injured client, does this mean you do not have a fair chance of getting a fair and meaningful recovery for your client’s injuries? I don’t think so. A full 10% of verdicts in personal injury cases in Oklahoma were for $500,000 or more. While to some extent this is comparing apples to oranges, only in 1% of motor vehicle accident cases in Maryland does the jury award more than $500,000.

This number of significant jury awards leads me to believe that Oklahoma juries may not be awarding significant damages in soft tissue injury cases or other cases where the harm may be less significant, but they will often give fair compensation to the people that really do need it the most: people who lives have been forever changed due to the negligence of someone else.

October 10, 2007

Allstate Bad Faith Trial in Kentucky: Former Allstate Claims Supervisor Testifies

A former claims adjuster supervisor at Allstate Insurance testified in a first party bad faith case in Kentucky that Allstate strong armed injury victims and bullied them into taking less than fair value for their personal injury cases. According to the former Allstate manager, the company changed its paradigm in 1995 and created a "dehumanizing process" where the only goal was maximizing profits.

The former Allstate employee made a few other claims of note. First, if Colossus, the computer program that evaluates the value of personal injury claims, came out with a value not to Allstate's liking, the adjusters would manipulate the data so it produces a lower figure. Adjusters who paid out too much were punished in their evaluations. This adjuster also testified, as I have written about in the past, that Allstate keeps track of which plaintiff personal injury lawyers are willing to go to trial and who simply settles for the best possible offer.

I'm sure all of these allegations are true. But Allstate is hardly the only insurance company that puts profits first and tries to pay as little as possible nor is it the most egregious practitioner of this art. Insurance companies by their inherent nature are good at accepting premiums and bad at playing claims. Bobby Kennedy, one of my idols, said, “Some men see things as they are and ask why. I dream of things that never were and say why not?” When it comes to insurance companies, I am no Bobby Kennedy. I don’t even bother to ask why nor do I take great umbrage at their tactics, even with bad faith laws. It is what it is and it is not going to change. Thankfully, in the adversarial system, there are remedies to the insurance companies’ refusal to pay fair value on claims.