Posts Tagged ‘tort reform’

Exxon fights paying interest on reduced judgment

Exxon, the most profitable company in the history of the world (earning $40.61 billion last year), recently enjoyed a U.S. Supreme Court ruling which slashed roughly $2 billion of punitive damages awarded against it in 1994 over the 1989 Exxon Valdez oil spill.  The plaintiffs - over 32,000 Alaskans - have now asked the court to award $488 million in interest on top of the reduced damages, something that is routine in virtually every case and which recognizes the interest that money owed to the plaintiffs would have earned had the defendant paid the debt when it was due.

Now in a move that must make even the most hardcore, pro-business tort-reformer blush, Exxon has asked the court to deny the plaintiffs interest because “the substantial delay here was not in any sense Exxon’s fault.”  Uh, weren’t they the losers at trial who appealed the judgment in the first place?

Exxon’s shameful audacity knows no bounds.  And if the Supremes rule in their favor, the take-over of that court by Big Business appears complete. 

Tags: Exxon Valdez, tort reform
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Hidden Costs of Tort Reform

A disturbing trend is emerging due to “tort reform:” Fewer injured consumers are able to be fully compensated through the court system and more are being forced onto taxpayer-funded government and charity healthcare programs. For example, a baby injured by medical negligence can’t recover damages because of tort reform, and thus is cared for from now on by Medicaid. Or a worker is injured by a defective product but preemption shields the manufacturer from liability, so the worker goes onto Social Security Disability.

It is sad and ironic that one of the darlings of conservatives - tort reform and reduced access to the courthouse - is shifting this burden onto taxpayers, a burden which was once shared with the insurance industry.

Tags: insurance, tort reform
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Even the Insured Feel Strain of Health Costs

The New York Times reports that since 2001, employees’ average cost of an annual health care premiums for family coverage has nearly doubled — to $3,300, up from $1,800 — while incomes have come nowhere close to keeping up. Factor in other out-of-pocket medical costs, and the portion of the average American household’s income that goes toward health care has risen about 12 percent, according to the consulting and accounting firm Deloitte, and is now approaching one-fifth of the average household’s spending.

But I thought health care would become more affordable once we passed tort reform…wasn’t that one of the promises the insurance and medical lobbies made when they bought the Legislature and sold our rights?

Tags: insurance, tort, tort reform
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Who Gets Hurt Most by "Tort Reform?"

Women, children, the elderly, minorities and those who are less-affluent, according to a study done by two professors at Emory University. Here is the abstract to the article:

“Tort reform may not affect all segments of society equally. Studies have shown that many tort reforms disproportionately reduce compensation to women, children, the elderly, disadvantaged minorities, and less affluent people. This study goes beyond tort reform’s disproportionate effect on compensation, to explore whether tort reform also has a disproportionate effect on accidental death rates. We explain that, theoretically, tort reform’s care-level effects and activity-level effects may disproportionately impact the accident rates of different groups. Using the most accurate, comprehensive data on medical malpractice tort reforms and state-level data from 1980-2000, we examine empirically whether tort reforms indeed have such a disproportionate effect. The results from our empirical analysis are consistent with our theoretical predictions. We find that the impact of tort reform varies substantially among demographic groups. When we consider the net effect of all the reforms in our study together, our results suggest that women, children, and the elderly do not enjoy tort reform’s benefits as much as men and middle-aged people. In fact, they might even be harmed by reform.”

Tags: tort, tort reform
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Changing Minds, One at a Time

A grown man sat in my office last week and cried like a baby. He had buried his wife and their first child less than a month earlier, both the victims of medical negligence. He came to us for help, wanting answers to why his young, healthy wife and his unborn son are now gone. He struggled to simply breathe. I thought of my wife and my two girls and I cried, too.

What do you say to a fellow like this? I confess that I was at a loss. Once we plaintiff lawyers could at least offer some comfort, inadequate as it was, that the civil justice system might provide answers and maybe, just maybe, some attempt at compensation. Now I had to explain that politicians in Austin have already decided what his loss is worth. I had to tell him that because his beautiful wife and the son that was to bear his name were the victims of medical negligence, the courthouse doors had been closed by the very people who represent his family in the Capitol.

Do you know what was most frustrating about this scenario? This man had not voted on Proposition 12 and had no idea of the damage that it did to the Texas Constitution. Before this tragedy befell him, he was one of the thousands of uninformed, misinformed or indifferent Texans who did not understand what HB 4 and Proposition 12 really did to their rights. He knows the truth now, unfortunately.

So what can we trial lawyers do about this ? Speak up. Educate others. Make sure your families, friends and clients are registered to vote and that they do vote. Get involved with your elected representatives. Let them know that we will hold them accountable for the promises made when they stripped away our rights. When you turn down cases that are no longer economical due to “tort reform,” make sure the potential clients know how to contact their senators and representatives in Austin, because odds are they voted in favor of HB 4.

And above all, keep fighting. Fight for victims. Fight for justice. Fight the negative stereotypes about trial lawyers and the “tort reform” propaganda. Fight for what is right and never, ever give up.

Tags: lawyers, proposition 12, tort reform, wrongful death
Posted in Texas attorney, wrongful death | Comments Off

Tort reform not working? Gosh, who knew?

Good article in the Texas Observer dispels one of the big myths foisted upon Texans by the insurance industry in pushing “tort reform” back in 2003.

Quote: “Proposition 12, and the far-reaching changes in Texas civil law that it dragged behind it, was built on a foundation of mistruths and sketchy assumptions. The number of doctors in the state was not falling, it was steadily rising, according to Texas Medical Board data. There was little statistical evidence showing that frivolous lawsuits were a significant force driving increases in malpractice premiums. Perhaps the most insidious sleight of hand employed by Proposition 12 backers was their repeated insistence that medical malpractice insurance rates were somehow responsible for doctor shortages in rural Texas…The campaign’s promise, that tort reform would cause doctors to begin returning to the state’s sparsely populated regions, has now been tested for four years. It has not proven to be true.”

Tags: proposition 12, texas, tort, tort reform
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In Texas, this is worth $250,000

Because of a mislabeled tissue sample that led to a misdiagnosis, Darrie Eason of Long Island, New York had both of her breasts removed to save her from a cancer that she never had. Story here.

Thanks to insurance industry “tort deform” that swept through Texas in 2003, non-economic damages in a medical malpractice suit like Ms. Eason’s would be capped at $250,000. That’s right: All the pain and suffering, all the disfigurement, all the impairment, all the damage to her marriage, everything, is worth $250,000 tops, thanks to the 2003 Texas Legislature.

Think this is a frivolous lawsuit?

Tags: medical malpractice, tort reform
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