Overlawyered: Chronicling The High Cost Of Our Legal System

GAO: legal costs drive med-mal rates

Congress’s General Accounting Office confirms what the Department of Health and Human Services and Joint Economic Committee (PDF) have found before it: “Increases in medical malpractice insurance rates in some states, including Pennsylvania, were due largely to high payoffs on legal claims, according to a congressional survey released yesterday. …’Losses on medical malpractice claims appear to be the primary driver of increased premium rates in the long term,’ the report states. ‘Such losses are by far the largest component of insurer costs.'” (Lara Jakes Jordan, “Malpractice insurance rise tied to legal claims”, AP/Pittsburgh Post-Gazette, Jul. 29). Study: “Medical Malpractice Insurance: Multiple Factors Have Contributed to Increased Premium Rates”, Jun. (PDF format).

P.S. In August 2003 the GAO released a further look at medical malpractice problems, “Medical Malpractice: Implications of Rising Premiums on Access To Health Care“. Congress’s Joint Economic Committee later (Dec.) published a policy brief offering perspective on the GAO findings.

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Jury: healthy smokers get stop-smoking program, no medical monitoring

In the latest example of “regulation through litigation,” a New Orleans jury decided Monday in a class action case that tobacco companies should pay for stop-smoking programs for healthy Louisiana smokers — even though the jury also decided that cigarettes are not a defective product. The jury did, however, “reject[] a claim that the companies should finance medical tests for up to 1.5 million current and former smokers, saying free checkups for smokers who show no signs of disease aren’t necessary.” (“Jurors give split tobacco verdict,” The (N.O.) Times-Picayune, July 29; “Medical Monitoring,” National Public Radio, July 29).

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Guest blogger – take three

Hi. I’m Leah Lorber, and I’ll be your guest blogger for the next week. I’m a lawyer working on civil justice policy at a Washington, D.C. law firm, where I’m also co-counsel to the American Tort Reform Association. (Obligatory disclaimer: any opinions I post are my own and may or may not be shared by ATRA, although I’d be really surprised if there are any major discrepancies.) I’m also a former newspaper reporter, and I’m looking forward to seeing if writing legal briefs has forever ruined my ability to write sentences of 25 words or less. That said, I’ll begin. Thanks to Walter Olson for having me here.

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Australia: estate lawyers warned on fees

Justice Peter Young, the Chief Judge in Equity of New South Wales, has warned estate lawyers “that if they continue to ravage estates by charging high legal costs, judges will step in and cap costs” and “that their fees may be in doubt if they allow big bills to be run up by ‘claimants [who] are not particularly concerned about how much they get out of the estate as long as they ruin it for everybody else’.” In his warning, published in the latest Law Society Journal, Justice Young cited “a case in April where a son had claimed against his father’s $240,000 estate. The estate paid the son’s legal costs – $40,000 – as well as its own $16,000 bill. The son ended up receiving a $60,000 legacy from the estate.” Also arousing public ire of late have been a case last week in which “a woman was awarded a $60,000 legacy from her father’s $1.5 million estate, with Supreme Court Master John McLaughlin commenting that the costs were ‘excessive’: $74,500 for the woman and $130,000 for the estate”, as well as the case reported in this space Feb. 18-19, 2002, in which lawyers’ fees ate up $112,000 of a $154,000 estate, leaving only around $30,000 for the contending parties. (Leonie Lamont, “‘Sloppy’ lawyers warned their costs may be capped”, Sydney Morning Herald, Jul. 28).

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Reparations demanded over deportation of Mexicans in 1930s

Latest on the reparations bandwagon: A suit was filed earlier this month in Los Angeles Superior Court on behalf of an estimated 400,000 people of Mexican descent, seeking damages for the “irreparable loss” suffered during deportation campaigns in the 1930s. Representing the plaintiffs, and seeking class action status, are the Mexican American Legal Defense and Educational Fund and the Beverly Hills law firm of Kiesel, Boucher & Larson. (“Lawsuit seeks reparations for 1930s-era expulsion from California”, CNN, Jul. 16). Update Sept. 14: legislature passes bill to facilitate suits.

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Candy-bar confrontation results in bias suit

Alaska: “Jamila Glauber, who was told to leave a city bus for eating a bite-size Snickers bar March 22, 2002, filed suit in Juneau on Monday against Capital Transit, the city and Tad Zurek, the bus driver. Glauber, represented by Anchorage attorney Jay W. Trumble, claims the actions of the defendants caused her severe emotional distress and were based on her race and national origin. As an Arab-American of Yemeni origin, she is protected from such actions under the Alaska Human Rights Act, the suit notes.” (“Woman sues Capital Transit over 2002 incident”, Juneau Empire, Jul. 23).

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Calif. bounty-hunting, again

The Los Angeles Times’s Michael Hiltzik doubts that the cleanup of the Trevor Law Group spells an end to shakedown litigation under California’s Section 17200: “As I write I’m looking at a letter sent two weeks ago by a Bay Area lawyer to a San Jose pool company, offering to settle a potential 17200 claim over a supposedly deceptive newspaper advertisement in exchange for a ‘reasonable attorney’s fee’ of $5,000” (“Consumer-Protection Law Abused in Legal Shakedown”, Jul. 21). Hiltzik also relates an amusing anecdote about how the Trevor lawyers helped seal their fate: “The group also made the mistake of picking on the wrong victims; thinking that it was suing only ma-and-pa service stations, it named, apparently unwittingly, a couple of repair shops owned by the big tire maker Bridgestone/Firestone North American Tire, which took umbrage and put Sybesma [experienced defense lawyer Edward Sybesma of Costa Mesa’s Rutan & Tucker] on the case. ‘How was I supposed to know this was Bridgestone/Firestone?’ Sybesma recalls one of the Trevor lawyers lamenting one day — a line one wouldn’t be surprised to hear during an episode of ‘America’s Dumbest Criminals.'”

The Wall Street Journal’s free OpinionJournal has now posted our editor’s op-ed on section 17200, which appeared in the paper last Tuesday and was linked here in different form last week (see Jul. 22). (Walter Olson, “The Shakedown State”, OpinionJournal.com, Jul. 27.) Reader comments, too. And Baseball Crank (Jul. 27) quotes extensively and informatively from Justice Stephen Breyer’s dissent in the Supreme Court’s recent refusal to hear the 17200 case against shoemaker Nike.

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Update: Miss. high court justice, trial lawyer indicted

“A Mississippi Supreme Court justice and a wealthy attorney who helped land the state millions in tobacco settlement money were among five people indicted Friday on federal fraud and bribery charges. Biloxi attorney Paul Minor is accused of funneling hundreds of thousands of dollars to Justice Oliver Diaz Jr., Diaz’ former wife, Jennifer, and to two lower court judges. In return, Minor allegedly received favorable treatment for Minor and his clients in cases involving multimillion dollar judgments.” The 16-count indictment also names former Harrison County Judges Wes Teel and John Whitfield. Prominent in the state’s tobacco litigation, Minor is the son of a well known Magnolia State political columnist, Bill Minor. (Jack Elliott Jr., “Justice, Attorney Charged in Mississippi”, AP/Sarasota Herald Tribune, Jul. 25; Jerry Mitchell, “Justice, 4 others indicted”, Jackson Clarion Ledger, Jul. 26; Jerry Mitchell, “Charges may alter opinions of Miss. judiciary”, Jackson Clarion Ledger, Jul. 27; Jack Elliott Jr., “Indictment of justice and lawyer come amid debate between Mississippi business, trial lawyers”, AP/New Orleans Times Picayune, Jul. 27). More: Beth Musgrave, “‘Go see Paul Minor'”, Biloxi Sun Herald, May 18. For our earlier coverage, see: Oct. 9-10 and Oct. 11-13, 2002; May 7 and Jul. 24, 2003.

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Update: suspension for maverick Wash. lawyer

In April the Washington Supreme Court issued a six-month suspension from practice to Douglas Schafer, the Tacoma-based attorney who had divulged client confidences in the course of a successful effort to expose a corrupt judge (see Jan. 19, 2000)(Gary Young, “Attorney’s suspension sparks debate”, National Law Journal, Apr. 28; Adam Liptak, “Lawyer Whose Disclosure of Confidence Brought Down a Judge Is Punished”, New York Times/Council of Public Relations Firms, Apr. 20; Schafer’s website)

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