Posts Tagged ‘Michigan’

“$1.2 million? Thanks but no thanks”

At least 30 residents of the Downriver section of Wayne County, Mich., south of Detroit, “have rejected up to $550 per family member, which is their share of a $1.2 million settlement prompted when about 2,500 residents evacuated their homes during a July 2001 chemical leak. To be eligible, all they had to do was sign a form that said they been home in the affected areas of Grosse Ile, Wyandotte, Riverview or Trenton at the time of the leak. While some acknowledged that they weren’t home, several others said they didn’t support the lawsuit or deserve the money.” Trenton retiree Thelma Diemer says she wasn’t hurt and went shopping during the evacuation: “I didn’t feel I was being honest accepting the money and you have to think about the hereafter, especially when you’re 86.” (David Shepherdson, Detroit News, Feb. 4)(via National Review Online)

Center for Justice & Democracy’s Zany “Zany Immunity Law Awards”

Many farmers use anhydrous ammonia as fertilizer, because it provides vital nitrogen nutrients to the soil. The combustible material is produced in Louisiana, and then shipped to the Midwest on barges or through pipelines, and then stored on tanks on farms. However, ammonia is also useful for making illegal methamphetamines, and thefts are a regular problem. (KOMU-TV, “Law Officers Fight Ammonia Thefts”, May 19). If a thief injures himself tampering with an ammonia tank, should he be able to sue the farmer for the injury? Three states, Kansas, Missouri, and Wyoming, say no, and provide immunity for those who store, handle, or own ammonia equipment from suit by thieves. Legislatures are considering the issue in other midwestern states.

The misnamed anti-tort reform Center for Justice & Democracy has noticed the success of the ATRA’s judicial hellhole campaign (Dec. 15; Dec. 3, 2003), and decided to respond with its own report, the “Zany Immunity Law Awards”, intended to single out “special interests” who opportunistically subvert the legislative system to get improper immunity from liability. The cover shows a legislator receiving a statuette, cash in his pocket, and roses with a ribbon labeled “Sleaziest Legislation.”

Exposing sleazy special-interest immunity laws is a noble sentiment–but it’s a sure sign of how few and far between such laws are that CJD singles out the sensible anhydrous ammonia immunity laws for its top ten list. The CJD incorrectly blames the law on a supposed “anhydrous ammonia business lobby”; in fact, it’s groups like the Michigan Farm Bureau that push for laws like Michigan S.B. 786. Indeed, the only group to oppose such laws? Trial lawyers’ lobbying groups. See also Kelly Lenz, “Fertilizer law to help farmers”, Farm and Auction, Jun. 12, 2002.

How ridiculous are the CJD awards? One of the top ten “zany immunity laws” refers to “immunity” granted to placebo manufacturers and distributors. Except the immunity in question isn’t immunity–it’s an exception to a criminal statute prohibiting the sale of fake drugs! E.g., Fla. Stat. 817.564(6)(a). (This is the only appearance of the word “placebo” in the Florida Code. It’s telling that CJD omits the statutory cite in its footnotes.) Perhaps this law is zany, but it’s hardly an example of a special interest group buying sleazy legislation that damages consumers. A subject of a research test who is injured by adulterated placebos (has this ever happened?) will still have a cause of action.

Read On…

Upcoming D.C. and NYC appearances

I’ll be speaking in Washington, D.C. this Wednesday and again on Friday. On Wednesday, I’ll be at the Cato Institute at noon (there’s even an audio feed) commenting on Robert Levy’s new book Shakedown. On Friday, I’ll be part of a panel discussion that starts at 1:30 at the Mayflower as part of the Federalist Society’s annual National Lawyers Convention, discussing regulation through litigation with a panel that includes Michigan Supreme Court Justice Robert Young Jr. and Northeastern Law’s Richard Daynard, among others.

Next week I’ve giving talks on Tuesday (Nov. 16) at two law schools in New York City, in both case sponsored by Federalist Society chapters. I’ll speak at Fordham in Manhattan at 12:30 and then at Brooklyn Law School at 4 p.m.

Michigan malpractice

Striking numbers: “Despite statewide reforms designed to lower the cost of medical malpractice insurance, the most expensive annual premium for a general surgeon in Wayne County [Detroit] reached $194,000 for $1 million of coverage — a 60 percent increase over last year, according to a survey released last week by Medical Liability Monitor, a trade journal. A doctor in Grand Rapids would pay $63,000 for the same coverage.” Both are doing better than general surgeons in Dade County, Fla., where the comparable figure is $277,000. (Sheri Hall, “Malpractice rates drive off doctors”, Detroit News, Oct. 25). More: MichMedMal blog, Oct. 25.

Fall speaking schedule

I’ll be speaking this evening (Thurs. Sept. 30) in Baltimore as part of a dinner-hour panel discussion on medical malpractice reform sponsored by the Chesapeake Lawyers’ Chapter of the Federalist Society. Other events scheduled for this fall (sponsored by the Federalist Society unless otherwise specified):

* Mon. Oct. 11, Whittier Law School, Costa Mesa, Calif.

* Tues. Oct. 12, Chapman Law School, Orange, Calif. (lunch) and Trinity Law School, Santa Ana, Calif. (late afternoon)

* Thurs. Oct. 14, U.S. Chamber of Commerce, Washington, D.C., Legal Reform Summit, debating Bob Levy of Cato on federalism and litigation reform

* Wed. Nov. 10, Cato Institute, Washington, D.C., commenting on publication of Bob Levy’s new book Shakedown

* Fri., Nov. 12, Federalist Society National Lawyers Convention, Washington, D.C., panel discussion on regulation by litigation with (among others) former Mississippi Attorney General Michael Moore and Michigan Supreme Court Justice Robert Young, Jr.;

* week of Nov. 15 (exact date TBA), Fordham Law School, New York City.

To inquire about our availability for speaking engagements, email editor – at – [this-domain-name] for me or tedfrank – at – [this-domain-name] for Ted.

New at Point of Law

Dozens of new posts at our sister site, including: plagiarism on the Harvard Law faculty; bill to revive Rule 11 sanctions for meritless litigation moving through House; more coverage of a lawyer’s attempt to collect “referral fee” of more than $140,000 from Illinois widow; Steve Bainbridge on attorney campaign donations and scoundrel Joe Kennedy; a sonnet on scientific evidence; class action fees in the InfoSpace and Ameritech cases, plus a paper on coupon settlements and an in-production Madison County movie; in praise of the Michigan Supreme Court; big fees in the really old days; public environmental suits, including the one on global warming; and Home Depot co-founder Bernard Marcus urges philanthropists to support legal reform.

For employment-law buffs, there are new posts on legal protection for messages on employee T-shirts, California and federal overtime regulations, and the Wal-Mart class action. For those who follow product liability there’s coverage of fen-phen fraud arrests, firearms liability and asbestos bankruptcies. Plus election-year politics, including Jim Copland, Ted Frank and more. Shouldn’t you bookmark it today?

Location, Location, Location

Opponents of medical malpractice tort reform often argue that malpractice premiums are on the rise because insurance companies made bad investments, not because of out-of-control jury awards. But, if that’s so, then why do premiums vary so widely by geography? Consider the rates in Cleveland, Ohio, a city that can lay claim to some of the most aggressive trial lawyers in the state, as well as some of the most generous juries:

A comparison of standard, non-discounted rates the American Physicians Assurance Corporation charges in Ohio, Illinois and Michigan shows doctors in Cuyahoga County paying the highest rates in almost every category, and nearly double the Columbus tariff.

For instance, neurosurgeons in Cuyahoga County paid $212,000 annually, while their colleagues in Columbus paid $118,000 in malpractice premiums. Doctors in the high-risk specialties also paid about $20,000 less in Chicago and Detroit than their counterparts in Cuyahoga County.

‘The fact is, a day doesn’t go by when a Northeast Ohio doctor doesn’t get sued for multimillions of dollars,’ says Myers.

Cerebral Palsy Turn Around

Michigan’s Supreme Court overturned a $21 million verdict in the kind of case that made John Edwards the man he is today. The Court ruled 6-1 that the basis of the jury’s decision in the original 1997 trial was faulty, because the expert witness testimony was faulty. Not that this means that the courts now recognize that cerebral palsy is rarely caused by birth injuries. Rather, the lower court failed to allow the defense an opportunity to object to the admission of the expert’s testimony. (An expert that they maintained had “novel” theories about the origin of cerebral palsy.) Still, it might be a step in the right direction toward correcting much that’s wrong with today’s malpractice litigation – “experts” who aren’t really experts.