Archive for October, 2006

Update: Blaming banks for terrorist attacks

U.S. District Judge Charles P. Sifton in Brooklyn has denied motions to dismiss lawsuits which seek to blame Credit Lyonnais of France and National Westminster Bank of the United Kingdom for terrorist bombings in Israel linked to Hamas; the banks handled funds for charities which channeled funds to Hamas. Credit Lyonnais “[vainly] cited investigations in France that cleared the group of any wrongdoing.” (“U.S. judge refuses to dismiss terror finance suit vs French bank”, AP/International Herald Tribune, Oct. 5). Ted covered the lawsuits on Jan. 6 and Feb. 24 of this year.

More on the Allan Navarro $217M verdict

Kevin MD reviews the medicine behind the Navarro stroke case (which we covered Oct 5/6), and finds a lot of 20/20 hindsight second-guessing. One commenter adds:

The scary thing to me and many ER physicans about cases like this is that outside of the diploplia I probably see 3-4 patients like this a week and usually send them home with or without a Head CT. When we read cases like this we thing “Thank God it wasn’t me” and realize these cases are bound to eventually happen to us too. I see 3-4 patients an hour I CANNOT decrease that to 0.5-1.0 patient an hour and get a specialty consult on every single patient.

Once again, a verdict that deters practice, rather than malpractice.

(Update, August 2007: case settles.)

Jackpot justice: $20M for $25,000 insurance claim

Ted Fields was injured in an auto accident with Jimmy Woodley; Woodley’s insurer went bankrupt, so Fields, on January 30, 1997, asked Allstate to pay $25,000 in medical bills and lost wages. Allstate sent Fields forms to fill out, and he did so three weeks later; when Allstate didn’t pay instantaneously, he sued them in March 1997 for bad faith. Fields turned the discovery process into a far-reaching investigation of all of Allstate’s claim procedures; the judge refused to constrain irrelevant deposition questioning, at which point in 1999 Allstate offered Fields the full amount of his $50,000 policy limit rather than waste hundreds of thousands in trial. Fields refused; his attorneys filed several separate motions of default rather than litigate the underlying issues after the trial court denied a summary judgment motion. An appellate court found that Allstate was entitled to summary judgment because of the lack of any evidence of bad-faith in responding to Fields’s claims; the Indiana Supreme Court overturned that ruling on a procedural technicality that the appeal was premature.

The trial court ruled that Allstate was not allowed to present evidence that it was not liable for actual or punitive damages or that it acted “with anything other than dishonest purpose, moral obliquity, furtive design, and/or ill will.” A jury, hearing this one-sided sham of a trial, awarded $20 million in damages, though one would hope the Court of Appeals, hearing a timely appeal, makes the same decision it made before. Press coverage fails to mention that Allstate wasn’t allowed to defend itself at trial; the plaintiff told the jury that the dispute caused high blood pressure, heart problems, and a stroke, though then the question becomes why he isn’t suing his attorney. (Ken Kosky, “Valpo man wins $20 million verdict v. Allstate”, Northwest Indiana Times, Oct. 6).

Oz: Government will appeal aboriginal land win

Following up on our Sept. 22 post: Australia’s Attorney General Philip Ruddock says his office will appeal against a judge’s award of extensive public land holdings in and around the city of Perth to aboriginal tribes. (Amanda Banks and Rhianna King, “Ruddock confirms native title appeal as State payout tipped”, The West Australian, Oct. 6; Stephanie Peatling, “Ruddock to challenge native title ruling over Perth”, Sydney Morning Herald, Oct. 6; Ben Martin and Amanda Banks, “Hills parks open to native title: judge”, Oct. 4).

Salonquest scare letter: photos of our products violate our copyright

Public Citizen Litigation Group’s Greg Beck blogs a refutation though, alas, he doesn’t single out the attorney who makes the absurd claim. Beck notes the problem:

Even if a claim like Aquage’s is without legal merit, however, many small online sellers who receive a threat like this would rather cut their losses and back down than risk a lawsuit. It’s usually not worth hiring a lawyer when you are only hoping to make a few bucks off the sale in the first place.

Indeed.

Jackpot justice: $217M for misdiagnosed stroke in Florida

[Bumping October 5 9AM post to reflect new details.]

$100.1 million in punitive damages, and the “compensatory” award is almost certainly mostly non-economic damages, though the press coverage does not distinguish. (Thomas W. Krause, “Jury Puts Punitive Award At $100 Million”, Tampa Tribune, Oct. 3). TortsProf blog, Peter Lattman, Kevin MD, and Greedy Trial Lawyer comment. So no one accuses us of unfairness, we’ll repeat the GTL summary of the case:

ProAssurance’s subsidiary, ProNational Insurance Co., was the malpractice insurer for a doctor’s group running a Tampa area hospital emergency room where patient Allan Navarro’s stroke was misdiagnosed by an unlicensed physician’s assistant as a headache and sinus infection.

[Plaintiffs’ attorney Steve] Yerrid told the Tampa newspaper he tried to get the insurance company to settle for the maximum allowed under the policy – $1 million for the doctor and $1 million for the physicians’ group. Instead, he said, the insurance company wanted to settle for $300, offering $100 for Navarro, $100 for his wife and $100 for his 10-year-old son.

Update: Daily Business Review has a more detailed summary than the mainstream press:

On Aug. 9, 2000, Navarro, who was a professional basketball player in his native Philippines, entered University Community Hospital-Carrollwood with a headache, nausea, dizziness, confusion and double vision. He described a personal medical history of hypertension, diabetes and elevated cholesterol plus a family history of strokes to the triage nurse. A different nurse than the triage nurse also noted he was unsteady on his feet.

When Navarro spoke with Herranz in the examination room, he mentioned the sudden onset of a headache earlier that day and that he had felt a “pop” in his head.

According to the 2005 second amended complaint, Herranz did not complete an adequate medical history of Narvarro, nor did he do a complete or adequate neurological exam.

Navarro spent about 5 1/2 hours at UCH-Carrollwood, during which time he had two CT scans of his brain and was diagnosed with “sinusitis/headache” by Austin, prescribed Vicodin for the pain and an antibiotic by the doctor and sent home. He was not told to watch for any stroke symptoms.

The suit alleged that Navarro presented classic stroke symptoms that Austin should have noticed. It further said that CT scans are not adequate diagnostic tools for ruling out the type of stroke Navarro had.

Early the next morning, Navarro woke with a severe headache, slurred speech, nausea, confusion and trouble walking. He was readmitted to the UCH-Carrollwood Emergency Room at 6:05 a.m. Upon his return, he was labeled “urgent,” but doctors still had not diagnosed a stroke. It wasn’t until he was transferred to Carrollwood’s sister hospital, UCH-Fletcher, that afternoon that surgery was finally performed. By then, the stroke had already left him paralyzed with mental disabilities. During surgery, he slipped into a four-month coma. He is now confined to a wheelchair.

(Rebecca Riddick, “Judge Halts Defendants’ Bid to Avoid $116M Med-Mal Verdict”, Oct. 6).

Multiple issues here:

Read On…

Lockyer flayed on autos-‘n’-global-warming suit

It’s “kooky” and “trivializes a serious problem”, editorializes the Los Angeles Times: “California shouldn’t be in the business of filing meritless suits to gain leverage in other cases“. “It’s not his job to make law through frivolous lawsuits,” opines the San Jose Mercury News (via Wilson). It’s “reprehensible… little more than a political stunt,” adds the Orange County Register. Veteran political columnist Dan Walters of the Sacramento Bee terms the suit “Lockyer’s bid to become the champion of cheesiness“. One who does like the suit, curiously enough: an environmental adviser to Gov. Schwarzenegger named Terry Tamminen. And the San Francisco Chronicle investigates: what do state lawmakers drive? More here, here and here (cross-posted from Point of Law).

Coffee shop owner sues Starbucks

On antitrust grounds:

In her lawsuit, [Penny Stafford of Belvi Coffee & Tea Exchange] says that Starbucks employees would make frequent runs past the deli with free samples. She said that Starbucks also had non-competitive leases that blocked her from the most desirable locations in Bellevue and Seattle.

The suit claims that Starbucks, fueled by “insatiable and unchecked ambition,” wanted to squash all competition.

John Stott, who owns Johnika’s Deli, said that he advised Stafford not to open a business so near a Starbucks.

Representing Stafford in the suit is Overlawyered favorite Hagens Berman Sobol & Shapiro. (“Coffee shop owner sues Starbucks”, UPI/MonstersAndCritics, Sept. 27; Melissa Allison, “Starbucks sued over ‘unchecked ambition'”, Seattle Times, Sept. 26; Keith Sharfman, Truth on the Market, Sept. 25; Lattman, Sept. 27).