Author Archive

Hospital bill-collecting and med-mal claims

The recent flurry of press attention to medical apology prompted this anecdotal recollection from Michael O’Hare at Same Facts (May 18) of his work 25 years ago on a Massachusetts state commission to address the malpractice issue:

The story was that soon after [in-house hospital lawyer] Fred arrived, he was assigned to get on top of malpractice claims, and he sat down with six months’ worth of files. All of them, he discovered, began with a collection action for non-payment of a bill. So he ordered the accounting office to send him every overdue account before any efforts at collection, and invited the deadbeat patient into his office for a conversation. Invariably, the patient was withholding payment because he thought he had been mistreated. Often, the patient was right. The next meeting was with the practitioner accused of having screwed up, and the outcome was sometimes an apology and a promise to fix the problem for free (for example, another operation at no charge to retrieve the forgotten sponge), sometimes an expression of regret for a bad outcome with an explanation that the hospital hadn’t actually erred: not everything in medicine works every time. Of course this required that Sanders and Fred drive out fear, so the staffers could be honest and sympathetic.

The result of this was a really spectacular reduction in malpractice costs, even counting in the “warranty service” repairs; I don’t remember the numbers but it was on the order of more than half, partly in fees to defense lawyers, partly in claim payments. Frequently the bill even got paid. The reduction in lawsuits occurred both when the hospital was wrong and said so, and when it was right and said so; it turned out a lot of the injured patients just wanted to tell a live person what had happened to them and get an apology. Of course the public relations benefits are enormous, if hard to measure. And quality always goes up when your own people aren’t afraid to talk to each other about instructive mistakes.

It’s notable that Fred’s pay didn’t depend on how many cases he litigated….

Full post here. More thoughts on medical apology: Melissa Clouthier, May 19.

Indian land claim roundup

* New Jersey: “A federal judge in Camden last week dismissed a lawsuit filed by a band of American Indians seeking to reclaim land they said the state sold out from under them more than 200 years ago. The Unalachtigo band of the Nanticoke-Lenni Lenape Nation demanded the return of 3,044 acres of the former Brotherton Reservation, which sits mostly in Shamong Township in Burlington County.” [Philadelphia Inquirer; Camden Courier-Post/Red Lake Net News, 2006 (expensive law firm of Reed Smith was representing tribal band, which was angling for casino rights)].

* A new C$550 billion land claim launched by the Whitefish Lake tribe (or “First Nation”, to adopt progressive Canadian terminology) includes the entire city of Sudbury, Ontario [Timmins Press, Sudbury Star]

* Second Circuit panel due this week to hear appeal on upstate New York Oneida claim, in which ejectment of current landowners is apparently (for the moment) off table as option [Rome [N.Y.] Sentinel; earlier on Indian land claim litigation].

We were counting on you for favorable testimony, cont’d

Robert Ambrogi has more discussion on that case from Utah (Apr. 8 ) in which a litigant is suing an expert witness who changed his mind on the eve of trial about his willingness to support a medical malpractice suit, resulting in an adverse outcome. He mentions this site and quotes Ted, who

believes that [dissenting Tenth Circuit Judge Neil] Gorsuch is correct in his analysis. “The incentives of expert witnesses to give independent truthful opinions are already distorted, and should not be distorted further.”

Beyond that, the court appears not to have thought through the consequences of its decision, he says. “Every cross-examination of an expert at deposition should now include questions relating to the expert’s fear of being sued.”

(Bullseye newsletter, May; sidebar on state-by-state immunities for experts).

Deep Pocket Files: beer defendants kick in $21 million in R.I. fire

“Anheuser-Busch and a Cranston beer distributor have agreed to pay $21 million to settle lawsuits brought by survivors of a 2003 nightclub fire and relatives of the 100 people killed, according to court papers. The February 2003 fire at the Station nightclub in West Warwick began when pyrotechnics used by the rock band Great White ignited flammable soundproofing foam.” More than ninety defendants were sued, and the total of settlements has now topped $122 million from defendants “including Home Depot, which sold insulation used in the club, and Clear Channel Broadcasting, whose local rock radio station promoted the concert”. (“Rhode Island: New Settlement in Nightclub Fire”, AP/New York Times, May 24.)

Jurors’ trauma

First you get hauled in by compulsory process, then you start having to look at the emergency room photos: “North Carolina is considering allowing jurors access to counseling services to cope with post-traumatic stress that can occur after exposure to graphic images and disturbing testimony during a trial.” (Molly McDonough, “Jurors ‘Haunted’ By Time in Courtroom,” ABA Journal, May 16).

Fieger jury deliberates

After three days of deliberations, it’s not clear any resolution is near in the trial of high-profile Michigan lawyer Geoffrey Fieger and a colleague on charges of massively evading campaign-finance laws (David Ashenfelter, “Fieger jury signals verdict could take a while”, Detroit Free Press, May 30). Norm Pattis, who has attended the trial (and who hopes Fieger gets off) writes as follows (May 30):

This jury was told that it is unlawful for a person to ask another to make a contribution to a political candidate and promise to reimburse them for the contribution. There is power[ful] evidence before the jury that this is precisely what Fieger did. When I see, as I did at trial, evidence that a person making $560 a week with no prior history of political contributions makes a $2,000 contribution to their boss’s candidate, I wonder. When I see the boss reimburse the employee days after the contribution, giving in a “bonus” even enough to cover payroll tax, I am more than a little suspicious. When this pattern is repeated scores of time[s], I am like Archimedes springing from his tub: “Eureka!”

A jury could easily convict Fieger.

But [celebrated defense lawyer] Gerry Spence asked them not to. In a mesmerizing performance he commanded the room as can few others. He asked for commitments from jurors, showing himself to be vulnerable so as to make jurors at ease with their own vulnerability. Spence is charisma personified.

But Spence made one mistake in his argument that could cost Fieger his freedom. “If this prosecution can happen to Fieger, it can happen to any of us,” he said. It is a powerful argument in the right case. But as jurors ponder this case, and Spence’s magic recedes, someone will, sooner or later, raise the following question: “Who was Spence talking about?” The fact is most Americans cannot conceive of giving more than $100,000 to a political candidate by using employees as strawmen. This is not a case of the Government versus Everyman. Much though it pains me to admit this, there was power in the Government’s assertion that “Fieger thinks he is smarter than you.” With wealth comes, alas, arrogance.

Perhaps forgoing a chance to reach out for libertarian allies — though no doubt wisely as a matter of criminal-defense strategy — the defendants are not taking the position that the campaign-finance restrictions are improper restrictions on political freedom that should have been struck down as unconstitutional and even now merit condemnation. Instead, to quote the Freep’s Ashenfelter, their “lawyers have said they would have never risked their legal careers or put their employees or family members in harm’s way had they known it was wrong.”

Canadian tobacconist: sued if you do…

The facade of the Old Morris tobacco shop in Victoria, British Columbia, which has operated at its location for 120 years, “has been preserved in it’s [sic] original design, including signs noting the tobacco, house blends and Havana cigars within.” New provincial legislation prohibits tobacco-promoting signage where visible to youths; “Businesses who violate the act face a $575 fine for a first offense, with penalties rising up to $5,000 for repeat offences.” At the same time:

In a letter sent to [store owner Rick] Arora, Steve Barber, senior heritage planner with the City of Victoria, called the store’s signs “an integral part of the history of this building and part of it’s heritage character,” meaning Arora cannot remove or cover the signs.

“They’ve made it clear I can’t touch them,” Arora said. “I could be fined $1 million and go to jail for two years.”

Neither government agency “is budging” on its demands. (Tom Mcmillan, “Tobacco store owner caught between policies”, Canwest/Vancouver Sun, May 27). Update: compromise struck (thanks to reader ras in comments).

Client-chasing roundup

  • Screening firm hired by Beaumont, Tex.’s Provost Umphrey to do mass silicosis x-rays at Pennsylvania hotels is fined $80,500 for breaking various state rules, like the one requiring that a medical professional be on hand [Childs]
  • Milberg Weiss’s special way of obtaining perfectly pliant clients — that is to say by bribing them under the table — harmed other class members by increasing fees but not settlement sums, suggests a new study by St. John’s lawprof Michael Perino for Ted’s project at AEI [Carter Wood @ PoL]
  • Time for Texas to join many other states in requiring lawyers to inform clients when practicing without professional liability insurance [SE Texas Record; earlier here, here and here]
  • Lawyers, in concert with their public pension fund allies, jockey for control of securities case against Bear Stearns [Gerstein/NY Sun]
  • Another court, this time in California, rules that a screw maker can’t sue a law firm on the claim that its solicitation of potential claimants wrongly portrayed the company’s products as defective; amicus brief from state trial lawyers group and Sen. Sheila Kuehl says relevant provisions of state’s “SLAPP” law were “meant to protect plaintiffs groups, not companies” [The Recorder via ABA Journal; earlier case from Tennessee]
  • Most lucrative Google AdSense words still dominated by asbestos and other personal injury practice, the top terms being “mesothelioma treatment options” ($69.10 per click, and the point of obtaining the click is not to provide treatment options), “mesothelioma risk” ($66.46), and “personal injury lawyer michigan” ($65.85) [CyberWyre via NAM “Shop Floor”; more here, here, etc.]

“Mother Teresa, move aside”

Mel Weiss — yes, that Melvyn Weiss, of Milberg Weiss, the one who ran a corrupt but lucrative kickback scheme premised on systematic lies to judges over decades, then stonewalled its disclosure through years of investigation — “deserves recognition as ‘one of the greatest humanitarians of our time,’ according to a sentencing memo his lawyer filed Friday.” (Ben Hallman, “Urging Leniency, Big Names Go to Bat for Mel Weiss”, American Lawyer, May 28).

Included were more than 240 supportive letters filed by friends and well-wishers of the famously piratical class-actioneer. It’s hard to read the WSJ law blog’s excerpts from these letters without shedding a tear of admiration:

“Donald Kempf, the former chief legal officer at Morgan Stanley says that after an unexpected on-the-street encounter, Weiss offered to help Kempf find a certain kind of watch. “And he did.”

According to a letter submitted by a friend and art dealer in Sun Valley, Idaho, in a “spontaneous” gesture while in Vienna, Weiss bought the art dealer’s wife an expensive pair of boots.

(WSJ law blog, May 27). The roster (PDF) of character vouchers and pleaders for leniency includes many names familiar to readers of this site, including Stephen Susman, Benedict Morelli (president of the New York State Trial Lawyers Association), David Boies, Stan Chesley, Edward Labaton, and Christopher Seeger; the list is headed by lawprof and frequent Milberg Weiss expert witness Arthur Miller. We commented in February on the similar batch of letters on behalf of Weiss’s felonious collaborator Bill Lerach.

Doesn’t Even Leave The Airport

“A New York lawyer is suing Delta Air Lines for $1 million, saying his family vacation turned into a nightmare after they were stranded in an airport for days and treated disdainfully by airline employees. Richard Roth, who filed the lawsuit on behalf of himself and his mother, said he planned the Christmas 2007 trip to Buenos Aires to celebrate his mother’s 80th birthday.” (Reuters/MSNBC, AP/Atlanta Journal Constitution). Best quote, arguably, from Roth: “I tried so hard not to sue them.” (New York Post). Scott Greenfield is not entirely admiring (or maybe he is, it’s hard to tell).

P.S. Okay, you win, then: Greenfield was being entirely admiring of the action, million-dollar-demand and all.