Posts Tagged ‘Michigan’

Michigan, D.C. consider bounties for turning in those who underpay taxes

While expanding year by year, the complex of federal and state False Claims Act/whistleblowing laws often has exempted tax filings from the broad incentive provided to denounce others for “false claims” made to the government, often in a contract or program administration context. But new bills sponsored in the District of Columbia by Councilwoman Mary Cheh and in Michigan by Senator Steven Bieda would apply the bounty system to the tax area, starting, at least, with larger taxpayers. [Stephen P. Kranz, Diann Smith, and Eric Carstens, McDermott, Will, & Emery] We’ve covered some of the problems with laws rewarding tax tipsters in states like New York and Illinois here and here. On the latter story, note an update: a court has denied fees to attorney Stephen Diamond in a case in which he was both the relator and relator’s attorney. “Diamond has served as relator in about 1,000 qui tam actions over the last 15 years. A recent investigation by Bloomberg BNA revealed Diamond has collected almost $12 million through this pattern of litigation.” [Michael Bologna, BNA Daily Tax Report]

Medical roundup

  • “Apple Watch can detect an early sign of heart disease…. Apple has been communicating privately with the FDA for years about medical devices and so far the FDA has taken a light touch to Apple but these issues are coming to a head.” [Tyler Cowen]
  • “[Investor] lawsuits targeting life sciences firms jumped 70 percent from 2014, according to a survey provided earlier this year by Dechert.” [Amanda Bronstad, New York Law Journal]
  • Iowa Gov. Terry Branstad signs medical malpractice reforms into law [Brianne Pfannenstiel, Des Moines Register]
  • Summing up what is known re: talc and ovarian cancer as background to jury’s $105 million verdict against Johnson & Johnson [BBC (in story’s second half), earlier here, here, and here]
  • $5,300 for an MRI that would cost Medicaid $500? Personal attendants for crash victims, even the ones well enough to participate in mixed martial arts? All part of Michigan no-fault crash system [Detroit Free Press investigative series, see yesterday’s post]
  • Dear D.C.: ditch the FDA deeming regs and let vaping save smokers’ lives [Jeff Stier/Henry Miller, NRO, Tony Abboud/The Hill (vaping trade association), Juliet Eilperin/Washington Post (FDA temporarily suspends enforcement)]

Detroit Free Press investigates crash-claim abuse

“Detroit drivers face the highest average auto insurance rates in the country, often more than $3,000 a year for a single vehicle,” while residents of Michigan as a whole pay the third highest rates of any state. A Detroit Free Press investigation by J.C. Reindl and others “finds that runaway medical bills, disability benefits payouts and lawsuits under Michigan’s one-of-a-kind, no-fault insurance system play a key role in driving up costs.” One key difference: of the twelve states that mandate no-fault insurance, only Michigan provides for unlimited lifetime benefits.

Some findings from the series:

* “Ambulance chasing” and solicitation thrive notwithstanding laws intended to curb those practices. Despite privacy rules governing police reports and hospital admissions, for example, those involved in crashes are often solicited within hours, then signed up with law firms that later disavow any knowledge of solicitation. And how did an accident treatment clinic in suburban Detroit come to be owned by a California and Florida plastic surgeon noted for appearing on “The Real Housewives of Orange County” who seldom visited?

* While crashes in Wayne County (Detroit) declined from 72,227 to 50,548 between 2003 and 2015, “first-party” lawsuits — against one’s own insurance company for no-fault benefits — increased from 1,699 to 6,327 and negligence suits against other drivers from 2,527 to 3,435. Many “first-party” claims, of course, are paid without anyone filing suit, which is how no-fault law contemplated would be normal practice;

* Auto insurers have launched racketeering lawsuits aimed at proving forms of collusive fraud. Unlike many states, Michigan has no official watchdog charged primarily with combating auto claims fraud.

* “Defenders of the current system include the powerful Coalition Protecting Auto No-Fault, made up of trial lawyers, medical clinics, disability advocates and, until recently, the state’s hospital lobby.”

* Other states’ approaches to containing no-fault costs.

Shoveling snow off Detroit sidewalks for pay? Get a license

“Detroit licenses about 60 occupations, imposing extra fees and requirements on top of existing Michigan licenses for about half of these occupations. The other half of the occupations that Detroit licenses are not licensed by the state at all.” Window washers (who must pay $72 per year), sidewalk shovelers, dry cleaners, and furniture movers are all licensed. Because Detroit piles such hefty fees and additional regulations on plumbers beyond those of Michigan, “there are only 58 licensed plumbers in the whole city.” The system squeezes workers for cash, excludes newcomers, and harms consumers. But it’s not inevitable: “Last year, Wisconsin passed a bill that stopped local governments from creating new occupational licenses or levying additional fees.” [Jared Meyer on Jarrett Skorup Mackinac Center study]

“Court finally stops trying to make Detroit man pay child support for child that isn’t his”

We covered the case of Carnell Alexander in 2014 and 2015, and it may finally be over: “Alexander got official notice days ago, that after a 26-year-long fight he doesn’t owe child support for a child that is not his.” “You declare him a deadbeat. You garnish his wages, take away his ability to make a living,” said his lawyer, who now hopes to sue the state. [WXYZ]

Environment roundup

  • Subpoena turnabout not fair play: Congressional Republicans investigating state AGs’ climate advocacy probe are lobbing subpoenas at private enviro groups that urged the anti-speech campaign. Knock it off, two wrongs don’t make right [Eli Lehrer and earlier] “You don’t need complicated models to figure out what happens when governments censor speech. The evidence on that question is solid.” [Steve Simpson]
  • And speaking of fraud in policy advocacy (whatever that may mean) some varieties of it are plainly going to have no legal consequences whatsoever [Matt Welch channeling Virginia Postrel on California political class and high-speed rail]
  • Michigan attorney general Bill Schuette says 40 anti-pipeline activists gathered and beat on the front door of his home for 30 minutes with his wife alone there [Detroit News]
  • Pro-nuclear demonstrators blockade Greenpeace office in San Francisco, but wouldn’t the ultimate way to protest an odious environmental group be to respect the property rights of all concerned? [SFist]
  • “It’s a shotgun approach”: injury lawyers find many defendants to blame after Flint public water fiasco [NPR via Renee Krake, Legal Ethics Forum]
  • “District court voids Obama administration fracking regulations” [Jonathan Adler, Alden Abbott]

“Heap no abuse upon judges”

Ira Stoll recalls a verse from Exodus — translated in the New Berkeley Version of the Christian Bible as “Heap no abuse upon judges” — and notes that the temptation to excoriate judges over unwelcome rulings knows no place or era. Ken White at Popehat pens an explainer, “Is there anything unusual about Judge Curiel’s orders in the Trump University case?” Former U.S. Attorney General Alberto Gonzales kinda-sorta defends the propriety of litigants’ blasting judges, though in a left-handed way (“if I were a litigant who was concerned about the judge’s impartiality, I certainly would not deal with it in a public manner as Trump has, because it demeans the integrity of the judicial office and thus potentially undermines the independence of the judiciary, especially coming from a man who could be president by this time next year.”), drawing a response from Cassandra Robertson via Jonathan Adler. Eugene Volokh examines the no-not-even-close-on-current-evidence case for Curiel’s recusal. Earlier on the controversy here.

Meanwhile, journalists in Detroit have been recalling the story of the flamboyant, litigious, floppy-haired millionaire populist known for his willingness to insult judges and everyone else, who shoved aside the conventional pols to capture a major party nomination. Of course I’m referring to the 1998 run for governor of Michigan of attorney Geoffrey Fieger, a longtime Overlawyered favorite [Deadline Detroit, Zachary Gorchow/Gongwer]

And also relating to this year’s presidential race, I discussed the Libertarians’ ticket of Gary Johnson and Bill Weld and its attractions in an interview with Mona Charen for her Ricochet podcast “Need to Know” with Jay Nordlinger. More here.

P.S.: Where might a candidate have learned to rant against federal judges who don’t rule his way as “corrupt”? Maybe from New York Times columnist Paul Krugman.

Environment roundup

  • Remembering William Tucker, author of books on many subjects including the 1982 classic on environmentalism, Progress and Privilege, and a valued friend of long standing [RealClearEnergy, where he was founding editor]
  • Scalia took lead in defending property rights vs. regulatory takings, but mostly not by deploying originalist analysis. A missed opportunity, thinks Ilya Somin;
  • What? Children in parts of Saginaw, Grand Rapids, Muskegon, etc. have higher blood lead levels than in Flint [Detroit News] Flint water department didn’t use standard $150/day neutralizing treatment. Why not? [Nolan Finley, Detroit News] Children in Michigan generally ten years ago had higher prevalence of lead in blood at concern thresholds than children in Flint today [David Mastio, USA Today] Earlier here and here;
  • On eminent domain, Donald Trump and Ted Cruz seem to be “talking past each other, about two different things” [Gideon Kanner]
  • Saboteurs going after Canadian pipelines [CBC]
  • “Mission or Craftsman style” was insisted on, but the resulting vacant lot doesn’t seem to be either: south L.A. grocery scheme dies after decade-long urban-planning fight [Los Angeles Times]
  • As prices plunge: “Where Have All the Peak Oilers Gone?” [Ronald Bailey, Reason]

Environment roundup