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  • #31
    Re: Go To School, Get Ahead

    Thanks Don: Yep, 700 prior serious injury claims McD knew about. McD knew they served their coffee so hot that if you drank it you'd burn your throat. A 79 year old lady who never sued anyone before spent 8 days in the hospital followed by years of treatment with skin grafts and debridement all over her privates. She asked them to pay $11k, a portion of her medical bills - probably what her health insurance did not pay. They told her to screw off.

    She is out of pocket this portion of the medical bills, with all of the credit and other hassles that go with that. She hired a lawyer who laid out the case for McD and tried to get a settlement; they offered $800. They fought tooth and nail for years, ignored a mediator's recommendation to settle for $225k, and told them to screw off again. They spent at least $75k fighting the claim, probably much more, and I gather never offered more than that to the lady.

    Despite knowing of 700 claims, including those of prior 3rd degree burns, McD never even bothered to do any safety analysis or alternatives analysis.

    The jury awarded $200k, minus 20% for her own negligence (if they'd have said she was 51% negligent she would not have gotten a penny). they also awarded 2 days of McD coffee revenue as punitive damages, which 'tort reform' cut down to $480k.

    McD's refused to pay that judgement, and threatened to appeal the case forever, so the old woman settles for some amount likely much less than $600k, after years of lengthy and difficult legal battles.

    The attorney probably got, after expenses, somewhere on the order of $100 -150k, which is not terrible for what was probably a good 500 hours of work, spread over several years, which work would have resulted in ZERO income if the jury had decided the old woman was more than 51% at fault. But that is certainly not something most people who spent 7 years and $120k earning a degree would go for as a compensation plan, especially when they have to cover all the overhead, benefits, admin costs, and probably loan their client money to live on and pay medical bills on in the interim too. Oh, and most if not all of the woman's recovery was subject to F***ING INCOME TAX, too! Her health care insurer and doctors got full first money back out of all their efforts as well.

    After medical bills, expenses, costs of suit, taxes, etc., she probably scored $150k in pocket...

    The news theme for this case reads 'scumbag woman wins $2.7 million for spilled coffee!'

    This poor woman gets hate mail and abuse the rest of her life for this case as a 'frivolous lawsuit' posterchild.

    and THIS Lawsuit is the BEST EXAMPLE OF LAWSUIT ABUSE?

    One of my duties at one time was handling all worldwide litigation for a fortune 500. I was real good at it. Saved millions year over year very quickly.

    I can tell you that winning lawsuits and telling people who file them to screw off was often pretty damned easy. Hell, I'd pick low risk claims to force to trial rather than settle, just to test jurisdictions, lawyers, etc., and almost every time the plaintiffs just dismissed the case after a lot of work and walked away rather than bother with trial.

    Just food for thought.

    McD's knew a number of things in making their decisions: they knew the actual out of pocket expenses. they knew they could hire cheap lawyers to fight to the death. they knew the jury would not be allowed to award more than 3 times out of pocket expenses. Their liability was capped at an amount they evaluated to be less than the desired cost of even bothering to QUESTION whether there was a safer alternative.

    McD's coffee is still over 180 degrees... you know, sometimes, it would be nice to give bigcorp an incentive to at least ANALYZE safety and public welfare as one of many concerns in their decision trees.

    Or maybe instead someone making $100k in DC should draft and file another regulation in the 'Raiders of the Lost Ark Warehouse' of the CFR, declaring that fast food chains have to keep their coffee at 170 degrees on penalty of a $200 fine, enforceable only by state attorney generals lawsuit, after a $500k study on the subject (paid for by tax dollars, but written by someone in the fast food industry). That's be great. (this is the actual reality of most consumer protection regulations and statutes in the U.S.).




    I guess I have let my feelings on this build up a while....

    Comment


    • #32
      Re: Go To School, Get Ahead

      Originally posted by cbr View Post
      Not to sidetrack too much, but I would submit that the only judicial reform needed was to properly incentivize jury service, and broaden the scope of matters handled by jury trial, at the expense of paternalistic governmental regulations or private insurance company arbitrary decisions.

      ...

      The only problem with jury trials is the reluctance or inability of good citizens to serve. That was the only place 'tort reform' was ever needed. It still is.
      I mostly agree with this assessment. "A jury of your peers" What a joke. What would you suggest as a real world solution? How do you properly incentivize jury service?

      Personally, I wouldn't say it's the only problem. I think the judges are often corrupt/incompetent. This goes all the way to the supreme court and is probably worse at that level. I don't know how this could be fixed.

      If the judges are all owned by Monsanto, the jury is irrelevant.

      Comment


      • #33
        Re: Go To School, Get Ahead

        Originally posted by DSpencer View Post
        Why? Because I don't think it's "nearly impossible" to file a med mal suit in every state? Is there some false statement I have made? Or have I just taken a position that you don't like?

        I'm not denying that tort reform has reduced the number of med mal suits. I also will admit to having a bias that makes me think that generally speaking this is a good thing. I think there are too many frivolous lawsuits filed and too few consequences for doing so.

        If an Affidavit of Merit signed by an expert witness that shows your "case is a winner" is so hard to get, wouldn't you expect the plaintiffs to win the majority of the time once they have this? In Ohio, where I live, the defendant "wins" the majority of cases. But winning for the defendant is still losing because the loser doesn't typically have to pay for the expenses of the other side.

        Like the health care system in general, I think this area is pretty screwed up. Personally I would support a system with a "bad outcome" insurance system that would compensate patients for bad outcomes without fighting over fault or negligence except in cases of intentional malice. Even when patients win a claim they are paying ~40% to the lawyer and also expenses. I wonder how much of the money spent in the med mal system actually ends up helping an injured patient.
        It is nearly impossible as stated, but because you apparently have no idea how the discovery process normally works in civil matters nor the Rule 11 standards (not to mention the theory behind our liberal discovery processes), you have no idea how much a burden it is to meet the higher standards set forth in tort reformed states. The info is out there if you bother to use google, but I don't feel like spending my time giving you remedial lessons on judicial theory.

        The playing field is already leveled by the large number of "skeptical" jurors out there like you. This reform is just a gift to insurance companies, who now have that much more leverage in denying valid claims. The sad fact is, in nearly all instances, the people who end up suing (1) are suffering horribly (2) due to negligence and (3) are only suing because the insurance company told them to fuck off. Now the insurance co will only do so harder, and they will pretty much have to take it.

        Comment


        • #34
          Re: Go To School, Get Ahead

          I agree on judges getting worse as you go up the food chain. Most locally elected judges are pretty decent, there are outliers, both for the public and for the big money. But the key is limiting the power of judges and 'reform' laws taking discretion away from juries.

          As far as incentivising jurors, I'd say one all jurors have to be able to speak and read english. They should come from a pool of licensed citizens. The 'for cause' strikes should be limited somewhat, and the excuses to get out of jury service should be more limited. (i.e., all of the many reasons why someone might be biased should be more limited... the precedent is already set for this: sadly, one of the strongest indicators of results between jurors and parties in many areas of the country is race - yet race is not allowed to be considered as a basis for striking jurors. Even anyone even spots a TREND of racial for cause strikes, they can challenge it. This logic can be applied to business owners, doctors, lawyers, insurance employees, etc., who all generally get shuffled off a personal injury jury for cause)

          Tax dollars which are almost universally wasted today would be put to better use compensating highly paid individuals and business owners, or paying daycare, etc., for the loss of their time during trial. Trials could be sped up. Trial schedules can allow some time for people to maintain a business during a long trial.

          Comment


          • #35
            Re: Go To School, Get Ahead

            Originally posted by Munger View Post
            It is nearly impossible as stated, but because you apparently have no idea how the discovery process normally works in civil matters nor the Rule 11 standards (not to mention the theory behind our liberal discovery processes), you have no idea how much a burden it is to meet the higher standards set forth in tort reformed states. The info is out there if you bother to use google, but I don't feel like spending my time giving you remedial lessons on judicial theory.

            The playing field is already leveled by the large number of "skeptical" jurors out there like you. This reform is just a gift to insurance companies, who now have that much more leverage in denying valid claims. The sad fact is, in nearly all instances, the people who end up suing (1) are suffering horribly (2) due to negligence and (3) are only suing because the insurance company told them to fuck off. Now the insurance co will only do so harder, and they will pretty much have to take it.
            So because [condescending ad hominem argument] and you're too busy being smug on the internet to use facts, you're right and I'm wrong. Well I can't argue with that reasoning.

            As a bonus, you've managed to examine the facts and determine there is negligence in "nearly all" med mal cases filed. Exhausting work, no wonder you're so busy.

            Comment


            • #36
              Re: Go To School, Get Ahead

              The JOURNAL of the AMERICAN MEDICAL ASSOCIATION (JAMA) Vol 284, No 4, July 26th 2000 article written by Dr Barbara Starfield, MD, MPH, of the Johns Hopkins School of Hygiene and Public Health, shows that medical errors may be the third leading cause of death in the United States.

              The report apparently shows there are 2,000 deaths/year from unnecessary surgery; 7000 deaths/year from medication errors in hospitals; 20,000 deaths/year from other errors in hospitals; 80,000 deaths/year from infections in hospitals; 106,000 deaths/year from non-error, adverse effects of medications - these total up to 225,000 deaths per year in the US from iatrogenic causes which ranks these deaths as the # 3 killer. Iatrogenic is a term used when a patient dies as a direct result of treatments by a physician, whether it is from misdiagnosis of the ailment or from adverse drug reactions used to treat the illness. (drug reactions are the most common cause).

              http://www.cancure.org/medical_errors.htm

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              • #37
                Re: Go To School, Get Ahead

                I had never sued anyone in my life until Daimler-Chrysler told me to pound sand when a transmission failed prematurely and their repair didn't last one year. I offered to split the cost (in reality probably break even for them) but they just told me to sue them if I wasn't happy. That literally was the reply I got. Which pissed me off. So I did. I went online and found some firm than said if they liked the case they'd handle it at no cost to me. I didn't expect anything to come of it. Filled out a form and sent in copies of my maintenance records. Never spoke to or saw a lawyer. Several years later I got a call out of the blue from a lawyer saying he had them up to $4000 and was going for more. lol. The next day they settled for about $5000. All because the big corporation thought they could just duck out of their responsibility to some nobody. Splitting the bill would have only been about $1500 btw.

                Thats my lawyer story. My lawyer was willing to assume the cost if he couldn't come to a settlement, albeit not that much. So I think he was entitled to his $2000 or so for his hour or two on the phone. Out of that he pays for an office, staff, insurance, etc and makes up for those he doesn't win. So many people who are not in business don't have a clue about why things cost what they do. They just see the amount and what they think is the time invested.

                I sat on a jury all last week. At the end the judge asked the defense lawyer about his fee because he was being paid by the state. So restitution could be factored into the sentence I presume. He said it shouldn't be more than $5000! I thought that was low myself. Hopefully he gets expenses in addition to that. He had to have made other appearances in court about this case before I was involved, and another attorney was assisting him as well. But I did think the case could have been handled in perhaps one or two days less. The Assistant DA called in umpteen witnesses to say essentially the same thing over and over. You could tell she wasn't footing the bill.

                Comment


                • #38
                  Re: Go To School, Get Ahead

                  Originally posted by flintlock View Post
                  I had never sued anyone in my life until Daimler-Chrysler told me to pound sand when a transmission failed prematurely and their repair didn't last one year. I offered to split the cost (in reality probably break even for them) but they just told me to sue them if I wasn't happy. That literally was the reply I got. Which pissed me off. So I did. I went online and found some firm than said if they liked the case they'd handle it at no cost to me. I didn't expect anything to come of it. Filled out a form and sent in copies of my maintenance records. Never spoke to or saw a lawyer. Several years later I got a call out of the blue from a lawyer saying he had them up to $4000 and was going for more. lol. The next day they settled for about $5000. All because the big corporation thought they could just duck out of their responsibility to some nobody. Splitting the bill would have only been about $1500 btw.

                  Thats my lawyer story. My lawyer was willing to assume the cost if he couldn't come to a settlement, albeit not that much. So I think he was entitled to his $2000 or so for his hour or two on the phone. Out of that he pays for an office, staff, insurance, etc and makes up for those he doesn't win. So many people who are not in business don't have a clue about why things cost what they do. They just see the amount and what they think is the time invested.

                  you go, bro

                  (got me choked up - small businessman wins one!)

                  Comment


                  • #39
                    Re: Go To School, Get Ahead

                    does this fall under the rubric of frivolous . . . or sour grapes?

                    Shareholders of Freddie Mac lost their bid to sue former directors and officers of the government-owned mortgage finance company when the Federal Housing Finance Agency stepped in to lead the case in Virginia.

                    A federal appeals court in Richmond, Virginia, today upheld a ruling by U.S. District Judge Leonie Brinkema, who found that the 2008 law creating the FHFA as Freddie Mac’s conservator gave the agency the authority to substitute itself as the plaintiff.

                    “The district court, interpreting the act, concluded that ‘the plain meaning of the statute is that all rights previously held by Freddie Mac’s stockholders, including the right to sue derivatively, now belong exclusively to the [Agency],’” the court said.

                    The Louisiana Municipal Police Employees Retirement System along with other shareholders alleged former Freddie Mac officials wasted company assets and mismanaged the company resulting in “significant losses.” (that wasn't the point of the exercise?)

                    http://www.bloomberg.com/news/2011-0...or-losses.html

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                    • #40
                      Re: Go To School, Get Ahead

                      Originally posted by flintlock View Post

                      Thats my lawyer story.
                      Thank you. It was a great story. This place is becomming hard to come to sometimes. But that's me maybe.

                      Comment


                      • #41
                        Re: Go To School, Get Ahead

                        the cost of doing business . . . always less, by far, than the haul . . . .

                        Wells Fargo & Co. (WFC), the nation’s biggest home lender, raised its estimate of potential excess legal expenses by 42 percent to a maximum of $1.7 billion as the bank prepares for new costs tied to its mortgage practices.

                        The revised estimate as of March 31 was disclosed today in the San Francisco-based lender’s quarterly report to securities regulators. Wells Fargo had pegged the cost at $1.2 billion as of year-end.

                        Attorneys general in 50 states are investigating mortgage servicing and foreclosures at the nation’s biggest banks, and Wells Fargo was among lenders that have signed consent orders with federal regulators designed to curb any abuses. The bank said regulators could still seek civil penalties from the investigation while other agencies, including the Department of Justice, continue to scrutinize its operations.

                        “These investigations could result in material fines, penalties, equitable remedies including requiring default servicing or other process changes, or other enforcement actions and result in significant legal costs,” the bank said.

                        Wells Fargo reiterated that it’s cooperating with the authorities. The bank, headed by Chief Executive Officer John Stumpf, reported a $3.8 billion first-quarter profit last month.

                        http://www.bloomberg.com/news/2011-0...ge-probes.html

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                        • #42
                          Re: Go To School, Get Ahead

                          Originally posted by cbr View Post
                          I guess I have let my feelings on this build up a while....
                          Sometimes this website is truly amazing.

                          Comment


                          • #43
                            Re: Go To School, Get Ahead

                            Originally posted by cjppjc View Post
                            Thank you. It was a great story. This place is becomming hard to come to sometimes. But that's me maybe.
                            No, its not just you!

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