Frivolous Lawsuits

As a plaintiffs’ lawyer, one of the most frustrating aspects of this vocation is the public perception of trial lawyers as “ambulance chasers” filing frivolous lawsuits at the expense of hard-working people. In social gatherings, when new acquaintances learn in what area of law I practice, there are occasionally comments or questions about allegedly frivolous lawsuits. When this happens, I make sure to provide a reasonable theory for liability and justice in these cases. Certainly, these anecdotes and stories are propaganda of the insurance industry and others so aligned.  A common trial technique is to discredit the opposition by making their theory of the case seem ridiculous.  In formal logic, this practice is called “creating a straw man.”  In this blog, I am going to be practicing my cocktail-party-debunking-skills.  Namely, every so often I’m going to examine a so-called “frivolous” lawsuit and explain a theory of liability that the insurance industry does not want you to know.

The First Entry is called “Case of the Flying Shrimp of Death”

"Case of the Flying Shrimp of Death"

Defendant’s Spin:

A Long Island widow claimed that her husband’s death resulted from an injury sustained while dodging a piece of flying shrimp at the Japanese steakhouse Benihana. The man’s widow alleged he injured his neck while trying to avoid a hot shrimp playfully tossed at him by a table-side hibachi chef at Benihana, the Japanese steakhouse chain, that the neck injury required an operation, that an apparent infection necessitated another procedure and ten months after dodging the shrimp, he was dead of a blood-borne infection.
 

Actual Argument:

Certainly, no one would find fault with someone attempting to dodge an object flung directly at them, whether that object is a shrimp or a rock. Even though Benihana is supposed to be "a fun place to eat" I certainly do not think that "fun" includes having food thrown directly at me. If I wanted that, I could go eat dinner with my cousin’s family (3 boys under the age of 8). The basis for this case being deemed frivolous undoubtedly stems from the injuries suffered as a result. The man hurt his neck when he jerked it to dodge the wayward crustacean. In American tort law, we have the doctrine of the "eggshell Plaintiff." This doctrine holds that a defendant is responsible for a plaintiff’s injuries even if that particular person was more susceptible to injuries than the average person. In short, we injure someone, you take them as they are – injurer beware! The man may have been more susceptible to neck injuries. He suffered an injury that required an operation. It is well settled in American law that should an injury require surgical correction, the defendant assumes all risks inherent in surgery, including death. This is merely a case of the comedy (the fact it was a shrimp as opposed to any other object) hiding the tragedy of the circumstance. Without the neck injury, the man would not have needed surgery. If he had not had surgery, he would not have died of a blood-borne infection.
 

To learn more about personal injury, pleasee see our website at personal injury law.  To learn more about our personal injury lawyers, please click on personal injury lawyers maryland, and read our firm bios on Andrew Bederman, Roger Greenberg, or Jason Fernandez.

Insurance Denies Claims

The LA Times is reporting that Health Net, Inc. gave bonuses to employees based on how many policies were canceled or dropped. The state of California slapped a $1 million dollar fine on the company for this practice. Technically, the fine is not for that particular conduct. The fine is for lying to investigators about the policy on two separate occasions. In addition to the fine, the insurer has agreed to discontinue the practice.

California is currently investigating the coverage policies of 4 other companies -- Kaiser Foundation Health Plan Inc., PacifiCare Health Systems Inc., Blue Cross of California, Blue Shield of California.

This is just ANOTHER reminder that insurance companies are corporations. Corporations exist to make a profit for their shareholders. They DO NOT EXIST to help people. If so, they would be charities. Insurance companies make money by denying claims.

For a detailed review of how denying claims and/or raising premiums creates a profit see here.

To learn more about persona injury insurance issues please go to personal injury law.  To learn more about our personal injury lawyers, please click on personal injury lawyers maryland, and read the firm bios on Andrew Bederman, Roger Greenberg, or Jason Fernandez.

Contingency Fees

Personal Injury - How Law Firms are Paid

In personal injury cases, Greenberg and Bederman is paid on a contingency basis. This means that if the case is won, Greenberg & Bederman will take a percentage of the recovery as a fee, and will also recover its costs. The balance of the recovery will go to the client. Either the money will go to pay the client’s medical expenses, or will go directly to the client. If the case is lost, the client will not be responsible for legal fees, but will still be responsible for their medical bills.

Contingency billing makes it possible for people to have access to the legal system even if they do not enough money to hire a lawyer who expects to be paid whether the case is won or lost.

Many people do not like the idea of contingency billing, since they feel that it encourages frivolous law suits. There is no doubt that some law suits are filed which have no merit. They waste the court’s time and cause delay. They are brought by people who are angry at the way they have been treated, who feel that they have been insulted, who are primarily interested in revenge. The people who are sued must defend themselves, and may incur large legal expenses.

The British legal system handles such cases very differently. Under British rules, the loser in a civil suit must pay the legal expenses for both sides. This certainly discourages frivolous lawsuits. But the British pay a very high price for this rule. Bringing a lawsuit is so risky that most people cannot consider doing it, because the possible expenses in case of loss are so great. The result is that the average British citizen has no access to the legal system. In cases of personal injury, most people are at the mercy of insurance companies, since insurance companies have lawyers and the average citizen does not.

Perhaps the best example of the drawbacks of the British system is the famous case of Robert Maxwell.

Maxwell was a Russian who was born in 1923. During World War II he served in the British Army, became a commissioned officer and a British citizen, and took the name of Robert Maxwell. He became extremely wealthy, and built a huge business empire, including many newspapers. He was always a controversial figure, and there were rumors of improprieties and unethical financial dealings. He did not hesitate to sue anyone for libel who said anything about him that he did not like.

Eventually he disappeared from his yacht, and was later found floating in the ocean. Foul play was suspected, thought nothing was ever proven. But after his death his business empire collapsed. It turned out that he had been guilty of all sorts of financial misconduct, including misappropriation of funds and bank fraud. His businesses went bankrupt, there were huge losses, and many of his employees had their pensions wiped out. It was a first-class financial scandal.

Why was he able to get away with such massive misconduct? The British rules concerning lawsuits were one of the principle reasons. Many people suspected that Maxwell was guilty of misconduct, but no one dared to say anything in public. They knew that they would be sued for libel if they did. The only way that they could defend themselves under British procedure was to prove to the court’s satisfaction that what they had said about Maxwell was true. Maxwell’s businesses were so complex, and so little information about them was publicly available, that they would never be able to do this. They would inevitably lose. They would have to pay whatever judgment the court imposed, they would have to pay their own legal expenses, and in addition they would have to pay for all of Maxwell’s legal expenses as well. They had to assume that they would face total financial ruin. As a result, no one dared to say anything.

The British system certainly keeps frivolous lawsuits under control, but the price is high. Contingency billing has drawbacks, but it allows the average citizen access to the legal system in order to defend their interests.
 

To learn more about personal injury issues, please click on  personal injury law.  To learn more about our personal injury lawyers, please click on personal injury lawyers maryland, and read our firm bios on Andrew Bederman, Roger Greenerg, or Jason Fernandez.