March 12th, 2010

2nd Circuit Rejects Most of New York’s Attorney Advertising Rules

The case concerning the constitutionality of New York’s attorney advertising rules was argued over a year ago. And Sonia Sotomayor was on the the panel. Now she has gone up and the decision has come down by the two remaining judges of the panel regarding the rules that went into effect on February 1, 2007.

And the 2nd Circuit has upheld the lower court decision in holding that most of the content-based rules violate the First Amendment. A separate section, regarding a 30-day anti-solicitation rule, was upheld both in the court below as well as in the 2nd Circuit.

The decision is here: /Alexander-v-Cahill-2ndCirc.pdf. The case was brought by Public Citizen on behalf of upstate firm Alexander & Catalano. (Addendum: NY Lawyer Rules Are Unconstitutional)


The new rules had barred, among other things, testimonials from clients relating to pending matters, portrayals of judges or fictitious law firms, attention-getting techniques unrelated to attorney competence, and trade names or nicknames that imply an ability to get results. I had previously criticized some of those rules on First Amendment grounds.

The lower court had dumped those rules. The only part of the lower court’s decision that changes is the prohibition on portrayals of fictitious law firms, and that is just a minor modification.

These were the content based restrictions:

An advertisement shall not:

(1) include an endorsement of, or testimonial about, a lawyer or law firm from a client with respect to a matter that is still pending . . .
(3) include the portrayal of a judge, the portrayal of a fictitious law firm, the use of a fictitious name to refer to lawyers not associated together in a law firm, or otherwise imply that lawyers are associated in a law firm if that is not the case . . .
(5) rely on techniques to obtain attention that demonstrate a clear and intentional lack of relevance to the selection of counsel, including the portrayal of lawyers exhibiting characteristics clearly unrelated to legal competence . . .
(7) utilize a nickname, moniker, motto or trade name that implies an ability to obtain results in a matter.

Those rules, however, can result in some bizarre results if they were implemented. For instance, an attorney’s photograph on a web site clearly has no relevance to the legal competence of the individual. So if it has no bearing on competence, is it prohibited? (See: Is My Family Photograph An Ethical Violation in New York? and New York’s New Attorney Ad Rules and First Amendment Issues)

The catch-all prohibitions on false and misleading advertising remain in place.

Moving to the 30-day rule, of particular interest is that part of the decision regarding targeted Internet ads. Even before the plane crash in Buffalo last year, I had discussed the myriad ways that savvy marketers might try to circumvent the 30-day rules by targeting the victims with Internet ads and websites, instead of the more traditional types of ambulance chasing, in a post titled Solicitation 2.0. I followed up after the Buffalo crash showing how Google ads and websites were being used (this post has a round-up of numerous posts I did on the subject)

Anecdotal evidence that I collected showed that the 30-day rule was effective in curbing chasing.

So from the opinion comes this:

[W]e conclude that ads targeting certain accident victims that are sent by television, radio, newspapers, or the Internet are more similar to direct-mail solicitations, which can properly be prohibited within a limited time frame, than to “an untargeted letter mailed to society at large,” which “involves no willful or knowing affront to or invasion of the tranquility of bereaved or injured individuals and simply does not cause the same kind of reputational harm to the profession” as direct mail solicitations.

New York’s moratorium permits attorneys to advertise to the general public their expertise with personal injury or wrongful death claims. It thereby fosters reaching the accident victims, so long as these victims are not specifically targeted.

It’s a big victory for the First Amendment. But with that will also come more lawyer tasteless ads that embarrass the profession.

hat tip: New York Law Journal

Updated: More coming in:
Lawyer Free Speech Given a Second Chance (Greenfield @ Simple Justice):

As much as I believe that flagrant marketing is distasteful and unprofessional, bad for the profession and part of our race for the bottom, that doesn’t mean that I support legal restrictions or prohibitions. The former is bad. The latter is worse.

New York Advertising Rules Held Unconstitutional (Sorensen @ The Ethical Quandary):

So let’s recap: William Shatner in a judge’s robe? Allowed. Fifty foot lawyers terrorizing Midtown Manhattan? Allowed.

Jim “The Hammer” Shapiro apologizing that he cannot “rip out the hearts of those of have hurt you”? Ok that last one was a trick — already allowed: http://www.youtube.com/watch?v=Q5hn8bhEpMY — but good idea? Maybe that is the better question.

 

March 12th, 2010

Is Toyota Hiding "Black Box" Data From Runaway Prius?


It’s just a snippet from the local paper, but there it is: In an accident in Harrison, New York that resulted from an allegedly stuck accelerator in a Prius, Toyota is trying to keep the “black box” data from local police.

Many people don’t know this, but many of the cars on our streets today have a “black box” similar to those that exist on planes. They don’t reveal our conversations the way the airplane versions do, of course, but they provide a wealth of data to investigators in determining what happened in the moments before a crash.

The car at issue here, which has garnered national attention, was being driven by a housekeeper to a Toyota dealership due the national attention over problems with the cars.

The money quote from the story is this:

[Acting Police Chief] Marraccini said his department sought help from Toyota in accessing information in the car’s black box that would reveal what was going on with the car just before the crash. The company declined, and Marraccini said police would try to obtain a federal subpoena to get the information.

A fight over the car seems to be brewing, with mighty Toyota up against a small town police chief:

Toyota Motor Corp. meanwhile let police know that it wanted to inspect the car, but Marraccini said “we are not prepared to release the car to them.”

Whether the media attention is ultimately derived from driver errors (foot on wrong pedal), as Ted Frank theorizes, or is the result of real electrical or mechanical problems, will take investigative work. And that work entails looking at a car’s data.

But with respect to this particular accident, it appears that the floor mats — the subject of prior recalls — was not an issue:

Marraccini said the crash was not caused by the floor mat trapping the accelerator, the culprit that forced a massive recall of Camrys and Priuses in recent months. The mat was already connected to the seat base with plastic ties, he said.

I find it more than a bit odd that Toyota is afraid to have independent investigators look at that data.

See also: Ex-Toyota lawyer says documents prove company hid damaging information (CNN)

 

March 11th, 2010

Linkworthy (Tort "Reform" edition, and other stuff I like)


Former Clinton White House lawyer Lanny Davis weighs in on the issue of medical malpractice “reform” in a WSJ interview with Ashby Jones where he spends time whining about punitive damages.

And it’s pretty clear to Andrew Barovick, that Lanny Davis is utterly clueless. And the PopTort noticed too, pointing out that the entire state system only had six such cases in an entire year. For medical malpractice, punitive damages is a non-issue;

Hey, Brian Wilson has a modest proposal, why not just get rid of all the personal injury lawsuits?

And if you’re a personal injury lawyer, how do you feel about being one?

The NYT ran with an editorial on a case against McDonald’s regarding fried chicken and a hot-pocket of undrained oil that burned the lips of a customer. The WSJ Law Blog wants to know if this is the next tort “reform” talking point;

Of course, some lawyers just seem hell-bent on embarrassing themselves;

And while on the subject of medical malpractice, here’s the story of a rogue butt-enhancer. No, I didn’t make that up;

Other interesting stuff:

FindLaw, that paragon of brilliant blogging that seeks to further embarrass the entire legal profession, is now looking for new writers for it’s dreck-blogs. Legal experience is not necessary. Really, you can’t make this stuff up;

And more in the crap attorney search department, Bob Ambogi rips BestAttorneysOnline.com to shreds then comes back to pulverize them some more, and then shovels dirt on this clueless company’s grave. Woe unto the lawyer that outsources his or her marketing (and ethics) to one of these attorney search outfits;

Class action lawsuits against Toyota could cost the company $3 billion;

When 911 calls get released to the public, is there a violation of privacy rights involved?

Congressional candidate Joe Walsh backs down in dispute with rocker Joe Walsh over use of one of his (rocker Joe’s) songs;

New York City gets a new official condom, which has nothing whatsoever to do with the law, but it’s my blog and I get to link to stuff like that if I want;

My brother Dan is not the only one to get personal letters from SCOTUS; Justice Thomas opines on McDonald’s;

I’ve been meaning to get around to this for awhile: In case you hadn’t noticed, Colin Samuels of Infamy or Praise fame has been doing outstanding round-ups of the legal blogosphere in his “Round Tuit” postings. Unlike my brief commentary by providing links — where I try to send you away from here — he does in depth analysis of life in the legal blogosphere. If he isn’t part of your RSS feed, then you are missing something good;

And Niki Black has Blawg Review #254 up at Sui Generis, focusing on International Women’s Day and National Women’s Month.

 

March 10th, 2010

Report: Medical Malpractice Payments Hit New Low


The tort “reformers” won’t be happy with this; yet more evidence that medical malpractice lawsuits are not the problem with healthcare costs.

OK, here you go, short and sweet, the lede:

Fewer medical malpractice payments were made on behalf of doctors in 2009 than any year on record, according to the National Practitioner Data Bank.

This finding contradicts claims that medical malpractice litigation is to blame for rising healthcare costs and that changing the liability system to the detriment of patients will not curb costs.

The value of malpractice payments was also the lowest since 1999. Adjusted for inflation, payments were at their lowest since 1992, a Public Citizen analysis of the NPDB shows.

Also part of the article, malpractice payments on behalf of doctors equals just 0.14 of 1% of overall US healthcare spending.

And for that, there are people who want to close the courthouse doors.

You can read the rest here: Analysis: Medical malpractice payments continue to fall.
——————–
And prior commentary from me here:

  • The False Premises of Medical Malpractice “Reform” (Response to Richard Epstein in WSJ) (6/30/09)

    There’s an old saying, “garbage in, garbage out.” If you use a false premise to substantiate an argument then the result will be worthless. And that is exactly what University of Chicago law professor Richard A. Epstein does today in the Wall Street Journal (via PofL)…

  • Do Texas Med-Mal Damage Caps Work? (What Do You Mean By “Work?”) (4/14/09)

    But what, exactly does it mean for a statute to “work” when it reduces the ability of the most badly injured individuals to recover for their loss?

    Does offering government protectionism for tortfeasors mean it works?

    Does stopping those who’ve been victimized from recovering from their loss mean it works?

    Does destroying the concept of personal responsibility for one’s actions mean it works?

  • My Tort “Reform” Op-Ed in Today’s Journal News (7/29/08)

    Re “Tort reform needed in New York state,” a July 23 letter by Cortes E. DeRussy of Bronxville that blamed the “trial-bar friendly state Legislature” for refusing to enact malpractice reforms needed to keep doctors from fleeing the state:

    The DeRussy letter repeated a common myth in an argument for tort “reform,” claiming that one of the primary reasons for increased medical malpractice insurance was “unusually high judgments.” DeRussy couldn’t be more wrong…

  • The Medical Malpractice “Crisis” Hoax — From Public Citizen (1/24/07)

    Since others had already pointed out the Public Citizen report exposing the hoax of a medical malpractice “crisis” I wasn’t going to bother. But there was Pres. Bush last night at his State of the Union speech once again leading people astray, when he said:

    “And to protect good doctors from junk lawsuits, by passing medical liability reform.”

    Good doctors, however, don’t seem to be the problem. Since 1991, according to the report, 5.9 percent of U.S. doctors were responsible for 57.8 percent of the number of medical malpractice payments. That is an extraordinary statistic.

  • Debunking Yet Another Tort “Reform” Column, This Time in Forbes (7/15/09)

    I feel like a broken record sometimes, rebutting the same disingenuous tort “reform” nonsense over and over. The latest comes from Forbes (via PofL), in a piece written by Manhattan Institute fellow John Avlon, regarding the amount that New York City pays out in settlements and verdicts….

  • Why New York Medical Malpractice Insurance Jumped 14% (7/31/07)

    You may have seen the screaming New York headlines: Doctors hit with 14% increase in medical malpractice rates! Doctors in high risk specialties paying 6-figure insurance premiums! Insurance reserves so low carriers may become insolvent! Blame the lawyers! came the cry from the doctor’s, for surely it must be due to medical malpractice cases. A little protectionism called tort “reform” would go a long way to curing the problem. Right?

    Ahh, but truth is another matter…

hat tip: JusticeDotOrg

 

March 8th, 2010

New York Appellate Court Gives Lesson in Lousy Legalese (In an important case) – Updated

It’s a contest! For the worst judicial writing in America. And I have here the first entrant.

Now I confess that I publish this with great trepidation, since I appear before this appellate court from time to time. And what I have to say isn’t kind.

But at the risk of pissing off some judges before whom I may appear, I have to ask, would you want our briefs to contain sentences with 300+ words? And would you want me to make you strain to figure out the points I’m making?

Exhibit A: A decision from the Second Department in December in Dockery v Sprecher, regarding a $109M medical malpractice verdict that was reduced to $9 million for a brain damaged man. The first sentence of the decision, regarding the procedural history, weighs in at a staggering 303 words. Without any semicolons. Is there a secret law that says writing a procedural history must induce dread on the part of the reader?

But wait! There’s more! Not to be outdone, the second sentence of the same decision laughs in the face of the first, stomping it into the ground with a jaw-dropping 343 words. But at least that has two semicolons. (Both re-printed below.)

Really, is such gobstopping exposition necessary? Have simple, declarative sentences been outlawed? Is clarity a crime?

I challenge anyone to find a sentence in another judicial opinion of such length.

The format of this decision is unfortunate given its importance. The decision speaks to the issue of how outlier verdicts — those that “deviate materially from what would be reasonable compensation,” in the parlance of New York law — get reduced by courts on review by ordering a new trial unless a party stipulates to a lower amount. I had written of the subject as a newbie blogger (How New York Caps Personal Injury Damages — 1/23/07) due to the popular misperception among the public that the verdicts they see in newspapers are the amounts that actually get collected.

But those verdicts in the papers are there for a reason; either because a celebrity was involved or the verdict was an outlier.

A decision on a blockbuster verdict that helps to define the limits of permissible compensation, and demonstrates how the courts manage those outlier verdicts, is one that would assist the public in understanding how our judicial system works. And it would assist trial judges and lawyers in understanding how the appellate court might see things, and therefore it would be important guidance.

But sentences of 300+ words don’t do that. Instead of offering clear explanation, they offer the reader the opportunity to engage in code breaking, with a WW II Engima machine as a required tool.

And that is not the only place this decision lacks clarity. Because the decision also fails to explain the injuries. Imagine that, a $109M verdict reduced to $9M, and no discussion of the damages? John Hochfelder has written quite a bit on that recurring issue, including this:

So I don’t at all question the integrity, acumen, or commitment of our appellate court judges. What I do question, though, is why [the Appellate Division] can’t make it part of their procedure in personal injury lawsuit appeals to explain their reasons for an increase or decrease of a jury award and to cite prior cases with meaningful and helpful explanations of why they are relevant or controlling. In that way, practicing lawyers will be better able to evaluate and settle cases with the result that fewer cases will clog our court system and more realistic positions will be taken by plaintiff and defense lawyers on the cases that remain.

It takes much hard work to actually figure out what the Appellate Division did in Dockery v. Sprecher, because not only did it reduce the verdict but it also lowered the apportionment of fault for the defendants from 45% to 10%. And it failed to let the reader know what the actual effect of that apportionment change was.

And since this report indicated that there was also a $4.4M pres-suit settlement with a hospital, that means that there would be an offset for the settlement amount under New York’s General Obligations Law 15-108, though you wouldn’t know if from reading the opinion.

So we have a major decision on the issue of damages, with a new trial ordered unless the plaintiff stipulates to a reduction, a change in the apportionment, a settlement requiring an off-set, but with tortured language in the decision, missing information, and open questions for the reader. And that’s a shame.

[Update: Hochfelder unravels the guts of the injury claims in a new post, and comes up with this result:

$4,400,000 (the pre-trial settlement the hospital and one doctor) plus
$957,000 (The 10% share of the remaining defendant, resulting from the new $9,570,000 limit placed by the court)]

So let me politely suggest that our appellate judiciary do a few things:

1. Read the opinions of Justices Scalia, Posner, or Kozinski. Just for style. Ask yourselves this question: Would any of those jurists compose anything resembling the mind-numbing legalese I’ve re-printed below?

2. Contact legal writing guru Bryan Garner, who has given a gazillion seminars on writing to lawyers and judges;

3. Take the writing manual that you are working from and dump it. Whatever comes out the other end of the recycling process will be of better use.

OK, here they are, the first two sentences, in all their gory glory, followed by my closing thoughts:

In an action, inter alia, to recover damages for medical malpractice, etc., the plaintiffs appeal, as limited by their brief, from so much of a judgment of the Supreme Court, Queens County (Hart, J.), entered July 10, 2008, as, upon the granting of that branch of the motion of the defendants Stanley Sprecher, Peninsula Radiology Associates, P.C., and Peninsula Hospital Center pursuant to CPLR 4401, made at the close of the plaintiffs’ case, which was for judgment as a matter of law dismissing the complaint insofar as asserted against them, upon a jury verdict finding the defendants M. Chris Overby, and Levine Overby Hollis, M.D.s, P.C., 45% at fault, and nonparties Philip Howard Gutin, and Memorial Sloan Kettering Cancer Center 55% at fault for the injuries sustained by the plaintiff Thomas Dockery, and that the plaintiff Thomas Dockery sustained damages in the principal sums of $10,000,000 for past pain and suffering, $27,750,000 for future pain and suffering, $370,000 for past loss of earnings, $80,000 for future loss of earnings over a period of 28 years, and $21,636 for loss of Social Security income, and that the plaintiff Karen Dockery sustained damages in the principal sum of $18,000,000 for past loss of services, and $48,700,000 for future loss of services, and upon so much of an order of the same court entered December 3, 2007, as granted, after the jury verdict, that branch of the motion of the defendants M. Chris Overby and Levine Overby Hollis, M.D.s, P.C., pursuant to CPLR 4401, made at the close of the plaintiffs’ case, which was for judgment as a matter of law dismissing the complaint insofar as asserted against them, dismissed the complaint insofar as asserted against the defendants Stanley Sprecher, Peninsula Radiology Associates, P.C., Peninsula Hospital Center, M. Chris Overby, and Levine Overby Hollis, M.D.s, P.C.

Ordered that the judgment is modified, on the law, on the facts, and in the exercise of discretion, by deleting the provision thereof dismissing the complaint insofar as asserted against the defendants M. Chris Overby and Levine Overby Hollis, M.D.s, P.C.; as so modified, the judgment is affirmed insofar as appealed from, without costs or disbursements, the motion of the defendants M. Chris Overby and Levine Overby Hollis, M.D.s, P.C., pursuant to CPLR 4401, made at the close of the plaintiffs’ case, for judgment as a matter of law dismissing the complaint insofar as asserted against them is denied, the order entered December 3, 2007, is modified accordingly, and the matter is remitted to the Supreme Court, Queens County, for a new trial as to the defendants M. Chris Overby and Levine Overby Hollis, M.D.s, P.C., on the issues of apportionment of fault and damages for past and future pain and suffering and past and future loss of services unless, within 30 days after service upon the plaintiffs of a copy of this decision and order with notice of entry, the plaintiffs shall file in the office of the Clerk of the Supreme Court, Queens County, a written stipulation consenting to the apportionment of 10% of the fault to the defendants M. Chris Overby and Levine Overby Hollis, M.D.s, P.C., and 90% of the fault to nonparties Philip Howard Gutin and Memorial Sloan Kettering Cancer Center, and to reduce the damages for past pain and suffering from the principal sum of $10,000,000 to the principal sum of $1,200,000, the damages for future pain and suffering from the principal sum of $27,750,000 to the principal sum of $6,750,000, the damages for past loss of services from the principal sum of $18,000,000 to the principal sum of $350,000, and the damages for future loss of services from $48,700,000 to the principal sum of $1,000,000, and to the entry of an amended judgment accordingly; in the event that the plaintiffs so stipulate, then the judgment, as so reduced and amended, is affirmed, without costs or disbursements.

Two final thoughts. One reason that this decision might be written so poorly is that the court doesn’t want it to be cited and followed. But, like Hochfelder, I believe that such obfuscation leads to more litigation as it leaves the current state of the law a mystery. If the bar understands that, for example, a verdict for a broken arm will be tossed out if it exceeds (or is lower than) x, then the parties can turn to the liability aspects and make informed judgments with more confidence of the best case and worst case scenarios. And the trial level courts will have guidance on permissible parameters when deciding post-trial motions. And that would mean fewer trials, fewer appeals, and reduced judicial case load. It would, dare I say, promote efficiency.

And last: When I appear before you next, please, please, PLEASE, don’t hold my criticisms against my client. I write because I think the courts can do better, and that we are all better served when decisions are clear.