March 31st, 2009

NY Court Of Appeals Tosses Out Verdict Due To Failure to Poll Jury


New York’s high court today threw out a plaintiff’s verdict in a medical malpractice case because the court refused the request of the plainitff to poll the jury at the time the verdict was rendered.

The decision in Duffy v. Vogel, authored by our new Court of Appeals Chief Judge Jonathan Lippman, came after a plaintiff’s verdict of $1.5M in a medical malpractice case. He wrote:

In New York, we have long recognized that affording jurors a last opportunity individually to express agreement or disagreement with the reported verdict, is, when requested by a litigant, indispensable to a properly published, and thereby perfected, verdict.

Inasmuch as, under New York law, the honor of a request for a jury poll is a necessary condition of a “finished or perfected” verdict, it follows that in this State’s courts the failure to poll a jury may never be deemed harmless. Harmless error analysis is a judicial device employed to sustain an already perfected verdict, not to perfect a verdict in the first instance.

The proper publication of a verdict in open court, so long deemed essential to assure the integrity of the verdict, is not to be cast aside as a mere formality on the theory that jurors are prospectively bound to act in accordance with their verdict sheet signatures.

The dissent would have held this to be harmless error.

 

March 31st, 2009

Supreme Court Lets Stand 100-1 Punitive Damage Ratio in Smoker’s Case

And so it ends. Not just the matter of Williams v. Philip Morris that had been up to the Supreme Court on three different occasions. But going down the tubes with Philip Morris was the spurious argument advanced by defendants that the Supreme Court was going to artificially limit punitive damages to a 10:1 or 3:1 ratio when compared with compensatory damages. The compensatory damages here were $821,000 and the punitive damages were $79.5M.

When I wrote about this case a year ago (Philip Morris $79.5M Punitive Award Reinstated By Oregon High Court), I said:

A $79.5M punitive damage award against Philip Morris in a smoker’s case has twice been tossed out by the U.S. Supreme Court and sent back to Oregon for reconsideration. Now, for the third time, the Oregon Supreme Court has upheld the blockbuster award in Philip Morris v. Williams. The news story is here. The decision is here. And as I explain below, if it should go back up to the Supreme Court a third time, Philip Morris will likely lose if the court addresses the size of the award.

The reason I believe the almost 100-1 ratio will stand is set forth in this analysis I did in February 2007 in the wake of the last remand by the Supremes back to Oregon:
Philip Morris Punitive Damages Decision — Why It Was Good For Plaintiffs

Defendants had long argued that, based on conflicting commentary out of the high court, that large punitive damage awards would not withstand judicial scrutiny.

Now, as a result of the dismissal of the appeal, defendants are stuck arguing that the failure by the high court to decide this third appeal will simply mean it is without precedential value.

But every judge in the land that confronts the issue will know that the court let this punitive damage award of almost 100:1 stand, and will no doubt be guided accordingly.

This is a big loss for big business, as the courts will not be protective of those that hide or obscure the dangers of their products, to the detriment of others.

Here is the case history:

  • Jury verdict for $821,000 in compensatory damages and $79.5M in punitive damages;
  • Punitive damages reduced by trial court to $32M;
  • Punitive damage award reinstated by Oregon Court of Appeals;
  • Affirmed by Oregon Supreme Court;
  • Remanded by U.S. Supreme Court to decide punitive damages issue in light of its new ruling (2003) in State Farm v Campbell;
  • Affirmed again by Oregon Court of Appeals;
  • Affirmed again by Oregon Supreme Court;
  • Remanded by the U.S. Supreme Court due to an issue regarding jury instructions;
  • Affirmed for the third time by the Oregon Supreme Court;
  • Cert granted by Supreme Court
  • Case Dismissed by Supreme Court (today) without an opinion

See:

  • Tobacco punitive verdict stands (SCOTUSblog)

    The marathon, however, apparently is not over yet. Philip Morris, at an earlier stage in the case, reserved the right to challenge a state law that requires that 60 percent of a punitive verdict goes to the state of Oregon. The company’s argument against that is that Oregon has achieved all of the proceeds it is entitled to have under the global settlement of a group of states’ lawsuit against the industry.

 

March 30th, 2009

Medical Malpractice Reform Fails in New York

Yesterday, budget negotiations between the Governor and legislative leaders failed with respect to reforming New York’s medical malpractice laws. This leaves thousands of people without attorneys who may have legitimate claims for malpractice, but no one to investigate them.

New York has some of the lowest medical malpractice legal fees in the nation. As a result of mid-80’s legislation, countless people who have been harmed by malpractice over the years have been unable to obtain representation. But reform of that law, that was part of the budget negotiations just concluded, failed according to a source I spoke with earlier today.

Unlike most negligence cases, where the top legal fee 1/3 of the recovery, malpractice legal fees are substantially lower. New York’s “sliding scale” fee structure looks like this:

30% of the first $250,000 of the sum recovered;
25% of the next $250,000 of the sum recovered;
20% of the next $500,000 of the sum recovered;
15% of the next $250,000 of the sum recovered;
10% of any amount over 1,250,000 of the sum recovered. 

Thus, while malpractice cases are significantly more difficult to bring, and cost a great deal more (due to the necessity of hiring additional experts), the fees are lower than in other personal injury matters. Essentially, the lower fees, greater expense and significant technical difficulty of bringing such suits have given de facto immunity to the medical profession for many claims.

The New York Post, in an opinion column last week, claimed such a change in the legal fee structure was a “bonanza” to lawyers. The piece by Post columnist Fredric U. Dicker claimed that there would be “windfall” earnings to lawyers, evidence that he really doesn’t have much clue as to what he is writing about. He clearly knows nothing of the actual economics of bringing a malpractice claim and proving it, or that they rarely settle easily. Nor does he appear aware the largest cases almost always need to have any fee approved by a judge.

While I’ve never met him, I have no doubt Dicker would change his tune in a hear beat if he was the one who was injured by the negligence of others, just like these other people. He also probably doesn’t know that the medical malpractice “crisis” has been debunked as a hoax (and yet more here) and probably doesn’t know why malpractice premiums for New York doctors jumped dramatically recently. He might, perhaps, be interested in the price gouging by some medical malpractice insurers, or how malpractice gets covered up, or even about the White Coat of Silence, but he would only be interested if he had an open mind.

Dicker didn’t report that most malpractice victims are without recourse and forced to bear all of the loss. Time and again I receive phone calls from people desperately trying to find counsel, and learn that I am but one attorney in a long list that has rejected the matter simply because of the economics of the matter.

Once upon a time in America we believed that people should be held responsible and fix their mistakes. But the right wing Post has apparently dropped that in favor of political partisanship.

If medical practitioners want to put malpractice lawyers out of business, there is a way to do it. But it isn’t by victimizing the patient a second time.

More on the subject at Point of Law supporting the Post editorial.

 

March 27th, 2009

Linkworthy


But Mr. Attorney sir, are you sure I don’t have a suit for this? (Legal Antics, citing Overheard in the Office);

“I regret that we did not include in White House ethics lectures a warning ‘do not lie under oath’…” (Bush White House Ethics Lawyer Richard Painter @ Volokh);

TortsProf with their 30th edition of the Personal Injury Law Round-Up;

A classic mug shot;

The Freedom Tower at the WTC site disappears;

And 14 years after two Hispanic youths were killed by an NYPD fusillade of 28 bullets — most of which entered their backs and sides and exited into floor boards — their families settle the case for $1.1M as the matter was about to go to the jury.

 

March 23rd, 2009

Morris Eisen, Disgraced NY Personal Injury Attorney, Is Also A Madoff Victim (Irony)

Morris Eisen once had a personal injury firm in New York with dozens of lawyers. Many trumpeted his legal smarts. Then he was busted. For rigging cases by fabricating evidence. He was convicted in 1991 of bribery, mail fraud and racketeering and disbarred in 1992, and will forever be a disgrace to the community.

And now it seems, the crook Eisen has been victimized by another crook, Bernard Madoff. Eisen is on the Madoff list with two separate accounts, one on exclusive Fisher Island in Florida and one in Manhattan:

Morris Eisen Fisher Island FL 33109
Morris Eisen & Caryl Ellis New York NY 10022

While he may have been disbarred, he still clearly had substantial assets. (And his cases continue to be argued in one fashion or another.)

A little summary of Eisen’s problems from a June 2007 post of mine:

Some of the conduct included shrinking the size of a ruler down on a xerox machine, so a pothole would appear larger when the “ruler” was used, and paying a witness to give testimony about an accident when, in fact, he was in jail at the time and nowhere near the scene.

And when I did my prior summary, I didn’t even bother with the sledgehammer that was used to make the accident seem worse.

How much of Eisen’s success was based on being a good lawyer and how much based on him being a crook is known by only a few. But one thing is certain, he was an embarrassment to the profession and fed all the worst fears and jokes about lawyers being crooks and ambulance chasers. He tried to claim that the prosecutors picked on him because they were in league with the insurance companies and wanted “to send a chill through the ranks of the lawyers who represent accident victims.” I am no less angry today about that crap than when I heard it nearly two decades ago.

For many of us, whose reputations were tarnished merely by being in the same profession as he, no punishment was too great. He served 57 months in prison.

As the old saying goes, what goes around in life comes around. Murray Eisen the hustler has now been hustled by Bernie Madoff. Don’t expect me to shed a tear for either of them.

Photo: Associated Press

Update: Walter Olson has more on Eisen at Overlawyered, in Live by the swindle…
(hat tip to Louis Schepp for the find)

Links to this post:

blawg review #205
orrery closeup by binks. welcome to blawg review #205, the music of the spheres edition. the english composer gustav holst (1874-1934) was hugely prolific, but he is unquestionably best known for his orchestral suite, the planets.

posted by George Wallace @ March 30, 2009 3:01 AM

live by the swindle…
call it karma? among bernard madoff’s victims, eric turkewitz has discovered*, is none other than the infamous morris eisen, who made a ton of money in personal injury practice by faking evidence for his cases (highlights: taking a

posted by Walter Olson @ March 25, 2009 3:05 PM

Non-Sequiturs: 03.24.09
* The AIG bonus tax is also sexist. And, of course, communist. And most likely racist, homophobic, ageist, it certainly doesn’t do enough to fight AIDS or cure cancer, and is solely responsible for the death of every puppy in North
posted by @ March 24, 2009 6:27 PM