February 16th, 2018

The Lacrosse Ball and the Lawsuit

Addy Tauro head shot, Syracuse University

I’ve got this thing about sports, injuries and lawsuits. And that’s because of two things that seem to be in conflict: First, I bring lawsuits regarding injuries for a living. But second, I am also the race director for a 13-mile trail race.

And you know what? Folks get injured while trying to run fast over rocks, roots and other hazards that include other runners. The risk of wiping out comes with the territory.

So over the past years I’ve written about injuries (and lawsuits) from snowboarding, softball practice, horseback riding, auto racing, and water slides.

With that intro now over, we turn to lacrosse and a decision from last week.

The lacrosse drill at Syracuse University was conceptually simple for the women’s varsity team: Athletes ran down the sidelines while a line of coaches roll balls to them from about 20-25 feet away. The athletes scoop them up and toss them back to the coaches. Then repeat with the next coach.

According to the suit that was ultimately filed, the ground ball part of the drill had never been performed any other way. Except that one coach decided on this one day in the middle of the rolling drill to wing the ball overhand to Addy Tauro as if it were a pass.

Now if Tauro survived said winging of said lacrosse ball without injury, would I be writing about this today?

When one of the coaches whipped it at her head, it was wholly unexpected and she “never even saw it coming,” as she stated in her affidavit.

She suffered a concussion.

She claimed in her suit that throwing a hard rubber lacrosse ball at someone’s head, when she’s not expecting it, is grossly negligent and reckless.

So. Does this case get dismissed under New York’s assumption of risk doctrine because, when engaging in recreational activities, she consented to the commonly appreciated risks of the sport that flow from such participation?

I’ll wait while you ponder. Time’s up.

Rather than answer the lawsuit and go through discovery, Syracuse moved immediately for summary judgment based on the assumption of risk doctrine, and also based on a written waiver that Tauro had signed. They countered her version of events.

And the answer is: Summary judgment for Syracuse was denied on both counts and the case goes forward.

The Appellate Division (Fourth Department) first dispensed with the waiver issue, since such waivers are against public policy for people who act with gross negligence or recklessness. (see Gross v. Sweet and GOL 5-326)

And on the assumption of risk doctrine, the court stated that if the claims by the plaintiff were true (and at this early stage a court must make that assumption) that she did not assume these kinds of risks. This risk was not part of the game, as this was a practice. Nor was it an anticipated risk of a pick-up drill that a ball would be thrown at her head.

The court held that a player will not assume the risks of reckless or intentional conduct, or dangerous conditions that the coach created over and above the usual dangers that are inherent in the activity.

Assumption of risk goes to the anticipated and appreciated risks. Which is why, if one is writing a waiver, it might be wise to educate the participant as to all of the anticipated risks. Thus, while a waiver might not excuse negligence based on public policy grounds, it might be quite useful for assumption of risk grounds.  “Look!,” a defendant could now safely claim, “she knew about this risk!”

You know those sports waivers written in ALL CAPS that appear designed to dissuade the participant from actually reading them? They are for shit, in my opinion, and really don’t serve the purpose of educating to real risks. Because they are not being read. Nobody reads them except for the lawyers that wrote them. And then they hope that the legal mumbo jumbo somehow imparts knowledge of the risks?

The one I wrote for my trail race gets read. And I know that because people will routinely come up to me and tell me so. It was crowd-sourced  years ago, with the idea of doing everything possible to make it readable, and therefore useful for actually educating people on the risks of participating. If anyone decides to create a Waiver Hall of Fame, I’m going to submit it.

The case is Tauro v. Gait and Syracuse University

 

 

February 14th, 2018

Trump’s Lawyer, the Porn Actress, the 130G Payoff and Attorney Ethics

Stephanie Clifford (aka Stormy Daniels)

Yesterday news broke that longtime Donald Trump attorney, Michael D. Cohen, was responsible for paying $130,000 to porn actress Stephanie Clifford (aka Stormy Daniels) on behalf of Trump in 2016, before the election.

“In a private transaction in 2016, I used my own personal funds to facilitate a payment of $130,000 to Ms. Stephanie Clifford,” Michael Cohen said in a statement. “Neither the Trump Organization nor the Trump campaign was a party to the transaction with Ms. Clifford, and neither reimbursed me for the payment, either directly or indirectly.”

When the underlying stories of they payoff started in January, many folks immediately started looking to see if such a payment violated campaign finance laws. And indeed, that is what most of his statement addressed yesterday.

But I’m looking at the New York Rules of Professional Conduct. Those of us in the personal injury bar know, for example, that advancing funds to clients is a big fat no-no. Does the same provision apply here?

The relevant rule reads as follows:

RULE 1.8:

CURRENT CLIENTS:
SPECIFIC CONFLICT OF INTEREST RULES

(e) While representing a client in connection with contemplated or pending litigation, a lawyer shall not advance or guarantee financial assistance to the client…

OK, you see that ellipses and you want to know what comes after, right? There are three exceptions, each of which invite an investigation to see if they apply:

(1) the transaction is fair and reasonable to the client and the terms of the transaction are fully disclosed and transmitted in writing in a manner that can be reasonably understood by the client;

(2) the client is advised in writing of the desirability of seeking, and is given a reasonable opportunity to seek, the advice of independent legal counsel on the transaction; and

(3) the client gives informed consent, in a writing signed by the client, to the essential terms of the transaction and the lawyer’s role in the transaction, including whether the lawyer is representing the client in the transaction.

The full statement is below and you can decide for yourself if you think it looks like an advance or guarantee of financial assistance (not because Trump needs it, but to hide it). (Edit: Whether there was litigation involved — matrimonial or contract? — is impossible for us to know from here.) Another problem may be that, from Trump’s perspective, this isn’t a transaction if he claims not to be repaying the money.

At the very least, it seems that Cohen has invited an investigation from the Disciplinary Committee. I’ve long said that Trump is a one-man bar exam with never-ending legal issues unlike any other person. That pattern continues today.

The statement:


 

 

February 13th, 2018

Aetna’s Death Panels?

When I first saw the story, half of me believed it, the other half not. A former medical director at Aetna testified that he didn’t look at patient medical records when deciding whether to (dis)approve medical treatment.

Yeah, I did a double take also. But now there’s an investigation going on.. As CNN reported,

California’s insurance commissioner has launched an investigation into Aetna after learning a former medical director for the insurer admitted under oath he never looked at patients’ records when deciding whether to approve or deny care.

But it’s actually far worse than that. Because, it seems that the medical director wasn’t going rogue because he was lazy and out playing golf. No. He was actually following Aetna policy by rubber-stamping the recommendations of nurses:

The California probe centers on a deposition by Dr. Jay Ken Iinuma, who served as medical director for Aetna for Southern California from March 2012 to February 2015…During the deposition, the doctor said he was following Aetna’s training, in which nurses reviewed records and made recommendations to him.

The deposition came up as part of a breach of contract lawsuit for denying medical treatment under a healthcare policy:

The deposition by Aetna’s former medical director came as part of a lawsuit filed against Aetna by a college student who suffers from a rare immune disorder. The case is expected to go to trial later this week in California Superior Court.
Gillen Washington, 23, is suing Aetna for breach of contract and bad faith, saying he was denied coverage for an infusion of intravenous immunoglobulin (IVIG) when he was 19. His suit alleges Aetna’s “reckless withholding of benefits almost killed him.”

The treatment was expensive, costing some $20,000 per infusion. And it was covered by Washington’s prior insurer. Aetna is trying to claim that the denial was the young man’s failure to get a blood test. His own doctor, however, said it was medically necessary.

But this was the kicker to his personal story — the medical director who denied the treatment hadn’t actually read the records, had no idea how to treat the disease or what to do:

During his videotaped deposition in October 2016, Iinuma — who signed the pre-authorization denial — said he never read Washington’s medical records and knew next to nothing about his disorder.

Questioned about Washington’s condition, Iinuma said he wasn’t sure what the drug of choice would be for people who suffer from his condition.
Iinuma further says he’s not sure what the symptoms are for the disorder or what might happen if treatment is suddenly stopped for a patient.

Well, so much for the doctor’s oath to “Do no harm.”

To my eyes, this looks like Aetna engaging in a staggering case of insurance fraud, not simply for denying Washington treatment by having a no-nothing doctor doing the denying, but rather, because this was the way Aetna trained him to engage in denials. This was policy.

And if it’s policy, there are many people involved in the conspiracy.

Some years ago, regular readers might remember, there was a lot of hollering and screaming about “death panels” when Obamacare was being debated, in the event government got further involved in health care. That is to say, that treatment would be denied because it was cheaper to let the patients die. That was the political line.

Well, guess what? It looks like we’ve arrived, but it isn’t because of the government trying to save a few bucks. Having insurance panels deny benefits, for the sake of profit, is better?

And you know why Aetna is doing it? Because it’s a publicly traded company that has, at its core, a fundamental duty to maximize profits for shareholders. That’s what publicly traded companies do.

Given that Aetna has 23 million customers nationwide, this scandal is likely to be massive in its repercussions as most surely some have died as a result denials of care — denials that took place without a doctor’s review of the records.  And we go here beyond mere negligence, but to a corporate policy of recklessness with people’s lives.

Perhaps this should not really come as a surprise, however, as I see the same thing happen elsewhere in the insurance industry. It is routine in New York, for example, for victims of car collisions to get cut off from no-fault healthcare benefits based on quickie medical exams that last only a few minutes. And doctors doing “independent” reviews for insurance companies in personal injury cases likewise do these quickie exams to deprive those injured from negligence from recoveries, which was the subject of a multi-part series I did in 2013.

All of this is tied together with a common theme of doctors who went to medical school to care for others now doing the bidding of insurance companies. Because the insurance companies ask for it, living, breathing humans are losing healthcare benefits and rights while doctors allow themselves to be used as cover as they prostitute their services. But prostitute may be the wrong word, as prostitutes don’t act in ways that may hurt or kill their clients as a matter of policy.

Whenever a scandal pops up, the big question is always the same: Who makes the profit? In this case, it is clearly Aetna shareholders. And the doctors who’ve sold their licenses to Aetna in exchange for nice, tasteful, fees.
————

Elsewhere:

An Aetna “Fake Accounts” Level Scandal? Medical Director Admits He Never Reviewed Medical Records Before Denying Care (Smith @ Naked Capitalism):

Even though it is tempting to jump to worst-case conclusions, we’ve seen too often in corporate scandals that that is precisely how things pan out. As famed short seller David Einhorn says, “No matter how bad you think it is, it’s worse.”

 

January 31st, 2018

#EricsLaw Introduced In NY Assembly – Updated!

OK, the bill isn’t actually called #EricsLaw, that’s just the name I wish to call it since it stems from a post I made last August concerning one of my pet peeves: The ad damnum clause. That’s the pretentious Latin way we lawyer-types refer to the damages demand in a lawsuit.

Since this blog is actually cited in the bill’s memo [pat self on back], I figured I ought to tell you about it.

The underlying story had Fox newsman Eric Bolling getting shit-canned by Fox News over sexual harassment allegations. He thereafter started a $50M defamation suit.

I dug in to write, not about the aforementioned shit-canning, but about the fact that you can’t put that ad damnum clause in a personal injury suit, and defamation qualifies as personal injury.

Yeah, I was writing about boring procedural things again. But you know what? Putting demands in complaints encourages lawyers to claim large dollar amounts out of fear that, if we make a demand too low, it may limit our clients’ recovery later. Oh, Mr. Plaintiff client needed five surgeries? Who knew way back then!?

And those big numbers lead to the very predictable consequence of lawyers (and our clients) looking fabulously stupid as the demands are always in the headlines. And the news always wants the money shot. Which thereby poisons the jury pool for every case.

It’s also despised by defendants, as they see it as an unfair trashing of Dr. Defendant, now being the subject of the headline grabbing numbers. The law was amended to abolish the practice in 2003.

Hallelujah!! No more stupid, telephone number demands made by lawyers to cover worst case scenarios or to, [spit, spit] get their names in the Daily News. Doctors were thrilled also. Win-win!!!

But I found in writing the Bolling piece that, lo and behold, because the case was not started in the traditional manner with a summons and complaint but, rather, with the rarely used and widely disfavored summons with notice that he was actually required to put in a demand.

Oops. It seems that when the Legislature amended CPLR 3017(c) in 2003 to prohibit the money demand, it forgot to list the relatively obscure summons with notice as one of the pleadings. This is how it now reads:

(c) Personal injury or wrongful death actions.  In an action to recover damages for personal injuries or wrongful death, the complaint, counterclaim, cross-claim, interpleader complaint, and third-party complaint shall contain a prayer for general relief but shall not state the amount of damages to which the pleader deems himself entitled.

And the section that deals with a summons with notice (CPLR 305) requires it for all actions except medical malpractice:

(b) Summons and notice.  If the complaint is not served with the summons, the summons shall contain or have attached thereto a notice stating the nature of the action and the relief sought, and, except in an action for medical malpractice, the sum of money for which judgment may be taken in case of default.

Are you still with me? Please say you’re still with me. This is going to be exciting I tell you!

So it seems that my little blog posting on this inadvertent loophole was noticed up in Albany, because lo and behold — can I use that phrase twice in one posting? — there’s now a bill from Assemblyman Daniel J. O’Donnell to fix CPLR 3017 by adding the summons with notice (A. 8852) to the list of other pleadings where you can’t put in a specific demand for damages.

How do I know it was my little blog that did it? Well, it’s cited in the bill’s memo:

Where does that leave us? It leaves us with the need to also add a small fix to the CPLR 305 provision currently requiring the demand in a summons with notice, so that there isn’t any conflict of law with an amended 3017.

And, since we’re on the subject,  it also leaves us with getting rid of the need to put a demand in a Notice of Claim for New York City (GML 50-e), which must be filed within 90 days of an incident.  As if anyone actually knows how extensive the damages will be at the stage (Judge Sues City for One Million Dollars!), which is why it’s so stupid to have. It is already prohibited in every place in New York State except the City of New York (any “city with a population of one million or more”).

[Updated:  This post appeared on January 31st. On February 9th, the proposed legislation was updated to include the two changes I suggested above to CPLR 305 and GML 50-e.]

I think that these are the last existing vestiges of the demand for damages in this state. The Legislature dumped them from the Court of Claims (cases against the state) back in 2007, which I celebrated at the time.

And I’m going to call this #EricsLaw (Underline! Italics! Bold! #Hashtag!) — and it ain’t for Eric Bolling — since it seems to have come from my little blog posting and there doesn’t seem to be anyone else around to name it after.  And, by gosh, every law needs to be named for someone.

I would name it the far more interesting Turk’s Demand, but hey, I’m sticking with convention here.

One day someone can chisel on my tombstone — with or without the hashtag, I’ll be in no condition to complain — that I helped tweak the CPLR for everyone’s benefit, if it actually winds its way through both houses of the Legislature and gets signed.

Such an accomplishment. I’m all verklempt.

And here’s the kicker: The Bolling suit went, to absolutely no one’s surprise, absolutely nowhere. There are no other documents in the court file after the summons with notice was filed last August, not even an affidavit of service. No complaint or demand for one. No appearance by any defense counsel. Nothing. Zero. Nada. Zippo.

Bolling apparently filed for no other reason than to grab headlines and intimidate others who might come forward. This kind of legal filing, designed to intimidate by imposing the fear of litigation, even if wholly unfounded in law, is the reason that New York should pass anti-SLAPP legislation.

The anti-SLAPP bill previously passed the Assembly but remains oddly stalled in the Senate.  Who is it that’s in favor of frivolous threats that shut down speech, and has stalled the bill in the Senate?  Inquiring minds want to know.

Now that would be a terrific piece of reform. I’ve been frivolously sued twice over this blog, so feel free to stick my name on that one also. With or without the hashtag.

 

January 29th, 2018

GOP Pissing on States Rights Again? (H.R. 3808, aka the #FederalPowerGrabAct)

It’s remarkable, really, to see the same act play out over and over again. Certain members (not all) of the Republican Party bellow, bawl and otherwise howl that the federal government should be limited. OK, I get it.

Except, however, when they decide otherwise. “Meh, who needs it? We’ll flip-flop today and just flippity-flop right back again tomorrow.” So say certain Republicans.

I’m spurred to write because some members of the GOP — the federal flavor — are in an all-out assault on a 130-year-old New York law that protects New York construction workers in the State of New York. The issue is our Scaffold Safety Law (Labor Law 240) which is very much a state issue.

You may agree with New York’s public policy or disagree. No matter. States are the laboratories of democracy. This is our rationale:

The Scaffold Safety Law protects workers at heights. If the construction company fails to provide required safety devices and the worker is hurt or killed, the company is liable.

The law dates to 1885 and has been a boon to the health and lives of New York’s bluest of blue collar workers who have worked at dizzying heights in the most dangerous of conditions. I first wrote about this 10 years ago: New York Labor Law Protects Workers, And Should Not Be Diminished

Makes sense, right? It’s the company that controls the workplace, after all.

And if the safety equipment is provided and the worker ignores it? Well, then the company is off the hook. And if the worker comes back from lunch bombed out of his skull and is solely responsible for getting hurt, well, then it’s also on that worker.

Did you see that word “solely?” There is no comparative negligence for this Labor Law violation. It’s all or nothing. One way or the other.

New York construction companies don’t like the Scaffold Safety Law, claiming that they want to be able to blame the worker for part of the accident, even if they failed to provide the proper safety equipment. But since the company controls not only the workplace but all the witnesses too — who wants to risk losing their job by testifying against the boss? — the rule is absolute.

New York’s construction companies have routinely failed to convince the New York Legislature to change the law because the current law makes perfect sense to others (and construction in New York has, quite obviously, flourished during its time).

This is a state-wide public policy decision that’s been oft-debated in Albany and New Yorkers have decided that it works. If another state doesn’t like it, so be it.  As Justice Louis Brandeis who once wrote, a “state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.”

And New York has chosen to be that state-wide laboratory for worker safety.

Construction companies have belly-ached to our Legislature about insurance premiums, but they don’t want to release the data for how the premiums are calculated. They don’t segregate out, for example, injuries from height-related accidents that are covered under the law from injuries related to getting hit by a car on the work site that are not. Every year there is a bill in the New York State Legislature directly on this point, the Scaffold Sunshine Law, which would require disclosure of the real basis for insurance premiums. Guess who objects to it? Yeah. The construction companies and their insurers.  It’s absurd to whine about insurance premiums when no one can see the books.

Many of these dangerous construction jobs are taken by folks who live paycheck-to-paycheck, and feeding the family is Job One. Oddly enough, their first priority is not walking into court to testify against the boss that the ladder the boss provided was old and busted, and that he told the workers they damn well better use it or go home.

No. Feed the kids, pay the rent, and if Juan got hurt due to that busted ladder, well, maybe those other workers didn’t really see that busted ladder all that well. Assuming they are still employed. Protect thyself. And thy family.

That is the state rationale for doing it this way.

So — and stay with me here because this is the point of the post — having failed in Albany to change a New York law based on New York public policy concerns, and not wanting to open up their books so others could see if their insurance argument actually had any merit, what do the construction companies do? HOWL TO WASHINGTON:   HELP!!! HELP!!! HELP!!!

Yes, that’s right, they’ve convinced some Republicans in Washington to engage in a federal power grab over New York construction and New York policy considerations. I shit you not. And it’s only for New York.

The bill is H.R.3808, with the misnomer Infrastructure Expansion Act, sponsored by New York Congressman John Faso (@RepJohnFaso), whose district covers the Catskills. The bill should properly be called the #FederalPowerGrabAct. And that’s what I’ll call it, because that’s what it is. So now it has a proper name.

And Faso couldn’t be more blunt on the usurpation of state power with the #FederalPowerGrabAct. Faso simply admits it in the bill’s description:

To preclude absolute liability in any action against a property owner or contractor for projects receiving Federal financial assistance for infrastructure and transportation development, and for other purposes.

And he says so on Twitter, that this is only a New York issue:

His own constituents were not kind to him in response:


 

So the question is, will the GOP pass a bill that simply targets the policy decisions of a particular state?

We’ve seen this act play out before. And it often comes in the context of tort “reform” wherein the reform isn’t actually reform but, rather, interceding into state issues to engage in liability protectionism for big companies that cause injuries.

Back in 2005 a Republican Congress and Republican President tossed their limited government principles aside to pass the Graves Amendment, which impacted liability for car rental and leasing companies. They didn’t like New York law and policy, so the GOP simply seize more power for Washington.

And last year the Republican Party tried to federalize medical malpractice law, and is still trying. If you don’t like local law, then simply expand federal power.

Apparently, limited government is all-important. Except on those days when you decide limited government is for losers.

This bill is scheduled for a vote in the House Judiciary Committee on Tuesday. The other Republican sponsors — and the #FederalPowerGrabAct only has Republican sponsors, only from New York, asking for federal intervention on this New York law — are Chris Collins, Elise Stefanik, Claudia Tenney and Tom Reed.

The chairman of the committee is Bob Goodlatte, who has long campaigned on the issue of states rights. Such as this: House Passes Goodlatte Amendment to Prevent EPA Power Grabs

And this: Goodlatte Files Amicus Brief on Chesapeake Bay Case

Chairman Goodlatte: “EPA’s power grab surrounding the Chesapeake Bay TMDL sets a dangerous precedent by usurping authority delegated to the states in the Clean Water Act simply because the agency disagrees with a state’s decision on implementation.

And check out this summary of Goodlatte’s staunch support for all manner of states rights: Bob Goodlatte: A Consistent Champion of the Tenth Amendment

And this opinion piece from Daniel Horowitz in the Washington Times:

A core tenet of constitutional conservatives and libertarians — is the understanding that all power does not and must not rest solely in the hands of the federal government. Most Americans understand there must be a balance of powers between Congress, the presidency and the judiciary. Just as the Constitution established checks and balances between branches of the federal government, the 10th Amendment established a similar balance — reserving all powers to the states that were not delegated by the Constitution.

As a Virginian and a conservative, I’m proud of the manner in which the chairman of the House Judiciary Committee, Republican Rep. Bob Goodlatte of Virginia, has regularly defended the 10th Amendment. Throughout his career, Mr. Goodlatte has been a staunch and consistent advocated for federalism and a protector of the 10th Amendment.

Will Goodlatte permit the #FederalPowerGrabAct to get out of his committee? Will he try to substitute federal judgment for New York judgment that has been around for 130 years?

We find out Tuesday. And if you want Goodlatte to know you are watching well, his Twitter handle is @RepGoodlatte.

Will your Congress member be one of the ones that will attempt the federal power grab?  The list is here.