Vested Interest - News and Notes - November 2002 Issue

House Votes to Cap Malpractice Non-Economic Damages

By a vote of 217-203, the U.S. House passed a bill that would limit non-economic damages in medical malpractice cases to $250,000, limit product liability actions against makers and sellers of defective drugs and medical devices, require all suits to be brought within three years of the date of injury and limit contingency fees. The vote, mostly along party lines, sends HR 4600 to the Senate, where it is likely to die. The Senate has taken no action on an identical bill, S 2793, and voted 57-42 July 30 to table a more limited amendment. (Liability & Insurance Week – September 30, 2002)

Federal Judges Endorse Change in Class-Action Rules

The Judicial Conference of the United States endorsed an extensive set of proposed changes in the rules for federal class-action lawsuits, including one that would allow judges to offer plaintiffs the opportunity to opt out of a settlement. Currently, plaintiffs must opt out of a lawsuit at its beginning, when they may not know if they are better off staying in the class or pursuing their individual claims. The action by the conference of 27 judges headed by Chief Justice William Rehnquist sends the proposals to the Supreme Court, which in turn is to transmit them to Congress. Unless rejected or changed by Congress, they would go into effect Dec. 1, 2003. (Liability & Insurance Week – September 30, 2003)

People magazine Highlights Hospital Infections

The September 30, 2002 issue of People magazine includes an article on the rampant number of hospital infections titled "Deadly Infections." The article states that "Each year hospital-acquired infections kill an estimated 100,000 Americans, making them the fifth-most common cause of death in this country after heart disease, cancer, stoke and respiratory ailments." (People – September 30, 2002)

South Carolina Considers Banning Secret Settlements

South Carolina is taking the lead in trying to put an end to confidential legal settlements in everything from product liability cases to child molestation claims and medical malpractice suits. Plaintiffs’ lawyers and others believe that making settlements public would allow quicker discovery of faulty products, such as Firestone tires. There would be no exception for cases that revealed sensitive information, such as the name of an abuse victim or a person’s medical history. Settlements already sealed will remain sealed. (ATLA L@w News Digest – October 3, 2002)

DOT Closes Investigation into Crown Victoria

The Department of Transportation has closed its investigation into fuel leaks after rear impact crashes of Fords 1992-2001 Crown Victoria, Lincoln Town Car and Mercury Marquis cars. DOT opened the investigation after receiving reports of 17 alleged post-crash fires in Crown Victoria Interceptors following rear-impact crashes, leading to nine deaths. DOT said it found the Interceptors were "the overwhelming vehicle of choice for police duty," they could withstand 50 mph rear impacts without fuel spillage, in excess of established limits, and almost all post-crash fuel leaks occurred in very high-speed incidents. (Liability & Insurance Week – October 7, 2002)

FDA Studies French Fries-Cancer Link

The FDA has tested more than 150 foods for a possible cancer-causing compound, and the agency says there’s a huge variation in the amounts it’s finding. The research is part of an effort to investigate acrylamide, a compound that causes cancer in laboratory animals. Its risk to humans is unknown. Acrylamide is found in varying amounts in french fries, potato chips, crackers, breads, processed cereals and a broad range of other foods that are cooked at high temperatures. (ATLA L@w News Digest – October 10, 2002)

Business Scandals Rock Juror Attitudes

A study of juror attitudes in the post-Enron era shows that companies across the board will be paying the price in the courtroom for the corporate misdeeds that have dominated this year’s headlines. The study found that educated white males feel especially betrayed by the recent rash of scandals. As a result, what historically has been the biggest support base of large corporations has eroded dramatically. The shift in juror outlook hurts corporations facing class action litigation as well. Jurors do not feel particularly well-disposed toward plaintiffs’ lawyers. But that does not necessarily translate into a dim view toward the merits of the case itself. Instead, jurors award more money to make up for the cut the lawyers will get. (New York Law Journal – October 17, 2002)

Medical Malpractice Materials and Information

The Center for Justice & Democracy has put together a comprehensive Medical Malpractice Guide (September 25, 2002). It is a compilation of information and statistics to thwart the false claims of doctors and insurance companies. It can be downloaded at the CJ&D website at www.centerjd.org. Also from there you can link to the website for Americans for Insurance Reform and download their new study "Medical Malpractice Insurance: Stable Losses/Unstable Rates" (October 10, 2002). Their report confirms the correlation between the economy and stock/bond markets and rising medical malpractice insurance rates, not lawsuits.