Posts Tagged ‘Tort Reform’

“Tort Reform” Masks Racial Prejudice

Friday, June 4th, 2010

The Chicago personal injury attorneys of Passen Law Group have long railed against the misguided efforts known as “tort reform.”  Now, a provocative new article in the Washington University Journal of Law & Policy discusses, for the first time, the racism lurking behind many so-called “tort reforms.”  The article, by Joanne Doroshow and Amy Widman of the Center for Justice and Democracy, a non-profit organization devoted to protecting the American civil justice system.

The article examines the disparate impact that many typical tort reform strategies have on racial and ethnic minorities.  It also brings to light the fact that proponents of tort reform have deliberately hidden racial issues while advancing this agenda.

As an example, the most common “tort reform” proposals center around medical malpractice.  This type of tort reform aims to prevent victims from recovering their full damages, either through caps on damages or non-economic damages, by removing these cases from the jury system, or otherwise.  What is generally not discussed in connection with these proposals, however, is that they overwhelmingly impact minorities rather than non-Hispanic whites.

This is the case for many reasons.  First and foremost, U.S. Caucasians have greater access to quality medical care.  Studies have demonstrated that hospitals serving minority populations have higher rates of adverse events and medical negligence than those serving predominantly whites.  Minorities are also far less likely to receive appropriate care, including proper treatments, cardiovascular care, diabetes care, kidney transplants, maternal and pediatric care, and cancer screenings.

This lesser standard of care, and in turn the higher incidence of medical negligence, also springs from a difference in access to health insurance.  Minorities are simply far more likely to be uninsured than non-Hispanic whites.  Some consequences of this disparity are obvious, others are not.  For example, the uninsured are more likely to rely on urgent care and hospitals for care, and error rates are higher at such facilities.  It remains to be seen whether the recent health care reforms, discussed by our Chicago medical malpractice attorneys in prior articles, will have any meaningful impact on this disparity.  For now, however, it is certainly the case.

Minorities are also more likely to be impacted by limits on non-economic damages (compensation for pain and suffering).  This is true because minorities are still statistically lower wage-earners, and thus unlikely to have the same level of economic damages as U.S. whites.  These types of limitations also disproportionately affect women, and prevent meaningful recovery when a child is injured or killed.

Likewise, class-action “tort reform” has a profound impact on minorities that is inapplicable to white males.  This is because class actions are the most common vehicle, and often the only appropriate one, for bringing discrimination claims.  As the U.S. Supreme Court itself has stated, “suits alleging racial or ethnic discrimination are often by their nature class suits, involving classwide wrongs.”  East Tex. Motor Freight Sys., Inc. v. Rodriquez, 431 U.S. 395, 405 (1977).

The article also analyzes the actual data on “hellhole” jurisdictions – jurisdictions identified by any number of tort-reform proponents, using anecdotal evidence or surveys, as being unfair, or having juries who are “out of control” in their awards.  Although different organizations identify different jurisdictions, they have one thing in common.  A disproportionate number of these jurisdictions have “minority” populations that are actually the majority of the citizens, even when the surrounding state is majority white.  Yet when the authors analyzed the actual data of the awards in these jurisdictions, what they found was shocking:  the results and awards in these jurisdictions are actually no different than the rest of the nation.  The authors theorize that the perception of these jurisdictions as unfair actually springs from subtle or subliminal racism:  lawyers perceive the same results as more egregious when delivered by a minority jury.

These are just a few of the areas of racial discrepancy identified and discussed by the authors.  To the experienced personal injury lawyers of Passen Law Group, this is just one more reason why “tort reform” should be soundly rejected.  Tort reform is cruel and unfair on an individual level, as its openly avowed purpose is to prevent victims from (or at least make it more difficult for them to) recover their full damages, or even to keep victims from reaching the courthouse at all.  What this article demonstrates is that the cruelty and unfairness of tort reform operates on a broader scale as well, as it disproportionately affects the rights of minorities.

For a free consultation with an experienced Chicago personal injury lawyer at Passen Law Group, call us at (312) 527-4500.

Medical Malpractice Tort Reform: Setting the Record Straight

Monday, May 24th, 2010

Medical malpractice lawsuits enable patients, and their families, who have been suffered significant, permanent injuries or death as a result of preventable medical errors, to receive compensation.  In 2008, more than 80 percent of malpractice payments went to victims who sustained quadriplegia, brain damage or death.  Passen Law Group’s top-rated Chicago medical malpractice lawyers are fighting to preserve the right of patients to access the civil justice system.

Unfortunately, as we saw during the federal health care reform debates, the powerful insurance lobby has pressed for medical liability “tort reform” — in other words, taking away the right to have a jury award compensation to malpractice victims.  Thankfully, organizations like Public Citizen, a nonprofit consumer advocacy organization, has been combating these scare tactics with actual facts.

The organization recently published a Fact Sheet regarding medical malpractice, and the impact of tort reform:

  • In 2009, a study by Hearst newspapers found that approximately 200,000 Americans die each year from preventable medical errors and hospital acquired infections
  • In 1999, the Institute of Medicine estimated that medical malpractice cost $17 billion to $29 billion annually for lost income, lost household production, disability and health care costs
  • Medical liability tort reform failed in Texas.  Since enacting in 2003: cost of diagnostic testing grown 50 percent faster than national average; cost of health insurance has more than doubled; growth of doctors per capita has slowed
  • Medical malpractice lawsuits are rare:  2008 saw the fewest number of medical malpractice payments since 1990.

Fortunately, medical liability “reform” was not implemented in this year’s federal health care reform law.  Not that this will stop the insurance lobbyists from continuing to push individual states to adopt such reform, or to attempt to re-introduce such measures at the federal level in coming years.

Each Chicago medical malpractice attorney at Passen Law Group understands the devastating impact medical negligence can have on the individual patient, and their families.  We believe malpractice litigation serves as a strong deterrent to the medical profession — to place patient safety at utmost importance — and to implement safe practices in their profession.  We will continue to fight against any efforts to “reform” the way patients seek justice for their injuries.

For a free consultation with a Chicago personal injury lawyer with Passen Law Group, call us at (312) 527-4500.

Tort Reform: A Failed Experiment

Friday, April 9th, 2010

Tort reform proposals are the spectre that haunts the legal industry:  like a horror-movie monster, if we relax our guard it is certain to rise again.  Whether the context is debate on newly-enacted healthcare legislation, concerns about the trial bar’s influence in politics, or even lectures on the moral decay of society, it seems that someone is always pointing a finger at plaintiffs and their attorneys.  If only we could enact comprehensive tort reform, they say, then things would be different:  healthcare costs would plummet, “junk lawsuits” would dissipate, a better life for all.  The Illinois personal injury attorneys of Passen Law Group have always believed that that proponents of tort reform — namely, the insurance lobby and Corporate America — had it wrong.

Now, we have proof.

The argument usually advanced by proponents of tort reform sounds like this:  with tort reform, there will be fewer personal injury and medical malpractice lawsuits, particularly meritless lawsuits.  If doctors, hospitals, and other healthcare providers don’t have to plan for the defense of “junk” lawsuits, then they won’t need to practice so-called “defensive medicine” – tests and procedures that are not truly warranted or necessary, but are performed merely to avoid a lawsuit.  Malpractice premiums will also drop.  So goes the theory, anyway.

Although the new federal healthcare bill thankfully does not include tort reform, many states have enacted tort reform laws of varying severity.  Ohio is one such state:  tort reform cleared the legislature in Columbus five years ago.  Five years later, Ohio’s healthcare costs, however, have increased.

Ohio’s tort reform package included draconian restrictions on the rights of plaintiffs to access the civil justice system:  arbitrary cap on jury damages ($250,000 except in catastrophic cases), restrictions on punitive damages, and other measures designed to make it more difficult to take medical malpractice claims to trial.  The Chicago personal injury attorneys at Passen Law Group strongly oppose such measures, as they unreasonably restrict the ability of the victims of medical negligence to recover all of the loss they have suffered.  Indeed, such restrictions can often prevent victims from recovering even the out-of-pocket costs they incur due to the negligence of others.

While tort-reform advocates argue that such measures are justified because they will reduce healthcare costs, costs in Ohio still climbedIn the first four years since these unreasonable measures were imposed, the average cost of an employer-based family health insurance plans rose by about $2,000, or 19%.  While some might argue that costs would inevitably have risen even more had these measures not been in place, this assertion is also belied by the facts.  The average national increase over that same time period was 22% – virtually indistinguishable.  Indeed, Ohio’s average cost increase was greater than that in Kentucky (which borders Ohio), a state that did not enact tort reform.

Nor is the result in Ohio an anomaly.  When the costs of providing medicare are analyzed (providing a fairly reliable indicator of localized healthcare costs), costs appear to have little if any connection to tort reform.  For instance, Texas has enacted tort reform measures very similar to those in Ohio.  But Texas cities still have some of the highest average per person healthcare expenditures in the nation.

Since the passage of tort reform legislation, malpractice insurance premiums in Ohio have decreased slightly.  But economists believe that this decrease was because premiums were previously arbitrarily inflated, due to a decline in the stock market and insurers’ corresponding need to shore up reserves, just before Ohio’s new laws were enacted.  Thus, the drop in premiums was purely artificial.  But whether the drop in premiums was at all connected to the legislation or not, the fact remains that none of these savings was passed along to the people of Ohio.  As a society we must ask ourselves:  Should we enact laws to protect the powerful insurance lobby and their astronomical profits, at the expense of denying the victims of the medical negligence the opportunity to have their voices heard and to receive fair and reasonable compensation determined by a jury of their peers?  The Chicago medical malpractice attorneys of Passen Law Group believe the answer is clear.

For a free consultation with an experienced Illinois personal injury lawyer at Passen Law Group, call us at (312) 527-4500.