Frivolous Lawsuits
Fact or Fiction?
Bill Burns
Holborn Corporation
September 23, 2002
HOLBORN CORPORATION
Established 1920
Employee Owned
“The _____ doth protest too much,
methinks”
A.
B.
C.
D.
Doctors
Insurance Industry
Lawyers
All of the above
2
HOLBORN CORPORATION
Ground Rules

Malpractice DOES happen and comes with a
price

Insurance companies DID make mistakes in the
90’s (Remember the soft market?)
3
HOLBORN CORPORATION
What Do Plaintiff Attorneys Say?
“The fundamental assumptions upon which
the ‘tort reform’ movement is based (i.e.,
that an uncontrollable tide of ‘frivolous
lawsuits’ is flooding the nation) is a fiction
that is unsupported by the facts.
(cont’d)
4
HOLBORN CORPORATION
“So where is the litigation explosion? Only in
the minds and skewed statistics proffered
by insurance industry spokespersons and
lobbyists.”
Bucks County (PA) attorney
August 2002
5
HOLBORN CORPORATION
Frivolous Lawsuits? – You Be the Judge




Big Guy vs Big Food
Man Who Thought He Was Dead Sues
Airline
Beagle Bites Back
Louisville Slugger
6
HOLBORN CORPORATION
Definition
Medical malpractice is the failure of a health
care provider to exercise the degree of care
required of a professional in the same type
of practice rendering comparable care under
similar circumstances and that proximately
causes injury to a patient.
7
HOLBORN CORPORATION
For there to be a finding of malpractice
the plaintiff must show:




Existence of legal duty
Breach of duty
 Nonfeasance
 Malfeasance
Proximate cause
Damages sustained
8
HOLBORN CORPORATION
You Be the Judge II

You Mean I’m Suing that Nice Doctor?

Doctor Strikes Back

Secret Deal Unraveled
9
HOLBORN CORPORATION
More From Plaintiff Attorneys



“Med mal insurers are making a profit”
“There are far fewer lawsuits than there could
be”
“It doesn’t have to be negligence – it just has
to look that way”
10
HOLBORN CORPORATION
AMA Study
Released June 2002 showing medical
liability insurance has:
• Reached crisis proportions in 12 states
• Is “OK” in 6 states
• Is showing problem signs in all other states
11
HOLBORN CORPORATION
Crisis States






Florida
Georgia
Mississippi
Nevada
New Jersey
New York






Ohio
Oregon
Pennsylvania
Texas
Washington
West Virginia
12
HOLBORN CORPORATION
“OK” States



California
Colorado
Indiana



Louisiana
New Mexico
Wisconsin
13
HOLBORN CORPORATION
Medical Economics Study


Identified states with the highest and lowest
number of lawyers per capita, who have won
$1M jury verdicts in civil litigation including
malpractice.
Source: Million-Dollar Advocate Forum – U.S.
Census Bureau
14
HOLBORN CORPORATION
Highest Number of $1M Lawyers (#)





District of Columbia (15.7)
Florida (17.6)
Hawaii (10.6)
Missouri (12.4)
Mississippi (11.9)





Nevada (19.5)
New Jersey (12.4)
Ohio (10.7)
Pennsylvania (16)
West Virginia (13.3)
15
HOLBORN CORPORATION
Lowest Number of $1M Lawyers (#)





Colorado (1.6)
Idaho (1.5)
Indiana (2.1)
Nebraska (1.8)
New Mexico (1.6)





North Dakota (0)
Oregon (2.0)
South Dakota (1.3)
Utah (3.1)
Wisconsin (2.2)
16
HOLBORN CORPORATION
So What’s the Answer?


Tort reform?

Who decides what is fair?

What if it happened to you?
Are we overlooking other solutions?
17
HOLBORN CORPORATION
Something To Think About

What is the role of managed care in this
mess?
18
HOLBORN CORPORATION