Insurance companies have spent millions of dollars to generate myths about how lawsuits are out of control and are a major reason why the United States is suffering through its current financial situation.  Insurance companies have propagated beliefs that personal injury lawsuits are on the rise, that medical malpractice lawsuits are responsible for the high cost of medical care and a decrease in the number of physicians, that personal injury claims destroy business, and that overall personal injury claims are ruining our society.  These are myths intended to destroy our civil justice system, which has been and should remain the cornerstone of our freedom and civilization.

According to the Justice Department under President George W. Bush, the number of federal tort (personal injury) cases resolved in U.S. District courts fell by 79 percent between 1985 and 2003.  In 1985, 3,600 tort trials were decided by a judge or jury in U.S. District Courts.  By 2003, the number fell to less than 800.[1] Furthermore, the most recent statistics from the Administration’s Bureau of Justice Statistics indicate that the number of tort trials at the state level has also decreased.[2]

Health care costs are undeniably rising, but medical malpractice litigation has nothing to do with it.  According to the Congressional Budget Office, medical malpractice claims amounted to less than 2 percent of overall health care spending.[3] The Government Accountability Office also found that malpractice cases have not widely affected access to health care.[4] Interestingly, the American Medical Association reports that the overall number of physicians is up more than 40 percent since 1990.  During this same period, the U.S. population increased by only 18 percent.[5] The insurance companies would have us believe that the due to out of control medical malpractice lawsuits, the number of emergency physicians, neurosurgeons, and OB/GYNs has decreased, but the facts simply do not support this conclusion.

Corporations, large and small, are all entitled to have profitable businesses.  Most do so without being negligent or engaging in misconduct.  However, when a customer or other person is injured as a result of a business’s negligence or misconduct, the injured party should continue to have the right to redress their claim, even if that requires a lawsuit to be filed.  Big corporations and insurance companies want to destroy the legal system so they can’t be held accountable.

Drug, oil, and insurance companies have tried to hide behind small business owners to accomplish this by claiming that these lawsuits should be thwarted or prohibited by law due to their adverse impact on small business.  However, multiple surveys have shown that lawsuits are simply not a major concern for small business owners.  In fact, a survey from the National Association of Manufacturers suggests that “lawsuit abuse” ranks at the bottom of concerns for manufacturers.[6] Further, a 2008 survey from National Federation of Independent Business had similar results, with “costs and frequency of lawsuits / threatened suits” ranking 65th on a list of small business owners’ worries.[7]

In reality a strong civil justice system allows deserving individuals to get justice and hold wrongdoers accountable.  Civil justice attorneys work to make sure all people have a fair chance through the legal system – even when it means taking on the most powerful corporations, including insurance companies.

Finally, those looking to destroy the civil justice, particularly insurance companies, have continually mocked Stella Liebeck and the McDonald’s coffee case.  Unfortunately, the actual facts of this case make it no laughing matter.  Ms. Liebeck’s injuries include third degree burns to her groin, inner thighs, and buttocks.  She was hospitalized for eight days, during which time she underwent skin grafting and surgical removal of tissue.  Ms. Liebeck sought to settle her claim with McDonald’s for $20,000, but they refused and as a result of that refusal to accept responsibility for what happened, a lawsuit was filed.  During the discovery phase of that lawsuit, McDonald’s eventually produced documents showing more than 700 claims by people burned by its coffee between 1982 and 1993; some involving third degree burns similar to Ms. Liebeck.  This history documented McDonald’s knowledge about the extent and nature of this hazard.  Further, McDonald’s own quality assurance manager testified that a burn hazard exists with any food served above 140 degrees, but that nonetheless McDonald’s  coffee was kept at a temperature of 185 degrees in order to store larger quantities for a longer period of time and thus save McDonald’s money.

A jury awarded Ms. Liebeck $200,000 in compensatory damages, but reduced it to $160,000 because they found her 20 percent at fault for the spill.  The jury also awarded her $2.7 million in punitive damages, equal to two days of McDonald’s coffee sales.  The court eventually reduced this award to $480,000, even though the trial judge called McDonald’s conduct reckless, callous, and willful.  Jurors in this trial expressed similar sentiments in interviews after the trial.  Ms. Liebeck and McDonald’s eventually entered a post-verdict settlement.

In conclusion, do not fall for myths.  The facts are out there if you look.  If you receive emails or are told by friends about “crazy” lawsuits or verdicts, look them up.  More often than not the story has been exaggerated.  Our civil justice system is the best in the world in protecting consumers.  It has lead to safety reforms and innovations that have not only made our products safer, but have ultimately led to the creation of new jobs and a better civilization.  If you believe otherwise, all you have to do is to look at other countries.  We should not change our system.  We can strive to improve it, but when change is proposed look carefully at who most will profit with these changes and more times than not, it will be insurance companies.

– Scott Zirkle, Esq., is a personal injury attorney with Bogin, Munns, & Munns, P.A., a full service law firm with offices in Orlando, Clermont, Kissimmee, Deltona, Daytona Beach, Ocala, Melbourne, Gainesville, and Leesburg, Florida.  Mr. Zirkle welcomes questions and comments regarding the above and can be reached at szirkle@boginmunns.com

NO LEGAL ADVICE: This blog entry is not intended as legal advice nor should you consider it as such. It is intended only as general information.  You should not act upon this information without retaining professional legal counsel. Please keep in mind that merely subscribing to or reading this blog or otherwise contacting Bogin Munns & Munns, P.A. in the manner that you have will not establish an attorney-client relationship with our firm. Bogin Munns & Munns, P.A. cannot represent you until the firm knows there would not be a conflict of interest, and the firm determines that it is otherwise able to accept the engagement. The engagement would also be confirmed by a written agreement.

[1] Federal Tort Trials and Verdicts, 2002-03, Bureau of Justice Statistics.  8/17.2005

[2] Civil Trial Cases and Verdicts in Large Counties, 2001, Bureau of Justice Statistics.  4/2004

[3] Limiting Tort Liability for Medical Malpractice.  Congressional Budget Office.  01/08/2004

[4] Medical Malpractice:  Implications of Rising Premiums on Access to Health Care.  GAO 09/29/2003

[5] Physician Characteristics and Distribution in the U.S., American Medical Association, 2006 edition, p.312

[6] National Manufacturing Week 2006 Annual Survey Results, National Association of Manufacturers, http//www.nam.org/s_nam/dov1.asp?CID=6&DID=236617

[7] Small Business Problems and Priorities.  National Federation of Independent Business.  http//www.nfib.com/object/2008problemspriorities.html