HOLBORN CORPORATION Established 1920 Employee Owned Frivolous Lawsuits Fact or Fiction? Bill Burns Holborn Corporation September 23, 2002

HOLBORN CORPORATIONHOLBORN CORPORATIONEstablished 1920Established 1920Employee OwnedEmployee Owned

Frivolous LawsuitsFrivolous LawsuitsFact or Fiction?Fact or Fiction?

Bill BurnsHolborn CorporationSeptember 23, 2002

HOLBORN CORPORATIONHOLBORN CORPORATION

22

““The _____ doth protest too much, The _____ doth protest too much, methinks”methinks”

A.A. DoctorsDoctors

B.B. Insurance IndustryInsurance Industry

C.C. LawyersLawyers

D.D. All of the aboveAll of the above


33

Ground RulesGround Rules

Malpractice DOES happen and comes with Malpractice DOES happen and comes with

a pricea price

Insurance companies DID make mistakes Insurance companies DID make mistakes in the 90’s (Remember the soft market?)in the 90’s (Remember the soft market?)


44

““The fundamental assumptions upon The fundamental assumptions upon which the ‘tort reform’ movement is which the ‘tort reform’ movement is based (i.e., that an uncontrollable based (i.e., that an uncontrollable tide of ‘frivolous lawsuits’ is flooding tide of ‘frivolous lawsuits’ is flooding the nation) is a fiction that is the nation) is a fiction that is unsupported by the facts.unsupported by the facts.

(cont’d)

What Do Plaintiff Attorneys Say?What Do Plaintiff Attorneys Say?


55

““So where is the litigation explosion? So where is the litigation explosion? Only in the minds and skewed Only in the minds and skewed statistics proffered by insurance statistics proffered by insurance industry spokespersons and industry spokespersons and lobbyists.”lobbyists.”

Bucks County (PA) Bucks County (PA) attorneyattorney

August 2002August 2002


66

Frivolous Lawsuits? – You Be the Frivolous Lawsuits? – You Be the JudgeJudge

Big Guy vs Big FoodBig Guy vs Big Food Man Who Thought He Was Dead Sues Man Who Thought He Was Dead Sues

AirlineAirline Beagle Bites BackBeagle Bites Back Louisville SluggerLouisville Slugger


77

DefinitionDefinition

Medical malpracticeMedical malpractice is the failure of a is the failure of a health care provider to exercise the health care provider to exercise the degree of care required of a degree of care required of a professional in the same type of professional in the same type of practice rendering comparable care practice rendering comparable care under similar circumstances under similar circumstances andand that that proximately causes injury to a patient.proximately causes injury to a patient.


88

For there to be a finding of For there to be a finding of malpractice malpractice the plaintiff must show:the plaintiff must show:

Existence of legal dutyExistence of legal duty Breach of dutyBreach of duty

NonfeasanceNonfeasance MalfeasanceMalfeasance

Proximate causeProximate cause Damages sustainedDamages sustained


99

You Be the Judge You Be the Judge IIII You Mean I’m Suing that Nice You Mean I’m Suing that Nice

Doctor?Doctor? Doctor Strikes BackDoctor Strikes Back Secret Deal UnraveledSecret Deal Unraveled


1010

More From Plaintiff More From Plaintiff AttorneysAttorneys

““Med mal insurers are making a profit”Med mal insurers are making a profit”

““There are far fewer lawsuits than there There are far fewer lawsuits than there could be”could be”

““It doesn’t have to be negligence – it just It doesn’t have to be negligence – it just has to look that way”has to look that way”


1111

AMA StudyAMA Study

Released June 2002 showing medical Released June 2002 showing medical liability insurance has:liability insurance has:

• Reached crisis proportions in 12 statesReached crisis proportions in 12 states

• Is “OK” in 6 statesIs “OK” in 6 states

• Is showing problem signs in all other Is showing problem signs in all other statesstates


1212

Crisis StatesCrisis States

FloridaFlorida GeorgiaGeorgia MississippiMississippi NevadaNevada New JerseyNew Jersey New YorkNew York

OhioOhio OregonOregon PennsylvaniaPennsylvania TexasTexas WashingtonWashington West VirginiaWest Virginia


1313

““OK” StatesOK” States

CaliforniaCalifornia ColoradoColorado IndianaIndiana

LouisianaLouisiana New New

MexicoMexico WisconsinWisconsin


1414

Medical Economics StudyMedical Economics Study

Identified states with the highest and Identified states with the highest and lowest number of lawyers per capita, who lowest number of lawyers per capita, who have won $1M jury verdicts in civil have won $1M jury verdicts in civil litigation including malpractice.litigation including malpractice.

Source: Million-Dollar Advocate Forum – Source: Million-Dollar Advocate Forum – U.S. Census BureauU.S. Census Bureau


1515

Highest Number of $1M Highest Number of $1M Lawyers (#)Lawyers (#)

District of Columbia District of Columbia (15.7)(15.7)

Florida (17.6)Florida (17.6) Hawaii (10.6)Hawaii (10.6) Missouri (12.4)Missouri (12.4) Mississippi (11.9)Mississippi (11.9)

Nevada (19.5)Nevada (19.5) New Jersey (12.4)New Jersey (12.4) Ohio (10.7)Ohio (10.7) Pennsylvania (16)Pennsylvania (16) West Virginia West Virginia

(13.3)(13.3)


1616

Lowest Number of $1M Lowest Number of $1M Lawyers (#)Lawyers (#)

Colorado (1.6)Colorado (1.6) Idaho (1.5)Idaho (1.5) Indiana (2.1)Indiana (2.1) Nebraska (1.8)Nebraska (1.8) New Mexico (1.6)New Mexico (1.6)

North Dakota (0)North Dakota (0) Oregon (2.0)Oregon (2.0) South Dakota (1.3)South Dakota (1.3) Utah (3.1)Utah (3.1) Wisconsin (2.2)Wisconsin (2.2)


1717

So What’s the Answer?So What’s the Answer?

Tort reform? Tort reform? Who decides what is fair?Who decides what is fair?

What if it happened to you?What if it happened to you?

Are we overlooking other solutions?Are we overlooking other solutions?


1818

Something To Think AboutSomething To Think About

What is the role of managed care in What is the role of managed care in this mess?this mess?

Documents

HOLBORN CORPORATION Established 1920 Employee Owned Frivolous Lawsuits Fact or Fiction? Bill Burns Holborn Corporation September 23, 2002