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Larry Beinhart

Larry Beinhart

Posted: March 9, 2011 01:32 PM

Class Warfare III -- Losing Your Right to Fight Back


Everyone has heard of the woman who spilled coffee on herself and won $3 million from McDonald's. Perhaps you recall an editorial similar to this one, which ran in the San Diego Union Tribune: "A winning lottery ticket... absurd... a stunning illustration of what's wrong with America's civil justice system."

I saw the injuries. One look was all it took. An 82-year-old woman with such severe burns on the insides of her upper thighs, inches from her vagina, that they required skin grafts. You can see it too, in the documentary Hot Coffee, when it's released. Hot Coffee is the most exciting movie ever made about tort reform.

The jury found out that McDonald's served their coffee at temperatures between 195 and 205 degrees, "high enough to peel skin off bone in seven seconds or less." They found out from McDonald's own files that there had been 700 previous burn incidents serious enough that people had made formal complaints. The woman in the case only wanted her medical bills paid for. The jury thought money might get McDonald's to change its behavior, because burning at least 700 people hadn't seemed to bother the company.

That's what the courts and civil suits are for. To make whoever broke it pay for the damage that's been done. The courts are also the only place where we -- as ordinary, individual citizens -- can force other individuals and corporations -- tobacco, automobile, chemical, pharmaceutical, insurance, and banking -- to open their books and divulge at least the recorded truth, often a history of previous offenses and cover-ups.

The courts are a way to make bad behavior -- injurious, even murderous, acts -- cost enough to make a corporation stop.

Without lawsuits we wouldn't know that tobacco companies knew that cigarettes caused cancer even while they advertised them as healthy; that Firestone tires, combined with Ford SUVs, made them roll over; that the Catholic Church harbored and protected hundreds of pedophile priests; that Vioxx damaged people's hearts and killed them.

Big business hates lawsuits. They hate being made accountable. They hate having to pay. So what can they do about it?

They hire PR companies to spread stories -- frequently less than complete, often completely false -- about frivolous lawsuits. They spend hundreds of millions of dollars promoting those tales. At the same time, almost every settlement contains a non-disclosure agreement. The offenders are free to trumpet their tales far and wide. The victims must stay silent.
The poster child for the victims of frivolous lawsuits is the noble physician. No less a person than ex-president George Bush has told us that it's the trial lawyers who are driving good OB/GYNs out of their practices and depriving communities of decent medical care. It's malpractice insurance (due to the frivolous lawsuits) that is making health care unaffordable. Almost everyone believes this story.

Then there are the facts.

"Medical malpractice kills more people than automobile and workplace accidents combined." (The Medical Malpractice Myth, Tom Baker, University of Chicago Press, 2005). You would think, therefore, that we spend more on malpractice insurance than on automobile insurance. In 2003, doctors, hospitals, and other providers spent $11 billion on malpractice premiums. US businesses -- not individuals -- spent $27 billion on auto liability premiums and $57 for workers compensation premiums. "Medical societies own research showed that the real problem was too much medical malpractice, not too much litigation," Baker writes in The Medical Malpractice Myth.

Litigation seems to be a particularly American disease. Why? Most lawsuits are for medical bills (the McDonald's case), and for lost wages and the inability to work. Other industrialized countries have universal health care, more significant unemployment insurance, social welfare, and pension benefits. We don't believe in collective responsibility and collective solutions. The people who do the damage are supposed to pay for it. The only way to make them pay is to sue the bastards.

The second story in Hot Coffee is about a child who was born with brain damage caused by medical errors. The family sued for enough to care for their son, even after they were gone, which is what they worried about the most. The jury figured what it would cost and awarded that amount.

But the corporations were a jump ahead. They made campaign contributions to "pro-business" legislators. They hired lobbyists to sell them on "tort reform." There was now a cap on how much could be awarded, significantly less than what the jury determined, transferring the burden from the insurance companies to the victims, the parents. After the parents die, their son will become, in all likelihood, a ward of the state. His care will be paid for by taxes, transferring the burden from the insurance companies to us.

Such laws have been passed in many states. They've been challenged. A series of state courts held they were unconstitutional under state constitutions, or federal law, because they take away the rights of individuals to get justice.

What do you about that?

Replace the judges. In most state judges are elected. Judicial campaigns are -- or used to be -- pretty small, low-key campaigns. Five, ten, maybe twenty-five thousand dollars would do it. But then, Karl Rove, in his early days in Texas, came up with a great idea. Find "pro-business" judicial candidates, go to big businesses -- tobacco, insurance companies, big banks and the rest of the usual offenders -- and ask for big contributions. Then funnel the money through an organization with a name like Citizens Against Lawsuit Abuse to avoid revealing who was really footing the bill and spend fifty, a hundred, five hundred thousand dollars -- whatever it took -- to elect judges who would vote reliably vote for big business.

It worked so well in Texas that the practice was exported. I recommend John Grisham's novel, The Appeal. It's devastating. It's worse now that I know it's essentially a true story, first, of how hard it is to bring a real lawsuit, to win it, and how a corporation can beat its responsibility by destroying a good judge and putting their own boy in.

The final story in Hot Coffee is about a young woman who went to work for Halliburton in Iraq. She was housed, in spite of promises and her complaints to the home office, among men. She was drugged and gang raped. When she tried to bring charges, she was put in a shipping container with armed guards to keep her in. The Bush administration had set up a system in Iraq that made it virtually impossible for military contractors, as individuals, or the companies they worked for, to be held criminally liable. For anything. Her employment contract had taken away her right to sue.

When you hear about frivolous lawsuits and tort reform what that really means is taking away your ability to make right some harm that's been done to you. The goal is to create a place where big corporations cannot be held responsible, even if they leave your child disabled for life, kill your spouse, or set you up to be raped.

That's class warfare. And we're losing.

 
Everyone has heard of the woman who spilled coffee on herself and won $3 million from McDonald's. Perhaps you recall an editorial similar to this one, which ran in the San Diego Union Tribune: "A winn...
Everyone has heard of the woman who spilled coffee on herself and won $3 million from McDonald's. Perhaps you recall an editorial similar to this one, which ran in the San Diego Union Tribune: "A winn...
 
 
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09:54 PM on 03/16/2011
People will believe what they see and hear in the media advertisements. Proponents of Phentermine tell us that if we use this drug in moderation and over the short term, we can achieve the goal of weight loss, with minimal side effects. But what does “moderation” and “short term” really mean? There is no such thing as a dosage that is both safe and effective because of the nature of this drug and who thinks of losing weight as a “short term goal?” Nobody wants to go back to being obese. Furthermore, aside from the dependence and addiction, with each dose of Phentermine, the consumer spends about six hours in the same physiological state as one would be in facing certain death. Accordingly, there are serious psychological and physiological consequences to subjecting oneself to this huge amount of stress. First the initial desired effects like increasing activity and vitality, reducing tiredness, raising mood, improving concentration, suppressing appetite and reducing the need for sleep become excessive. Thus the person becomes sleep-deprived, undernourished, dehydrated, incoherent and ends up babbling incessantly. The physiological effects include, narrowing of the blood vessels resulting in poor circulation of the hands and feet, hypertension, stroke, cold sweats, seizures, gastric reflux, constipation, nausea and vomiting, heart attack, loss of bone density, and kidney failure. Finally, the onset of the mental and physical destruction is insidious because of the initial euphoric response and rapid weight loss. http://legalnurseconsultanttom.com/?p=451
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blueken
Finger Picking blues man
11:30 AM on 03/10/2011
"That's class warfare. And we're losing." That's not true. Losing implies fighting back, I don't see much fighting back going on. In this corner we have the far right and big business. They are brutal and sneaky, finding ways to undo the constraints that were put in place because of historical betrayels of the past. In this corner we have the left, who basicly compromise before the fight begins. One side is ruthless and focused, the other side seems dazed and confused. It reminds me of the movie "Road Warrior" when the old man in the miltary jacket and arm helmet thinks he can negotiate with Humungis. "He seeems like a reasonable man to me." Yeah, the hocky mask gives me that impression too.
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kamact
Market Observer
09:53 PM on 03/09/2011
The "too many to ignore" needs to beat back the TBTF banksters and the overly paid corporate elite
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Mark Shotzberger
07:36 PM on 03/09/2011
Also in Europe, most nations have a very different Tort System. They have a system of formulas that are used to calculate lost wages, material damages and Pain and Suffering. So all this is inlcuded in the Insurance Settlement. Keeps this stuff out of the courts.
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AngelaQuattrano
I just like to write comments
02:58 AM on 03/10/2011
In a lot of countries the first action of the responsible party (doctors and hospitals) is to begin to negotiate, because they are responsible. Not here. When that boy grows up and becomes a ward of the state after his parents are no longer able to take care of him, and the state stops paying to keep people like him alive, he will just die.
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mlaiuppa
Pres. Sarcasm Society. Like we need your approval.
05:04 PM on 03/09/2011
Tort reform is carte blanche for corporations to do whatever they want with no fines, no restrictions, no consequences whatsoever.

Corporatism.

We're already there.
03:58 PM on 03/09/2011
This article seems to take on the straw man argument that there is no good litigation. There is some good litigation, but there is also quite a bit of bad. Lawsuits aren't just for medical bills. When a company loses a case they have to pay the attorneys of the person who is suing them. This is often done at greatly escalated rates. I have seen many cases where the amount going to the attorneys dwarfs what goes to the alleged victim. In the end it isn't the companies that pay or the bad doctors. It is us. Who pays malpractice insurance premiums? We do through increased fees to see doctors. It essentially works that way across the board.
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Larry Beinhart
07:30 PM on 03/09/2011
What percentage of litigation is bad? How do you distinguish good litigation from bad?
To be paid a plaintiff has to find a lawyer, spend a great deal of time and effort. They can pay that lawyer or accept a contingency. If contingency, the lawyer has to estimate the case is good enough, and valuable enough, to invest time, effort, and actual cash costs. The lawyer has to deal with opposing council, under the supervision of a judge, and convince a jury that harm has been done, the defendant is responsible, that said harm has financial value. The jury, made up of people like you and me, makes a decision.
Most people who can't afford to pay cash for their attorneys. Even great states like Texas can't (the tobacco case) and have to get lawyers on a contingency basis.
Baker's book makes clear we spend a lot less - in actual terms - and even less in proportion to the harms done - than we do on automobile insurance and workplace insurance.
As to passing the costs of insurance on to the consumer, do you want to walk into a supermarket that doesn't have liability insurance, drive on roads where other drivers don't, ride a chairlift a ski area that has no insurance?
When another car smashes into you, and leaves your child crippled for life, do you want the legislature to put a cap on what you can recover in order to pay for their care?
10:27 AM on 03/10/2011
I would argue that our system is too dependant upon lawyers. That somebody who has a situation where they have been wronged should have an easier route to mediation than attempting to hire an attorney. Our country is far too litigous. People seem to have no responsibility for things that happen to them. You mention a supermarket. Certainly they should have some liability, but if a customer buys something beyond its expiration date, if they slip and fall, etc... it shouldn't be the store that is held accountable. There has to be a reasonable expectation that a person has some responsibility for their own actions.
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03:57 PM on 03/09/2011
Wall Street Banking-and their political/pundit underlings...

The barometer of a society's virtue.

-When you see that in order to produce, you need to obtain permission from men who produce nothing.
-When you see that money is flowing to those who deal, not in goods, but in favors.

-When you see that men get richer by graft and by pull rather than by work.
and your laws don't protect you against them, but protect them against you.

When power and debauchery are used to dispense debilitating, public-division.

When you see corruption being rewarded and honesty becoming a shared-sacrifice.

When the only reward for virtue is no longer, virtue.

...you may know that something is very wrong within your society.
Konnie
PO'd PROGRESSIVE
03:46 PM on 03/09/2011
would someone please tell me why what's left of the labor movement in the country isn't shouting "you're d^^&* right it's class warfare" at the top of their lungs? who are they afraid of offending? everyone knows it's the truth. LARGE MONEY has rigged the system............the statistics are there for all to see - that
the citizens of this country have been brainwashed into LARGE MONEY bobbleheads.

wouldn't you just love to see one person respond the talking head that acts all shocked and appalled and
says "but that's class warfare!!!!" just reply "you're d^& right it's class warfare".!!!!