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Robert’s Wrap-Up
By Robert Warne - January 15, 2002

Only in Simi Valley

A 43-year-old sales manager for the Ventura County Star is looking at the possibility of serving jail time for committing workers’ compensation fraud. Kenneth Brendon Crump was run over by his own BMW while attempting to stop the car from rolling out of his garage. He told his employer and insurance carrier that he was injured in a hit-and-run accident while on the job. His arraignment is scheduled for Jan. 25.

Should Cities be Exempt from Particular ADA Lawsuits?

This spring the U.S. Supreme Court will decide the legality of punitive damages in cases like the one filed by Jefferey Gorman, a paraplegic man injured while being taken to jail. Following his arrest at a country-western bar, Gorman informed officers that their van lacked the necessary equipment to transport him safely. During the ride he suffered an injury. Gorman sued under the Americans with Disabilities Act and Kansas City, MO, was ordered to pay him more than $2 million. Sacramento City Attorney Samuel L. Jackson said leaders not intentionally violating the law should not face costly judgments. But Chai Feldblum, a law professor at Georgetown University, said city agencies that disregard someone’s rights should be subject to punitive damages.

Claims in Wonderland

On the eve of an unfortunate one-year anniversary of a highly publicized theme park accident, the family of a 16-year-old Mesa, AZ, boy injured on the Alice in Wonderland ride at Disneyland filed a suit against the park Dec. 21. Blake Borbeck suffered several fractures and a torn knee when his foot was caught between a guardrail and a car. The suit claims negligence and product liability. According to the Los Angeles Times, Disneyland spokesman Ray Gomez said the facts will show Disneyland is not at fault.

Don’t Try This in China

For anyone whosever thought the California Appeals Board was rough; in China the government has told a workers’ compensation lawyer to shut his office. Zhou Litai, who represented injured workers in Shenzhen, has been informed that his law practice is illegal. Zhou accused government authorities of fearing his lawsuits could scare off investors. One of his cases in particular drew considerable media attention last year when a female was strip-searched at a factory owned by South Koreans. Zhou’s success can be measured by the compensation for a severed hand in many of his cases increased from $4,000 to over $24,000.

Sexual Harassment isn’t Cheap Anymore

Employment Practices Liability Insurance has lost its lucrative luster for carriers as employer dependence and claims increased. The ideal market for this line of insurance was created in the early 1990’s as multimillion-dollar judgments for sexual harassment and discrimination mounted. Originally premiums and deductibles were so low, that it didn’t take long for the cost of claims to catch up to insurers. The low cost and general availability of the insurance led corporations to treat discrimination and sexual harassment as just another cost of doing business and something that couldn’t be controlled. As insurers have built their books of business in this new market, they are now faced with the decision to either discontinue the line or dramatically raise their rates. The New York Times reported that Michael J. Maloney, a Chubb executive, said they haven’t been making money on this line of insurance for a long time. Chubb is one of the largest providers of employment practices liability insurance.

Trial Lawyers Change their Script

Sept. 11 has provided an opportunity for trial lawyers to step out of character and do a little PR. Leaders of the Association of Trial Lawyers of America have declared a national moratorium on terrorism-related liability suits. Members of the trade group are also offering free legal services to victims, and promoting the federal compensation program as an alternative to court. Critics view this as an opportunity for plaintiff lawyers to avoid potential vilification associated with profiting from the attacks. But within their ranks, some feel the lawyers are letting the victims down, and that families are being sacrificed for political capital on future issues.

9/11 Victims Could Get More Money From a Slip-and-Fall Claim

Special Master Kenneth Feinberg has until Jan. 21 to finalize the rules relating to his Sept. 11 World Trade Center Compensation Plan. In these final days, many opinions are being voiced as to the fairness of the current proposed plan and its formulaic payment schedule. One point of criticism is how the current plan deducts life insurance, pension, death benefits and government assistance from the final distribution per victim. New York Governor George Pataki and State Attorney-General Eliot Spitzer have each voiced their discontent with the current plan. The Los Angeles Times reported Rep. Felix Grucci mocked the proposed payment of $250,000 for pain and suffering when he said a person could get more from a slip-and-fall claim.

 
 

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