In 1975, the California State Legislature passed the California Medical Injury Compensation Reform Act (MICRA) which placed a cap on damages for medical malpractice claims. According to this Act, an injured plaintiff cannot recover non-economic losses in excess of $250,000. This tort reform statute has been in effect in California for thirty-two years. Because this California law has been in...
Today in the Los Angeles Times, I read about the health insurance company Blue Shield of California which has been sued by a policyholder alleging bad faith for refusing to pay medical bills totalling $450,000 arising out of a serious car accident. According the the article, the insureds applied for health insurance, paid premiums and received an individual policy through Blue Shield of...
Congratulations to State Farm Insurance Company! Its profits rose almost sixty-four percent (64%) to $5.32 billion dollars last year from $3.24 billion dollars in 2005. In my opinion, during this time, I do not think that State Farm acted like very much of a good neighbor to victims of Hurricane Katrina or to other policy-holders who timely paid premiums thinking they would be protected in...
Today I discovered an interesting and entertaining page on the America On Line web site. Discussing so-called frivolous lawsuits, America On-Line lists as news several lawsuits without real attribution or legitimate discussion about corporate accountability for wrongdoing. Setting aside the issue of whether these lawsuits are in fact real or a political effort to encourage tort reform...
I just read today in the Arizona Republic that Scottsdale based Taser International plans on introducing a new consumer stun gun at the Consumer Electronics Show in Las Vegas next week. With its perfect record thus far on product liability litigation lawsuits against it relating to its law enforcement stun gun product, I am not surprised to see this company branching out into the consumer...
Michael Moore released a new movie about the system of healthcare in the United States. In the movie, he portrays our healthcare system as one in crisis. Do you believe our healthcare system in this country provides the best quality of care to patients at a reasonable cost? Have you seen the movie Sicko? Do you think the movie accurately portrays problems with our healthcare system in...
Blue Cross of California recently entered a settlement agreement to resolve a class action lawsuit against the health insurer concerning the nature of its individual health insurance business practices. Blue Cross had been accused of using innocent mistakes on poorly worded insurance applications to rescind policies after insureds submitted costly claims. After concluding that it would lose...
In May, I wrote about problems with health insurance companies in California. Specifically, an insured with Blue Cross and Blue Shield of California sued the company alleging bad faith arising out of the company's decision to rescind a health insurance policy based on high claims expenses. In the lawsuit, the plaintiffs alleged that the carrier accused the insureds of misrepresenting responses...
As if struggling with and battling cancer is not enough, according to a researcher at Johns Hopkins Children Center, children often must also face the additional battle of having to overcome problems relating to medication errors. Children with cancer often get the wrong dose of chemotherapy or are given the drug at the wrong time, and many require treatment because of the errors, U.S....
Recently Purdue Pharma, together with three company executives, agreed to plead guilty to misleading the public in its marketing approach for the narcotic drug OxyContin. The company also agreed to pay fines and other assessments totalling $600 million dollars in one of the largest criminal penalties ever assessed against a company. According to the New York Times, Purdue Pharma mislead the...
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