Personal Injury and Social Security Disability Blog

Stalled Suits Against Drugmakers Proceeding After Supreme Court Preemption Decision

Bloomberg News reports, "Just two months after the U.S. Supreme Court decided patients can sue drugmakers over injuries from medicines approved by the government, long-stalled lawsuits against GlaxoSmithKline Plc and Bristol-Myers Squibb Co. are again moving toward trials." On March 4, the Supreme Court ruled that "federal regulatory approval of a medicine and information about side effects doesn't shield drugmakers from claims that patients and doctors weren't adequately warned." Justice John Paul Stevens, writing for the majority, stated that "Congress did not intend FDA oversight to be the exclusive means of ensuring drug safety and effectiveness." The ruling has "already affected more than 250 lawsuits involving at least 10 companies that were in limbo before the ruling." Glaxo has "settled two cases on claims its antidepressant Paxil can make patients suicidal, after judges set trials citing the Wyeth decision." Meanwhile, "a group of Bristol-Myers lawsuits over the blood-thinner Plavix may now proceed to trial in federal court."

From the American Association for Justice news release.

Featured Link - TumbleweedHouses.com

Are you considering downsizing your home because of this recession? Many people are doing just that. My wife and I did a few years ago after our daughters got married and moved out.

Downsizing can be taken to an extreme though, and a perfect example is found at TumbleweedHouses.com. Take a look at the video of this guy's 89 square foot house. Yes, that's a total of eighty-nine square feet! I find this fascinating, and it does have a certain appeal. Of course if you're not as skinny as this young fellow is, you'd have a heck of a time living in a space this small.

Chamber of Commerce to Unveil Videos on Lawsuit Abuse

In the Law blog on the Wall Street Journal website Ashby Jones wrote, "Next month, the U.S. Chamber of Commerce will unveil four short clips to run before feature films in Washington, D.C.-area movie houses." All of the clips will attempt to illustrate "supposed 'Lawsuit Abuse.'" Lisa Rickard, the president of the Chamber's Institute for Legal Reform, said, "Lawsuit abuse and the harm it brings to everyday Americans and small businesses is one of the great American tragedies." She added, "That's why the silver screen is the perfect venue for these Faces of Lawsuit Abuse short films." Jones wrote, "We checked in with a spokesman for the AAJ, Ray DeLorenzi, who gave us this fun little quote. 'With U.S. Chamber's core membership receiving all those taxpayer bailouts, they must be flush with cash to waste on PR stunts like this. Like their lobbying agenda, these ads are rated NC - not suitable for consumers.'" Jones concluded, "Now, we'll just sit back and hope that someday the AAJ's unveils its own movie trailers. Ah, such fun."

Roll Call reports, "The 65 organizations in the Fair Arbitration Now Coalition...are releasing a new poll today showing widespread public support for legislation that would ban the fine print that ensnares consumers in mandatory binding arbitration in everything from credit card bills to cell phone contracts." It is being "led by Public Citizen and the American Association for Justice" who support "the Arbitration Fairness Act, which would prohibit corporations from forcing consumers into arbitration." Roll Call adds, "The advocates at the press conference will probably want to skip the afternoon matinee at their local theater" because "that's where the U.S. Chamber Institute for Legal Reform will begin running four short films before feature movies as part of their national 'Faces of Lawsuit Abuse' campaign."

From the American Association for Justice news release.

Columnist Criticizes Chamber of Commerce Ad Campaign Against Arbitration Act

In a column in Bloomberg News Susan Antill writes that the Chamber of Commerce's "'Faces of Lawsuit Abuse' ad campaign is but a piece of a larger publicity war that's heating up as legislators begin considering the merits of the Arbitration Fairness Act of 2009, introduced Feb. 12 by Georgia Congressman Henry Johnson." The legislation "would invalidate so-called 'mandatory arbitration' contracts that say the courts can't be used in the event of a dispute." She adds that "consumer groups have long decried the practice of forcing consumers, investors and employees to forgo their rights to court before they can even purchase a cell phone, open a securities account, or get a job." She says that Alexander Colvin, "a labor professor at Cornell University, published a study in January that examined employment dispute statistics from the American Arbitration Association" and is concerned "that 'repeat player bias' is at work, with arbitrators favoring employers in hopes of being selected for future hearings."

From the American Association for Justice news release.

House and Senate to Consider Credit Card Bill, Cramdown Legislation

The Hill reports, "House and Senate lawmakers are heading toward votes by the end of this week on legislation that would clamp down on two major segments of the financial industry that have long fought additional regulations." The Hill says, "In the Senate, Democrats are headed toward a vote on Thursday at the earliest on a controversial bill that would empower bankruptcy judges to write down home mortgages." However, "the bill...appears headed for defeat" because "Republicans remain unified in opposition and a handful of centrist Democrats have raised questions." Also, "the House will vote on Thursday on a bill sponsored by Rep. Carolyn Maloney (D-N.Y.) that would attempt to rein in credit card practices that consumer advocates have long opposed."

From the American Association for Justice news release.

Transportation Secretary Pushes Carmakers to Crash-Test Child Safety Seats

The Chicago Tribune reported, "U.S. Transportation Secretary Ray LaHood on Friday said he planned to urge carmakers to crash-test child safety seats in their vehicles and recommend which child restraints are the safest in each auto, responding to a Chicago Tribune investigation." The proposed "new system would be a victory for parents who struggle to find the best car seats for their children." Lahood said, "What I'd like to talk to the car manufacturers about is the idea that they get some seats, they put them in their car, they crash test them so they can tell people 'This is the best seat for this model car.'"

From the American Association for Justice news release.

Washington Times Urges Senate To Reject Hurley Nomination For NHTSA

The Washington Times editorializes, "President Obama's pick to head the National Highway Traffic Safety Administration raises a few red flags. If confirmed by the Senate, Chuck Hurley, CEO of Mothers Against Drunk Driving, will drive motorists over the cliff with regulation." The Times says, "Mr. Hurley has a history of pushing laws that harass millions of law-abiding citizens to ensnare a few lawbreakers" and "he supports returning the 55 mph speed limit to our highways as well as roadblocks and random pullovers to make sure drivers aren't doing anything wrong." The paper argues, "this methodology is based on a presumption of guilt - not innocence - of the average driver who is doing nothing wrong." The Times urges "senators to reject this nomination."

From the American Association for Justice news release.

FAA to Propose New Medical Helicopter Safety Rules

The New York Times reports, "A Federal Aviation Administration (FAA) official said Wednesday that the agency planned to propose new rules requiring medical helicopters to use additional safety equipment, including collision avoidance systems." The decision comes after "a series of fatal medical helicopter crashes over the last two years that have killed 35 people." In the past, the agency "took the position that helicopter operators could make safety changes more quickly if they acted voluntarily." But, speaking "at a Congressional hearing Wednesday," FAA director of flight standards John Allen said, the agency "would soon begin a rulemaking proceeding to mandate the use of certain safety equipment and procedures."

From the American Association for Justice news release.

Friday Fun

Factory Balls is a simple little game that will let you waste time while you're on boring phone calls. Just be sure to mute the sound!

Insurance Premiums Rise Due To Stock Market Losses

USAToday has an article today about the increases in auto, life and home insurance premiums, brought on by loss of insurance company investment returns. Normally, when there is a downturn in the stock market and insurance companies bring in less revenue, they start talking about tort reform, and blaming their decrease in profits on trial lawyers. I guess this time everyone knows the real reason why they're not making as much money, so maybe we won't have another big tort reform push from the carriers. Here are excerpts from the article:

Home, car and life insurance prices are climbing as insurers grapple with lower investment returns and profits.

The cost of a typical auto insurance policy will rise 4% to $875 this year, on top of a 3% increase last year, according to the Insurance Information Institute, a trade group. Consumers also will pay more for homeowners insurance: The average policy will jump 3% to $841. And term life insurance rates are rising after several years of declines.

The price increases come as consumers struggle — the unemployment rate has reached 8.5%, and household wealth has plunged with investment portfolios and home prices.

In this economy, "Anything that costs more is difficult for consumers," says J. Robert Hunter, director of insurance for the Consumer Federation of America.

The industry's profits come from insurance policies and investment returns, says Terri Vaughan, chief executive of the National Association of Insurance Commissioners. That's why, "If your expectations for future investment income are lower, that's going to affect premiums."

As the economy weakens, insurance rates could climb further. Insurers "cannot assume that interest rates will be much higher and stock returns much better in the foreseeable future," says Robert Hartwig, president of the Insurance Information Institute.

In the life insurance industry, weak profits, higher reserve requirements and increased capital costs are reversing a more than decade-long trend of falling term life prices, says Byron Udell, chief executive of AccuQuote, an online insurance broker.

Udell predicts average term life rates will be 5% to 10% higher at this time next year. Banner Life Insurance raised rates this year, he says. Prudential and ING have notified AccuQuote they'll raise rates in coming weeks.

The rate increases — typically 2% to 6% — are significant because these three insurers are major players that frequently offer lower premiums than their competitors, Udell says.