Current Events-- What's New to Know!


Posted on Jul 13, 2005

Study Finds Cell Phones Quadruple Risk of Car Crash A study by the Insurance Institute for Highway Safety finds that cell phones quadruple a driver's risk of getting into a serious crash. Researchers also determined that hands-free devices are not any safer than hand-held devices. The chairman of the Governors Highway Safety Association is urging lawmakers to "refrain from enacting handheld cell phone bans because they incorrectly send the message to drivers that as long as they are hand-free, they are safe." Associated Press, The Dallas Morning News 07/12/2005 Infections Run Rampant in US Hospitals Hospital infections kill an estimated 103,000 people every year in the U.S. Many other countries have nearly eliminated them but the situation is getting worse in the US because they can no longer be cured with antibiotics. Some hospitals have been successful fighting this problem but many "have not shown the will to defeat infections." Betsy McCaughey, The New York Times 06/06/2005 Study Shows Rising Malpractice Rates Are Not Tied to Awards A study by Dartmouth College suggests that insurance companies' falling investment returns are a more likely explanation for rising medical malpractice rates. The researchers relied on data from the National Practitioner Data Bank, which insurers criticize because payments to hospitals are not included in the report. The lead author acknowledges this and admits the study could have "slightly underestimated payments." Liz Kowalczyk, Boston Globe 06/01/2005 FDA Continues to Crack Down On Misleading Drug Ads The Food and Drug Administration has been stepping up enforcement of its drug-marketing rules by going after companies that mislead the public. Drugs such as Lipitor, Claritin, and Celebrex have drawn multiple citations. Despite their increased efforts, the FDA can only act after the promotion has aired so "there's no disincentive to running misleading advertising." Julie Schmit, USA Today 05/31/2005 D.C. MALPRACTICE AWARDS DECLINE, NEW STUDY SAYS Payments to patients who sue doctors in the District have declined dramatically, even as doctors and politicians have blamed skyrocketing jury awards for driving up the cost of malpractice insurance and driving doctors out of business, according to a study released. The analysis by Public Citizen, a nonprofit group that campaigns for consumers' rights, suggests that a proposal by D.C. Mayor Anthony A. Williams (D) to cap court-awarded damages for pain and suffering would do little to ease what doctors say is a malpractice insurance crisis. According to the study, doctors and their insurance companies paid more than $45 million to plaintiffs and their attorneys as the result of malpractice lawsuits in 2001. By last year, that number had dropped to just under $20 million, the study shows, a reduction of more than 55 percent. "The mayor, the insurance companies and the medical society are all making jackpot justice claims. They say juries are out of control, payouts are way up, obstetricians are leaving the District and you've got to have limits on jury awards to solve the problem," said Frank Clemente, director of Congress Watch, a division of Public Citizen that monitors federal legislation. Lori Montgomery, The Washington Post, 05/25/2005 Exxon Ordered to Pay Station Owners for Gas Overcharges A judge ordered Exxon Mobil to start paying gas station owners the $500 million they were awarded for overcharges. Exxon plans to appeal the order because they are "seeking clarification on a number of legal issues." The award has grown to $1.3 billion after interest. Associated Press, Ft. Worth Star Telegram 05/20/2005 Amtrak Inspectors Find Hairline Cracks in Acela's Brake Components An assessment by Amtrak's inspector general found that the brake problem in Acela's high-speed trains may have been caused by hairline cracks in the brake components. The Acela Express line is currently out of service, which is costing Amtrak nearly $1 million a week. A report by the GAO states "Acela trainsets appeared to have had abbreviated testing prior to being deployed...fuller testing of the trainsets may have better identified the range of potential problems and defects." Sara Kehaulani & Goo Mike Musgrove, The Washington Post Florida Sex Offenders Will Be Tracked By GPS Gov. Jeb Bush signed a law that will require child molestors released from prison to wear a satellite tracking device. The new law will also establish a mandatory 25 year prison sentence for those convicted of sex crimes against children under 12. Associated Press, Chicago Tribune 05/03/2005 Several State Medical Boards Need a Major Overhaul State medical boards across the country vary because of the difference in the way they operate. The boards in MD, DC, and VA have serious flaws that put patients at risk and do little to discipline negligent doctors. The author believes this region must reexamine their boards' legal structure and financing in order to become more efficient. The Washington Post 04/14/2005 U.S Has Experienced A General Decline in Legal Activity A study shows that there has been a decline since the 1980s in the number of cases that go to court. Civil trials in federal court have dropped by an astounding 60 percent but at the same time cases have become longer and more expensive to litigate. Some feel alternative dispute resolution has helped bring the number of cases down significantly. American City Business Journals Frequency and Award Size Also Down The Bureau of Justice Statistics, a division of the Department of Justice, found that the number of civil trials dropped by 47% between 1992 and 2001. The number of tort cases decreased by 31.8% during the same period. The trend in award size was also down. The median inflation-adjusted award in all tort cases dropped 56.3% between 1992 and 2001 to $28,000. Bureau of Justice Statistics What "frivolous" Lawsuits? "So-called" Frivolous litigation is not a major problem in the federal court system, according to an overwhelming majority of federal judges who participated in a recent survey. The survey, conducted by the Federal Judicial Center, was based on the responses of 278 federal district court judges. Seventy percent of the respondents called groundless litigation either a "small problem" or a "very small problem," and 15% said it was no problem at all. Only 1% called it a "very large problem," 2% called it a "large problem" and the rest rated it as a "moderate problem" in their courts. The survey asked judges their opinion on proposed changes to Rule 11 of the Federal Rules of Civil Procedure, which since 1993 has allowed, but has not required, judges to impose sanctions on attorneys who bring frivolous lawsuits. Eighty-seven percent said they favored retaining Rule 11 in its current form. In addition, 91% of the judges surveyed opposed provisions in the Lawsuit Abuse Reduction Act, which won House approval in the last Congress, that would require judges to impose mandatory sanctions on attorneys who bring frivolous lawsuits. Business Insurance Pfizer Admits 1999 Celebrex Study Shows Heart Risks Pfizer claimed back in October 2004 that they were not aware of any heart risks related to Celebrex. However, the company admitted January 2005 that a 1999 clinical trial did in fact show that patients taking Celebrex had a much greater risk of suffering from a stroke or heart attack. Pfizer is now trying to downplay the study's significance because other trials have shown that it is safe. The New York Times Rental Dings-- Ouch! Car rental companies have started pursuing small damage claims in an effort to reduce their "revenue leakage." However, some rental companies may be taking advantage of customers by exaggerating the cost of repairs to their vehicles or by filing an excessive amount of claims. Many customers will just pay the fees in order to avoid a messy and protracted dispute. The New York Times Bush Expected to Sign Bankruptcy Reform Bill Into Law Congress approved a new set of bankruptcy rules that some critics believe will benefit credit card companies more than consumers. The rules will require those who have filed for bankruptcy to repay creditors if they make more than the median household income in their state and can pay back at least $6k over the span of five years. Those opposing the new rules argue that seizing future earnings goes against the fundamental principle of bankruptcy law. LA Times 04/15/2005

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