...Compensation culture and tort reform ‘Compensation culture’bhas been described as ‘an amorphous term’ by Morris.b It is generally used to connote a society in which there is a propensity for anyone who has suffered a personal injury to seek punitive damages through litigation from someone connected to the injury, whether or not anyone was actually at fault, thus implying unreasonable willingness to seek legal redress when things go wrong. Commentators such as Morris, Robins and Williams have debated the existence of a compensation culture yet, in 2005, the House of Commons Constitutional Affairs Committee created a new session to investigate whether this compensation culture truly exists.bThe third report of this session is particularly illustrative, unequivocally stating that such a culture does not existband its existence is not a possibility in the near future.bThis report followed a publication by the Better Regulation Task Force (BRTF), which concluded that there is not a compensation culture, but that action was required to counter the popular perception that there is. Evidence from the Compensation Recovery Unit (CRU) supports this view as shown below. The CRU holds the most comprehensive and reliable data on the number of current personal injury claims as ‘all compensators must provide prompt notification to CRU of any claim for personal injury made against them.’...
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...about the case of Liebeck v. McDonald’s Rests., No. CV-93-02419, 1995. There is many misconceptions about the case, many people believe that she just spilt hot coffee on herself. In reality, Libeck suffered serious burns that required many surgeries that cost a lot of money. The movie described how this case has been misused to describe frivolous lawsuits and referenced in conjunction with tort reforms. There where a few different cases discussed, such as Gourley v. Neb. Methodist Health Sys., 663 N.W.2d 43 (Neb. 2003). This case talked about the damages in medical malpractice which caused the plaintiffs son to be born with mental disorders....
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...Tort reform refers to the proposed changes in the common law civil justice systems that would reduce tort litigation and/or damages. Tort liability imposes significant cost on society. In 1991, US has spent a total of $131.6 billion on tort litigation, which is approximately 2.3% of the gross domestic product (GDP)1 Studies have shown that the citizens pay a tort tax of $1200 per individual or nearly $5000 for a family of four. 2 Today, tort reform is a contentious political issue and its advocates propose procedural limits on the ability to file claims and capping awards of damages. The cost of healthcare in the US is very expensive and is rising rapidly. Tort is one of the main reason this is happening. Tort pay out usually comes from the insurance companies, which eventually raise the insurance cost, and the cost is incurred to everyone paying insurance. In addition, the current medical liability system does not effectively compensate patients from medical negligence nor improve patient safety by addressing system errors. 93% of physicians have started to practice defensive medicine3 in order to avoid getting into lawsuits and this has adversely affected the physician-patient relationship. Physician eliminate complex procedures or procedures that seem litigious. These behaviors have strained and limit physicians to their scope of work, which ends up 1 Kirk W. Dillard, Illinois' Landmark Tort Reform: The Sponsor's Policy Explanation, 27 LOY. U. CHI. L.J. 805, 809 nn.1, 16-17...
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...Medical Malpractice and Tort Reform Many medical conditions as well as procedures do not result in the desired outcome. A professional in the medical field is not personally responsible for every single negative outcome which may effect one of their patients (Blair, 2013). These individuals are, however, legally responsible for any harm or injury to a patient which was a result of the medical professional deviating from the level of care that a knowledgeable doctor would have delivered in a similar event to the event which caused harm or injury to the patient (Blair, 2013). For this reason medical malpractice lawsuits exist along with the associated legal criteria. Medical Malpractice vs. Negligence Medical malpractice and negligence are...
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...Running Head: UNIT THREE WRITTEN ASSIGNMENTS Unit Three Written Assignments Erin Schmidt Professor Vega St. Joseph’s College of Maine Prepared on November 30, 2009 1. Of all the people using the health care system today, how important are social problems on the use of the health care system? Social problems including AIDS, drug abuse, violence, and teen pregnancy are very important when considering the economy of the United States Health Care System. Unprotected sexual contact and sharing dirty needles account for the majority of persons infected with AIDS. HIV and AIDS affect human capitol due to the increased mortality of this group. Bonnel (2000) notes that younger individuals are dying of this disease, which translates to a decreased taxable population and reduction in resources for public expenditures. Medications such as antiretrovirals are very expensive. Henderson (2002) points out that drug therapy costs up to $16,000 dollars per infected individual per year. Additional economic impact can be thought of in terms of lost productivity, and lost days from work, which account for a significant impact on the labor supply. With regard to substance abuse, Henderson (2002) states “substance abuse is the leading health problem in the United States today” (p. 310). Costs associated with substance abuse include increased costs of medical care, lost productivity from...
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...Wisconsin Product Liability Laws According to Find Law, a website dedicated to helping people find lawyers, “Defective or dangerous products are the cause of thousands of injuries every year in the U.S.” (Find Law, n.d.). If people are getting injured because of defective products, there must be some kind of legislation that protects consumers. Product liability laws are laws that were created so that people who are injured from a defective product can sue to recover damages. Keep in mind that a defective product does not simply mean that the product is broken. The Business Dictionary says that a defective product is “unfit for its intended use, dangerous or harmful for normal use, does not carry adequate instructions for its use, or is inherently dangerous due to defective design, assembly, or manufacture” (Business Dictionary, n.d.). If a product is dangerous to use, why would people still use it? Sometimes the danger that lurks within a product is not visible, and unfortunately it takes someone getting hurt before anyone notices that something is wrong with it. It is these types of products that product liability laws protect us from. So then, whose laws protect us? During this class, we have learned that federal laws are the highest laws of the land. That means that if a crime is committed, state courts must follow federal laws if there is a law in place for that particular crime. What are the federal laws when it comes to product liability? There are none. Product liability...
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...Rachelle Wardle Justin Clark Yolanda Larrymore April 11, 2011 Group 5 Tort Reform As a society in today’s economy we are constantly being bombarded with news about law suits of one kind or another. It seems whenever we turn on the news there is a new high profile case of malpractice lawsuits and individuals are being sued left and right. We live in a lawsuit happy society that only continues to intensify as the economy continues to recover and citizens continue to seek employment. Often the main bulk of the law suits that make the news and that occur in today’s society are medical malpractice suits. One can find themselves hard pressed to watch T.V. without seeing a commercial or advertisement from an attorney offering to sue someone for something. In the realm of medical law suits the possibilities are seemingly endless. Patients are willing to sue anyone over anything including drug manufacturers, doctors, pharmacists, anesthesiologist and so forth. Malpractice insurance has reached an alarming high and physicians continue to fight for a cap to be placed on money awarded to plaintiffs. Physicians fear their jobs and lives may be in jeopardy if something is not done about these outrageous costs while patients worry that their medical care will suffer if such limits are awarded. In the 1990s there was a famous lawsuit that awarded a woman several million dollars in a law suit against McDonalds when she spilled hot coffee on her lap. Many of the details of the...
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...Jerome Fulton, Jr. BUL 4310 Liebeck v McDonald’s Restaurants July 7th, 2014 Introduction Corporate giants are known for their strong legal defense teams, their shrewd business practices, and their strong presence in politics. In the United States, its adversarial court system allows corporate giants to have the upper hand when faced with litigation. In an adversarial court system, the stronger the defense (lawyers) is, the stronger the case. One extreme case in the American court system that deflects corporate giants’ upper hand in the United States’ adversarial system, is a 1994 “frivolous lawsuit,” Liebeck v. McDonald’s Restaurant. McDonald’s is known for its fast-food and joy that it brings to children with its Happy Meals. However, in the Liebeck v. McDonald’s Restaurant case, McDonald’s was known as an inconsiderate corporate giant whose nonchalance cost McDonald’s nearly $3 million. Liebeck v. McDonald’s Restaurant is a case that was a media train in the 1990s and misconceptions about the case filled the airways. Case Overview Why should your favorite quick service restaurant be responsible for serving your favorite breakfast beverage, coffee, just how you like it? Liebeck v. McDonald’s Restaurant involved a then 79 year-old, Stella Liebeck, who purchased a cup of coffee from a McDonald’s located in Albuquerque, New Mexico, in 1992 (“McDonald’s,” 2002). “Liebeck tried to hold the cup of coffee between her knees while removing the lid; however, the cup tipped...
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...What is your first impression? In the early nineties, Stella Liebeck won a 2.7 million dollar lawsuit for spilling coffee in her lap. This article will reveal the facts, issues, laws, and affects about this case. Many believe that our legal system is out of control. What do you think about this news story? After reading this article you will be a more informed citizen about this case and you will think twice about judging someone based on a news headline. What are the Facts? In 1992, Stella Liebeck purchased a cup of hot coffee at a McDonald’s drive through in New Mexico while sitting in the passenger seat. She proceeded to take off the lid of the coffee cup in order to add cream and sugar. She then accidentally spilled the coffee into her lap where it soaked into her sweat pants that she was wearing. This caused third degree burns that resulted in a seven day stay in the hospital along with skin grafting to repair the damage that was done (Schostok, 2000). What are the Issues? The issue that is specific to this case is whether or not McDonald’s should be liable for selling coffee that is too hot? The broader issue is, should businesses be responsible for the safety of their customers? What Law Applies? The product liability law applies in this case, specifically the “implied warranty of fitness [that is] imposed by the Uniform Commercial Code” (Morgan, n.d.). What did the Jury decide? The jury decided to award Liebeck $200,000 for compensatory...
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...McDonalds coffee and the Liebeck lawsuit •Osmond-Riba home •Elisabeth Riba home •Elisabeth Riba's Journal Writing > I've read recently that the McDonald's coffee lawsuit is back in the news again, being used as an example of frivolous lawsuits, irresponsible juries, excessive verdicts, a generally out-of-control legal system, and thus a justification for tort reform. However, after doing some research, I discovered that the case was hardly as unreasonable as people often make it out to be. I originally wrote this for Usenet several years ago; the links at the bottom of the essay may have expired. -------------------------------------------------------------------------------- McDonalds coffee and the Liebeck lawsuit Lis Riba, 2000 Here are some facts about what really happened: At the trial, it was revealed: •McDonalds required their coffee kept at 185 degrees Fahrenheit, plus or minus 5 degrees, significantly higher than other establishments. [Coffee is usually served at 135 to 140 degrees] •An expert testified that 180 degree liquids will cause full thickness burns in 2 to 7 seconds. •McDonalds knew before this accident that burn hazards exist with any foods served above 140 degrees. •McDonalds knew that its coffee would burn drinkers at the temperature they served it. •McDonalds research showed that customers consumed coffee immediately while driving. •McDonalds knew of over 700 people burned by its...
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...TORT REFORM AND ELDER LAW: A TORT REFORM EXAMINATION THROUGH THE LENS OF ELDER CARE Older Americans are one of the fastest growing demographic subgroups in the nation. The healthcare needs of this discrete subsection are unyieldingly broad; drawing from variances in traditional emergency medical attention, additional routine healthcare inspections, and even to custodial long term care needs. With this weighty class and the immense healthcare needs and requirements, come intricate liability and legal concerns. Countless challenges await the elderly in attempting to litigate healthcare suits, from state policy variances, to damage caps, to demonstration of harm. It is abundantly clear the legal framework should be retuned, and retuned, specifically,...
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...HB4: The 2003 Tort Reform in Texas Tricia Guzman MGT6106.E1 – Law Applications for Managers Amberton University Professor David Campbell May 15, 2015 HB4: The 2003 Tort Reform in Texas Texas is known as a tort reform state. Tort reform is essentially any attempt to limit someone’s rights to seek redress in a court of law for a civil wrong. The goal of tort reform in Texas is to create and maintain a fair, honest, and predictable civil justice system that balances the rights of both plaintiffs and defendants. House Bill 4 (HB4) was enacted to curtail frivolous lawsuits, limit runaway jury awards, and reduce malpractice liability insurance premiums in 2003. Depending on whom you agree with, Texas tort reform has helped in some areas, but also hurt in other areas. The Need for Reform Prior to 2003, Texas was known as one of the nation’s “judicial hellholes.” The state’s system of justice allowed for laws to be applied arbitrarily. Enforcement of personal property rights and contracts varied depending on which local court had the case. Furthermore, certain counties had bad reputations regardless of the court. Judicial outcomes often depended on which attorney was before which judge in which county (Nixon, 2013). The following examples show the mess of the Texas tort system: * One out of every four doctors had a malpractice claim filed against them each year. * 85 percent of medical malpractice claims failed, but cost more than $50,000 to defend. ...
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...Products Liability Research Paper Select a company that has been the subject of a product liability lawsuit in the last ten (10) years. The Plaintiffs vs. Bayer Pharmaceuticals, the German manufacturer of the birth controls Yaz and Yasmin has landed themselves in hot water and is headed to the courts. Bayer Pharmaceuticals net worth is over a billion dollars and is still climbing. The use of the birth controls Yaz and Yasmin has sparked a lot of attention with claims of a number of dangerous side effects. This case has become very popular, with over 11,300 claims pending and the possibility of more to come, Bayer is expected to pay out about $110 Million in the Yaz case in an attempt to avoid being tried before a jury but that is only the beginning of a long list of active claims. The use of these birth controls are causing an increased number of blood clots in women as well as complications of blood disorders, problems of the heart, strokes, and in some cases even death. www.drugwatch.com the problem appears to be stemming from drospirenone (a progestin) that is found in the birth control pills. In the case of Shannon Landry of Louisiana she filed a complaint with the U.S. district Court for the Southern District of Illinois. In 2000 Landry began taking Yaz and continued until 2010, and shortly thereafter she began having severe side effects. She was later diagnosed with a gallbladder disease called biliary dyskinesia that resulted in surgery to have her gallbladder removed...
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...Frivolous Lawsuits: A Comparison of the McDonalds Case and the Pearson Case Michelle DeWald University of Maryland University College Introduction “When there are too many policemen, there can be no liberty. When there are too many soldiers, there can be no peace. Where there are too many lawyers, there can be no justice.” - Lin Yu-Tang Chinese Writer and Inventor Suing companies in hopes of accumulating big money is popular in today’s society. However, many people get immensely creative with their claims, creating lawsuits over ludicrous motivations. Many cases endure for years or longer. Nevertheless, the costs involved in defending a claim can be exorbitant. Unfortunately, despite every precaution, we live in a society where anyone, any business can be sued for anything. Solely because a lawsuit has been filed, however, does not mean the case has merit. This paper discusses two legal cases related to frivolous lawsuits. The first lawsuit was filed against the McDonald’s Corporation by Stella Liebeck in 1994. The second lawsuit was filed against Custom Cleaners by Roy L. Pearson, an administrative judge, in 2007. Both cases are notable and played a major role in guiding small and large companies in their responsibilities to their customers, reducing the risk of litigation, and protecting their assets to avoid unnecessary liability. Both cases will be analyzed by comparing and contrasting the facts, law, and merit. In addition, this paper will examine ethical issues...
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...The purpose of the prospectus is to ensure that the company gives to the public a certain amount of information about its financial position when it is first floated and whenever it subsequently offers its shares and debentures to the public. It must fully and fairly disclose the relevant facts so the risk of investment can be assessed (Vanessa, 2011). Prospectus is a way to give the public a clear understanding of newly listed companies, the investing public should take time to read before investment. The providing of prospectus can also reduce the risk of fraud of companies as they need to disclose their companies’ information fully and fairly. From the Companies Ordinance, prospectus means any prospectus, notice, circular, brochure, advertisement, or other document which offering any shares or debentures of a company to the public for subscription or purchases, or calculated to invite offers by the public to subscribe or purchase shares or debentures. If the shares or debenture are offered to any section of the public, whether selected as members or debenture holders or as clients of the person making the offer or invitation, or in any other manner, it is to be regarded as an offer or invitation to the public(s 48A(1)). Thus, whether the document technically constitutes an offer or invitation to the public, it will fall within the prospectus provisions. The provision relating to prospectuses apply as the shares or debentures had been offered to the public by the...
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