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December 22, 2006

Small Cars May Come With Big Risks

This week the Insurance Institute for Highway Safety released the results of a study testing the safety of small cars. With increased gas prices, the fuel savings offered by smaller models have increased their popularity recently. Of the eight models tested, all received passing scores in head-on crash tests, but only one, the Nissan Versa, received high marks in both side- and rear-crash tests. The high marks for Versa is the result of its greater heft, weighing several hundred pounds heavier than competing models.

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Three other models — Toyota Yaris, Honda Fit and Mini Cooper from BMW — scored well in side tests but received low ratings in rear tests.

The results demonstrate that even the safest subcompact car cannot overcome its inherent size and weight disadvantage. On average, subcompacts weigh about 800 pounds less than midsize sedans like the Toyota Camry and 4,000 pounds less than midsize S.U.V.’s The tests show that as with all vehicles, air bags offer critical protection in a side-impact crash, the deadliest type of collision. The Yaris was rated “good” in side testing with its optional curtain and torso airbags but “poor” without them.
Small cars can be forced backward more easily in crashes with larger vehicles, and their crumple zones are less able to protect the passenger compartment. As a result, fatality rates for drivers in multiple-vehicle crashes are more than double the average for all sizes of cars and trucks, at 83 deaths per million registered vehicles.

The size of subcompacts means that without the buffer a side air bag creates, the front end of a truck or S.U.V. could strike an occupant’s head. But dealers say their customers rarely are willing to pay more for side air bags or wait longer for a vehicle equipped with them.

Side air bags are not available on the Toyota Scion xB wagon, which was one of the lowest-rated subcompacts, with a score of “poor” in side testing and “marginal” in the rear.

The Chevrolet Aveo from General Motors, the Hyundai Accent and the Kia Rio also performed unacceptably in side-impact tests, even though side air bags are standard.

December 12, 2006

Deadly Science of Toys

Since 2003, at least one U.S. child has died and 19 others have needed surgery after accidentally swallowing magnets used in toys, the government reported last week. Most of those cases were believed to involve tiny but strong "rare earth" magnets that can link together in children's digestive tracts, blocking and even perforating the intestines, the researchers said.

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Tiny Magnets Pose Big Threat

The magnets, made from neodymium iron boron or other compounds, have become common in the U.S. toy market in the past five years because they have become cheaper, commonly found building sets, action figures and dolls.

Kenny Sweet, a 20-month-old boy from Redmond, Wash., died two days after he began complaining of stomach aches and was vomiting. An autopsy found nine small magnets stacked together. They had caused a twisting of the bowel and a blood infection. The magnets had come off a building set belonging to Kenny's 10-year-old brother, according to his family's attorneys. Mega Brands Inc. recalled 3.8 million Magnetix building sets, added warning labels and agreed to pay $13.5 million to settle lawsuits


Lead Common in Children's Jewelry

The Consumer Product Safety Commission has recommended a ban on lead in children's metal jewelry, citing the risk of lead poisoning. The proposal is subject to public comment and would require approval by the full commission, which is scheduled to vote this week.

Lead paint in older homes remains the top cause of lead poisoning in children. But the potential for children to ingest lead by sucking on or swallowing toy jewelry has led to 14 recalls of more than 160 million items since 2004. The most recent recall occurred last week when more than 50,000 Children’s Mood Necklaces and Diva Necklaces were voluntarily recalled by the manufacturer, Really Useful Products Inc., of Darien, Ill.

Lead is an inexpensive metal which adds weight to toy jewelry. But if ingested, even in small amounts, lead can harm brain development. Toy jewelry containing lead can be found in vending machines, dollar stores, department stores, and big-box retailers.

In rare cases, lead poisoning from toy jewelry can be fatal. In March, Reebok recalled 300,000 promotional charm bracelets after the death of Jarnell Brown, a 4-year-old Minneapolis boy. He had swallowed a charm that was 99 percent lead.

The proposal was in response to a petition from the Sierra Club requesting a ban on all toy jewelry containing lead. The CPSC staff recommended that the agency prohibit any piece of metal jewelry with lead content exceeding 0.06 percent.

December 8, 2006

Beware Your Greens...Again!

Just when you thought it was safe to venture back down the produce aisle...Green onions that are suspected of containing a virulent form of E. Coli has sickened Taco Bell customers in six states. It has been determined that the contaminated onions were grown in California by one of Ventura County's largest vegetable growers.

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At least 58 cases of E. coli food poisoning have been reported in the past week, mostly in New Jersey and New York, and the "vast majority" of the people had eaten at a Taco Bell restaurant, reported federal officials. No deaths have been reported, but 48 people have been hospitalized. Taco Bell Corp. said it has conducted preliminary tests and found E. coli in green onions, although it is awaiting confirmation from more accurate tests.

Nearly 2,000 acres of green onions were harvested in California in 2005, with 21,766 tons produced at a value of more than $21 million. Most were grown in the Salinas Valley in Monterey County. Representatives of Boskovich Farms, which has been growing vegetables in the area for nearly a century, said that they grew Taco Bell's green onions in their Oxnard fields.

"The onions were grown in our fields," said Lindsay Martinez, director of marketing for Boskovich Farms, based in Oxnard. "We have the climate to grow them pretty much year round." But Martinez noted that there was only a tentative link between the E. coli outbreak and the farm's produce.

Ready Pac Produce cleaned, processed and packed the onions in its New Jersey plant. Ready Pac has tested the plant's produce and has not detected any E. coli. At the Ready Pac plant in New Jersey, the onions were washed in a chlorine solution, rinsed, chopped into ¼-inch sections and then washed and rinsed a second time, Dickstein said. Ready Pac then dried the onions and packed them into boxes before shipping the produce to McLane Foodservice, Taco Bell's food distributor in the region.

If tests confirm that green onions are the source of the outbreak, it is the second major food-poisoning epidemic in the past few months with reported links to California-grown produce. In September, about 200 people became sick and three died after eating spinach grown in the Salinas Valley contaminated with the pathogen also implicated at Taco Bell.

Federal and state officials said today that blaming green onions, Boskovich Farms or Ready Pac Produce is premature. They said there is no official evidence yet in the investigation that shows any particular food is to blame. But, as a precaution, Taco Bell has voluntarily removed green onions from its 5,800 restaurants nationwide.

Food and Drug Administration officials said they are still investigating other possible sources at Taco Bell, including cilantro, cheese and lettuce. Meat is not the likely source because some of the patients are vegetarians.

Even if the pathogen is confirmed in the green onions, it remains unknown whether the contamination came in the restaurants, from an Oxnard field or in the New Jersey processing plant. This particular strain of E. coli is found in the guts of cattle and other livestock and it can contaminate produce during processing or in the fields through unsanitary worker practices, tainted water, runoff from pastures or wild animals.

Since 1995, 20 E. coli outbreaks from lettuce and spinach, including at least nine in the Salinas Valley, have accounted for 608 illnesses and five deaths in the United States, the FDA said.

The U.S. Centers for Disease Control reported cases in New York (19), New Jersey (28), Pennsylvania (8), Delaware (1), South Carolina (1), and Utah (1). They became sick between Nov. 20 and Dec. 2. Other cases are under investigation. Among the ill people, 48 were hospitalized and seven developed a type of kidney failure called hemolytic-uremic syndrome.

December 6, 2006

Safety Lost With Lax Trucking Rules

In 2003, after intense lobbying by the politically powerful trucking industry, regulators rejected proposals to tighten drivers’ hours and instead did the opposite, relaxing the rules on how long truckers could be on the road. Government officials had also turned down repeated requests from insurers and safety groups for more rigorous training for new drivers.

In loosening the standards, the Federal Motor Carrier Safety Administration was fulfilling President Bush’s broader pledge to free industry of what it considered cumbersome rules. In the last six years, the White House has engaged in a reckless strategy of deregulation. Largely unchecked by the Republican-led Congress, federal agencies, often led by former industry officials, have methodically removed safety regulations and have delayed enforcement of others. The Bush administration claims these changes are justified by huge savings for businesses and consumers.

The federal government’s oversight of the trucking industry has been a primary target of deregulation. The loosened standards, the industry argues, have made it faster and cheaper to move goods across the country. They also say the changes promote safety; without longer work hours, the industry would be forced to put more drivers with little experience behind the wheel. Regulators and industry officials point out that the death toll of truck-related accidents — about 5,000 annually — has not increased, while the fatality rate, the number of deaths per miles traveled, has continued a long decline. The number of annual injuries has also been dropping slowly, falling to 114,000 last year.

But advocates of tighter safety counter that the fatality rate for truck-related accidents remains nearly double that involving only cars. Safety and insurance groups say that weakening the rules has reversed a course set by the Clinton administration and has resulted in the federal government repeatedly missing its own targets for reducing the death rate.

In decisions that had the support of the Bush administration, the motor carrier agency has eased the rules on truckers’ work hours, rejected proposals for electronic monitoring to combat widespread cheating on drivers’ logs and resisted calls for more rigorous driver training.

The federal government began overseeing the trucking industry in the 1930s, setting rates, limiting competition and regulating safety practices. From the start, companies won important concessions from Washington, including exemptions from minimum wage and other labor laws. The industry also resisted efforts to impose tougher safety standards, saying it could police itself.

In 1937, the first driving hour limits were set. Truckers were allowed drive up to 10 continuous hours but were required to rest for a minimum of 8 hours. The remaining six hours could be used for other work activities, like loading, or for breaks or meals. Truckers could drive up to 60 hours over 7 consecutive days, or 70 hours over 8 days. To enforce those rules, the government required drivers to keep logs.

Repeated efforts over the years to tighten the rules were blocked, often as a result of vigorous industry lobbying. Trucking companies have long argued that tougher standards are not necessary to promote safety, and that they would cause devastating economic pressures. Profit margins in the industry are thin, particularly after economic deregulation in 1980 prompted competition. Long hours and low pay for drivers have led to high turnover, and carriers struggle to find replacements. Those conditions, safety experts say, have contributed to widespread safety problems.

The practice of falsifying driver hours is an open secret in the industry; truckers routinely refer to their logs as “comic books.” Fines are small. The federal motor carrier agency does not have the staff to monitor closely 700,000 businesses and almost eight million trucks.

In 1995, Congress directed regulators to study truck driver fatigue and its safety consequences and to consider new rules. But the agency then charged with truck safety, the Federal Highway Administration, never did so. Two years later, the Clinton administration vowed to cut the annual death toll of truck-related accidents in half within a decade. In 1999, Congress created the Federal Motor Carrier Safety Administration in response to what lawmakers considered ineffectual regulation and high casualties.

A year later, the agency proposed tighter service hour rules. They would allow long-haul drivers to work a maximum of 12 hours a day, and require them to take 10-hour breaks between shifts. They also required installation of electronic devices to replace driver logs.

In April 2003, the agency issued rules that increased the maximum driving hours to 77 from 60 over 7 consecutive days and to 88 hours from 70 over 8 consecutive days. It capped daily work hours at 14, which included driving as well as waiting for loading and unloading. The agency also decided not to require truck companies to install electronic monitoring devices.

The agency said the new rules would modestly decrease the number of fatalities by increasing the required time off for drivers, to 10 hours from 8. A year later, the agency set training standards for new drivers: 10 hours of training, none of it on the road.

The courts have become involved as safety groups and the teamsters union seek safer roads. In July 2004, a three-judge panel from the federal appeals court in Washington issued a harsh opinion in a lawsuit brought by several safety organizations over the trucking work rules. A year later, in August 2005, the agency issued virtually identical rules, which the safety groups and the Teamsters union are again challenging in court.

The agency had a similar legal setback on driver training. A three-member appeals court panel called the regulation “baffling” and criticized the agency for ignoring its own studies on the need for more comprehensive training. The agency has not responded to the court’s decision by issuing any new rules.

Meanwhile, the agency has failed, by growing margins, to meet its annual targets for lowering the death rate for truck-related accidents.

December 5, 2006

Limits on Med Mal Fees Barrier to Justice

Florida recently amended its state constitution to limit attorney fees in medical malpractice cases. The Florida Supreme Court has ruled that attorney fee limits in medical malpractice cases can be waived—as long as lawyers fully inform their clients about the rights they are giving up and plaintiffs show they have done so voluntarily. The Florida Bar Association argued that fee limits interfere with plaintiffs’ right to find counsel of their own choice, and the Court agreed.

witness.jpgIn 2004, the Florida Medical Association (FMA) promoted an amendment to the section of the state constitution addressing lawyers’ rules of professional conduct. The amendment is known as Rule 4-1.5. The measure guaranteed that plaintiffs in medical malpractice cases would receive a set percentage of any jury award or settlement: 70 percent of the first $250,000, and 90 percent of any additional amount. The balance would cover lawyers’ fees and court costs. Florida voters approved the amendment.

The Florida Bar Association protested the rule change, saying it reduced plaintiffs’ ability to find lawyers willing to take their cases. Trial lawyers began asking their clients to sign waivers giving up their right to the percentage of the recovery specified in the amendment—even though Rule 4-1.5 did not contain any provisions for waivers.

After a hearing last December, the high court instructed the bar to submit proposed wording for a revised rule. In September, several groups appeared before the court, including the Academy of Florida Trial Lawyers, the Florida Consumer Action Network, and numerous state trial lawyer associations on one side; and the American Medical Association, Florida Chamber of Commerce, and the Florida Insurance Council.

The proposal submitted by the Florida bar included a carefully worded and detailed waiver form that plaintiff lawyers would use uniformly. The court accepted the bar’s proposed rewording—and its version of the waiver—with minor modifications.

“Given the reality that the amendment is now in effect and that waivers are currently being made, we agree there is a need for guidance and uniformity in order to protect both the claimants and attorneys involved,” Chief Justice R. Fred Lewis wrote for the court. “The rule acknowledging the provisions of the amendment and providing for waiver of the personal right guaranteed by the amendment should meet this need.”

In Colorado, there is no limitation on fees for medical malpractice cases, but damages are severely limited. Caps on damages in Colorado medical malpractice cases have been upheld as enforceable and constitutional. Our Supreme Court had interpreted a previous version of the HCAA limitation on “non-economic” damages to exclude from the primary $250,000.00 cap, damages for impairment and disfigurement. Preston v. Dupont, 35 P.3d 433 (Colo. 2001). However, our very reactionary General Assembly, in cooperation with an anti-consumer/victim executive, amended the HCAA statute to legislatively over-rule Preston.

Effective July 1, 2003, the HCAA $250,000 cap on non-economic damages included damages for physical impairment or disfigurement that a patient could recover within the definition of the capped non-economic damages. As a sop to the poor patients, the General Assembly additionally increased the cap from $250,000.00 to $300,000.00, even though medical inflation and the Consumer Price Index far outstripped this 18% increase given that the cap had remained at $250,000.00 since 1986. Progressive advocates for fairer standards, including injured patients, and well reputed lawyers were laughed out of the committee rooms. See also, Wallbank v. Rothenberg, 74 P.3d 413 (Colo.App. 2003).

The Colorado statute also provides that “the total amount recoverable for all damages for a course of care for all defendants in any civil action for damages in tort brought against a health care professional, as defined in §13-64-202, or a health care institution, as defined in §13-64-202, or as a result of binding arbitration, whether past damages, future damages, or a combination of both, shall not exceed one million dollars…” Clearly a grossly insufficient amount of compensation for many of the most catastrophic medical mistakes.

Insurance Industry's Misinformation Campaign

Lawyer jokes and uninformed statements bashing the civil justice system have dogged plaintiff attorneys through many a golf game, PTA meeting, or dinner party.

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The “litigation explosion” of frivolous lawsuits is a perception circulated by powerful corporate interests that want to escape accountability for the dangerous products they foist on the public. Government agencies that track civil suits say the number being filed on both the federal and state levels is declining. And a business survey conducted this year by the National Association of Manufacturers ranked lawsuits last among the corporate world’s 10 greatest concerns.

The real problem is the insurance industry gouging policy holders. According to the Los Angeles Times, the industry made a record $44.8 billion profit in 2005 despite Hurricane Katrina claims. Besides boosting profits, the industry raised its surplus by more than 7 percent to nearly $427 billion.

According to the annual statements of the 15 largest companies that handle malpractice insurance, the amount they collected in premiums increased by 120.2 percent between 2000 and 2004, while claims rose by only 5.7 percent. The rate of premium increase was 21 times greater than the rate of increase in claims payments during the same period.

None of that has anything to do with lawsuits and everything to do with the insurance industry stuffing its pockets at the expense of the American public.


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