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Lex Cognito
A Collection of Legal News and Commentary Focusing on Torts, Medical and Tennesse Law |
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President Bush, (with Tennessee's Senator Bill Frist at his side), laughed as he signed the federal class action bill into law that rewards wealthy business supporters by changing the rules for class-action lawsuits. Denounced by editorials in papers throughout the country, including the Nashville,Tennessean, "Class Action 'Reform' is Consumer Safety Retreat", the true objective of this law is to dilute the impact of strong state laws protecting consumers and the environment and to make it harder for Americans to win redress in court when they are harmed by egregious corporate behavior. Senator Frist believes the "number one agenda " issue for the Congress is "tort reform." The consumer advocate group Public Citizen explains that the law so gleefully signed by President Bush is nothing more than a power grab that strips consumers of their rights to redress in the courts and gives a green light to corporate greed and deception:
Seen as a significant "victory for the Bush Administration," the new class action law is a serious loss of consumer and individual rights. The ABA has analyzed the nes law here.The law sharply limits the ability of people to file class-action lawsuits against companies.The measure prohibits state courts from hearing many kinds of cases they now consider, transferring them to federal courts. Experts say many cases will wind up not being brought because federal judges have been constrained by a series of legal precedents from considering large class actions that involve varying laws of different states. The legislation also makes it more difficult for class-action lawsuits to be settled by payments of coupons for goods and services instead of cash by the defendants. The measure does not affect pending cases.The measure has been attacked by civil rights organizations, labor groups, consumer organizations, many state prosecutors and environmental groups, who say it would sharply curtail important cases and provide new protections for unscrupulous companies. Many federal and state judges and state lawmakers have also criticized the bill, saying it would strip states of an important role in judging such contests and could add a considerable number of cases to already burdened federal dockets. "This bill is one of the most unfair, anticonsumer proposals to come before the Senate in years," said Senator Harry Reid of Nevada, the minority leader. "It slams the courthouse doors on a wide range of injured plaintiffs. It turns federalism upside down by preventing state courts from hearing state law claims. And it limits corporate accountability at a time of rampant corporate scandals." Democrats cast all 26 dissenting votes in the Senate. Some experts in civil procedure and class actions said they believed that the fight would now move to federal courts and that some federal judges might become more receptive to hearing such claims now that they know that their dismissal would mean that no one else would hear them. Class-action lawsuits rarely make it to trial but require considerable time because judges are called upon by lawyers from both sides to rule on a variety of pretrial motions. Prof. Arthur R. Miller of Harvard Law School, a longtime critic of the legislation who in previous years worked with organizations that tried to soften the measure, said that the legislation could lead to the balkanization of class-action litigation by encouraging plaintiffs' lawyers to file smaller suits in different courts, rather than a single large nationwide action."This will clearly have a dampening effect on class actions," Professor Miller said. "But accomplished law firms will figure out how to work with it." He also said that the vague language of the new legislation was certain to spawn a significant amount of new litigation over the law's terms. "This is not neat and crisp like the Ten Commandments," he said. C.I. R. v. Banks, 2005 WL 1238 25 (Jan. 24, 2005). "We hold that, as a general rule, when a litigant's recovery constitutes income, the litigant's income includes the portion of the recovery paid to the attorney as a contingent fee. We reverse the decisions of the Courts of Appeals for the Sixth and Ninth Circuits." The decision involved attorneys' fee awards in two employment discrimination cases (Banks and Banaitis). The Court resolved a split between the Circuits and held that the amount of the attorney's fee is taxable income to the client and must be included in gross income and then deducted by the taxpayer, subject to the operation of the Alternative Minimum Tax. As commentators will explain, however, this holding is a general rule that does not apply to personal injury cases because recoveries for "personal injury" are specifically excluded from adjusted gross income by Section 104 of the Internal Revenue Code.26 U.S.C. § 104(a)(2). The tax issue comes up most often in employment cases, but not in personal injury lawsuits, because damage awards resulting from "personal injury or sickness" are specifically excluded from taxation. While in some instances clients in non personal injury cases can claim the contingent fee portion of their awards as a deduction, they cannot do so at all if they are subject to the alternative minimum tax. Bills pending before Congress aimed at benefiting the victims of employment discrimination would end their obligation to pay taxes on the portion of their damage awards that go toward lawyer fees. ATLA has prepared an excellent summary/article explaining the relative non-impact of Banks for most trial lawyers. The consumer watchdog group, Public Citizen, states:" President Bush is leaving this years campaign trail littered with distortions, exaggerations and patently false statements about the impact of consumer lawsuits on the nations economy and health care." Public Citizen published a fact sheet, "President Bush Dis-Torts the Truth About Lawsuits Impact on Health Care and the Economy" that debunks the unfounded rhetoric and falsehoods routinely espoused by Mr. Bush and Dr. Bill Frist. Ironically, when President Bush appears at these rallies he often is accompanied by a doctor who was supposedly driven from practicing medicine by "junk lawsuits." But then, after Bush leaves town, the facts begin to emerge. For example, President Bush traveled to Youngstown, Ohio, to talk about health care, and before long he was reprising his complaint about "junk and frivolous" malpractice suits, which he said are discouraging good doctors from practicing medicine. To bolster his argument Mr. Bush introduced a local doctor, Compton Girdharry, to an audience at Youngstown State University. Dr. Girdharry, an obstetrician/gynecologist, said he had been driven from a practice of 21 years by the high cost of malpractice insurance. If Mr. Bush was looking for an example of a doctor who was victimized by frivolous lawsuits, Dr. Girdharry was not a great choice. Since the early 1990's, he has settled lawsuits and agreed to the payment of damages in a number of malpractice cases in which patients suffered horrible injuries. A White House spokesman said the president had not been aware of the problems in Dr. Girdharry's background. "Had this doctor provided that information," the spokesman said, "he would not have been at that event.". In Missouri President Bush bemoaned the fate of a neurosurgeon supposedly driven from practice by junk lawsuits. Afterwards, the facts came to light that this Columbia, Missouri neurosurgeon routinely testifes for plaintiffs in medical malpractice cases as an expert and corrected President Bush by saying: "I was not run out of business by lawsuits. I decided to retire because of the jump in my insurance premium, and there's not a direct correlation with lawsuits against me." "I think the will of the American people is consistent with letting it expire, so it will expire," Senate Majority Leader Bill Frist, R-Tenn, told reporters on Capitol Hill today What? Does Dr. Bill Frist actually believe that most Americans want to have AK-47s, Uzis, Tec-9s and other assault weapons freely available for gangs, terrorists and drug dealers? Even though Al-Qaeda training manuals urge terrorists to buy these weapons (especially the AK-47) in the United States, Senator Frist blithely (or blindly) permits presidential politics to bring these weapons back to U.S. streets. Senator Frist is reckless, shameful and dangerous on this issue. Senator Frist's RNC speech called trial lawyers "culprits" and "predators" for their role in medical malpractice litigation. He would have have been far more accurate to finger himself (and his House cohort Tom DeLay) as the real "culprits and predators" for willingly allowing the sale and trade of true weapons of mass destruction in a time of terror. Senator Frist is not simply wrong, he is absurdly wrong. Polls consistently show a clear majority of American favor extending the ban on assualt weapons (the most recent poll showing 74% in favor of extending the ban on assault weapons). But more fundamentally, how can a medical doctor, a surgeon no less, possibly support the sale of assault weapons? The American Medical Association strongly supports the ban on assault weapons and adopted a formal resolution advocating that the ban remain in place. Senator Frist should remember the oath he took as a physician to "do no harm." As the AMA Resolution notes:
Senator Frist's Third Effort to Enact Caps and On a 49-to-48 vote, Republican leaders fell 11 votes short of the 60 needed to overcome the threat of a filibuster by Democrats and force the Senate to consider their bill to limit pain-and-suffering damages that juries can award in malpractice suits against obstetricians and emergency room doctors.Senator Bill Frist of Tennessee, the majority leader, said his party would not give up on getting malpractice legislation sought by doctors and insurance companies through the Senate this year. Ethics Complaint Cites Senator Frist's The Senate's only doctor, Bill Frist, has been the unabashed point person for the Republican agenda to limit the rights of patients to sue and recover from doctors and drug companies. Now a highly regarded independent watchdog consumer group, The Foundation for Taxpayer and Consumer Rights, (http://www.consumerwatchdog.org) has called for Senator Frist to step aside from this debate and recuse himself because of his ownership (albeit in a blind trust) of at least $10,150,000, and up to $30,350,000 or more, in HCA stock. The foundation puts it plainly: "Senator Frist's current involvement in the medical malpractice debate rises beyond the level of general concern for health issues to specific advocacy for his family's company." The Foundation for Taxpayer and Consumer Rights is absolutely right. Senator Frist should recuse himself from voting on limits on the rights of patients who have been most seriously injured by medical malpractice.The press release advocating Senator Frist's recusal may he viewed at: http://www.consumerwatchdog.org/healthcare/pr/pr004158.php3 This is not the first time that Senator Frist's ties to HCA have been questioned as "legal corruption." Charles Lewis, with the Center for Public Integrity also concluded Dr. Frist had a "direct conflict" in urging legislation that would directly benefit HCA. See http://www.commondreams.org/headlines02/1222-04.htm. The Nashville Scene (reporter Willy Stern) did an excelllent investigation into Dr. Frist's blind trust and concluded that the trust was not in fact blind: "What the panel discovered is that Frist's "blind" trust isn't really blind at all, though he hasn't broken any rules.." The limits Dr. Frist seeks would penalize patients and financially reward Health Corporation of America (the nation's largest for-profit hospital) and HCI (Health Care Indemnity, the nation's sixth largest medical malpractice insurer). __________ Senator Bill Frist LOSES Unfair Effort to Limit Damages Thankfully, on Tuesday (Feb. 23, 2004) evening, the U.S. Senate said NO to a Motion to proceed to the consideration of S.2061, the bill that would have restricted the rights of injured mothers and their babies, and handed sweeping liability protections to physicians and others for injuries arising from OB/GYN services.Needing 60 votes to invoke cloture and end a filibuster against proceeding to the bill, proponents were able to muster only 48 votes, falling short of even a bare Senate majority. All Senate Democrats present and voting, except for Robert Byrd of West Virginia, opposed cloture. Democratic Senators Kerry, Edwards, Boxer, Johnson, Corzine and Miller were not present. Three courageous Republicans defied the White House and their Senate leadership and voted to oppose cloture, Lindsey Graham of South Carolina, Richard Shelby of Alabama and Mike Crapo of Idaho. Independent Jim Jeffords also opposed cloture. We should thank all Senators who voted to oppose cloture. Sadly here in Tennessee Dr. Frist and Lamar Alexander staunchly supported this restrictive legislation. You can reach Senate offices through the U.S. Capitol switchboard at 202-225-3121; additional information on how to contact your Senator can be found at http://action.peopleoverprofits.org/legDirectory/ Senator Bill Frist's Unfair Effort to Limit Damages Tennessee's Senator Bill Frist will bring to the Senate Floor on Monday, Feb. 23, 2003 a Senate bill (S. 2061), which the Republicans have titled the Healthy Mothers and Healthy Babies Access to Care Act" that seeks to enact a series of tort reform measures at the federal level that would apply only to cases involving birth injuries and mothers (OB-GYN cases). Interestingly, the Republican Senate's official website calls the bill simply, "The Medical Malpractice Billl." Senator Frist has e-mailed Republican supporters urging them to support this bill. President Bush has also endorsed capping damages in medical malpractice cases. This latest effort at federal tort reform is Dr. Frist's plan to fundamentally change the law in every state for birth injury cases to benefit drug companies, manufacturers, HMOs, docotors and others who are found to be at fault for causing serious birth injuries or deaths by juries. Senator Frist correctly noters that this bill is patterned closely after California's medical malpractice law, MICRA, that has capped damages in California. However, the California experience has hardly been a model of success or fairness as well documented by the Consumer Attorneys of California. Having previously failed to enact a broader tort reform bill, Senator Frist's latest effort to enact this legislation is an even more profoundly disturbing encroachment into the rights of states and juries to fairly deter malpractice and defective products and provide full and fair compenation to victims. I have represented many families whose lives have been permanently devastated by birth trauma caused by negligence, malpractice, HMO decisions or defective drugs. This bill wrongly discriminates against women and infants by restricting their right to hold physicians, hospitals, insurance companies, HMOs, and even drug and medical device manufacturers accountable for injuries resulting from the provision of obstetrical and gynecological care. Although "conservative" Republicans are generally opposed to federal legislative efforts to limit the laws and authority of states to govern traditional areas of state law, when it comes to insurance companies, HMOs and the AMA, there is no lack of zeal by the Republican Senate leadership to vote for immunizing liability. Although Senator Frist says the bill is necessary to increase access to womens health care, nowhere does the bill make liability insurance for doctors more available or affordable. And nowhere does it provide access to health care for women who are uninsured. What this proposal does do is greatly limit the ability of women and children with the most devastating injuries to hold the wrongdoer accountable. The bill includes the following provisions:
2/18/05: Law Prohibiting Gay Marriage Does Not Violate State Constitution (Indiana). Morrison v. Sadler (Lawyers Weekly USA No. 9930003) Indiana Court of Appeals No. 49A02-0305-CV-447. Jan. 20, 2005. 2/13/05: Newsom Calls for Support of Gay Marriage. Marking the anniversary of his decision to sanction same-sex marriages, Mayor Gavin Newsom on Saturday urged gay couples to back politicians who support gay marriage, saying it is time "to hold our elected officials accountable." 2/13/05: Massachusetts AG Supports Gay Marriage Ruling. One day after the Massachusetts Supreme Judicial Court announced it would hear arguments challenging its decision to legalize same-sex marriage, Massachusetts Attorney General Thomas F. Reilly told reporters Friday that he now supports the ruling. He had previously opposed the unions, and initially spoke out against the court's November 2003 ruling. 2/2/05: New York judge strikes down same-sex marriage ban. New York State Supreme Court Justice Doris Ling-Cohan ruled that New York's law banning same-sex marriages violates the state constitution. If upheld on appeal, the decision would allow same-sex couples in the state to wed. Justice Ling-Cohan found in favor of five same-sex couples who were denied marriages licenses last year. Interactive Map and State by State Comparison. Analysis: When the United States Supreme Court struck down a Texas statute outlawing homosexual sodomy in Lawrence v. Texas, 123 S.Ct. 2472 (June 26, 2003), Tennessee Senator Bill Frist called for a constitutional amendment banning gay marriage. When the Massachusetts Supreme Court held in Goodridge v. Department of Public Health, 798 N.E.2d 941, Mass.,2003.(Nov. 18, 2003) that limiting the protections, benefits and obligations of civil marriage to individuals of opposite sexes lacked a rational basis and violated state constitutional equal protection principles, Senator Frist again called for a constitutional amendment banning "gay marriage." At a "Republican dinner" in Williamson County, Tennessee on Feb. 19, 2004, Senator Frist again called for a constitutional amendment banning gay marriage. Tennesseean, (2/20/04), p. 10A ("Frist Wants Constitutional Amendment to Ban Gay Marriages"). Respectfully, a constitional amendment outlawing "gay marriage" is a misguided polarizing effort to divide our country and citizens on religious and moral grounds and misses a very moderate and sensible solution: civil unions that provide same-sex partners with rights and legal interests of married couples. Currently 37 states have laws that are "Defense of Marriage Acts." The constituitonality of these laws is uncertain given the Massachusetts Supreme Court's recent opinion that even "civil unions" that have all the rights and benefits of marriage relegate same-sex couples to "second class citizens" in violation of the Massachusetts state constitution. In re Opinions of the Justices to the Senate, 440 Mass. 1201, 802 N.E.2d 565, Mass., Feb 03, 2004, By contrast, the State of Alaska (Bush 59%; Gore 28%) enacted a constitutional amendment to the Alaska Constitution in 1999 that "To be valid or recognized in this State, a marriage may exist only between one man and one woman." AK CONST Art. 1, § 25. Congress has also passed, at the federal level, the Defense of Marriage Act, 1 U.S.C. § 7 (2000) defining "marriage" as "only a legal union between one man and one woman as husband and wife," and "spouse" as "a person of the opposite sex who is a husband or a wife". The specific language of this law is as follows:
The effect of this federal law is largely aspirational because by far and away most laws affecting marriage and families are state laws. About a month before the U.S. Supreme Court's decision in Lawrence, a constitutional amendment was proposed in the House of Representatives providing that "[m]arriage in the United States shall consist only of the union of a man and a woman." H.R.J. Res. 56, 108th Cong. (2003). This proposed amendment would amend the U.S. Constitution to state:
A little more than a month after the Lawrence v. Texas decision, in response to "social conservatives" who were "seething" over Lawrence, President Bush stated that he was proposing official action, which might include a constitutional amendment, that would define marriage as a union between a man and a woman. Neil A. Lewis, Bush Backs Bid To Block Gays From Marrying, N.Y. Times, July 31, 2003, at A1.He has now done so. Tenneessee's statutes contain hundreds of citations to "marriage" and, as personal injury lawyers are well aware, status as a spouse carries important legal rights including: the right to wrongful death damages as a surviving spouse; rights to inheritance as the immediate nexi-of kin; right to determine method of final disposition by burial or cremation; loss of consortium benefits; evidentintiary privileges; and protections against spousal abuse. The proposed amendment to the Constitution advocated by Rep. Musgarve (and endorsed by Bush) would prohibit any constitutional protections to same-sex couples relating to the "legal incidents of marriage." Most Americans, however, favor recognizing "the legal incidents of martriage" for same-sex couples as a "civil union." The moral or political overtones of "gay marriage" cloud the moderate view that same sex couples should have the same bundle of rights that married couples enjoy. The point was rather eloquently made by Vice-President Dick Cheney in his Oct. 2000 VP debate with Joe Lieberman:
What the law should do is recognize civil unions that carefully define what rights same-sex couples may enjoy. For example, the Eleventh Circuit has held that Florida may prevent same-sex couples from adoption, declining to extend the sexual privacy rationale to gay adoption. Lofton v. Secretary of Dept. of Children and Family Services, 2004 WL 161275, 17 Fla. L. Weekly Fed. C 201, 11th Cir.(Fla.), Jan 28, 2004. Cokie Roberts and Steven Roberts wrote an excellent op-ed article on just this issue. Escaping Extreme Views, Civil Unions Make Sense. The "gay marriage" label and the effort to Constitutionalize prohibitions aganist equal protection and due process for homosexuals obfuscates the real issue which is that discrimination against same-sex couples should not exist with respect to laws relating to inheritance, death, health, taxes, adoption and crimes.By invoking the "gay marriage" nomenclature and calling for a constitutional amendment for political purposes, Senator Frist (and President Bush) miss the issue and divide us further. In Mathias v. Accor Economy Lodging, Inc., 347 F.3d 672, 62 Fed. R. Evid. Serv. 1199, 7th Cir.(Ill.), Oct 21, 2003 the Seventh Circuit, in an opinion by Judge Posner, approved a punitive damages award 37 times compensatory damages in a case involving bedbug infestation at a Red Roof Inn motel. The Second Circuit has also approved a 75,000 to 1 ratio in a police-misconduct case, Disorbo v. Hoy, 343 F.3d 172 (2d. Cir. 2003) The Fifth Circuit approved a 150 to 1 ratio in a police-misconduct case. Williams v. Kaufman County, 2003 WL 22890399, 5th Cir.(Tex.), Dec 09, 2003 These cases are important in rejecting the concept that a single-digit ratio should always apply to punitives. In State Farm Mut. Ins. Co. v. Campbell, 123 S.Ct. 1513 (2003) however, the court stated, "few awards exceeding a single-digit ratio between punitive and compensatory damages will satisfy due process." Judge Posner in Mathias suggested that if a tortfeasor is caught only half the time he commits torts, then when he "is 'caught' he should be punished twice as heavily to make up for the times he gets away." Also, absent a mutli-digit multiplier it would be difficult to finance litigation that has a propsect of only negligible compensatory damages. Finally, "official" penalities could have included misdemeanor battery charges and loss of the license to operate. The decision was favorably reviewed in The National Law Journal, Vol. 26, No. 10 (Nov. 3, 2003). The factors to consider under the Supreme Court's decision in State Farm Mut. Ins. Co. v. Campbell, 123 S.Ct. 1513 (2003) include: 1) the ratio or proprotionaliity between compensatory and punitive damages; 2) the reprehensibility of the defendat's conduct; and 3) the level of official financial sanctions that a defendant could have been subject to for the conduct being punished. In Hodges v. S.C. Toof & Co., 833 S.W. 2d 896 (Tenn. 1992) the Tennessee Supreme Court permitted evidence of "the defendant's financial affairs, financial condition, and net worth." Donald Paine argues that State Farm does not prohibit consideration of a defendant's wealth because in State Farm Justice Kennedy stated that "The wealth of a defendant cannot justify an otherwise unconstitutional punitive damages award." (Emphasis supplied). Moreover, State Farm quoted BMW v. Gore, 116 S.Ct. 1589, 517 U.S. 559 (1996) with approval that "[Wealth] provides an open-ended basis for inflating awards when the defendant is wealthy. . .That does not make its use unlawful or inappropriate; it simply means that this factor cannot make up for the failure of other factors, such as 'reprehensibility', to constrain significantly an award that purports to punish a defendant's conduct." (Emphasis supplied). See Paine, Punitive Damages: Hodges and State Farm, 39 Tenn. B.J. 33 (Nov. 2003). Five years after a major report describing an epidemic of medical errors in the U.S. health care system shocked patients, policy makers and physicians, little substantial progress has been made to make medical care safer. See Scant Progress Seen on Cutting Medical Errors (Reuters Health, 11/04/04). Observers cite a lack of money and political will needed to fund safety research and implement safeguards in hospitals and physicians' offices throughout the nation.They also point to a resistant medical culture in which doctors still balk at efforts to record errors and participate in systematic steps to solve them.The Institute of Medicine issued a report in November 1999 warning that outdated and sometimes nonexistent safety practices were causing widespread errors in pharmacies, doctors' offices and operating rooms throughout the country. In Burroughs v. Magee,118 S.W.3d 323, (Tenn., Oct 01, 2003) the Tennessee Supreme Court held a physician owed duty of care to automobile passenger and her husband to warn truck driver of possible adverse effects of Soma (a muscle relaxant) and Esgic-Plus (a barbiturate) on his ability to safely operate a motor vehicle; but (2) physician did not owe duty of care to automobile passenger and her husband in deciding whether or not to prescribe those medications to truck driver. The case is a good review of the issue of duty and forseeable harm under Tennessee law. In Wooten v. Logan, 2004 WL 68541 (6th Cir.(Tenn.)), (Jan 14, 2004) the Sixth Circuit held that a Pickett County sheriff's act of rape after a traffic stop did not support a 42 U.S.C. § 1983 Civil Rights claim because there was no proof of an "official policy" in that the act of rape "did not establish or constitute a 'municipal policy." The court reasoned that the sheriff's conduct was not "designed to guide future decision making or in furtherance of some governmental body's high-level overall plan." Circuit Judge Karen Moore dissented on the ground that the sheriff-rapist was the policy-maker: "Logan's position as sheriff is his ability to create policy. Whether that policy allows the abuse only of his office, or of all law-enforcement offices, is irrelevant. It is not the greater power of the sheriff to force sexual acts from the citizenry that matters; it is the greater power of the sheriff to set the policy of the municipality to allow such reprehensible acts to happen under the color of state law that is at issue." In Harsh v. Petroll (General Motors), 2003WL22902563 (Pa. Cmwlth., Dec. 10, 2003) the court held that compliance with a federal motor vehicle safety regulation for fuel tank safety was irrelavant in a product laibility case based upon a crashworthiness theory. In Grimes v. Mazda North American Operations, 2004 WL 63417 (6th Cir.(Ky.), Jan 13, 2004) the Plaintiff introduced evidence from persons involved in other accidents where the seat belt latch in the vehicle was defective. The district court ruled that such evidence could be used only for the purpose of providing notice to the manufacturer of a possible defect, not as evidence that the product was defective. The Sixth Circuit held the trial court correctly ruled on this point. But, even if there were error, the error had no effect. The jury returned a special verdict that plaintiff was not wearing her seatbelt and that this, not design defect, may have been a cause of her injury. In Clausen v. M/V New Carissa, 2003 WL 22208783 (9th Cir., March 4, 2003) the Ninth Circuit held that the absence of any scientific literature did not preclude an expert opinion that an oil spill from a tanker damaged oyster beds. The logic and reasoning in this opinion are worth a careful review on the Daubert issue. In Hunter v. Ura, 2003 WL 22438444 (Tenn.Ct.App., Oct 28, 2003) the trial court held a Daubert/McDaniel evidentiary hearing to determine the reliability of expert causation opinion in a medical malpractice case. The court excluded one expert, but permitted the plaintiffs' anesthesia expert to testify. In Raiteri ex rel Cox v. NHC Healthcare/Knoxville, Inc.,2003 WL 23094413, (Tenn. Ct. App. December 30, 2003) the Court of Appeals held in a wrongful death nursing home negligence case that the trial court erred in granting a motion to compel mediation and arbitration pursuant to the dispute resolution procedures contained in the defendants nursing home admission agreement.The agreement was signed by the patient's husband, although the wife had not been adudicated incompetent. The agreement waived a jury trial and provided for arbitration. The court discussed both Buraczynski v. Eyring, 919 S.W.2d 314, 318 (Tenn. 1996) (which upheld an arbitration agreement) and Howell v. NHC Healthcare-Fort Sanders, Inc., 109 S.W.3d 731, 733 (Tenn. Ct. App. 2003) (that refused enforcement of arbitration), noting that Howell refused to order mediation or arbitration based upon a determination that the NHC admission agreement was unenforceable because (1) the patients husband could not read and (2) the admissions coordinator failed to explain that by signing the agreement he was waiving his wifes right to a jury trial. Id. at 735.The Eastern Section Court appeals affirmed the trial court in Howell because the nursing home ha[d] not demonstrated that the parties bargained over the arbitration terms, or that it [sic] was within the reasonable expectations of an ordinary person. The Court further explained the Howell holding: "We held in Howell that the party seeking to enforce an alternative dispute resolution agreement must show that the parties actually bargained over the arbitration provision or that it was a reasonable term considering the circumstances. Id. at 734 (quoting Brown v. Karemor Intl, Inc., C/A No. 01A01-9807-CH-00368, 1999 WL 221799, at *3 (Tenn. Ct. App. M.S., filed April 19, 1999). The Court in Raiteri, however, struck down the NHC agreement not simply because the husband (rather than wife signed) but because the agreement was a contract of adhesion.
In Biscan v. Brown, No. M2001-02766-COA-R3-CV - Filed December 15, 2003, the Tennessee Court of Appeals affirmed a judgment against a social host (15% liability) after a jury verdict awarding damages to Jennifer Biscan (with 15% fault attributed to her) and her father, Robert Biscan, for serious brain injuries Jennifer incurred in an automobile accident, which injuries left her permanently impaired. Jennifer, 16 at the time, was riding as a passenger in the car driven by Hughes Brown (found 70% at fault), then 17, who was intoxicated. The accident occurred after Jennifer and Hughes left a party at the home of Paul Worley, where some guests had consumed beer. It was uncontested that Hughes Browns negligent operation of the car while intoxicated was the cause of the accident. The Worleys did not serve alcohol or make it available at the party. Although many attendees did not drink, a number brought alcohol, primarily beer, to the party and drank it there. Mr. Worley fully expected that the minor guests would both bring and consume beer on his property. He intended that a rule he had implemented in previous parties given by his son would apply: that is, that any guest who chose to drink alcohol would be required to turn over car keys and spend the night rather than drive home. First the court held that the person who furnished the beer (Jennifer's sister) could not be held liable (or have any percentage of fault) because Tenn. Code Ann. § 57-10-101 ("The general assembly hereby finds and declares that the consumption of anyalcoholic beverage or beer rather than the furnishing of any alcoholic beverage or beer is the proximate cause of injuries inflicted upon another by an intoxicated person.) The court held the law applied to someone who merely provides alcohol and thus the sister (and social hosts) who furnish alcohol have no liability. The court cited Downen v. Testa, 2003 WL 2002411, at *3 which reached the same no liability result for a social host. But, here the parent who hosted the party--but provided no alcohol -- was nevertheless held liable. This was the evidence: "Mr. Worley hosted the party for his daughter Ashleys eighteenth birthday at his residence. No written invitations were sent; Ashley Worley personally invited friends. Other students heard about the party by word-of mouth. Everyone who showed up at the Worley home on the night of the party was welcomed by the Worleys. Mr. Worley did not intend to serve any alcoholic beverages, and did not. However, he was aware that some of the minors attending the party would bring beer and drink it at the party. He expected that to occur. Mr. Worley told Ashley prior to the party that if any of the guests consumed alcoholic beverages they would not be permitted to leave the party and would be required to stay the night. The court found that Worley owed a duty of care to Jennifer Biscan: "Imposing a duty to act reasonably to prevent driving by an intoxicated minor in a situation where the adult defendant has the authority and opportunity to take non-onerous action to preclude that driving furthers such public policy.20 We find Mr. Worley owed a duty of reasonable care under the circumstances to Jennifer Biscan. . .We recognize an apparent anomaly if an adult host who served alcohol to a minor could not be liable because of the Dram Shop Act, but a host who acted with good intentions as Mr. Worley did could face liability. We simply note that the case before us does not involve a defendant who served alcohol to minors, and we are not called upon to address that situation. Further, allowing an intoxicated minor to drive when it could have been prevented is a cause of the injury separate from and additional to the intoxication." The court also found Mr. Worley assumed a duty of care. "Nonetheless, his own deposition testimony established his undertaking and intent with regard to safeguarding the guests and the general public. Consequently, the evidence before the court at the summary judgment stage was sufficient for it to conclude that Mr. Worley voluntarily assumed a duty to ensure that minors who had been drinking did not leave the party by driving." The court stated the " question of whether Mr. Worley owed a duty to Jennifer Biscan to prevent Hughes Brown from driving in an intoxicated state after having consumed beer at the party, with or without a passenger, or to prevent Jennifer from riding in the car with Hughes Brown must be answered by balancing the degree of foreseeability of harm against the burden upon Mr. Worley to avoid the harm by acting differently. Id. at 901. The degree of foreseeability of harm and the magnitude of that potential harm must be balanced against the onerousness of the burden involved in alternative conduct. Of course, a duty of care is dependent upon foreseeability. Pittman v. Upjohn, 890 S.W.2d 425, 431 (Tenn. 1994). Applying the relevant factors to the circumstances presented in this case, it is clear that it was foreseeable that a minor guest who drank at the party would become intoxicated and that if an intoxicated minor drove a car, there would be an accident." So what did the duty require? The court stated, "On the other side of the equation, the burden placed on Mr. Worley to prevent the harm caused by an intoxicated minor driver leaving Mr. Worleys home was not onerous. He himself devised a plan which merely required him to enforce the rule he attempted to impose. He only had to retrieve car keys or make the cars inaccessible. Of course, he also could have banned alcohol or refused to have the party." (emphasis supplied). Biscan also involved the issue of the statute of limitations for medical expenses for a child's injuries. The original suit was timely filed by the child, Jennifer but no parents were in the suit. The defendants sought to exclude medical expenses as being a time barred by limitations. The compalint was amended (more than a year after filing) under Rule 15, however, to add the father as a party. The Court of appeals held the claim "related back" and was thus not barred. We have filed a brief on this issue in a similar setting urging that under certain circumstances the claim for medical expenses is the child's claim to begin with. Now, under Biscan, Rule 15 provides a cure where the original complaint was filed within one year of the injury. If more than a year elapsed, however, the issue becomes who "owns" the claim--child or parent. See brief. A Dec. 21, 2003 New York Times article notes increasing efforts in medical associations to deter physicians from testifying as experts and a movement in states to limit doctors to testify only in their field of speciality. See also Stovall v. Clarke, 113 S.W. 3d 715 (Tenn. 2003) where the court stated:
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