Don't pull Grandma's plug (until you get a lawyer) - A case for tort reform

Last week a 92 year old man was awarded $1.9 million dollars from the Phillip Morris company for the death of his 73 year old wife. Shirley Barbanell died in 1996 of lung cancer after smoking 2 packs of cigarettes a day since she was 16. Leon, her husband, was originally awarded $5.3 million, but the jury determined that the tobacco giant was only 35% responsible for Shirley's illness, with Shirley herself being 65% responsible (according to a practice in tort law called comparative negligence).

Now I'll give you some articles in a minute, and you can argue the facts amongst yourselves.

But I wanted to add a few facts to the mix.

Tort settlements account for nearly 2% of United States GDP, or approximately 285 billion dollars. However, liability insurance holdings, the insurance folks get to protect themselves from lawsuits may be consuming as much as 8-10% of the global GDP, with the US one of the biggest consumers. We can extrapolate that the US% is similar to global trends. That means as much as 12% GDP is used in preventing lawsuits. With healthcare consuming 16% of our GDP, and with malpractice insurance and lawsuits increasing the costs of healthcare (as the costs of those suits and insurance gets passed on to the consumer, us) we can't really know how much of our GDP is being spent suing people and preventing getting sued. 10% - 15% - more?

Lawyers take, on average of 50% of a tort settlement. If there were 285 billion dollars in settlements in 2008, that means being a tort lawyer is a 145 billion dollar industry. That's more than the majority of our industries make. That's big oil kinda money.

As for Shirley's case, it's worth noting the average American life span is 74 years old. Shirley Barbanell lived a reasonably long life. She chose to smoke and one might argue she got 50 years of product enjoyment from her Marlboros. And now, as sort of a parting gift, for being a loyal customer, her hubby gets $1.9 million (well, closer to $700,000, after the lawyers get their cut, and taxes, etc.)

Speaking of taxes, the states collected over 19 billion dollars in tobacco tax (with the feds taking another 6-8 billion, and more to come with a recent drastic hike), and many state economies depend on tobacco taxes to survive. If tobacco companies are going to sustain this kind of cash drain, somebody better keep smoking. Smoke em if you got em, please!



Enough facts, here's what it all comes down to...

1. Tort law is costing us trillions of dollars (and our souls). While some liability claims are legitimate, it is hard for me to see how Leon Barbarnell, 92 deserves to be a millionaire for his last few years because his wife enjoyed and CHOSE a life of smoking. Tort law teaches us to avoid responsibility. "I'm taking up a few more bad habits so my hubby has more chances to collect. Who needs life insurance, when I can SUE!" This rampant culture of lawsuits not only costs trillions of dollars, but it is turning us into a people who can't (won't) take responsibility for our own actions. We're a nation of greedy tattle tales, and nobody likes a tattler.

2. Tort law is mostly making lawyers rich. Tort lawsuits make lawyers millionaires in only one case, and many class action lawsuits net millions for attorneys while plaintiffs get only a few dollars compensation. Lawyers are looking for cash cows and big tobacco, medical malpractice and personal injury are always ready for milking, the consequences be damned.

3. The hidden cost of tort law is insurance. Everything must be insured to protect it from being sued. The sidewalks in front of your house need insurance. The porta potty you used at the fair. Even your kid's teacher may be required to carry insurance to protect from lawsuit. And especially your doctor, who could be paying up to half of his/her salary in malpractice insurance costs. Everything, everything, EVERYTHING costs MORE the more we sue, and as such, more places must then insure against lawsuits. The cycle of higher prices continues.

4. Tort reform will not be easy. People like Leon Barbarnell want to point the finger of blame and get rich. Lawyers want to help him do that. Lawyers give a lot of money to Washington. HECK, LAWYERS RUN Washington. They don't like giving up money or power in Washington, DC.

5. Tort reform is necessary. To reduce medical costs. To reduce government costs. To stop giving money to greedy folks that want a free lunch, and insure legitimate negligence cases are handled based on the case merits and not merely potential payouts. To save us all trillions of dollars. And maybe give us back our sense of personal responsibility.

I'm finishing off my smoke, now. But don't worry, folks, I'm not the suing type.



Here's the articles.
http://www.cnn.com/2009/CRIME/08/13/florida.tobacco.award/index.html
http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/08-14-2009/0005077718&EDATE=#linktopagebottom
http://divisionoflabour.com/archives/003397.php
http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/08-14-2009/0005077718&EDATE=#linktopagebottom

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Nepotism 101 (Adv. Placement) to be offered to elite in Chicago High Schools.

College is a wonderful time in a person's life, a time when we learn more than Freudian Psychology or 17th Century English Lit. We learn valuable life lessons on how the world works, and on what it takes to succeed in today's "rat race".

University of Illinois students are getting an extra special lesson on how the world works...can you say "Nepotism", boys and girls?

Recent investigations into Univ of IL admissions found that school trustees and admission officials at the schools routinely maintained a list of "well-connected" applicants, and often admitted these "Clout List" students instead of more qualified applicants. Additionally, trustees often pressured other members to comply with their politically motivated admissions.
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From the Huffington Post
"CHICAGO — A panel investigating the role that clout played in University of Illinois admissions recommended in its final report released on Thursday that all trustees voluntarily submit their resignations and let Gov. Pat Quinn decide which ones to accept.

In a scathing 45-page report, the Illinois Admissions Review Commission found unqualified students were admitted because of political connections, and recommended that any new trustees conduct a review of the university's president, the chancellor of the Champaign campus and other administrators."
http://www.huffingtonpost.com/2009/08/06/university-of-illinois-cl_n_253395.html
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That's right, the corruption went all the way to the top. University of Illinois has apparently been teaching students that 'it's not WHAT you know, it's WHO you know'.

But in an attempt to bring college level learning to advanced high school students, it appears that same lesson is being taught to Chicago high school students. A Federal grand jury investigation into a school district policy allowing principals to "hand-pick" up to 5% of their admitted students seeks to discover if political connections may be playing a role in the principals' selections.
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From the Chicago Sun Times
"A federal grand jury is investigating whether any “public officials’’ lobbied to get kids into the city’s most elite public high schools through new powers that allow principals to handpick five percent of their freshmen seats, a subpoena released Thursday suggests. ...
Its release follows Chicago Sun-Times disclosures that Chicago School Board President Michael Scott also has been called before a federal grand jury.

Chicago Public school officials revealed last month that they asked the Schools Inspector General to investigate the student admissions process at the system’s elite selective enrollment high schools after determining that policies may have been violated. After that announcement, the existence of a federal probe emerged.
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Principals of magnet schools that choose most kids using a race-based lottery have long been allowed to handpick five percent of their students — and critics have questioned whether clout or money have influenced such selections. But last school year, for the first time, those “principal pick’’ powers were extended to the principals of the city’s selective enrollment college prep high schools, which use mostly test scores and grades to admit students."

http://www.suntimes.com/news/education/1704692,chicago-public-schools-investigation-080609.article
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We will have to wait and see what the federal probe reveals, but it'll be no shocker if "Clout List" admissions were going on in Chicago high schools as well. The Chicago School Board President, Michael Scott is a well connected friend of Mayor Richard Daley and is no stranger to the ways of political nepotism.
A recent Chicago Tribune investigation revealed that Scott may be using his ties to Mayor Daley (and his former role on Mayor Daley's Olympics Commitee) to purchase taxpayer land located directly adjacent to the city's proposed Olympic venues and develop it into retail properties. Though the land is allotted for public or affordable housing and is sold at $1 per plot for builders of such projects, Michael Scott may be getting the sweet deal price despite his intention to use the land for retail development (including a Nike store). Additionally, as an early member of the Olympics committee, Scott may have influenced the placement of proposed Olympic venues to take advantage of political connections, convincing local aldermen to set aside lots for Scott to purchase and develop. Scott stands to profit significantly when the low value lots shoot up in value as the Olympics related development dramatically increases property values. A little news on Michael Scott...
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From the Chicago Tribune
"He (Scott) was criticized in 1990 for his insider connections when he left his job as city government's chief cable administrator to go work for a cable company.

Earlier this year, Scott's roles as school board president and as a member of the city's Olympic committee stirred controversy.

In May, he asked all of the city's school principals to form plans to promote the Olympics. Teachers and union officials said Scott's tactics were heavy-handed and they feared retaliation if they did not support Daley's quest for the Games."
http://www.chicagotribune.com/news/local/chi-olympics-real-estate-07-aug07,0,4603832.story
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Michael Scott claims no wrong doing, although one wonders how many federal investigations into allegations of political favoritism one can be involved in and still viably claim the appearance of innocence. He is clearly a well oiled cog in the infamous Chicago Machine.

And a fine example to the students of Illinois.

So here's your vocab lesson for the day, kids.

Nepotism - (noun) - the showing of favoritism for relatives or friends based upon that relationship, rather than on an objective evaluation of ability or suitability, for instance by offering employment to a relative, despite the fact that there are others who are better qualified and willing and able to perform the job. syn. cronyism

Or as I call it, Chicago style politics.

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