Monday, June 28, 2010

Bill Edwards continues the fight against barratry in McAllen

The Monitor, McAllen
June 27, 2010
Divorce unmasks case chasing

June 27, 2010 10:31 PM
By JEREMY ROEBUCK, The Monitor

McALLEN — Before arriving in the Rio Grande Valley in 2006, Houston lawyer Newton Schwartz knew Wilfrido "Willie" Garcia only by reputation.

And in the South Texas legal community, the man was a legend.

A wheeler-dealer of the first rate, the 47-year-old former emergency medical technician had amassed a $30 million fortune in just under two decades. His 8,500-square-foot home in Mission featured a private gym, a movie theater and a fine art collection that included works by Salvador Dali and Pablo Picasso. And he helmed a business that brought in $1.5 million a month from its involvement in the world’s most lucrative personal injury cases.

Despite never having obtained a law degree, Garcia had amassed the type of wealth only dreamed of by most young lawyers.

At the time, he was seeking $4 million to expand his firm — a Mexico-based venture that specialized in locating victims of tragic accidents and referring them to civil attorneys. And Schwartz was looking to invest.

"Willie never pretended to be a lawyer," he recalled. "But he wanted to impress us with all that he had."

The deal the two men discussed over dinner that night never came to fruition. But four years later, Schwartz looks back on that meeting as a last glimpse of a crumbling empire.

In 2005, Garcia’s wife filed for divorce, setting off what started as a bitter battle between feuding spouses and has since morphed into a statewide debate on the failings of the South Texas legal system.

It has attracted unusual attention from dozens of lawyers as far away as California , Florida and New York and from state lawmakers and court reformers who say Garcia and other "case runners" like him have amassed fortunes profiting off the misfortunes of others — all in violation of state law.

Now, what started as a simple familial dispute could inspire one of the most significant reforms to state barratry laws since the act became a felony offense.

"There’s a lot of money changing hands, but this crime is a lot safer than running drugs," said Bill Edwards, a Corpus Christi attorney who has become one of the state’s most vocal advocates for tougher enforcement. "You don’t get shot. You don’t get put in jail. You don’t even get your hand slapped."

Garcia could not be reached for comment for this story. And while his attorney Ricardo Salinas initially agreed to an interview, he did not return multiple phone calls over a period of days afterward.

In that early conversation, however, the lawyer disputed his client’s reputation as one of the state’s top case runners.

"He doesn’t run anything," Salinas said. "It’s a misconception, and this divorce has really run him into the ground."

Garcia may have good reason to distance himself from the profession as it is described in court filings — chief among them, it’s illegal.

Texas law prohibits anyone from soliciting clients for lawyers — a third-degree felony known as barratry, punishable by up to 10 years in prison. State bar regulations also prohibit attorneys from sharing their case fees with those who do not hold law degrees.

But across South Texas, the majority of high-dollar personal injury cases live and die by the network of first responders, funeral home employees, police officers, bail bondsmen and others with easy access to victims of car wrecks, industrial accidents and violent crimes and the attorneys who can take their claims to court, several Valley plaintiff’s lawyers said.

While most claimed not to use them themselves and were hesitant to talk openly about this unseemly side to their profession — all agreed case runners have come to dominate the system

"Case running goes on everywhere, but down here it seems to be more prevalent," said Brownsville attorney Carlos Cisneros, whose 2008 book The Case Runner featured a fictionalized title character that many assumed was based on Garcia — a conclusion Cisneros says isn’t the case.

Garcia’s purported involvement with case running began with one of the biggest personal injury free-for-alls the Valley has ever seen.

When an Alton school bus plunged off Five Mile Line Road into a flooded caliche pit in 1989 and killed 21 students, it didn’t take long for the lawsuits to start flying.

Attorneys and their proxies descended on the small town, attending memorial services, rallies and local gathering spots, all in hopes of drumming up business.

Garcia, an EMT at the time, picked up the bodies of several of the victims and referred their families to law firms in exchange for a fee, said Hidalgo County Sheriff Lupe Treviño, who was then working as an investigator in the district attorney’s office.

But Garcia wasn’t the only one. For Dora Rodriguez, who lost her daughter Anna Delia in the crash, the persistent calls to sign up with an attorney soon became overwhelming. Within days, she had amassed a 3-inch stack of business cards from those looking to help her file a lawsuit.

"They didn’t even know who had lost kids or who were the kids in the crash," she said. "They were just going door-to-door so they wouldn’t miss anyone."

The Hidalgo County District Attorney’s Office opened 15 cases into allegations of barratry and eventually filed criminal charges against five people. Garcia narrowly avoided joining them by agreeing to cooperate with the investigation, Treviño said.

But that narrow brush with the law didn’t deter him, according to court filings. In fact, it did the opposite.

Soon after the crash, Garcia founded a company in Mexico — Servicios Legales de Mesoamerica — that is at the root of much of the current squabbling.

The now-defunct venture specialized in "providing assistance to victims of personal injuries by referring them to personal injury lawyers and law firms from all over the United States," according to filings by Garcia’s attorneys.

Technically, such a business model could be legal if the clients approached SLM looking for legal representation — rather than the other way around.

But the divorce filings suggest that within years Garcia was purportedly linking South Texas attorneys with potential plaintiffs in almost every state and as far away as Australia , Greece , Indonesia and Venezuela for a cut of the eventual settlement money.

A 2006 plane crash in Irkutsk, Russia, that left 124 dead and more than 60 injured netted SLM more than 67 cases.

The idea that victims of that wrecked SiberAir flight between Moscow and Irkutsk contacted either Garcia’s offices continents away in Mexico or in McAllen looking for legal representation strains credulity, said Edwards, the advocate for tougher enforcement of anti-barratry laws.

"It doesn’t make any sense," he said. "(Garcia) was running major cases."

Despite its success, SLM operated for years without drawing much scrutiny outside of legal gossip. That is, until the Garcias’ divorce.

Claiming he had been an unfaithful and abusive husband, Maria de Jesus Garcia in 2005 asked a state district court in Hidalgo County to award her child support and alimony from her husband’s estimated $33 million net worth.

But the divvying up of the couple’s marital property has attracted a slew of creditors claiming Garcia and his company cheated them out of money. Like ambulance-chasing attorneys flocking to an accident scene, nearly a dozen parties have intervened seeking a cut of the estate.

They range from the U.S. Internal Revenue Service, which claims the couple owes them three years of back taxes, to a woman in Mexico who says Garcia fathered her child.

The Law Funder, a New York City-based legal loan company, claims it advanced Garcia, who represented himself as an attorney, nearly $4 million to secure a percentage of damages in a slew of personal injury cases.

A New York law firm has intervened saying it floated SLM $2 million in anticipation of case winnings, and a firm in California maintains it gave Garcia another $4 million. Both say he spent the money on himself.

Schwartz, the Houston attorney who visited with the alleged case runner in 2006, says Garcia stiffed him out of $700,000 he invested in another set of cases stemming from the SiberAir crash.

Garcia maintains that he has never claimed to be a lawyer and that he is not personally liable for any of the debts.

With more and more parties joining the case, its file has grown so large that staff in Judge Jesse Contreras’ 449th state District Court must now wheel the filings around on a cart and now refer to it simply as "the file."

But perhaps more significant than Garcia’s mounting financial problems, the divorce has caught the unusual attention of state lawmakers, who are set to consider legislation to strengthen state barratry laws during the next legislative session.
During a hearing by the Texas House Judiciary and Civil Jurisprudence Committee last month, Edwards cited the case as one of the most flagrant examples of case running he had ever seen.

Lawmakers seemed puzzled as to how a man with a reputation such as Garcia’s could continue to operate almost within plain view of authorities.

"But isn’t that illegal?" state Rep. Will Hartnett, R-Dallas, asked.

"It’s illegal as the devil," Edwards responded. "But try to get a conviction. Try to get a district attorney to take the case, and everyone clams up."

Maria de Jesus Garcia came to Hidalgo County District Attorney Rene Guerra before filing her divorce case in 2005, hoping to start an investigation into her husband’s work, the prosecutor said.

"But they were just allegations," he said. "I told her, ‘When you bring me the proof, then we’ll start an investigation.’ They never came back."

And that’s the problem with most barratry cases. Plaintiffs who were solicited rarely come forward, because if their lawyer is successful, the process ends in a significant payday.

"Other than that, it’s always going to be a problem of corroborating witnesses," said Guerra. "Otherwise it becomes a lot of he said, she said."

Reform advocates like Edwards also maintain the state’s current structure for prosecuting barratry makes it nearly impossible to get a case off the ground.

Too often for overworked prosecutors, such a "victimless" white-collar crime takes a lower priority than more violent offenses like murder, rape or child molestation.

Investigating them also falls to the jurisdiction of local district attorneys, who in many cases have strong political or professional ties to the lawyers they would be targeting.

"It’s very difficult to stand up when it’s one of your peers or political supporters doing it," Edwards said.

The Texas Attorney General’s Office can step in to investigate barratry cases but only upon a request from the local DA.

Recently, two rival lobbying groups — Texans for Lawsuit Reform and the Texas Trial Lawyers Association — have pressured lawmakers to expand penalties for those running cases.

In addition to criminal penalties, violators could be forced to pay back the fees they collected on illegally secured cases, under one proposed suggestion.

Both groups agree cases like Garcia’s demonstrate the need for more effective enforcement options. They just differ on the details.

"I think the one thing that’s clear is that we all want to kill the rats," said Mark Kincaid, legislative director for the trial lawyers group. "We just don’t want to burn the house down to get to them."

Wednesday, June 9, 2010

Local Attorney Fights Barratry


Say "NO" to personal injury attorneys' unethical behavior NOW by making a donation at www.bacala.net.

Here's why:

According to a news release by the Texas Attorney General's Office, a Corpus Christi attorney and case runner from the Garza Law Firm solicited their legal services at 1:00 a.m., uninvited at the home of a family who's relative had been killed in a car accident earlier that night. This is a perfect example of the on-going problem known as barratry.

On Tuesday, May 25, a Jim Wells County grand jury indicted the defendants with one charge of barratry and one charge of solicitation of professional employment.
BACALA has made tremendous progress in lawsuit reform; unfortunately, many cases of barratry continue to go unnoticed.

Based on his testimony at Chairman Todd Hunter's Interim Hearing of the Judiciary and Civil Jurisprudence Committee on Wednesday, May 26, well-known personal injury attorney Bill Edwards of the Edwards Law Firm strongly agrees that this type of activity is corrupting our society.

"I fought to make barratry a felony. Anyone involved in barratry will be held accountable," said Edwards.

Tune in to hear Edwards speak about the damaging effects of barratry on "Lago in the Morning" on 1360 KKTX at 7:30 a.m. this Thursday, June 10.

Barratry and solicitation of professional employment is a third-degree felony punishable by up to a $10,000 fine and two to 10 years in prison.

Wednesday, June 2, 2010

Lawyers illegally using "runners" in Corpus Christi

KRIS-TV, Corpus Christi
May 29, 2010
Corpus Chrisit Attorney indicted for barratry

CALACTX at May 29th 2010 8:37 AM
Efforts to bolster laws against illegal lawsuit solicitation were quietly defeated during the 2009 legislative session. Initially, House Bill 148 would have allowed clients to collect triple damages from lawyers who engage in illegal case solicitation. The proposal would have penalized lawyers who use ?runners? to covertly solicit cases or to otherwise exploit the vulnerability of hospitalized accident victims and their families. Unfortunately, these provisions were stripped from the bill.On Wednesday, May 26th, the Judiciary and Civil Jurisprudence Committee held an interim hearing on barratry. Both the trial lawyers and reform groups agree that the laws will be revisited this session in order to impose heavy penalties for those committing this illegal practice. For more information please visit www.calactx.com.

Friday, May 28, 2010

Allowing "No Proof" lawsuits in Texas?

No proof lawsuits: Bad for jobs, bad for business and bad for Texas
Citizens Against Lawsuit Abuse groups advocate against proposals to lower evidence standards

AUSTIN – Citizens Against Lawsuit Abuse (CALA) cautioned members of the Texas House Judiciary and Civil Jurisprudence Committee today that "no proof" lawsuits will wreak havoc on Texas‟ civil justice system, harm the state‟s reputation as a good place to do business, cost jobs and hurt Texas families.

"Texas has made tremendous progress in preventing lawsuit abuse, but that progress could be in jeopardy if we change our laws to allow lawsuits based on speculation rather than scientific proof," said Veronica Villegas, Executive Director of the Rio Grande Valley CALA.
During the last legislative session, personal injury lawyers pushed legislation that would have allowed them to bring asbestos lawsuits to court with virtually no proof of who actually caused the asbestos – related illness.

"Thankfully, this bad bill died in the Texas House last year, but we‟re still seeing aggressive efforts from some personal injury lawyers looking to weaken Texas‟ civil justice system and line their pockets at the expense of Texas jobs and employers," warned Diane Davis with East Texans Against Lawsuit Abuse (ETALA).

Bob Parker, Chairman of Bay Area Citizens Against Lawsuit Abuse added, "Allowing „no proof" lawsuits flies in the face of common sense and will lead to an upsurge in speculative lawsuits around the state."

Texas CALAs provided written testimony to the Committee encouraging Committee members to oppose efforts to lower the standards of evidence in asbestos-related mesothelioma cases, and protect Texas‟ job-friendly climate. After several proposals to amend current law and lower these standards failed during the 2009 legislative session, the committee is readdressing the issue now as part of their interim activity.

"This change would open up a much wider range of large and small employers to litigation while cutting their very defense out from under them," said Stephanie Gibson, Executive Director of CALA of Central Texas. "Proponents claim it‟s about protecting victims. But it‟s not. It‟s about using a dragnet to pull in more defendants and force them to the settlement table.
Gibson noted that the current law works for victims, and for Texas.

Gibson said. "Our current laws ensure that those who are sick from asbestos exposure are well- compensated and defendants are held responsible while applying reasonable, medically-based, scientifically-supported evidence standards to these cases."

Michelle Martin, with Citizens Against Lawsuit Abuse of Houston, added, "It is common sense that a lawsuit should be based on proof that a person or business caused the injury, and we shouldn‟t accept anything less in our civil justice system."

"As personal injury lawyers continue to look for new ways to sue, lawmakers must remain vigilant to protect Texas businesses and our civil justice system," concluded ETALA‟s Davis.

"The civil justice reforms we‟ve passed in Texas, have helped make our state a great place to live and work…and that means more jobs and more opportunities for Texas families," Davis said.

"We urge our lawmakers to keep Texas thriving and oppose any changes to Texas laws that would undermine our court system, delay or deny justice to those who are truly injured by asbestos, and threaten the employers and jobs that we depend upon."

Tuesday, May 25, 2010

"Put the Brakes on Ambulance Chasing" - Bob Parker


Put the Brakes on Ambulance Chasing
By Bob Parker, BACALA Chairman
Ambulance chasing is booming in parts of Texas, undermining not only our system of justice but our sense of justice, as injured people are subjected to questionable and insensitive tactics at one of the most vulnerable times in their lives. Now, Texas lawmakers have a chance to further protect Texans from this predatory practice.


A committee of the Texas House of Representatives is examining the problem of ambulance chasing and has the opportunity to recommend legislation to address this ugly legal tactic during next year’s legislative session. This could include tougher sanctions against lawyers or anyone who engages in ambulance chasing – legally known as barratry – or perhaps a Constitutional amendment to protect injured individuals from unsolicited contact by those who are only out to make a buck out of others’ misfortune.

But the bottom line is Texas must hold ambulance chasers accountable to the highest degree.

The incredibly insensitive practice of brazenly soliciting clients -- especially after an accident, the death of a loved one or while the injured person is still in the hospital -- is becoming commonplace in parts of Texas, especially in areas that are well-known hotbeds of abusive litigation and questionable legal antics.

For instance, the San Antonio Express-News has reported that barratry is “flourishing” in South Texas and that “warfare has broken out over barratry” in Corpus Christi. In that Gulf Coast city, the local newspaper noted that “lawyers are suing lawyers, seeking to overturn multimillion-dollar settlements of cases they claim were acquired improperly.”

Ambulance chasing is offensive on many levels. First, it means the perpetrators have the gall to approach their potential client in the hospital, the emergency room, even at the funeral home. And they often offer cash up front if a person or family will let them handle their case.

We’ve heard horror stories about a grieving mother approached in a funeral home, a man contacted in the hospital while still heavily sedated and temporarily blind following an accident, and another family that was paid $25,000 to sign their case to a specific law firm.

These antics fly in the face of common decency and show clearly why ambulance chasing is a felony offense in Texas. But felony or no, it continues to happen.

And that is why lawmakers in 2009 attempted to strengthen civil penalties against the practice of barratry. While that measure failed, we are encouraged that a legislative committee is again reviewing the problem.

Until we have stronger penalties on the books, these types of abusive tactics will continue. And so until that time, we urge any Texan who feels they may have been the victim of barratry to file a complaint with the State Bar of Texas by calling 1-800-204-2222. Ambulance chasers prey on victims. They are a menace to the legal profession and to the families and victims of accidents who need time to heal and grieve without being hounded by some predatory personal injury lawyers. Texans should support stronger laws to end this abhorrent practice.


R.E. "Bob" Parker is President of Repcon, Inc. Corporate headquarters are in Corpus Christi, with offices also located in the Houston, Beaumont and Baton Rouge areas. He currently serves as Chairman of the Board of Directors of Bay Area Citizens Against Lawsuit Abuse.

Monday, April 19, 2010

A note to supporters

Texas Inching out of Infamy as Relentless Personal Injury Lawyers Try to Roll Back Reforms

A Note to Supporters:

A recent survey from the U.S. Chamber Institute for Legal Reform shows that the Texas legal climate ranks 36th in the nation – up five places since 2008. Despite the fact that Texas is inching out of civil justice infamy, we’re still near the bottom nationally and personal injury lawyers’ relentless efforts to roll back reforms only slow progress.

Ten years ago Texas ranked among the worst 10 states in the nation to do business but common sense legal reforms have led to a steady improvement in our legal climate. Along the way, a dedicated faction of personal injury lawyers has continually tried to undo reforms and return Texas to the days when out-of-control lawsuits ruled the day.

During the last legislative session, we saw no less than 900 proposals that would have undermined reform or created new ways to sue. During the legislative interim, personal injury lawyers are once again pushing a proposal to allow plaintiffs to sue for expenses that were never even incurred. A dedicated faction of anti-reformers is also working to eliminate arbitration as a legal option in Texas. Arbitration has allowed consumers and businesses of all sizes to resolve disputes without the cost of going to trial. It’s no surprise that some personal injury lawyers would want to eliminate arbitration since this option reduces legal expenses – and therefore reduces lawyers’ paychecks.

Texas has proven that civil justice reform works. We’ve seen expanded access to health care since the passage of medical liability reforms. We’ve seen job creation and tremendous economic growth thanks to improvements in our legal climate. Clearly, we have a lot more work to do. But Texas can only continue to rise in the national rankings if we remain vigilant and constantly fend off efforts to undo reforms and turn back the clock.

Thank you for your continued support to help us fight lawsuit abuse!

www.tala.org

Friday, March 19, 2010

"Lawyers waste no time in milking Toyota tragedy"

http://www.texasinsider.org/?p=24070

Bertuzzi on Reform

Corpus Christi Caller-Times
March 15, 2010
Letter: Most want reforms


Some may not remember what it was like in our state before the current lawsuit reforms were put in place. Texas was called “the lawsuit capital of the world.” Businesses would not open up shop here and doctors were leaving the state or retiring early because of the high cost of medical liability insurance. Today other states and national health care reformers are looking at Texas tort reforms as a model.

Medical liability insurance rates have dropped by 50 percent in some places and more than 16,000 doctors have applied for licenses since the reforms were passed in 2003. High-risk doctors are now practicing in areas — including Corpus Christi — where they were not before. The Texas economy has been declared the strongest in the nation by virtually every nonpartisan evaluator. All agree that tort reform is a strong factor in job growth, business expansion, productivity and product innovation.

The most recent polls indicated that majorities in both political parties in Texas support the lawsuit reforms and that more than half of all Texans want more reforms. In fact, the only people who oppose tort reform are personal injury trial lawyers who want to increase their business and create more opportunities to sue.

Michael A. Bertuzzi, Nueces County Republican Party Chairman

Tuesday, March 9, 2010

Lindsay Lohan Reportedly Suing E-Trade for Ad

She's Lindsay Lohan. Not "Lindsay." But then again she's not really working right now, so... $100 million should do the trick. Lindsay Lohan Reportedly Suing E-Trade for Ad

Friday, February 26, 2010

Justified or Frivolous?

Dishwasher wants to reinstate suit against retirement home
2/25/2010 4:13 PM
By David Yates

Dowlen Oaks Retirment Home

A dishwasher who blamed his skin problems on his employer's failure to adequately train him how to wash dishes is asking an appellate court to reinstate his suit against the Dowlen Oaks Retirement Center.

In November 2007, the Southeast Texas Record reported on a suit filed by Gary Stallworth, who claims his sensitive skin condition was caused by washing dishes at the retirement center.

A year later case proceedings were halted, as Stallworth and Dowlen Oaks agreed to enter into arbitration.

On July 2, 2009, an arbitrator granted a no evidence motion for summary judgment by Dowlen Oaks. The unfavorable outcome led Stallworth to jump out of arbitration and back in to the civil courts.

Representing himself, Stallworth filed an appeal in the Texas Ninth District Court of Appeals on Aug. 27.

The case has been set for submission on briefs for Tuesday, May 2. However, a Ninth Court employee informed the Record that as of Feb. 24, no legal briefs have been filed.Through attorney Pat McGinnis, Stallworth originally filed a personal-injury lawsuit with the Jefferson County District Court on Nov. 7, 2007.

Stallworth claims he was washing dishes for Dowlen Oaks on Nov. 28, 2005, when he began to notice a skin problem on his hands.

In his suit, Stallworth claims doctors informed him the injury was caused by the manner in which he was washing dishes."The incident was caused by negligent acts...on the part of Dowlen Oaks," the suit said.

The suit alleges Dowlen Oaks is negligent for failing to provide proper training, equipment and staff and for failing to provide a safe place to work.

Stallworth is seeking damages for his past and future physical pain, mental anguish, lost wages, impairment and medical expenses, plus actual and compensatory damages. Judge Milton Shuffield, 136th Judicial District, presided over the case.

Trial case No. D180-722
Appeals case No. 09-09-00395-CV

http://www.setexasrecord.com/news/225051-dishwasher-wants-to-reinstate-suit-against-retirement-home

Thursday, February 25, 2010

A challenge may be ahead of us... It's time to get out and vote!

Bill White quietly building a big-money machine for governor

7:39 AM Thu, Feb 25, 2010

While the Republicans for governor are battling it out -- raising the spending big bucks in pursuit of the GOP nomination, Democrat Bill White is quietly building a financial base to challenge in the fall. White's attracting support from the party's most potent donors -- trial lawyers, labor and the Democratic establishment. He'll need it if he's the nominee facing a Republican in November.

As I reported this morning, White collected $500,000 from the Democratic Governors Association, according to the latest filings. (Their Republican counterpart dumped $1 million into Perry's reelection four years ago). White also got $50,000 each from trial lawyers Thomas Umphrey of Beaumont, Joseph Jamail of Houston and Richard Mithoff of Houston. Here are some other big-money trial lawyer donations: $25,000 each from Russell Budd of Dallas, Domingo Garcia of Dallas and Cary Patterson of Texarkana; $15,000 from asbestos attorney Peter Kraus of Dallas and $10,000 each from Frank Branson and Marc Stanley, both of Dallas.

White got $50,000 from the American Federation of State, County and Municipal Employees union. And party stalwarts weighed in to begin buildling White's campaign treasury: Waco insurance executive Bernard Rapoport, $15,200; long-time Democratic strategist George Shipley of Austin, $15,000 and former Ambassador Lyndon Olson of Waco, $10,000.

http://trailblazersblog.dallasnews.com/archives/2010/02/bill-white-quietly-building-a.html

Friday, February 19, 2010

Texas gets an "A" from ATRA for outside counsel relationships

"Texas was singled out for requiring all state agencies to use a competitive bidding process for contracts."
http://www.legalnewsline.com/news/225609-atra-releases-study-calls-for-outside-counsel-reform

Wednesday, January 27, 2010

Arbitration works for consumers

From Texans Against Lawsuit Abuse www.tala.com
ARBITRATION WORKS FOR CONSUMERS
Citizens Against Lawsuit Abuse groups urge interim committee to support arbitration, noting support from voters and high consumer satisfaction

AUSTIN – Urging legislators to resist efforts that would undermine the use of arbitration in Texas, Citizens Against Lawsuit Abuse (CALA) groups today told members of a House committee that arbitration is a less expensive, more efficient alternative to litigation that bolsters access to justice for many Texans.

“If personal injury lawyers and their advocates in Texas have their way, employers and consumers here may have fewer alternatives to costly and time-consuming litigation,” said Chip Hough, a small business person and board chairman of Bay Area CALA in Corpus Christi. “Why the focus on arbitration? It’s been clear for years that personal injury lawyers chafed at the system. They don’t like arbitration because it provides solutions to disputes without lengthy and expensive litigation. Employers and consumers, on the other hand, embrace arbitration for the very same reasons.”

CALA representatives from across the state made their case in testimony provided to the Texas House Committee on Judiciary and Civil Jurisprudence. As part of its interim activity, the committee has been charged with studying and making recommendations regarding the use of arbitration in Texas. This interim study comes on the heels of an unsuccessful effort during the 2009 legislative session by state Sen. Royce West of Dallas to effectively eliminate arbitration in consumer cases, employment matters, franchisor/franchisee disputes, and in many other instances.

As personal injury lawyers lobby against arbitration in Texas, the American Association of Justice (formerly known as the American Trial Lawyers Association) is waging a battle on the national level. In early January, this group announced that making arbitration clauses illegal would top their 2010 agenda.

“At Citizens Against Lawsuit Abuse, our mission is to advocate for a fair and just legal system,” said Stephanie Gibson, executive director of Central Texas CALA in Austin. “Since our founding, we have advocated for an end to abusive and frivolous litigation that can delay or deny justice for those who are truly injured. Our support for arbitration is a natural extension of our support for timely justice.”

Arbitration allows an individual to seek justice within a legal structure but does not necessitate that they hire a lawyer (although they can choose to do so).

Opponents of arbitration claim the system harms consumers. But a 2008 study, submitted to the committee today as part of the CALA testimony shows just the opposite. “Arbitration – A Good Deal for Consumers,” prepared for and released by the U.S. Chamber Institute for Legal Reform, is available for review at http://www.instituteforlegalreform.com/component/ilr_issues/29/item/ADR.html. Written by Professor Peter B. Rutledge the 2008 overview clearly shows that arbitration works for consumers and employers alike. Specifically, the report shows:

§ Consumers win. Consumers won their cases slightly more than 70 percent of the time when they chose arbitration.

§ Consumers win faster. In contrast to the sluggish pace of litigation, the average time from filing to disposition of a case taken to arbitration was approximately 100 days (litigation took 3 to 4 times longer, other studies showed).

§ Consumers win more often with arbitration than in litigation. Conversely, when an employer initiated the case, their win rate in arbitration was almost equal to that in litigation.

§ Lower costs. In a study of employer and securities litigation, arbitrated disputes cost less than litigation, even when attorney’s fees are included.

Also in 2008, the U.S. Chamber Institute for Legal Reform released a survey of U.S. voters that found 82 percent of those surveyed said they prefer arbitration to litigation as a means to settle a serious dispute with a business; the survey also found that 71 percent oppose efforts by lawmakers to remove arbitration agreements from consumer contracts.

Michelle Martin, executive director of Houston CALA agreed, saying: “It’s no secret that lawsuits are costly. Many individuals are discouraged from seeking justice – especially in those cases that threaten long, drawn-out legal battles. Arbitration provides parties an alternative solution.”

CALA representatives said the current system works for consumers and is critical for employers. “Preserving these options is critical for consumers and the small employers who provide the jobs and paychecks our families depend on,” said Veronica Villegas, executive director of the Valley CALA.

“The bottom line,” Hough concluded, “is some personal injury lawyers argue against arbitration because it hurts their law firm’s bottom line. For the rest of us, arbitration works. We hope the committee conducts a thorough review and reaches the same conclusion.”

Monday, January 25, 2010

Time to Consider Judicial Reform

Express-News Editorial Board -

Bexar County's March primary elections will feature seven local contested judicial contests. When the general election rolls around in November, 17 countywide judicial elections will be on the ballot.

These races will be overshadowed by a hotly contested gubernatorial battle, congressional races and other campaigns that traditionally draw more attention than judicial seats.
In other large Texas counties, the same dynamic will be at play.

Population growth causes the number of courts to increase, and the average person's ability to thoroughly keep track of judicial races decreases.
As Texans watch the 2010 elections unfold, it is a good time to consider changes in the way judges are selected.

While politics will be part of any system, merit selection plans that feature appointment, particularly using a commission, and retention elections instead of partisan elections are worthy of serious consideration.

Merit selection plans are introduced almost every session of the Legislature, usually involving only statewide races, but have yet to reach voters in the form of constitutional amendments necessary to make the needed changes.

In a noteworthy development last month, former U.S. Supreme Court Justice Sandra Day O'Connor joined the effort to eliminate partisan judicial elections across the nation. The former high court judge became the leader of the O'Connor Judicial Selection Initiative, which was launched by the Institute for the Advancement of the American Legal System.

O'Connor told the New York Times the she hopes to raise the stature of judges beyond “politicians in robes.”

And the cause got a boost from the Supreme Court last year in a ruling that required judges to recuse themselves from cases involving litigants who had contributed large amounts of money to their election campaigns.

In recent years, polls have shown that Americans are concerned about the influence of contributions on judicial rulings.

While judicial candidates will tell voters that they can rule on cases without being swayed by contributions, the top court in the land has now acknowledged that large contributions raise legitimate questions about due process.

The combination of forcing judges to be politicians and the overwhelming number of judicial races makes a good argument for reform. We hope voters will consider that argument when they either spend an inordinate amount of time to learn about judicial candidates or confront a ballot filled with the names of candidates they know little about.

http://www.mysanantonio.com/opinion/Time_to_consider_judicial_reform.html

Friday, January 22, 2010

Interesting video with Penn and Teller on ADA. Tell us your thoughts. Also become a supporter of BACALA. Go to www.bacala.net.

http://overlawyered.com/tag/ada-filing-mills/

Wednesday, January 13, 2010

Trial bar seeks to expand liability, end arbitration clauses 1/12/2010 3:21 PM By Chris Rizo

Tarricone
WASHINGTON (Legal Newsline)-The national trial lawyers group outlined its 2010 legislative agenda Monday, announcing that the group plans to take aim at mandatory arbitration clauses and push to expand civil liability, among other initiatives.Outlining its political agenda for the year, the American Association for Justice said the group will focus its energies this year on leveling the litigation playing field, which it says currently "tilts too much" in favor of corporate interests."During the last decade, we saw a dismantling of regulations and our legal system for the benefit of big corporations and to the severe detriment of patients and consumers," AAJ President Anthony Tarricone said in a statement. The Washington-based group announced its 2010 legislative agenda as it nears a major victory on Capitol Hill. This year, the trial bar was able to keep tort reform out of the proposed federal health care overhaul being crafted by Congress. But AAJ did not get all it wanted in 2009. The trial lawyer lobby unsuccessfully sought federal legislation to give a special $1.6 billion tax break to its ranks.The proposal would have allowed plaintiffs attorneys to deduct fees and expenses up-front on their taxes for filing contingency-fee lawsuits. Legal expenses are currently considered loans to clients that are to be repaid from ultimate awards if they win or deducted on their income filings in the event of a loss.Amid newspaper editorials and an outcry from legal reformers who said the proposal would be an incentive for lawyers to file more lawsuits, the measure foundered.2010, however, is a new year ...On the mandatory arbitration clauses common in many consumer contracts, AAJ said it will push legislation that ensures that the decision to arbitrate a dispute is made voluntarily by a consumer and after a dispute has arisen, particularly in nursing home contracts.While the trial bar wants plaintiffs lawyers to be able to file lawsuits on behalf of aggrieved consumers right off, proponents of arbitration say the process is fair and is needed to help take pressure off of already bogged-down courtrooms.On the liability front, the plaintiffs' lawyer lobby is backing the Medical Device Safety Act pending in Congress. The measure would essentially allow trial lawyers to sue manufactures over approved medical devices in state courts. The proposal would reverse the 2008 U.S. Supreme Court decision in Riegel v. Medtronic, in which the high court held that federal law bans lawsuits filed against manufacturers of products approved by the U.S. Food and Drug Administration.The Washington-based American Association for Justice, formerly known as the Association of Trial Lawyers of America, also said Monday it wants its members to be able to file lawsuits on behalf of their clients against foreign manufacturers over unsafe products. Specifically, the group is calling for passage of the Foreign Manufacturers Legal Accountability Act, which would allow American consumers to seek redress in U.S. courts for damages caused by foreign-produced products."Americans simply want safe products, fewer unnecessary injuries and a restoration of checks and balances that give people a fair chance to receive justice," Tarricone said in outlining his group's agenda. "A strong civil justice system is part of this equation, and plays a necessary role in holding wrongdoers accountable."Tarricone is a a partner at the aviation law firm of Kreindler & Kreindler LLP in Boston.From Legal Newsline: Reach staff reporter Chris Rizo at chrisrizo@legalnewsline.com.