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Greed forces local governments to blow $504 million on lawsuits, group says
November 9th, 2009, 5:00 am · 13 Comments · posted by Teri Sforza, Register staff writer
A handful of local governments in California spent more than a half-billion dollars dealing with lawsuits over two years - including $14.2 million spent by the good County of Orange, and $4.4 million by the city of Anaheim, according to a report released by California Citizens Against Lawsuit Abuse.
“Not only are these costs outrageous in their own right, the money spent by Orange County in just one year could have more than paid for both the county’s Domestic Violence program and Emergency Medical Services,” said the group in a prepared statement. “In Anaheim, one year of litigation costs could have maintained 146 acres of park and 105 sports fields for the same year.”
Of the nine counties examined, Orange County had the fourth-highest total spending on lawsuits - much more than similarly-sized San Diego and Santa Clara counties. See charts of totals below.)
Of the eight cities, Anaheim ranked No. 7.
“Orange County is facing severe cuts to vital services and programs like public safety, parks and education,” said Maryann Marino, Southern California Regional Director for the group, in a press release. “Yet we are doing nothing to curb litigation costs, which could actually provide substantial savings to local governments without sacrificing jobs or programs.”
The group acknowledges that some lawsuits are meritorious, but “(g)overnment entities are too often seen as deep pockets, even in today’s tough times, and abusive lawsuits are filed in an attempt for some plaintiffs to get rich quick,” the report says. “With many of these lawsuits being filed on a contingency fee basis, plaintiffs’ attorneys have plenty of motives to file lawsuits in the hopes of a quick settlement or a large verdict.”
The group tallied up money spent on verdicts, settlements and outside counsel in fiscal years 2007 and 2008. If you stop to consider the staggering number of local governments in California - 58 counties, 468 cities, more than 1,000 school districts and more than 3,400 special districts, each with its own legal bills - you get a sense that this $504.1 million is just the icing on the litigation-happy cake.
The group calls for greater disclosure, more public oversight and “adoption of aggressive risk management procedures to protect our local government coffers from the greedy hands of plaintiffs’ attorneys.”
California Citizens Against Lawsuit Abuse says it’s “a nonpartisan, grass-roots organization dedicated to educating the public about the negative effects of lawsuit abuse and challenging those who abuse our legal system for personal gain.”
You can read the full report here: lawsuits.
County spending on litigation, two fiscal years
- Los Angeles, $190 million
- San Francisco, $37.7 million
- Sacramento, $22.3 million
- Orange, $14.2 million
- Alameda, $12.2 million
- Santa Clara, $8.3 million
- San Diego, $3.9 million
- Fresno, $2.7 million
- Kern, $2.4 million
City spending on litigation, two fiscal years
- Los Angeles, $136.9 million
- San Diego, $32.5 million
- Oakland, $14.9 million
- Fresno, $7.9 million
- Sacramento, $5.4 million
- Bakersfield, $5.3 million
- Anaheim, $4.4 million
- San Jose, $3.6 million
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I don’t quite understand the meaning behind this particular article. Alot of time cites and counties, by no fault of their own, must defend themselves against lawsuits brought by others. That costs money. So if the county gets sued we are supposed to just open up our pocketbooks and pay the plaintiff without a fight??? huh??
Better to disclose how much the municipalities and counties have paid out in SETTLEMENTS to plaintiffs for wrongdoing. Earlier this year Orange County paid out $4 million to a jail inmate who was beaten back into the mental state of a child by a group of other inmates due to poor jail supervision. Now things like that ought to be disclosed to the public and we should have a right to know what was done to those who neglected their duties and cost us $4 million dollars. That is only one example. There must be dozens of settlement awards that should have a spotlight shined on them and exposed to those who had to pay for them - namely the TAXPAYER!
So the payouts are coming from those Union jailers’ pensions or pay who were found guilty of doing this? This is the type of change in the system which would help stem abuse … hold those accountable who bring on these charges.
hey bigmouth– you got an opinion on everything– and usually weak…
Glad to hear that someone besides myself is getting sued. I think Shakespeare would call this “hoist on my own petard.” Maybe now they will realize how badly we need tort reform!!!! The business that my husband and I own gets hit by frivolous lawsuits about once every year and a half. Our lawyers say it is “the cost of doing business in California.” Americans with Diabilities Act: your bathroom sink is 2 inches too high. (We are NOT a public facility and have no handicapped people working here.) Our lawyers advise us to settle. Prop 65: You don’t have a sign on your window saying there is lead on your premises. (We are not required to have that, we are not a public facility nor do we have the number of employees that would require that.) Our lawyers advised us to settle.
I could go on and on with other stories like that, but suffice to say that the last FRIVOLOUS lawsuit that got slapped on us did us in. We refused to settle as it was just TOO RIDICULOUS, too wrong, and we fought it for 2 years, winning every little legal battle along the way, including mediation. It went to binding arbitration, yet another of the countries stupidest, well meant ideas. We lost in binding arbitration to a rogue arbitrator who must have just been having a bad day. (In binding arbitration, it doesn’t much matter why you lost, it is still binding and not able to be appealed, except in very, very, VERY limited circumstances.) The arbitrator misunderstood some things, it didn’t matter. The arbitrator ruled on a wrong point of law, just got it wrong out of ignorance — it didn’t matter. If anybody ever read up on the wrongs that have been put upon the citizens of this country because of the well meaning binding arbitration clauses inherent in almost every contract these days, they would run while they still have legs. Unfortunately, they don’t find out until it happens to them. The system is horribly, horribly flawed. That little caper cost us $750,000 because we refused to “just settle” for the $250,000 they originally tried to extort from us. We are not a big, faceless company. We are a small, family owned business and that settlement is bringing us down and we are now facing bankruptcy. When your lawyers advise you to “just settle”, do it. Fighting “on principle” is way too costly.
Our son was hit by a car that was speeding in our neighbourhood, causing him to go through the windshield and into the car. The kid that hit him helped him to stand up, despite the fact that his leg was so badly broken that the bones were sticking out. Those broken bones sliced through his leg muscles like razor blades when he stood up and he spent the next two years in wheelchairs, casts, surgeries. The person that hit him with his car, sued our homeowners insurance to fix his bumper and broken windshield. It would have cost them too much to fight them, they considered $15,000 a small claim. They paid.
The reason this crap goes on is because of the contingency system where lawyers can say “hey, we’ll sue on your behalf, you won’t have to do a thing, just lend us your name and if we get any money, you get 60% of it!!! For doing nothing!” And greedy people thinking they have nothing to lose (dignity doesn’t count) and everything to gain, say “go for it.” Tort reform is what we need. Maybe if the government gets bitten by its own dog enough times, and badly enough, it will realize it’s time to put that old dog down. Just sayin’
Glad to hear that someone besides myself is getting sued. I think Shakespeare would call this “hoist on my own petard.” Maybe now they will realize how badly we need tort reform!!!!
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Oh brother (rolls eyes)
“The person that hit him with his car, sued our homeowners insurance to fix his bumper and broken windshield. It would have cost them too much to fight them, they considered $15,000 a small claim. They paid.”
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Now I KNOW you’re lying.
Insurance companies do NOT pay on bogus claims-like the one you just described. They wil spend $1,000 to fight a bogus claim than pay $1 in a settlement, because that sends a message.
So you’re certainly lying about that issues, and most likely your entire post.
No, Johnny Blaze, I’m not lying. I may be INCORRECT or making a false assumption as to the reason why they paid the claim, but I’m certainly not lying– they paid the claim. Call Bob Kim at Allstate insurance and ask HIM. Having said that, I can understand your disbelief, as my husband and I share it with you.
For many years I had a tennis friend who was an obstetrician, and
had practiced for many years. We often discussed politics, and I
asked him once how many times he had been sued for malpractice.
His response was, “Not even once, I don’t carry malpractice insurance.”
With respect to the preceding article, one must remember that
government is a perfect target for both lawsuits and labor demands.
I don’ t think you can get hopital priviledges without liability insurance, and remember, your entire net worth is at risk if you don’t carry some.
Johnny,
you’re right. either sidney is full of it or his friend is full of it. a licensed hospital wouldn’t allow an ob or ob-gyn in the staff toilet, let alone inside a delivery room. ob’s are the most common specialty to get sued. I’ve know many ob-gyn’s and ob’s in my business rounds. all REQUIRED to have malpractice coverage. not an option.
I, too, am confused about the “findings” of this report. So are citizens to give up their ability to seek recourse in the courts for “government abuse” simply because a city or county will have to spend tax dollars to litigate an issue? And what about the many inter-jurisdictional battles — between cities, counties, special districts, etc.? Those, too, are included in the mounting legal bills that some are calling “greed.” This nation was established with checks and balances. The judicial system is a critical “check” in the much needed balance that protects citizens.
John Hardisty
Bakersfield
Give me a break! A person goes through the neighborhood, too fast, hits your son, causes serious injuries and you give him a pass (don’t sue) and he sues you?!?! And wins?!!? You are, absolutely, lying or not divulging the full truth. Same with all of your other “lawsuits”. You are angry that people stood up for themselves and beat you. You are angry that your wrongdoing and/or non-compliance with the law came back to haunt you. This is a “blame the victims” mentality that is becoming pervasive in our society. As to the rest of you, no one has asked what the county did wrong in these cases and what injuries or losses the victims suffered. It is an absolutely absurb premise to suggest that attorneys spend their own money and time on “frivolous” cases and get large money on these cases. Attorneys spend their time and money on serious matters; serious matters are what nets their clients serious money and them serious fees. Anyone who suggests otherwise does not understand the economics of litigation or law office management. Ask the county to disclose the facts and circumstances of the cases that this money was paid upon before blaming the victims. The county needs to be accountable for public safety, and, most of the time, that is what these lawsuits are about. Attorneys, whether you like them or not, are public watchdogs for public safety. Next time you see an attorney, thank him for watching out for your rights.
This is getting off-topic but;
What most people do not realize is that as soon as you contact your insurance company, they retain all rights to pursue the claim as they see fit without consulting you.
Colleen you are obviously a self-righteous do-gooder who has never tried to comply with the ADA laws or been the target of the people who park at your place of business, they may even get out, then go file a lawsuit stating that you are not in compliance. The suit does not even have to list what is not in compliance, and as a course of discovery you are now required to measure all the common things that will be out of compliance without reading the exemptions. Now you have to face a deposition, and a settlement conference, usually more than one. It is not uncommon to have the opposing attorney tell you flat out that they will ensure that you have a $40,000 bill before you even get in front of a judge. You have insurance for this you say? Well, as soon as you notify your insurance they take over all the proceedings of which you have to comply as part of your policy. They have the right to settle and bill you the difference between your policy and the costs. Many attorneys are doing a good job, the bar association is doing a lousy job of policing itself. There are whole firms that specialize in this frivolous lawsuit business in all its forms. The ADA, which I strongly opposed for the very reasons that is has become, was supposed to have a measure of reason in its intent. Instead it is the weapon of choice for extracting money from small business’ who, generally, have little interaction with the handicapped and make an honest effort to comply with the intent and spirit of the ADA. Too often, in our courts, the mantle of “handicapped”, becomes the cloak of righteousness that precludes that person from ever having mal-intent.
Clearly the authority to look at the big picture and issue a binding opinion is long overdue. Why is government, for example, responsible for slipping on a strawberry, sticking a finger in a high school door jamb, or stepping on a crack on a sidewalk?
Accidents happen. Government can’t be held responsible for every mishap. There has to be such a thing as a return to individual responsibility.
Frivolous “deep pocket” lawsuits should be nipped in the bud by the authority of an oversight committee and kicked before they waste the court’s time and drain county and local resources.