Lawsuit kicks off class action claims against GM

Today’s post was shared by The Workers’ Injury Law & Advocacy Group and comes from www.reuters.com

NEW YORK (Reuters) – General Motors was hit on Friday with what appeared to be the first lawsuit related to the recall of 1.6 million cars, as customers claimed their vehicles lost value because of ignition problems blamed for a series of fatal crashes.

The proposed class action, filed in federal court in Texas, said GM knew about the problem since 2004, but failed to fix it, creating “unreasonably dangerous” conditions for drivers of the affected models.

“GM’s mishandling of the ignition switch defect….has adversely affected the company’s reputation as a manufacturer of safe, reliable vehicles with high resale value,” the lawsuit said.

The recall has led to government criminal and civil investigations, an internal probe by GM, and preparations for hearings by Congress. All ask why GM took so long to address a problem it has said first came to its attention in 2001.

A GM spokesman, Greg Martin, said the company has apologized for how it handled the recall and that taking care of customers was its first priority. He did not comment on the lawsuit.

The plaintiffs are seeking damages from GM that include compensation for loss of the use of their vehicles and repairs and diminished resale value. They are not claiming they were injured in accidents stemming from ignition problems.

The lawsuit is reminiscent of claims faced by Toyota Motor Corp, which recalled more than 10 million vehicles starting in 2009. Toyota last year received approval for a settlement…

[Click here to see the rest of this post]

Prior results do not guarantee outcomes.
Attorney Advertising.

Partner Matthew A. Funk Elected New York State Trial Lawyers Association Deputy Treasurer

Partner Matthew Funk

We congratulate Partner Matthew A. Funk on his election as Deputy Treasurer of the New York State Trial Lawyers Association. His term will begin on July 1st. Mr. Funk has been practicing law since 1999 and became a partner at the firm in 2007. He is a member of the Injured Workers Bar Association, participating in online round table discussions regarding the rights of injured workers. He is a Workers Compensation Committee member of the New York Coalition for Occupational Safety and Health (NYCOSH). Mr. Funk regularly lectures on the workers compensation law to various labor organizations. Currently, he is actively engaged in extensive workers compensation litigation.

 

Senior Partner Catherine Stanton

We also congratulate Senior Partner Catherine Stanton on her election as a Director of the New York State Trial Lawyers Association. Ms. Stanton began working with the firm as an attorney in 1990 and became a partner in 1998.  She was the 2012 president of WILG, Workers’ Injury & Law Advocacy Groupthe national non-profit membership organization dedicated to representing the interests of millions of workers and their families who, each year, suffer the consequences of workplace injuries and illnesses. Ms. Stanton has once been named as a Super Lawyer each year from 2007-2013 in the area of workers compensation by Super Lawyers magazine. In addition, Super Lawyers named Ms. Stanton one of the Top Women Attorneys in New York for 2013.

About The New York State Trial Lawyers Association

The NYSTLA was founded in 1953 by a group of trial lawyers who were concerned that New York had no forum for plaintiffs’ lawyers. Today, the New York State Trial Lawyers Association is a 4,000-member trade association.

NYSTLA assures that the wrongfully injured have full access to the civil justice system. The organization is dedicated to the preservation of the federal and state constitution rights to trial by jury. They fight to see that:

  • injured people are not barred from the civil justice system;
  • wrongdoers are not immunized from liability;
  • juries are free to determine the proper amount of compensation without arbitrary legislative interference; and
  • obstacles are not placed in the way of litigating all meritorious actions.

NYSTLA also supports proposals to increase available insurance. When needed, NYSTLA works at the federal level to assure that our clients’ rights are not limited by Congress. NYSTLA does not hesitate to use the courts to advocate on behalf of consumers.

Prior results do not guarantee outcomes.
Attorney Advertising.

Are Firefighter Cancer Deaths an Occupational Disease?

Today’s post comes from guest author Rod Rehm, from Rehm, Bennett & Moore.

Workers’ compensation has provided benefits or coverage for occupational diseases for generations. Occupational disease is defined by Nebraska law as: “a disease which is due to causes and conditions which are characteristic of and peculiar to a particular trade, occupation, process, or employment and excludes all ordinary diseases of life to which the general public is exposed.” This is a typical definition of an occupational disease. Some examples of recognized occupational diseases are black lung disease for miners, mesothelioma for asbestos workers, lung disease for rubber workers, and leukemia for workers exposed to benzene.

More studies are done to determine the cause of diseases as medical science advances. A recent study concludes that smoke and chemical exposure by firefighters may cause higher rates of cancer among firefighters. Firefighters, while usually healthier than the general population, have a higher incidence of cancer. More studies need to be done to determine if the peculiar exposure to smoke causes or aggravates cancer.

As medicine and science evolve, there may be more recognized “occupational diseases” and more workers and their families compensated for harm caused by the workplace.

Prior results do not guarantee outcomes.
Attorney Advertising.

Construction Site Falls – Leading Cause of Fatalities in the Construction Industry

Today’s post comes from guest author Kristina Brown Thompson, from The Jernigan Law Firm.

On January 23, 2014, a young man, only 30 years old, fell to his death while working on a Raleigh construction site. According to news reports, the deceased was working on scaffolding on an apartment complex and fell approximately five stories. The North Carolina Department of Labor is investigating the accident. It’s unclear exactly what went wrong.

Unfortunately, this was the second construction accident within one week in Raleigh. On January 22, 2014, a platform collapsed at North Carolina State University and three workers were injured. Fortunately, none of the injuries appear to be life-threatening. However, one of the injuries involved a trauma to the head which is always cause for serious concern.

Falls are the leading cause of fatalities in the construction industry. According to OSHA, the four main causes for workplace falls are (1) unprotected sides, wall openings, and floor holes, (2) improper scaffold construction, (3) unguarded protruding steel rebars, and (4) the misuse of portable ladders.

In North Carolina, we follow the “unexplained-fall rule” which holds that “if an employee sustains a fall and there is no evidence that it arose from a cause independent of the employment, compensation [i.e. disability and medical benefits] should be allowed.” North Carolina Workers’ Compensation: Law and Practice, with Forms, 4th Edition, Leonard T. Jernigan, Jr.

While workers’ compensation benefits should be provided in these type of cases, in some situations the injured worker may also have a personal injury claim against one of the building contractors.

Prior results do not guarantee outcomes.
Attorney Advertising.

Facebook Pictures’ Use Evolving in Workers’ Compensation Cases

Today’s post comes from guest author Brody Ockander, from Rehm, Bennett & Moore.

In the past, I have warned about the possible pitfalls of social media on a workers’ compensation claim.

However, the Nebraska Workers’ Compensation Court has never really ruled on Facebook in the context of discovery matters in a work comp claim, meaning how much access can your employer have to your Facebook account if you file a workers’ compensation claim?

Recently, however, the Nebraska Workers’ Compensation Court (at least one judge) has taken the position that in order for your employer to gain access to photographs from your Facebook profile, it must “make a showing of the necessary factual predicate underlying [the] broad request for access.” In other words, your employer must have a decent reason to suspect that a certain photograph or something from your Facebook account has the potential to be relevant to the work comp case before the court will simply grant full access to your Facebook account to your employer.

Therefore, depending on your situation, your Facebook may be safe from your employer to some degree. However, this is a cautionary tale to remind you that even though your employer cannot simply have blanket access to all of your Facebook photos – at least according to one Nebraska judge – it does not mean that your Facebook photos or posts are necessarily safe from your employer gaining access to them at some point during your work comp case. I think the judge in this case takes a step in right direction, but you still must be aware that anything you put on Facebook may be subject to discovery (i.e., your employer may still possibly get access to it) at some point in the future.

Prior results do not guarantee outcomes.
Attorney Advertising.

Medicines Made in India Set Off Safety Worries

Today’s post was shared by Gelman on Workplace Injuries and comes from www.nytimes.com

Pharmacuetical safety is now an international isue. Today’s post is shared from the nytimes.com/

NEW DELHI — India, the second-largest exporter of over-the-counter and prescription drugs to the United States, is coming under increased scrutiny by American regulators for safety lapses, falsified drug test results and selling fake medicines.

Dr. Margaret A. Hamburg, the commissioner of the United States Food and Drug Administration, arrived in India this week to express her growing unease with the safety of Indian medicines because of “recent lapses in quality at a handful of pharmaceutical firms.”

India’s pharmaceutical industry supplies 40 percent of over-the-counter and generic prescription drugs consumed in the United States, so the increased scrutiny could have profound implications for American consumers.

F.D.A. investigators are blitzing Indian drug plants, financing the inspections with some of the roughly $300 million in annual fees from generic drug makers collected as part of a 2012 law requiring increased scrutiny of overseas plants. The agency inspected 160 Indian drug plants last year, three times as many as in 2009. The increased scrutiny has led to a flood of new penalties, including half of the warning letters the agency issued last year to drug makers.

Dr. Hamburg was met by Indian officials and executives who, shocked by recent F.D.A. export bans of generic versions of popular medicines — such as the acne drug Accutane,…

[Click here to see the rest of this post]

Prior results do not guarantee outcomes.
Attorney Advertising.

How Corporate Money Poisons “Independent” Medical Evaluations

Today’s post comes from guest author Jay Causey, from Causey Law Firm.

 

            Workers’ compensation claimants and their attorneys routinely confront the so-called “usual suspect” medical examiners —  those doctors whose practices chiefly involve examining multiple claimants per day, several days per week or month, always for an insurance carrier or governmental agency administering workers’ compensation, and who can reliably be counted on to find no diagnosis related to injury, little or no permanent impairment related to accepted conditions, and no requirement for further treatment nor any limitations applicable to work activity. In a litigation setting, it can often be shown that these doctors have little or no active medical practice and derive the bulk of their income from these forensic examinations, calling into question their lack of objectivity and probable bias. Most of the physicians who engage in this work are not necessarily leading figures in their practice areas, and are not well-regarded academicians in their field – – their principal credential is that they have simply been in the practice a long time.  In a litigated case the testimony of such physicians can often be overcome by the testimony of an attending physician who has treated the claimant for a long period of time or another examining physician with an equally or more plausible opinion that supports the injured or diseased worker.

            Consider, then, the threat to justice for injured workers when a long-established cohort of extremely well-credentialed defense medical experts, operating under the cover of one of the world’s most prestigious medical schools, has been engaged by the coal industry to defend against claims by miners crippled by black lung disease, and finds in the vast majority of cases no industrially-related disease.  These cases arise in the context of the federal black lung system, where cases mostly involve dueling medical opinions and judges rely heavily on the credentials of physicians to determine outcomes.  In a blockbuster report entitled Breathless and Burdened, the Center for Public Integrity has unveiled seeming massive corruption of medical opinion from corporate influence at Johns Hopkins Medical Institutions, where Peabody Energy and other coal companies direct workers with black lung claims to be evaluated. 

             For over 40 years, a small unit of radiologists at Johns Hopkins Medical School and hospital has generated fees from coal company evaluations that have enriched the institution and supported its work.  These physicians read x-rays as a part of their regular duties, but coal companies will pay a premium of up to ten times what a regular x-ray reading would cost.  And because of the longevity of these practitioners, with their credentials burnished by the iconic reputation of Johns Hopkins, their opinions in the processes of claim adjudication have become nearly unassailable.  Judges rely heavily on these opinions and regularly find that they swamp the evidence brought by miners from doctors not similarly credentialed.

              The Center’s report found that one particular physician – a 78 year-old radiologist named Paul Wheeler – in reviewing x-rays in 1500 cases since 2000 never found one instance of severe disease, whereas other doctors looking at the same x-rays found it in 390 cases, and that subsequent biopsies and autopsies of diseased workers frequently clearly proved Wheeler wrong.  Furthermore, the criteria this examiner used in determining the presence of black lung was contrary to that of government research agencies, textbooks, peer-reviewed scientific literature, and the opinions of many credentialed physicians outside Johns Hopkins, including the American College of Radiology’s task force on black lung disease.

             The Center’s review of thousands of cases evaluated at Johns Hopkins established that since 2000, miners lost more than 800 cases where at least one doctor found black lung on x-ray but Dr. Wheeler read it as negative.  It calculated that Wheeler found black lung in about 2% of the cases evaluated, and that in 80% of the films he read as positive, he saw only early stage of the disease, whereas other physicians found severe form of the disease in more than 750 films.  Despite all of this, Wheeler continues to lead the cohort of radiologists who toil in the Pneumoconiosis Section of Johns Hopkins amidst piles of files and paperwork bearing the letterhead of prominent corporate defense law firms and coal companies, churning out evaluations of miners, under the imprimatur of a prestigious institution, that are clearly resulting in the denial of many legitimate claims.   

Prior results do not guarantee outcomes.
Attorney Advertising.

$46 Million Stolen: 2013’s Top Ten Workers’ Compensation Fraud Cases

 

Today’s post comes from guest author Leonard Jernigan, from The Jernigan Law Firm.

Employer Fraud Cases (9):$44,064,492.00
Employee Fraud Cases (1): $1,500,000.00
Total: $45,564,492.00

Every year we hear about fraud in Workers’ Compensation cases and the public believes the fraud is employee driven. However, in 2009 I began tracking the Top Ten Fraud Cases and 100% of the Top Ten between 2009-2012 involved employers or shady characters posing as legitimate businesses. The amount of employer fraud is staggering. In 2013 one employee fraud case did crack the Top Ten, so the record is now 49-1 (employer fraud v. employee fraud) over the past five years.

  1. Florida: Owners of Diaz Supermarkets in Miami-Dade are Accused of $35 Million Fraud (4/16/13)

    John Diaz and his wife Mercedes Avila-Diaz owned and operated four supermarkets in the Miami-Dade area. They have been arrested and accused of workers’ compensation fraud and other fraudulent transactions totaling $35 million. One business they operated had no coverage for employees for ten years. They allegedly engaged in a scam to help subcontractors obtain false certificates of insurance that allowed the subs to work for general contractors who required the certificates.

  2. California: Hanford Farm Labor Contractor Convicted of Fraud in the Amount of $4,195,900 (12/6/2013)

    Richard Escamilla, Jr. (47), owner of ROC Harvesting, misrepresented information to workers’ compensation insurance carriers by using new business names to obtain insurance and avoid providing a claim history. Escamilla pleaded guilty on October 29th and was sentenced to pay restitution of $4.1 million and serve six years in prison.

  3. Michigan: Insurance Executive Embezzled $2.6 Million from Workers’ Comp TPA (06/06/2013)

    Jerry Stage (67), the former CEO of a non-profit workers’ compensation insurance company, and George Bauer (55), the bookkeeper, both pleaded guilty to embezzling from the Compensation Advisory Organization of Michigan (CAOM) for more than a decade. Mr. Stage embezzled $2.6 million from the company and conspired with Mr. Bauer to cover up the embezzlement.

  4. California: Employee Wasn’t Wheelchair Bound After All – Fraudulently Took $1.5 Million in Benefits (8/9/13)

    Yolandi Kohrumel, 35, claimed for nine years that she was wheelchair bound after complications from toe surgery, but after she had collected $1.5 million in benefits it was revealed her claim was false. Her father, a South African native, was also engaged in the scam. Both pleaded guilty to insurance fraud, grand theft and perjury. Ms Kohrumel was sentenced to one year in jail, plus restitution.

  5. California: Father and Son Landscapers Accused of $1.45 Million in Insurance Fraud (5/7/13)

    Jesse Garcia Contreras (57) and Carlos Contreras (33), who operate a Thousand Palms landscaping business, are accused of committing $1.45 million in insurance fraud. They are accused of defrauding the California State Compensation Insurance Fund by misclassifying employees from January 2008 to March 2012. Mr. Jesse Contreras is the president and CEO of Sunshine Landscaping and his son is Director of Accounting. If convicted, they each face up to 19 years and 8 months in prison.

  6. Florida: Workers’ Compensation Check Cashing Operation Charged with $1 Million in Fraud (2/27/13)

    As a result of its investigation of I&T Financial Services, LLC, a company that was allegedly set up to execute a large scale check cashing scheme for the purpose of evading the cost of workers’ compensation coverage. Domenick Pucillo, the ringleader of the fraud scheme, was arrested and charged with filing a false and fraudulent document, forgery, uttering a forged instrument, and operating an unlicensed money service business. If convicted on all charges, he faces up to 45 years in prison. $1 million was seized during this investigation.

  7. West Virginia: Coal Company Contractor in Mingo County Caught in $405,000 Scam to Avoid Workers’ Comp Premiums (11/6/13)

    Jerame Russell (50), an executive with Aracoma Contracting, LLC, a company that provided labor to coal companies on a contract basis, entered a guilty plea to a scam that involved funneling over $2 million through a local bank to pay employees in cash, thus avoiding payroll taxes and $405,000 in workers’ compensation premiums. Aracoma also bribed an insurance auditor to cover up its true payroll.

  8. Ohio: Roofing Business Owners Guilty of $283,592 in Workers’ Comp Fraud (7/30/2013)

    The owners of Triple Star Roofing were found guilty of fraud on July 15 for failing to report payroll to the Ohio Bureau or Workers’ Compensation(BWC). The company failed to report to the BWC from 2004 to 2008, resulting in under-reported premiums of $283,592.

  9. Florida: Owner of Staffing Company arrested for $130,000 in Workers’ Comp Fraud

    The owner of Preferred Staffing of America, Inc., a temporary staffing agency in Tampa, has been arrested for allegedly running an organized workers’ compensation fraud scheme. Preferred Staffing’s owner misled clients into believing that his company was a licensed professional employer organization (PEO) and could provide workers’ compensation insurance coverage. Employers were reportedly charged more than $130,000 for workers’ compensation insurance and other services that were never provided.

For more information, contact: Leonard T. Jernigan, Jr. Adjunct Professor of Workers’ Compensation N.C. Central School of Law The Jernigan Law Firm 2626 Glenwood Avenue, Suite 330 Raleigh, North Carolina 27608 (919) 833-0299 ltj@jernlaw.com www.jernlaw.com @jernlaw

Prior results do not guarantee outcomes.
Attorney Advertising.