Day on Torts

July 23, 2009

Laying A Foundation to Admit a Photograph into Evidence

The trial of virtually every personal injury or wrongful death case involves the use of one or more photographs.

The recent decision in Zerega Ave. Realty Corp. v. Hornbeck Offshore Transp., LLC, __ F.3d __ (2d Cir. July 6, 2009) (No. 08-0639-CV) reminds us that the failure to lay a proper foundation will result in exclusion of photographs at trial. The opinion reminds us that the "standard for admissibility of photographs requires the witness to recognize and identify the object depicted and testify that the photograph is a fair representation of what it purports to portray." The witness attempting to authenticate the photographs identified the object but was not asked whether the photograph was a fair and accurate representation of the object. The exclusion of the photograph was affirmed on appeal.

Recall that "[t]he witness qualifying a photograph … does not need to be the photographer or see the picture taken. It is only necessary that he recognize and identify the object depicted and testify that the photograph fairly and correctly represents it.” Kleveland v. United States, 345 F.2d 134, 137 (2d Cir. 1965)

July 22, 2009

SVMIC – 2008 Financial Results – Part 4

by The Law Offices of John Day, P.C.

I have released three prior posts on the financial condition of State Volunteer Mutual Insurance Company – click here to read them: Part 1, Part 2, Part 3.

The bottom line is that conservative financial management at SVMIC has permitted the company to accumulate a quarter of a billion dollars in net worth, even as the number of policyholders has declined 4% of the last year.

So how is that impacting rates?

July 21, 2009

Justice Programs 2009

by The Law Offices of John Day, P.C.

Penny White, Joe Riley and I are on the road again this Fall for the 2009 Justice Programs seminars. This two-day, 15-hour is designed for Tennessee lawyers who do civil litigation.

We will be in Nashville November 19 and 20, Chattanooga on December 3 and 4, Memphis on December 10 and 11, and Knoxville on December 17 and 18.

Learn more about the program here. Register here.

July 20, 2009

Red Flag Rules for Law Firms

by The Law Offices of John Day, P.C.

The agent who sells us our professional liability insurance coverage sent me this last Wednesday:

On August 1, 2009, new federal regulations enforced by the FTC will go into effect; the so-called Red Flag rules, which require businesses, including lawyers and law firms, to take pro-active measures to detect and prevent identity theft. While implementation of these rules has now twice been postponed, (and some legal professional organizations are protesting their application to lawyers), it is important for lawyers to review them and plan for compliance. Although the FTC does not appear to specify final penalty amounts for non-compliance, it is clear that violators can be subject to significant civil penalties – making this information especially important for anyone who handles personal identity information of clients or customers.

Here is a link to the FTC website where the rules are discussed.

July 17, 2009

Consent Provisions in Professional Liability Insurance Policies

by The Law Offices of John Day, P.C.

Last Friday a Memphis jury awarded almost $24M to a woman and her husband in a civil suit arising out of what the jury found to be medical negligence arising from the failure to promptly diagnose breast cancer. The woman is in the last weeks of her shortened life.

It is my understanding that the defendant did not make a settlement offer and in fact that the doctor refused to authorize any offer. I do not know if this is correct. I do not know if the case could have been settled. I do know it is hard to make progress on settlement negotiations if one side or the other refuses to discuss settlement.

Many insurance companies that provide professional liability coverage to physicians give the physician the right to refuse to consent to any settlement. This is unlike traditional liability insurance coverage, where the insured may be given the opportunity to voice an opinion on settlement but rarely has any power to block a settlement within policy limits.

July 17, 2009

For Sale

by The Law Offices of John Day, P.C.

The American Conservative Union, the nation’s oldest conservative lobbying organization, has firmly held core beliefs. Those core beliefs are apparently for sale to the highest bidder, even if the highest bidder is on the opposite side of the issue than the other potential bidder.

Credibility free-fall.

July 16, 2009

SVMIC – 2008 Financial Results – Part 3

by The Law Offices of John Day, P.C.

This is the third post about State Volunteer Mutual Insurance Company’s 2008 financial results. Click on the links to see Part 1 and Part 2.

New malpractice claims asserted against SVMIC insureds dropped 2.5% in 2008. The company reports that 83% of all cases were resolved in favor of it’s policyholders on a company-wide basis.

(One of the things I frequently address at seminars for young lawyers is the evaluation of potential medical negligence cases. I tell them that the best way to make money on medical malpractice cases is to refuse to represent the next ten people who call asking the lawyer to represent them in a medical malpractice case. Obviously, that is ridiculous, but the fact remains that SVMIC "wins" almost 9 out of 10 cases. A fair number of those cases are filed by lawyers who do not have the experience to recognize a bad case from a good case..)

July 15, 2009

SVMIC – 2008 Financial Results – Part 2

by The Law Offices of John Day, P.C.

Our last post discussed State Volunteer Mutual Insurance Company’s $251,321,000 policyholder surplus. This post will discuss other aspects of the company’s finances.

As of December 31, 2008, SVMIC had total assets of $1,324,500,000 assets. (That’s $1.3 Billion). The vast majority of those assets are in government (federal, state and local) and corporate bonds, although the company does have some stock holdings ($53M). The conservative allocation of monies among these investment vehicles resulted in only a very small loss in investments in 2008. The loss on the value of these investments sold was only $1.7M, although the the investments that continued to be held had a decline in value of about $23M.

The total revenues of the company in 2008 were down about $12,000,000 to $246,000,000. It is important to note that the number of policyholders decreased from 16,155 to 15,501, which certainly had an impact on revenue.

July 14, 2009

Use of the Exhibit Stamp in Adobe

by The Law Offices of John Day, P.C.

The Acrobat for Legal Professionals blog has a great post called "Add Dynamic Exhibit Stamps in Acrobat using a free stamp set." The electronic exhibit stamp has both a static graphic element and a changing numeric or alphabetic element and permits you to electronically stamp documents with exhibit numbers or letters. The tool is very helpful when filing papers in federal court.

July 13, 2009

SVMIC – 2008 Financial Results – Part 1

by The Law Offices of John Day, P.C.

SVMIC continues to enjoy wonderful profitability, even as the number of physicians it insures declines.

SVMIC – State Volunteer Mutual Insurance Company – is a physician-owned insurance company that was created over 30 years ago. It has grown from a company with paid-in capital of $7,500,000 to a entity with a policyholder surplus (think: net worth) of $251,321,321.

Let me explain what that means. Policyholder surplus is determined by subtracting reserves for claims payments and claims expenses from assets. Each time a claim is made a reserve is set. The size of the reserve is based on the severity of the claim, the likelihood of payment and the anticipated defense costs. The amount reserved on a claim changes over time, but the idea is that the sum total of reserves should pay all existing claims and all future defense costs. There is also a category of reserves known as IBNR – Incurred But Not Reported. This is for claims that the company "knows" to be out there but have not yet been reported to the company.