Libman had a secret deal with Continental Provider Services, a non-lawyer business that prepared legal pleadings and/or documents for him that he then billed as his own work at an hourly rate of up to $450 per hour.

United Automobile Insurance Company (UAIC) shared this information with the Florida Bar. The Bar’s investigation confirmed the facts and confirmed that such behavior by Mr. Libman violated Rule 4-5.4 of the Rules of Professional Conduct and was worthy of discipline.

One might expect that he would be fined, reprimanded, suspended, or possibly disbarred. Instead, the Bar issued a “Report of No Probable Cause and Letter of Advice” to Libman. The same Michael Ira Libman who once bragged, “You know all our cases are phony and we bribe the judges.”

In the latest Libman transgression, the Bar accused UAIC of having a bias in pursuit of the grievance. UAIC uncovered the unethical conduct, obtained the necessary affidavits and evidence to support the allegations, and submitted the documents to the Bar.

Of course UAIC had a bias against Libman.  If UAIC didn’t believe Libman was unethical, it wouldn’t have submitted the complaint.  Doesn’t every person filing a complaint to the Florida Bar have a bias against the lawyer they are complaining about?

Was it that Libman had an explanation for his unethical actions? No. Was it that mitigating circumstances somehow excused his unethical behavior? No. To date, the Bar has offered no explanation why it issued no discipline whatsoever in this matter, other than that the complainant was biased.

The Bar’s lack of action is troubling to say the least. It sends a message to every attorney in the state that it’s OK to cheat and lie. If your client or others paying your bills complain, just argue that they are biased. If independent investigators catch you red-handed, relax. The Bar won’t take action.

It’s a disgrace.

The organizers and attendees — many of whom were doctors and lawyers — showed no class in celebrating accidents that leave people injured or worse. There were almost 236,000 crashes resulting in 2,563 fatalities in 2009 on Florida roads. There is no justification for turning those tragedies into an excuse for what organizers call social networking.

The lack of taste was visible in the invitation: A tanned, young brunette in a racy blue dress appeared in the foreground with pictures of an accident-damaged car, ambulance and scales of justice in the background above a filled martini glass. The invitation touted “PIP Thursdays” as the “hottest new social networking group for professionals in the business….Come and meet the biggest and best players in personal injury care in the State of Florida”.

Yes, you read it right.  These doctors and lawyers call themselves “players”.  It’s unbelievable what PIP has turned into in the State of Florida.

The invitation and event caught the eye of Sun-Sentinel Insurance Writer Julie Patel.  Her House Keys blog post reported that about 40 people, mostly legal and medical professionals, attended.  We were pleased to read on the Sun-Sentinel blog that the Coalition Against Insurance Fraud put the postcard on its Facebook page and brought copies of it to a state-sponsored roundtable on PIP fraud. We were not surprised to see that the party organizers did not respond to the newspaper’s calls and e-mails. They are too busy out “playing”.

What are the next key insurance issues for Florida?

In addition to the sinkhole issue, McCarty said his office may hold a hearing on personal injury protection fraud. Insurance Consumer Advocate held a roundtable on the issue last week. Floridians are required to have at least $10,000 of PIP coverage, which pays for the driver’s medical expenses, a portion of lost wages and a death benefit after an auto accident.

Domestic insurers have pushed to have the state address the problem of staged accidents. Chief Financial Officer Alex Sink’s office has worked with local police and the crime bureau to arrest about 30 people this year for alleged involvement in staged accidents.

“PIP is certianly going to be an issue this year. There certainly is an increase we’re seeing in the cost of PIP claims,” he said.

For years, Florida vehicle insurers have pushed state regulators and legislators for reforms that would cut down on PIP fraud. Now it seems that they recognize the problem needs to be addressed.

In recent hearings, judges Andrew Hague, Gladys Perez, Lisa Walsh, Caryn Canner Schwartz and Myriam Lehr in Miami-Dade County and Judge Leonard Feiner in Broward County, slashed plaintiff attorney’s fee claims by as much as 50%.

These Florida judges see the billing abuse that PIP attorneys have been engaging in for far too long. Florida drivers have been footing the bill for this abuse and we are glad these judges have taken notice.

As previously reported here, the hourly rates claimed by and awarded to plaintiff PIP attorneys in Miami-Dade and Broward counties are equally out of control. In Broward County, Judges Leonard Feiner, Robert Lee and Linda Pratt have reduced hourly rates previously awarded by their fellow judges.  In Miami-Dade County, Judges Myriam Lehr and Shelley Kravitz have done the same.

We appreciate that these judges are addressing the problem — doing what is right in this tough economy. We hope other judges will step up as well.

Florida Insurance Consumer Advocate Sean Shaw will host the discussion on ways to curb fraudulent activities, improve the claims process, and ensure that the licensure of health care clinics is adequate. The goal is to ensure that PIP coverage remains a cost-effective means for Floridians to receive medical treatment for minor injuries and to help control automobile insurance rates.

The roundtable on Aug. 4 will be held from 9 a.m. to noon and again from 1 p.m. to approximately 4 p.m.  The event will be held in the Florida House of Representatives’ Committee Room 404, House Office Building. A copy of the agenda is posted on the Insurance Consumer Advocate’s website.

Those unable to attend can watch the round table at the Florida Channel’s website or by listening via conference at (888) 808-6959, Conference Code: 4132880.

Also participating in the roundtable are:

• Rep. Bryan Nelson, Apopka, Insurance, Business & Financial Affairs Policy Committee
• Dr. Barry Burak, Affiliated Healthcare Centers Inc.
• Deborah J. Cunningham, Manager, Florida Special Investigations Unit, Nationwide, Allied, Titan, & Victoria Insurance Companies
• Attorney Kenneth J. Dorchak of Buchalter, Hoffman & Dorchak, North Miami
• Kim Driggers, Esq., Assistant General Counsel, Florida Chiropractic Association
• Attorney Scott W. Dutton of Dutton Law Group, Tampa
• Wade Fairchild, PIP Claim Process Specialist, Allstate
• Ralph Glatfelter, Florida Hospital Association
• Howard Goldblatt, Director of Government Affairs, Coalition Against Insurance Fraud
• Dr. Gary Kompothecras, Physicians Group LLC, Sarasota
• Belinda Miller, Deputy Insurance Commissioner Property & Casualty Insurance, Office of Insurance Regulation
• Tracy T. Pickard, Director of Special Investigations, Direct General Insurance
• Chris Shakib, Terrell Hogan Law Firm, Jacksonville
• Dr. Todd Sussman, C.D., Total Healthcare of Florida, Weston
• Capt. Steven Smith, Department of Financial Services, Division of Insurance Fraud, Operations and Investigations, Miami-Dade Region
• Jessica Turner, Special Investigations Manager, Farmers Insurance Group
• Attorney Johnny Moore, Deputy Insurance Consumer Advocate, Office of the Insurance Consumer Advocate
• R. Terry Butler, Senior Attorney, Office of the Insurance Consumer Advocate
• Reamonn Soto, FAMU Intern, Academy of Leadership and Excellence Program, Office of the Insurance Consumer Advocate

Insurance News Net contacted company founder and CEO Richard Parrillo Sr. and the company’s chief legal counsel, Jill Carabotta. Among the audio highlights of the interview with them:

We had to go to the appellate court to get justice. We have found that in many instances we don’t get justice in the county courts.

For the first time, we are seeing a little light at the end of the tunnel. Things were so prejudiced against us.

I think additional legislative changes are needed. Many safeguards have been run over by county judges…just annihilated.

The interview is online and you can hear it in its entirety  here.

Miami-Dade County Court Judge Lawrence D. King granted a motion for summary judgment by United Automobile Insurance Company (UAIC) after a higher court ruled that the courts should be cleared of small-dollar lawsuits.

Let’s hope that other county court judges fall in line and put an end to the abuse of the law by plaintiff attorneys. This ridiculous game of suing for pennies and pocketing tens of thousands of dollars in fees should have come to an end a long time ago.

George A. David had sued UAIC in 2008 on behalf of Stand-Up MRI, Inc., claiming that UAIC had underpaid the interest owed on a PIP treatment claim. As with other lawsuits, Stand-Up MRI had cashed the payment check before hiring an attorney who sent a letter demanding more money. The letter didn’t say how much.

Nor did the lawsuit. It wasn’t until David, of George A. David, P.A., got before Judge King that it became known his client was owed just $.17 or $9.63.

Judge King had denied UAIC’s motion to dismiss the lawsuit, in which the company argued that the complaint failed to state the amount due and ordered UAIC to file an answer. Subsequently, UAIC filed a motion for summary judgment regarding Stand-UP MRI’s defective demand letter, which Judge King also denied.

UAIC argued that when it responded to the initial demand letter (which did not state the amount of interest owed), it requested that Stand-Up MRI contact UAIC immediately there was a discrepancy in the payment made. But instead of contacting UAIC and advising the interest was short by $0.17 or $9.63, Stand-Up MRI filed suit less than a week later.

UAIC then filed a motion for summary judgment based on the doctrine of “de minimis non curat lex” which was set for hearing on July 17, 2010.  Based upon the recent ruling by the appellate circuit court which found that a similar lawsuit must be dismissed based upon the same doctrine, Judge King granted UAIC’s motion for summary judgment.

UAIC has been sued countless times for amounts from a few cents to a few dollars. Now that plaintiff attorneys cannot collect five- and six-figure fees for these needless lawsuits, the courts and taxpayers should see some relief.

There’s more to be done – stamping out PIP fraud, for instance – but taking away the economic incentive to sue first and let the insurance company know what you are suing for later has started to level the playing field in the courtroom.

Now, more than four years and seven months later, a Miami-Dade County circuit court, sitting in its appellate capacity, says that county court judge Teretha Thomas erred when she found a UAIC adjuster could promise coverage despite there being no insurance policy in effect.

A driver was involved in an accident on Dec. 7, 2005, at 7:55 a.m., in which her daughter was a passenger, according to court records. At 10:23 a.m., the driver purchased an insurance policy with UAIC. The next day, the daughter began receiving treatment for injuries allegedly received in the accident, and made a claim for payment through UAIC.

When the medical provider submitted the bill, UAIC did not pay and was sued. When the provider’s attorney, Todd A. Landau, took the deposition of UAIC’s claims adjuster, that person erroneously said the company had no issue with regard to coverage.

Landau argued to Judge Thomas that the adjuster’s testimony meant UAIC had no objection to paying the claim. The judge agreed and ordered a judgment before the lawsuit went to trial.

UAIC appealed and three circuit court judges sitting in their appellate capacity agreed that UAIC never promised to pay the medical bills. The judges unanimously ruled that while insurance coverage cannot be forfeited, it also cannot be created where it doesn’t exist. And any agreement to change the effective date – or time – of coverage cannot come after a lawsuit is filed.

It’s obvious to us that any responsible driver that you should have insurance before you get behind the wheel. You cannot force an insurance company to pay for an accident when no insurance policy was purchased or in effect. That’s plain common sense.

The appellate court agreed with our reasoning and granted UAIC’s motion for attorney fees. The court found the appeal was frivolous as there was no reasonable basis in fact or law to uphold Landau’s argument that coverage should exist despite no insurance policy being in effect. Landau wrote a check to UAIC for $15,250.

The court showed excellent common and financial sense. There is no reason that an attorney should pocket $13,000 when suing for two bucks.

In handing down a unanimous decision, the court said the only motivation for the lawsuit was attorney fees. The court told the county court judge to look at the lawsuit again, deny the plaintiff attorney her fees, and dismiss the complaint.

The case began after a United Automobile Insurance Co. (UAIC) policyholder was injured in a car accident in 2004. Fourteen months after UAIC paid her medical bills, her attorney, Maria Corredor, sent a letter saying that additional money was owed, but did not state how much.  Four months later Corredor filed suit, and only then did she explain that her client was seeking $2.53 in alleged overdue interest.

Corredor is a regular player in the plaintiff PIP bar.  When UAIC surveyed PIP plaintiff attorneys who sought the highest legal fees, the company found that she charged and was regularly awarded $400 an hour. She had every incentive to sue rather than write UAIC and ask for the tiny amount owed.

Without a trial, Miami-Dade county court judge Robin Faber awarded the plaintiff a total of $2.53 and gave Corredor $13,370.25 in fees and costs, plus interest.

The amounts made no sense – legally or economically – so UAIC appealed. Ridiculous fee awards like this one just encourage more plaintiff attorneys to bring frivolous suits in hopes of a big payday.

A panel of three Miami-Dade circuit judges acting in their appellate capacity agreed with UAIC in a 15-page opinion.  Had the plaintiff and her lawyer sent a letter specifying exactly how much was owed, “no lawsuit would have been filed, nor any judgment entered for such a paltry amount, nor any award for attorney’s fees for such a conscience-of-the-court shockingly large amount,” the court wrote in its opinion.

The judges then absolved UAIC of any wrongdoing.

“In the case at bar, there was no wrongful conduct by United,” they wrote in their opinion. The company paid the medical providers 14 months before Corredor sent her vague letter demanding more money. And her client waited 18 months after the medical providers cashed their checks to sue.

The court also said that county courtrooms should not entertain lawsuits for trivial dollar amounts. The court cited a Florida Supreme Court decision from 1858 in which a case was dismissed because the amount involved was a small (“de minimis”) amount between $9 and $11.  In the UAIC case, the judges wrote, “One wonders how ‘de minimis’ an amount for which an insured/provider will repair to the court for redress: $1.23? $0.25? A nickel?”

The answer is 17 cents, as reported in this blog. The good news is that the courts are running out of patience with plaintiff lawyers who waste the time and money of taxpayers and insured drivers. One can only hope that judges in Miami-Dade county courts and beyond heed the wise words in this court decision.

Wednesday, June 30, 2010

In light of the recent National Insurance Crime Bureau report indicating that questionable claims involving staged vehicle accidents have substantially increased in Florida between 2008 and 2009, Florida Insurance Consumer Advocate Sean Shaw will host a roundtable discussion on Personal Injury Protection (”PIP”) insurance-related issues on Wednesday, August 4, 2010 from 9:00 a.m. to approximately 4:00 p.m.

PIP fraud is among the primary reasons attributed to the recent increase in staged accidents. Many think that abusive and fraudulent activities associated with Florida’s mandatory PIP coverage may outweigh its intended benefits.

The August 4 roundtable participants will include insurance industry members, medical providers, attorneys and other professionals who work directly with PIP-related claims. Their goal will be to identify areas of PIP-related concern and make recommendations to ensure that PIP coverage remains a cost-effective means for Floridians to receive medical treatment for minor injuries without undue financial hardship on medical providers and facilities. Roundtable participants also will review ways to curb fraudulent activities, improve the claim payment process and ensure licensure of health care clinics is adequate. Accomplishing these goals is expected to help control automobile insurance rates.

The roundtable will be held in the Florida House of Representatives’ Committee Room 404, House Office Building. An agenda is forthcoming.