Posts Tagged ‘Broward County’

South Florida judges halting fee abuse by plaintiff PIP attorneys

Wednesday, August 11th, 2010

County court judges in Miami-Dade and Broward counties have taken notice that attorney fee claims by plaintiff personal injury protection (PIP) attorneys are out of control.

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.

Tags: , , , , , , ,
Posted in Uncategorized | No Comments »

Investigations manager at UAIC to participate in PIP roundtable

Tuesday, August 3rd, 2010

Blanca Aparicio, manager of the special investigation unit at United Automobile Insurance Corporation, will be featured in a roundtable discussion on personal injury protection (PIP) fraud on Aug. 4, 2010. Florida insurance companies and drivers lose millions of dollars each year from fraudulent claims submitted by drivers, passengers and medical centers. State regulators and local police have devoted task forces to uncovering the fraud and breaking up criminal rings.

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

Tags: , , , , , , , ,
Posted in Uncategorized | No Comments »

Attorney tries to dodge fees when PIP lawsuit goes bad

Tuesday, June 29th, 2010

When it comes to money that plaintiffs or their attorneys have to pay out of their pockets, some lawsuits never come to an end. And that’s what happened with a claim that started seven years ago.

Plaintiff attorneys are paid as much as $500 an hour for filing paperwork at the courthouse and filling in forms, United Automobile Insurance Co. (UAIC) uncovered in its research of court records.

But when those attorneys lose, they want the other side to receive less than $100 an hour. How surprising.

UAIC fought a 2003 accident claim in Broward County, Florida. The claimant, who was not insured by UAIC, sought Personal Injury Protection (PIP) coverage relating to an alleged accident. UAIC denied payment of PIP benefits after discovering the claimant herself owned two vehicles for which insurance was required. That led to a lawsuit in Broward County Court.

During litigation, plaintiff attorney William C. Ruggiero argued that one of the vehicles the claimant owned had been stolen and the other was inoperable, and as such, United was responsible for PIP coverage. Ruggeiro, whose law offices are in Fort Lauderdale,  even filed an affidavit of the claimant’s daughter alleging the vehicle was inoperable.

UAIC discovered from the claimant herself that she did in fact own two vehicles, that neither had ever been stolen, and that both vehicles were in fine working condition. In fact, one of the vehicles was actively driven by her daughter, the person who signed the affidavit alleging the vehicle was inoperable.

After two long hearings on UAIC’s motion to dismiss the case, Broward County Court Judge Martin Dishowitz finally ruled in our favor.

UAIC then asked for payment of the attorney’s fees incurred while litigating the bogus claim. Ruggiero and his client once again made every argument possible to deny UAIC’s request. Judge Dishowitz ultimately dismissed the plaintiff’s arguments and granted entitlement to fees but challenged just how much UAIC’s defense attorney should be paid per hour.

A fee expert hired by Ruggeiro said that insurance defense attorneys usually get paid $85 to $150 per hour, with the average being $100 to $135 per hour.

UAIC argued that because its defense attorney had five years of experience defending PIP cases, the rate should be $250 to $350 per hour. Judge Dishowitz regularly awards plaintiff PIP attorneys with similar experience $250 to $350 per hour.

Judge Dishowitz made UAIC argue twice for why it should be paid and in the end only awarded $145 per hour. Was that a reasonable amount? It would be if the plaintiff attorneys were not asking for and being awarded $300 to $500 an hour. Somehow, those lawyers believe their time is more valuable than ours and the judges seem to believe that too. It is such a biased system.

Tags: , , , , , , , , ,
Posted in Uncategorized | No Comments »

Staged accidents put Florida at top of scammer list

Friday, June 25th, 2010

It comes to no surprise to us that Florida leads the nation in phony accident claims. The National Insurance Crime Bureau says that these types of rip-offs increased 46 percent between 2007 and 2009.

Florida was the leader with 3,006 staged accidents over the two-year period. Tampa was the worst city for fraud, followed by Miami and Orlando.

The Miami CBS affiliate reports that the problem is huge in South Florida. The video report shows how unsuspecting drivers can become victims of fraud.

And the South Florida Sun-Sentinel quoted the NICB report as saying, “Staged accidents are dangerous criminal events that target innocent drivers with increasingly bold schemes aimed at defrauding insurance companies out of millions of dollars. Unless someone becomes suspicious, many of these staged accidents go undetected.”

We have long been suspicious of these type of accidents, and of the claims filed by medical service providers. As we previously reported, people will recruit insured drivers to fake accidents so that bogus Personal Injury Protection (PIP) claims can be filed. In these cases, the people involved never suffer any injury and never see a doctor or receive medical treatment.

The rise in staged accidents means insurance premiums are also going up. Insurance companies like ours must pass along the costs to safe, honest drivers. Part of the solution is stronger law enforcement. This year, the Florida Department of Financial Services worked with NICB and local police to arrest 27 people who were charged in faking accidents and medical claims.

The other step that’s needed: legal reform. The Florida legislature must make it harder for drivers and medical clinics to set up phony schemes. And the state must eliminate the financial incentives for plaintiff attorneys to sue when claims are not paid. Right now, the clinics and attorneys have all to gain and little to lose when an insurance company challenges their claims. Until there are strong deterrents to fraud, Florida drivers will continue to pay for drivers, clinics and lawyers who cheat.

Tags: , , , , , , , , , , , ,
Posted in Uncategorized | No Comments »

UAIC to LaBovick: Let’s get to truth on PIP lawsuits

Wednesday, May 12th, 2010

Our report on April 13 that LaBovick & LaBovick was filing hundreds of small-dollar lawsuits in Broward County apparently got the attention of the law firm and its managing shareholder, Brian F. LaBovick. Don’t think he caught United Automobile Insurance Company (UAIC) in the act of something devious, as the headline of his blog post would suggest. We were the ones who lifted the veil on his operations. Now, he is howling about “bringing the insurance giant to justice” in an April 27 blog post.

Thanks to our enterprising work, Mr. LaBovick now admits in his blog post that his firm has flooded the Broward courts with at least 1,000 lawsuits that are Personal Injury Protection (PIP) related. He also acknowledges that the plaintiff in every case is a company he controls, Gulfstream Medigroup. And Mr. LaBovick also admits that many of the lawsuits are for small sums of money.

Mr. LaBovick has a lot to say in his post about how he thinks his firm is undertaking a noble effort. He says his firm stands up for the rights of doctors and medical providers. There is a big problem with his argument: the doctors and medical providers he claims he is standing up for are not the ones filing suit and claiming they have been underpaid.

Mr. LaBovick also raises the question, “How much is the ‘right amount’ to be ripped off before a doctor sues?” Sadly, he has no numbers or statistics to back up the claim that anyone has been cheated. In reality, Mr. Labovick is filing lawsuits for bills that were previously paid in full, or were paid at an amount that the medical clinic accepted as full and final payment.  In one case, UAIC erroneously paid the medical clinic twice for the same services, with both checks cashed by the provider, and the LaBovick firm still filed a lawsuit claiming UAIC underpaid!  These are the numbers and statistics that will come out in court.

If you want to talk about rip-offs, cite numbers, such as the fact that the Florida Department of Insurance Fraud gets as many tips about PIP fraud as all other types of insurance fraud combined. Or read about the busts of medical clinics that excessively overcharge, submit bills for services never rendered, or treat people who stage accidents. Those people are the criminals who Mr. LaBovick should be criticizing.

So, Mr. LaBovick, let’s get down to what this is really about: your legal fees. In every case, LaBovick & LaBovick is seeking the same thing: attorney’s fees from insurance companies like UAIC.  If it weren’t about the attorney’s fees, then the lawsuits would have never been filed.  Why else would Mr. Labovick file a lawsuit for an alleged underpayment of $3.89 when it costs a minimum of $55 to file the suit?

Gulfstream Medigroup and LaBovick & LaBovick (which, of course, are one and the same) are just another group in a long line of attorneys that are out to milk Florida’s no-fault PIP system for exorbitant attorney’s fees.  This is a game to them, and the ones who ultimately pay are taxpayers and honest Florida drivers. The game needs to end.

Tags: , , , , , , , , , , ,
Posted in Uncategorized | No Comments »

Latest PIP fraud crackdown leads to arrests in Tampa, Miami

Thursday, April 22nd, 2010

The Florida Division of Insurance Fraud is fighting rampant Personal Injury Protection (PIP) fraud in the state with investigations of diagnostic and treatment clinics. The latest effort resulted in eight arrests on April 20, 2010, of owners and workers at clinics in the Tampa Bay area and Miami.

PIP fraud continues to be a widespread problem in Florida. Reports say that many PIP insurance claims are padded and some are totally fraudulent. Those unjustified overcharges are a large reason that Florida drivers pay some of the highest auto insurance premiums in the country.

PIP-related lawsuits cost taxpayers and drivers money, as plaintiff attorneys file court claims seeking as little as $1.19 for their clients and tens of thousands of dollars for themselves in legal fees. Abuses of the court system have been reported in this blog.

As a public service, we are reprinting below the news release from the office of Florida Chief Financial Officer Alex Sink, who initiated the sweeps in January.

CFO Sink Announces Arrest of Eight PIP Scammers in Continued PIP Sweep Arrests

TALLAHASSEE — Florida CFO Alex Sink’s Division of Insurance Fraud (DIF) today joined the Hillsborough County Sheriff’s Office and the National Insurance Crime Bureau (NICB) to announce a staged vehicle accident Personal Injury Protection (PIP) sweep, including clinic owners and workers involved in PIP fraud scams around the state.

“Staged accidents put every Floridian at risk, both physically and financially,” said CFO Alex Sink. “I am taking aggressive action every day to get these scammers off our streets and behind bars where they belong.”

CFO Sink investigators arrested Miguel Costillo Rivero, 47, outside of his Tampa residence this morning after an investigation showed that Rivero was soliciting people to be part of staged accidents, offering money in return for participation. Superior Injury Care, Inc., a Tampa, clinic received false PIP claims that provided the clinic with reimbursement funds from insurance companies on services never rendered. Rivero is being charged with patient brokering and false fraudulent insurance claims, both third-degree felonies.

Superior Injury Care clinic therapist Courtney Braden and receptionist Blanca Luz Villalobos were also arrested in the Rivero case, charged with Patient Brokering and False/Fraudulent Insurance Claims, both 3rd degree felonies.

CFO Sink’s detectives were initially introduced to Miguel Castillo Rivero by David Vazquez Perez. Perez was interviewed in Pasco County with assistance by the Pasco County Sheriff’s office, regarding a staged accident. Perez admitted taking participants to Rivero’s house, where they received payments and reminders to return to the clinic once a week to fill out insurance paperwork. Perez has been booked into the Pasco County Jail. Perez was charged with one count of false/fraudulent insurance claim.

Tampa Pain Rehab, LLC Director Livan Diaz Acosta, 34, and therapist Jonathan Alfonso Rosero, 23, were also arrested this morning on the same PIP-related charges — patient brokering and false/fraudulent insurance claims which are both third-degree felonies. Acosta and Rosero have been booked into the Hillsborough County Jail.

CFO Sink’s investigators arrested Joel Bauta Lopez, 37, and Claudia Valdes Diaz, 21, owners of Ganesha Medical Center Corporation in Miami, yesterday [April 20] on charges of insurance fraud, grand theft and operating an unlicensed clinic while attempting to collect more than $40,000.00 in fraudulent insurance claims.

The charges stem from a previous arrest of both suspects in May 2009 for participating in a staged accident ring under a former business name, E&B Rehabilitation Center. After their first arrest, they posted bond and reopened a clinic under a new name, Ganesha Medical Center Corp., continuing to work without a business license.

Since Lopez and Diaz committed this new crime while out on bond for their 2009 arrest, they could be held without bond until their trial. Both suspects were booked into the Miami-Dade County Jail yesterday afternoon and each charged with one count of operating without a license, eight counts of Insurance Fraud and eight counts of Grand Theft.

These arrests are part of an ongoing PIP sweep by DIF that began earlier this year through partnership with the New Port Richey Police Department, Pasco County Sheriff’s Office, Hillsborough County Sheriff’s Office, Direct Insurance., Met Life Insurance and NICB. Further arrests are pending around the State.

For more information on PIP fraud in Florida, visit DIF’s website at http://www.myfloridacfo.com/fraud/.

Tags: , , , , , , ,
Posted in Uncategorized | No Comments »

Lawsuit-happy firm in Palm Beach files PIP court claim for $3.89

Tuesday, April 13th, 2010

Little lawsuits. Littler lawsuits.

It’s just another day at the Broward County courthouse for Gulfstream MediGroup. The Palm Beach-based firm has become a litigation machine, filing more than 300 lawsuits in Broward County’s courts in both January and February 2010, according to public records. That’s equivalent to one every half-hour the main courthouse was open.

In the last three months of 2009, Gulfstream MediGroup filed 435 lawsuits against companies that insure drivers, according to public records. Among them, a claim for $3.89, plus legal bills for its exclusive law firm, LaBovick & LaBovick. The CEO of Gulfstream MediGroup, Brian F. LaBovick, is also the managing shareholder at LaBovick & LaBovick, which specializes in PIP litigation. The law firm and its automobile claims collection firm operate at the same address on Hood Road in Palm Beach Gardens, Fla.

The plaintiff lawyers who supposedly represent insured drivers are now getting into the litigation business just for themselves. In all of these cases, the driver and his or her medical provider were bought off a long time ago. Now it’s just the plaintiff lawyers and their captive billing agency down the hall.

Gulfstream MediGroup sued UAIC in December 2009 for an accident that the UAIC-insured driver said took place three years earlier. Since that time, the driver has signed over her claim to Hallandale Open MRI in Hallandale, Fla. That company, in turn, has signed over all its insurance claims from 2004 to 2007 to Gulfstream MediGroup in an undated document.

The lawsuit claims that UAIC underpaid a PIP-related claim by $3.89 and seeks to recover that amount for Gulfstream MediGroup, plus attorneys’ fees for LaBovick & LaBovick. A recent survey of attorneys’ fees in PIP cases found that many attorneys charge between $300 and $400 an hour for filing legal paperwork in Broward County courts.

From our point of view, it just doesn’t make sense to tie up the courts for a measly $3.89 so that an attorney can take home tens of thousands of dollars in fees. This is an abuse of the justice system. Gulfstream MediGroup is just dumping hundreds of lawsuits at the Broward courthouse. The firm is demanding that taxpayers and, ultimately, insured drivers pay for them.

Tags: , , , , , , ,
Posted in Uncategorized | No Comments »

South Florida plaintiff attorneys rack up big hourly fees

Monday, February 8th, 2010

South Florida’s county courts have become the home of the big payday for attorneys who file lawsuits related to personal injury protection (PIP) claims. An analysis of court records by United Automobile Insurance Company (UAIC) shows that a couple of lawyers in Miami-Dade County now command $500 an hour for filing legal paperwork. In Broward County, a dozen attorneys get paid $400 an hour for lawsuits.

The hourly rates put some attorneys on the same level as South Florida lawyers who perform multimillion-dollar mergers or handle sales on properties worth tens of millions of dollars. The difference: PIP lawyers sometimes sue for as little as $2.59 for their clients. And in many instances, the lawsuits seek payment on medical treatment related to a fender bender.

Plaintiff attorneys in PIP cases have turned consumer protection into a professional money machine. Time and time again firms like UAIC object in court to these fees because ultimately all drivers pay those expenses. Sadly, not enough judges can be convinced that these fees are out of line.

The UAIC fee study found that about 39 Miami-Dade attorneys have obtained the OK from county judges to charge $400, or more, per hour. Another 48 attorneys received $300 to $375 an hour. (See list below.)

The situation is similar in Broward County. There, UAIC found 15 lawyers who had received court approval to charge $400 an hour when they filed lawsuits related to PIP claims. Another 25 lawyers received $300 to $375 an hour. (See list below.)

Even if the lawsuit is for a small amount, an attorney will sometimes bill 100 hours or more and judges will award them $35,000 to $45,000, UAIC found. The county courts have a jurisdictional limit of $15,000, yet judges will freely award attorneys fees well in excess of this amount.

UAIC has seen fee awards in PIP cases in excess of $100,000 when the benefits recovered were only a couple thousand of dollars. This phenomenon of inexplicable attorney fee awards has fueled the fraud and abuse that permeates the PIP system.

** HOURLY BILLING RATES FOR ATTORNEYS IN MIAMI-DADE COUNTY COURT**

Miami-Dade attorneys, hourly rate: $500.00

Marlene Reiss

Michael L. Silverstein

Miami-Dade attorneys, hourly rate: $475.00

Bernard H. Butts, Jr.

Miami-Dade attorneys, hourly rate: $450.00

Bartram Billbrough

Carlos A. Lopez

Michael I. Libman

Stuart L. Koenigsberg

Virginia Best

Miami-Dade attorneys, hourly rate: $425.00

Amado A. Alvarez

Gary A. Friedman

John S. Seligman

Michael Feldman

Juan Montes

Kevin Whitehead

Marc Goldman

Michael Feldman

Stuart B. Yanofsky

Miami-Dade attorneys, hourly rate: $400.00

Daniel L. Kaufman

DeWayne Terry

Gabriel Sanchez

Anthony L. Tolgyesi

Brian Rodier

Carlos A. Lopez-Albear

Jacinto Gonzalez

Jeannie Jontiff

Jose Iglesia

Kenneth B. Shurr

Kenneth Dorchak

Kevin Whitehead

Mari Sampedro-Iglesia

Mark D. Feinstein

Mark Feldman

Richard E. Doherty

Rina Kaplan

Robert A. Trilling

Russel Lazega

Scott Jontiff

Steven Singer

Stuart B. Yanofsky

Miami-Dade attorneys, hourly rate: $375.00

Fernando F. Freire

Frank Allocca

Frederick W. Hoethke

Gregg Pessin

James D. Payer

Jeffrey S. Altman

Jon Freeman

Jonathan Friedland

Martin Berger

Michael Kaplan

Michael Leader

Neil Gonzalez

Sadie Naveo

Spencer Morgan

Thomas J. Morgan

Todd Landau

Valerie Manno

Miami-Dade attorneys, hourly rate: $350.00

Lourdes Alvarez

Donald Kerner

Armando Brana

Christian Carrazana

Cornel D. Williams

Dagmar Llaudy

George A. David

Gladys Cardenas

Ivan M. Tobias

Jeffrey G. Hess

John C. Llarena

Julie Terry

Kevin D. Mercer

Lisa Sanders

Lisa-Ann Gordon

Peter DePrimo

R. Brian Boyd

Rita Baez

Robert Seitz

Stephen A. Cameron

Stephen S. Nuell

Todd Link

Miami-Dade attorneys, hourly rate: $310.00 to $325.00

Sebastian Lissa

Kertch J. Conze

Travis Greene

Eric Shapiro

Miami-Dade attorneys, hourly rate: $300.00

Craig Blinderman

Deborah A. Green

Jose A. Yanez

Meena M. Lopez

Patricia Saintvil-Joseph

** HOURLY BILLING RATES FOR ATTORNEYS IN BROWARD COUNTY COURT**

Broward attorneys, hourly rate: $400.00

Adolfo Podrecca

Amir Fleischer

Charles J. Kane

Cris E. Boyar

Gary Marks

Harley Kane

Jay Spechler

Joseph R. Dawson

Laura M. Watson

Marc Finkelstein

Mary Margaret-Monk

Michael Bendell

Michele Muir

Paul A. Adams

William Ruggiero

Broward attorneys, hourly rate: $375.00

Andrew J. Weinstein

Angela Cohn

Nichole Pacella

Paul S. Adams

Robert Stein

Robert Bradford, Jr.

Keith Schafer

Steven Ainbinder

Steven Lander

Broward attorneys, hourly rate: $350.00

David M. Spitz

Douglas  Harrison

Emilio R. Stillo

Nathan J. Avrunin

Nicole R. Malick

Rafael I. Katz

Broward attorneys, hourly rate: $325.00

Brian H. Malamud

Caroline Perlegas

Mark P. Mullen

Michael Fischetti

Steve Phillips

Timothy A. Patrick

Helen Stratigakos

Broward attorneys, hourly rate: $300.00

Chris Pole

Vanessa Casullo

Kathy Eikosidekas

Tags: , , , , , , , , , ,
Posted in Uncategorized | No Comments »

Car accident lawsuit in Broward court seeks $2.59 even after all PIP benefits paid

Tuesday, December 29th, 2009

The car accident injury claims were filed. The insurance company made payments to the limit of Florida law for personal injury protection (PIP). So what happened next? A Fort Lauderdale attorney filed a lawsuit for $2.59.

And that’s the way it is in Broward County, where attorney Steven Lander of Lander & Goldman in Fort Lauderdale is suing United Auto Insurance Company (United Auto) on behalf of his client.

This is yet another instance of plaintiff attorneys seeking petty amounts for their clients and big legal fees for themselves. This abuse of the legal system makes insurance coverage more expensive for drivers and misuse precious court time. Judges, court clerks and insurance companies waste their time and money dealing with civil charges that do little for the insured and everything for their attorneys.

What makes this case incomprehensible is that United Auto had paid the full limit of PIP benefits. Basic PIP benefits cover 80 percent of an injured person’s medical bills and 60 percent of lost wages up to a maximum of $10,000. In the case of Lander’s client, United Auto had issued two payments equaling the $10,000 figure before the lawsuit was filed.

The client, which does business as C&R Imaging of Hollywood, claims that its benefits were improperly reduced. How is this possible? Lander does not explain this in court papers.  All he says in the initial filing is that United Auto breached its contract to provide benefits.

The dispute is headed to a pre-trial conference, which may put an end to the matter.  But, what’s left unresolved is why such petty claims get filed. Who has the greater motivation to sue in this case, the MRI clinic that’s seeking $2.59 or an attorney who charges about $375 an hour for his services? And why haven’t the courts – and the Florida legislature – done more to clear the courts of this type of mess?

Tags: , , , , , ,
Posted in Uncategorized | 2 Comments »

Time, money wasted in Broward County lawsuit for $2.60 in PIP billing claim

Tuesday, December 29th, 2009

Make the lawsuit go away. An MRI clinic wants the cash equivalent of a half-gallon of milk and is adding to the caseload of a Broward County court to get it.

It’s another example of how plaintiff attorneys in personal injury protection cases are using the legal system as a way to rack up legal fees even if the contested amount is minuscule. United Automobile Insurance Co. is committed to fighting lawsuits that waste taxpayer money, keep drivers’ premiums high and force insurance companies to defend themselves against ridiculous claims.

In this case, what the client wins might win would be a tiny fraction of what its attorney, Steven Lander of Lander & Goldman in Fort Lauderdale, stands to receive. Florida needs legal reforms that eliminate the financial incentive to sue first, negotiate second.

Lander’s client, which does business as Florida Open MRI, submitted a bill in August 2009 to United Auto for services the clinic says it performed on a United Auto policyholder. The next month, the insurance company paid $1,804.86 in PIP benefits, $30.86 in interest and $186.03 for demand postage and penalties. Lander’s client deposited the checks and in October sued for an additional $2.60 in benefits.

As with similar cases in other county courts, the there is a legal doctrine that literally translates from Latin as “the law does not care about small things.” Clearly, this is one of those small things — unless one figures in the legal fees for the plaintiff attorney.

But that is not a reason to sue. A dispute over enough dimes to buy a gallon of regular gas should not add to the overscheduled, overtaxed courts. The plaintiff has not raised a constitutional issue or claimed that fundamental rights have been violated. This is about money, and not much of it.

How do we prevent plaintiff attorneys from wasting the time of judges and attorneys with inappropriate lawsuits? United Auto is seeking sanctions under Florida law. If Florida Open MRI and Lander lose, they could each be responsible for half of United Auto’s legal fees. To send a punch to the pocketbook of both parties, the Broward County court judge will have to find that there was a complete absence of a justiciable (legally appropriate) issue of either law or fact raised by the lawsuit.

The dispute should never have come to this point.

Tags: , , , , , , , ,
Posted in Uncategorized | No Comments »