Posts Tagged ‘PIP claim’

No ‘PIP time machine’ for auto insurance claim, says Miami-Dade court

Saturday, July 17th, 2010

Been in a car accident? No insurance policy? No problem. At least that is one driver’s thought when she bought insurance from United Automobile Insurance Company (UAIC) after her daughter was injured in a collision.

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.

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Appeals court overturns verdict that gave big payoff to plaintiff attorney

Tuesday, July 13th, 2010

The fee faucet from which so many plaintiff attorneys drink has been reduced to a potential trickle by the appellate division of Miami-Dade County circuit court. Before attorneys sue auto insurance companies over Personal Injury Protection (PIP) claims, they must make clear beforehand what their client wants, said the court in a July 1, 2010, opinion authored by Judge Mark King Leban.

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.

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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.

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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/.

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Plaintiff attorney asks for a penny, judge says no

Wednesday, March 3rd, 2010

Chalk one up for common sense. A lawsuit for 1 cent has been tossed out of Miami-Dade County Court.

“The case was another example of how far some plaintiff attorneys will go to collect fees and the trouble it takes to get rid of nuisance lawsuits,” said Richard Parrillo, Sr., founder and CEO of United Automobile Insurance Company (UAIC).

“Plaintiff attorneys look to put thousands of dollars in their pockets even if their clients receive 1 cent or less,” said Parrillo. “This misuse of the Personal Injury Protection (PIP) law wastes taxpayers’ money and judges’ time. The Florida legislature needs to clear the courts of worthless lawsuits.”

Attorney Daniel Davidovic of Shuster & Saben LLC in Miami had sued UAIC in 2009 in Miami-Dade County Court on behalf of Chiro Group LLC, a Miami Lakes chiropractor; its patient was a UAIC policyholder. Damage to that driver’s vehicle in an August 2008 accident was $50, according to a police report.

According to a transcript from a court hearing in Feburary 2010, the claim was that United’s payments to Chiro Group LLC were short by one penny. Basic PIP covers 80 percent of an injured person’s medical bills and 60 percent of lost wages up to a maximum of $10,000.

At that hearing, Miami-Dade County Court Judge Linda Singer-Stein dismissed the lawsuit after listening to arguments from UAIC and Miami attorney Jeffrey Altman, who claimed he now represented Chiro Group LLC. The judge said of the 1-cent shortage on one check: “The difference is immaterial.”

But it wasn’t that simple, or unusual. UAIC has repeatedly found that plaintiff attorneys file PIP lawsuits over a few dollars. Their reward: fat fees. Altman, for example, has been paid $375 an hour on other cases, according to a UAIC analysis of court records. Davidovic of Shuster & Saben was also seeking fees.

Altman’s client had cashed the benefit checks a year before the court hearing. The penny was owed because of a rounding error, said Altman, who does business as The Law Office of Jeffrey Altman.

Judge Singer-Stein asked Altman why he didn’t contact UAIC when he found a math error. His response: “It is not our job,” he said, according to a court transcript. “If they don’t pay, we get to file suit.”

Altman did not want to repay costs that UAIC had incurred in defending the suit. He claimed at the hearing that he acted in good faith and so both sides should just walk away. The judge said she would think about whether Altman should pay up. In the meantime, policyholders at UAIC are footing the bill.

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Jury finds fraud in PIP lawsuit in Miami-Dade County court

Tuesday, February 9th, 2010

The injury claims were fake. The medical treatment was not needed. And the plaintiff was not even at the accident. So said a Miami-Dade County jury on January 28, 2010, when it tackled a big problem in local courts: Personal Injury Protection fraud.

The jury’s finding was a great victory for justice and Florida drivers that the jury saw through the lies presented in court. The decision shows that the fight against fraudulent PIP claims is finding support in the justice system.

Silver Chiropractic in Miami had sued UAIC in Miami-Dade County court for PIP payment on behalf of Cassandra Smith. She had signed over her claims, a common practice in PIP lawsuits. Attorney Christian Carrazana, of Panter, Panter & Sampedro in Miami, had argued for payment – and his fees – for injuries that Smith supposedly suffered in a car accident. Carrazana represented Cassandra Smith, (UAIC insured whose vehicle Ms. Smith was allegedly in), and the clinic, Silver Chiropractic.

The jury was not deceived. It told the court that Smith had submitted fraudulent claims because the evidence showed she was not involved in the accident. As a result, the jury found that none of the medical treatment allegedly rendered by Silver Chiropractic to Smith was payable.

Florida drivers pay PIP premiums to cover their accident-related medical bills up to $10,000, but many claims are fraudulent. Florida’s Office of the Department of Insurance Regulation has stated that more than 80 percent of all automobile accident injury claims are in fact falsified or overstated in some way.

The problem of PIP fraud is becoming greater, says the Florida’s Division of Insurance Fraud. It reported last August that PIP fraud jumped 41 percent in the fiscal year that ended June 2009. Much of the increase was due to staged accidents, which investigators said is “one of the most lucrative vehicle fraud schemes perpetrated in the insurance industry.”

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United Automobile Insurance Company finds abuse of PIP-related appeals in South Florida courts

Thursday, December 17th, 2009

United Automobile Insurance Company, a property and casualty insurer focusing on automobile insurance and premium finance,  has launched a blog that reveals how the South Florida courts are misused in personal injury protection lawsuits. United Auto Courts Report (http://www.unitedautocourtsreport.com/blog)   highlights the questionable conduct of plaintiffs, their attorneys and judges in Miami-Dade and Broward counties in PIP-related lawsuits.

“For too long, PIP plaintiffs and their attorneys have used the legal system to enrich themselves at the expense of Florida’s hard-working residents who pay some of the highest rates in the country,” said UAIC founder and CEO, Richard Parrillo, Sr. “Sadly, many county court judges have done little or nothing to stop these abuses. We intend to shine a bright light on all of them.”

The blog launched Dec. 14 by reporting that one plaintiff attorney appealed a court settlement on a personal injury protection (PIP) payment for an additional $1.19. Attorney George David of George A. David, P.A., Coral Gables, is seeking that tiny amount for his client plus legal fees for himself of about $400 an hour. Legal precedents say he should not be wasting the court’s time and the taxpayer’s money.

“This is just one example of how the court system is used as money machine for plaintiffs and their lawyers” said Parrillo. “The public needs to know just how far fraud and abuse have spread in the PIP system and courts. Through our reporting, we hope to see meaningful reform of Florida’s insurance laws and legal system.”

United Automobile Insurance Company has been at the forefront of fighting this monumental fraud problem in the Florida Legislature and in county, circuit and appellate courts. But this battle has been very expensive and seemingly unwinnable in part to what the company sees as an uneven playing field in Miami-Dade and Broward County courts.

The United Auto Courts Report blog updates its readers on the cases, verdicts and appellate decisions that impact the state of Florida’s automobile insurance market.

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