Posts Tagged ‘United Automobile Insurance Company’

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Why doesn’t Florida Bar punish auto insurance plaintiff attorney?

Friday, September 3rd, 2010

Michael Ira Libman violated the Rules of Professional Conduct. The attorney regularly kicked back a percentage of his legal fees to a non-lawyer business. Why wasn’t he punished? And what does the Florida Bar’s lack of discipline tell other attorneys about how to conduct themselves?

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.

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PIP party in poor taste for Florida doctors, lawyers

Tuesday, August 17th, 2010
How low can you go? When a group of doctors and lawyers put on a party that glorifies car crash injuries, there is no bottom.  The first “PIP Thursdays” cocktail party event was held at the Blue Martini lounge in Fort Lauderdale in early August.

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”.

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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.

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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

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Appellate court victory in PIP lawsuit earns national attention for UAIC

Friday, July 30th, 2010

A victory in state court has produced national attention for United Automobile Insurance Corporation. As reported on this blog first, United Automobile won a nullification of legal fees from a panel of circuit court judges in Miami-Dade County in a case where the plaintiff sought to recover $2.53 in alleged overdue interest.

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.

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Courts take heed of important ruling on small-dollar PIP lawsuits

Wednesday, July 21st, 2010

A judge wanted to hand over $0.17 or $9.63 in interest (depending on whether the judge found the interest fluctuated or was a flat rate) to the plaintiff and big fees to its attorney, but the recent appellate court ruling on “de minimis” lawsuits put a stop to the nonsense.

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.

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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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Suspicious accidents, PIP claims soar in Florida, National Insurance Crime Bureau says

Tuesday, June 29th, 2010

The number of suspicious auto accidents that were staged or deliberately caused by criminals in Florida has increased dramatically in the past year, according to the National Insurance Crime Bureau (NICB). The independent organization said on June 29, 2010, the number of questionable claims submitted to its insurance company members shows a 58 percent jump from 2008 to 2009.

This comes to no surprise to those of us at United Automobile Insurance Co. (UAIC) who fight insurance fraud every day. We see fake accidents and fake injuries all the time.

The report, shows the following trends in Florida:

  • Tampa had 487 questionable claims related to staged or caused accidents in 2009, a 290 percent increase over the previous year.
  • Miami had 258 questionable claims, an 11 percent increase year to year.
  • Orlando had 240 questionable claims, a 24 percent increase.

South Florida was the hotbed of staged crashes, according to the bureau. While the Miami and Hialeah areas continue to show increased activity, criminals have moved north and Tampa Bay is now the center of this crime trend.

The number of questionable claims for all insurance fraud increased 15 percent from 2008 to 2009 in Florida. But the 58 percent jump in the staged accident category shows that criminals are taking advantage of the state’s no-fault auto accident coverage, the bureau said. Florida had the highest rates of fraud in both bodily injury and personal injury protection among states with no-fault insurance.

We have been telling legislators, regulators and law enforcement officials for years that Florida is the epicenter of PIP fraud. Now we have the numbers to back that up.

To combat the problem, the bureau created a task force in South Florida in 2002. The success of the program pushed criminals to Tampa and Orlando areas. Staying in pursuit, the bureau will soon open another major medical fraud task force in Tampa.

The bureau has launched a public awareness campaign in the Tampa Bay area, using billboard and bus shelter ads, as well as radio spots to urge people who suspect a staged accident scheme to call 1-800-TEL-NICB or text their information to TIP411, keyword “fraud.”

We urge every driver in the Tampa Bay area and around the state to report fraud when you see it. You will be bringing criminals to justice and could see your insurance premiums drop if we all do enough to stamp out fake claims.

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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.

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