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The Poppe Law Firm Blog

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Accounting Malpractice Attorney

2/21/2008
Hans G. Poppe
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Michigan Accounting Firm Sued in Alleged Ponzi Scheme

You can read about the accounting malpractice lawsuit filed against Doeren Mayhew as well as see a copy of the Complaint by going here:
The complaint arises out of an alleged ponzi scheme by former Michigan attorney Ed May.  Doeren was listed on several documents as being the accounting firm involved in the numerous companies set up by May.  Thousands of investors have lost millions of dollars.
Hans

Business Litigation Attorney

1/27/2009
Hans G. Poppe
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Was Your Credit Card Information Stolen...

If you live in or around Louisville, Kentucky, you may have noticed a small blurb in the Courier-Journal about a local Jeffersonville, Indiana company called Heartland Payment Systems.  It appeared on inaguration day, so I don't blame you if you missed it; however, it is a BIG STORY.... regardless of how little media attention it received.
Heartland Payment Systems, based in New Jersey, processes 100 million credit card transactions per month in its processing center in Jeffersonville, Indiana.  And therein lies the problem.  Heartland President Robert H.B. Baldwin Jr said the company found evidence last week that their had been an electronic "intrusion" occuring for the last several months.  Baldwin indicated that both credit-card names and numbers were exposed.
ComputerWorld has a detailed article outlining how this data breach, which may be the largest in history by surpassing the TJX case, has sparked concerns in the industry over how to keep information safe and secure.
The Poppe Law Firm is local counsel in the Countrywide data breach litigation currently pending before an MDL in the Western District of Kentucky.  The Poppe Law Firm is also attempting to assist individuals that have received notification that their credit or debit card information was accessed by virtue of the Heartland Payment Systems security breach.  Please feel free to contact our office. 502-895-3400
hans

1/25/2009
Hans G. Poppe
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Louisville Based Yum! Ordered to Pay $42 Million Dollar Verdict over Taco Bell Chihuahua Dog.

"A federal appeals court Friday ruled that Taco Bell is solely liable for $42 million in breach-of-contract awards to two Michigan men who created the diminutive mascot that starred in the Irvine fast-food giant's hit $500-million advertising campaign in the 1990s."  LA Times article here.

The business litigation dispute began in 1998 when Joseph Shields and Thomas Rinks of Grand Rapids, Mich., filed suit against Taco Bell, which is owned by Louisville based Yum! brands, alleging breach of contract.

Shields and Rink were in talks with Taco Bell advertising agents to adapt a Chihuahua for TV spots when, the men claimed in their lawsuit, Taco Bell took the idea to another ad agency, TBWA\Chiat\Day.

In 2003 a Michigan federal jury ordered Taco bell to pay $30 million for breach of contract and the federal judge tacked on nearly $12 million in interest.  This prompted Taco Bell to turn around and sue TBWA claiming the ad company was responsible for using the disputed content.

On Friday, the 9th Circuit Court of Appeals ruled in favor of TBWA by ruling that Taco Bell, and not TBWA, was responsible for the wrongful use of the Chihuahua.

It is unclear at this point whether Taco Bell/Yum! brands will appeal.  Warner Norcross & Judd, LLP, a large Michigan law firm, represented Rinks and Shields. 
Hans
ps. Gidget was the name of the Taco Bell Chihuahua.  The popular ads stopped running in 2000 freeing Gidget for further big- and small-screen fame, with roles in "Legally Blonde 2: Red, White & Blonde" and Geico insurance ads. She also appeared on "The Tonight Show With Jay Leno," during which she was given a choice between a Taco Bell chalupa and Kentucky Fried Chicken.
1/23/2009
Hans G. Poppe
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Countrywide Data Breach Litigation

Last year one of the largest data breaches in history was discovered when a former Countrywide employee was arrested Aug. 1 and charged with illegally accessing the firm’s computers for more than two years.  The information was being sold to mortgage brokers to be used as sales leads, federal authorities said in August. In an attempt to appease its customers, Countrywide offered security monitoring services; however they sent the notifications in what appeared to be junk mail envelopes and many customers probably threw them awasy.  Countrywide also failed to notify its customers that it actually has an ownership interest in the security monitoring company.
The data breach led to multiple lawsuits against Countrywide and related entities in several different states and federal jurisdcitions. 
Eventually, all of the lawsuits were consolidated into an MDL  which was assigned by the head of the MDL litigation panel, Judge John Heyburn,  to the Western District of Kentucky, Judge Thomas Russell.

We are local counsel for several of the out of state law firms.  For more information, please contact us.

Hans


12/17/2008
Hans G. Poppe
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How Some Madoff Investors May Recover Their Losses

“Madoff did not pass due diligence for many European hedge fund companies,” Mr. Indjic said. “Experienced people know there are many ways to provide the kind of return stream offered by Madoff, almost like a bank account, and one of them is a Ponzi scheme.”  Source: NY Times December 16, 2008.

By now, anyone with even passing knowledge of the stock market has shaken their head in disbelief that Bernard Madoff, the former chairman of the NASDAQ, could have pulled off the largest Ponzi scheme of all time.

While many of his private investors will likely never recover anything, some "lucky" investors that invested through a financial institution or mutual fund may be able to seek recovery from the broker dealer or investment house that placed them in the investment.  That's because it appears that anyone doing any "due diligence" would have learned that Madoff's numbers simply didn't add up.  According to the Times,  "In early 2003, as word of Bernard L. Madoff’s apparent Midas touch spread among affluent Europeans and money managers, a team from Société Générale’s investment bank here was sent to New York to perform some routine due diligence.  BNP Paribas has nearly $500 million in exposure to the Madoff firm. Its banking unit posted a $1.4 billion loss on Tuesday.
What it found that March was hardly routine: Mr. Madoff’s numbers simply did not add up. Société Générale immediately put Bernard L. Madoff Investment Securities on its internal blacklist, forbidding its investment bank from doing business with him, and also strongly discouraging wealthy clients at its private bank from his investments.The red flags at Mr. Madoff’s firm were so obvious, said one banker with direct knowledge of the case, that Société Générale “didn’t hesitate. It was very strange.”
(earlier this year, Societe Generale lost $7.1 billion due to a rouge employee investing in derivatives.  I majored in finance and still don't understand derivatives...ever hear of the Black Scholes pricing model?  It's more complicated, and about as useful, as Latin.)
Anyway, the investors that bought through a fund or private client group, bank or other financial institution may be able to recover from those instutions for their failure to do the type of investigation that Societe Generale did back in 2003. 
I predict a bumpy ride for Wall Street.

Hans


12/2/2008
Hans G. Poppe
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Why Corporations and Small Businesses Shouldn't Pay Lawyers by the Hour...

I have to admit that in Louisville, I'm probably a rare breed.  I handle business litigation cases on a contingency fee basis (or a hybrid hourly-contingency basis depending on what the client wants).  I am a firm believer in the contingency system because it provides the most incentive for the lawyer to do the best job possible for the client without expending needless resources simply because the lawyer is paid by the hour. 
I recently ran across the following article , expressing much better than I can, several reasons why corporations and small businesses should incorporate contingency fee contracts in their cases, regardless of how large they potential recovery may be.

hans

9/22/2008
Hans G. Poppe
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Follow Up: Just How Bad is Duke Football

In a follow-up to a blog post I did earlier about the contract dispute between Duke University and the University of Louisville, my friend James Cole sent me the following video link of Duke's attorney.  Here, she explains why Duke should not be forced to pay Louisville for breaching its contract to play Louisville in football.  Enjoy and GO CARDS!

hans

6/23/2008
Hans G. Poppe
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How Bad Is Duke Football.....

Duke University football is so bad that they can breach a contract to play the University of Louisville and not have to pay damages to Louisville.  How is that?  Well, the contract contained a damage provision that entitled UofL to $150,000 for each of the three games that Duke refused to play following the 2003 season.  That was the Large Print; but the small print said Louisville was only entitled to damages if they could not find a team of equal caliber to replace Duke.  Therein lies the Devil (pardon the pun) in the details.  Duke's lawyers argued that the Blue Devils' performance on the field was so poor that any Division I team would suffice as a replacement. Duke is 6-45 over the past five years, 13-90 since 1999.

Judge Phillip J. Shepherd of the Franklin County (Ky.) Circuit Court agreed, according to the Louisville Courier-Journal.

"At oral argument, Duke [with a candor perhaps more attributable to good legal strategy than to institutional modesty] persuasively asserted that this is a threshold that could not be any lower," Shepherd wrote in a summary judgment issued Thursday, according to the paper. "Duke's argument on this point cannot be reasonably disputed by Louisville."

Thanks to Dean Chen of the University of Louisville School of Law for pointing this interesting legal story out in his blog

Hans

 


Kentucky Accident Attorney

7/3/2009
Hans G. Poppe
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"Admit nothing. Deny as much as possible. Stall. Protect, protect, protect. Blame somebody who isn't here to protect himself."

Nothing New Here  "Admit nothing. Deny as much as possible. Stall. Protect, protect, protect. Blame somebody who isn't here to protect himself."  Rick Bozich, Louisville Courier Journal, Max Gilpin, The Real Loser in JCPS Report, July 1, 2009

Bozich's article was a scathing indictment of the "investigation" into the death of a 15 year old boy during football practice at a Jefferson County, Kentucky public high school.  The death, and the tragic circumstances surrounding it, have made national news. 

However, this post isn't about that.  Instead, this post is about why no one should be surprised that a defendant would refuse to accept responsibility for its actions. 

As a lawyer that represents people that have been injured as a result of someone else's negligence or misconduct, I see defendants utilize this above strategy everyday in litigation. 

Blaming the victim has long been the strongest weapon in a defense attorney's arsenal.  And it matters not what kind of case it is.  Failure to diagnose breast cancer?  The patient should have sought out a second opinion when her first doctor told her she was cancer free.  Rear-end car wreck?  Injured driver had a pre-existing condition that is unrelated to the accident.  No matter what the kind of case, the defendant always seeks to shift responsibility to the injured party.  Without fail.

And it works.  If you don't believe me, all you have to do is read any of the comments to any online newspaper article and you will see post after post blaming the victim instead of the wrongdoer (most recently in the Louisville Zoo lawsuit they blame the victims and their lawyer, too).

I find this behavior inconsistent with the oft spoken mantra of tort reformers that we need more "personal responsibility."  It seems that what people really want is for innocent injured people to take responsibility for someone else's snegligence.  How else can you justify blaming injured patients when their doctor makes a mistake?  You can't.  At least you can't do so and remain intellectually honest.  Tort Reform = Tort Deform

The simple fact of the matter is that deny, delay, defend and blame is business as usual for defendants in litigation, especially corporate defendants and insurance companies. 

Sorry, Bozich.  Sadly, that's just the way it is.  And not just for poor Max Gilpin's family, but for any person that gets injured and seeks justice. 

Hans

6/11/2009
Hans G. Poppe
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Leveling The Playing Field...

Recently, a local Louisville personal injury lawyer filed the first lawsuit against the Louisville Zoo for injuries his client received after the zoo's train derailed.  Nothing unsual about it.  Nothing unusual at all, including the sarcastic and baseless attacks that were launched against the attorney on the Courier Journal's website in the comment section following the story.

What people don't understand is that most personal injury lawyers don't file baseless lawsuits.  There's no money in doing so.  Trust me, insurance companies don't pay big money for frivolous claims (heck, they seldom pay big money for legitimate claims).  A lawyer that works on a contingency fee (meaning she doesn't get paid unless she wins money for her client) has no incentive to file a lawsuit and incur thousands if not tens or hundreds of thousands of dollars in expenses getting the case ready for trial.  Think I'm exaggerating?  I'm not, in my last three trials we spent in excess of $100,000 getting each of them to trial.

Contingency fee lawyers are just like any other business owner, they must turn a profit to pay the salaries of their employees, the rent, and other overhead and expenses.  If they fail to do so, they are not in business long.  My respected colleague John Day in Nashville has a great post on this topic.

Hans
5/8/2009
Hans G. Poppe
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Guess What Forbes Magazine Says We Need More Of? The Answer Will Shock You....

It's no secret that Forbes Magazine hates lawyers.  Especially trial lawyers.  After all, aren't the trial lawyers the ones running the economy into the ground, forcing those nice insurance companies to raise premiums and making it impossible for doctors to deliver babies? (don't forget trial lawyers are also probably responsible for acide rain, global warming, famine, locusts, termites, etc.)

So, why is Forbes now saying we need more trial laywers, not less?!  Well it seems that Forbes is concerned with all of the foodborne illness that come from contaminated foods that are not properly prepared or packaged.  William Baldwin writes "One possible solution is more government and more laws. Those familiar with the proclivities of this magazine will not be surprised that I take a dim view of this solution (and, in particular, of the proposed Food Safety Modernization Act, which would bury food preparers in paperwork). No, I would prefer to have the same government and the same laws, but--here's the surprise--more tort lawyers."

Baldwin concludes by saying "Add technology to tort law and you get a powerful force for safety."

Something us trial lawyers have known and preached for a long time.  However, it isn't limited to food, you can thank lawyers for seatbelts, airbags, kids pajamas that don't burst into flame, and a million other things that keep people safe.  It's about time someone over at Forbes recognized the vitally important role lawyers play in society.

hans


5/3/2009
Hans G. Poppe
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FDA Warns "Stop Using This Diet Drug RIght Now."

One of the fundamental problems with most diet supplements is that they don't have to go through a Federal Drug Administration approval process.  There are simply too many diet supplements on the market for the FDA to test, approve and monitor all of them.  This leads to a lot of products we put in our bodies being untested by any meaningful organization to ensure they aren't harmful.

Because the FDA isn't involved in the process on the front end, the best they can do is to ask that products be pulled on the back end, once there is a question about safety.  That's exactly what happened this past week went the FDA warned consumers to STOP using the popular diet and energy supplement Hydroxycut.

You can see an Associated Press video of the recall here:

"The Food and Drug Administration said the company that makes the dietary supplement has agreed to recall 14 Hydroxycut products. Available in grocery stores and pharmacies, Hydroxycut is advertised as made from natural ingredients. At least 9 million packages were sold last year, the FDA said.   Dr. Linda Katz of the FDA's food and nutrition division said the agency has received 23 reports of liver problems, including the death of a 19-year-old boy living in the Southwest. The teenager died in 2007, and the death was reported to the FDA this March. Other patients experienced symptoms ranging from jaundice, or yellowing of the skin, to liver failure. One received a transplant and another was placed on a list to await a new liver. The patients were otherwise healthy and their symptoms began after they started using Hydroxycut."  Katz went on to say "Part of the problem is that the FDA looks at dietary supplements from a post-market perspective, and an isolated incident is often difficult to follow."  Public health researcher Ano Lobb, who has studied Hydroxycut and other dietary supplements for Consumer Reports, said "You really have to be careful about dietary supplements, especially weight-loss pills. People believe that the FDA has verified that these products are at least safe and effective, and that's really not the case. When you see fantastic claims _ that's generally what they are."

The recall covers the following 14 products:

The following products are covered by this voluntary recall:

  • Hydroxycut Regular Rapid Release Caplets
  • Hydroxycut Caffeine-Free Rapid Release Caplets
  • Hydroxycut Hardcore Liquid Capsules
  • Hydroxycut Max Liquid Capsules
  • Hydroxycut Regular Drink Packets
  • Hydroxycut Caffeine-Free Drink Packets
  • Hydroxycut Hardcore Drink Packets (Ignition Stix)
  • Hydroxycut Max Drink Packets
  • Hydroxycut Liquid Shots
  • Hydroxycut Hardcore RTDs (Ready-to-Drink)
  • Hydroxycut Max Aqua Shed
  • Hydroxycut 24
  • Hydroxycut Carb Control
  • Hydroxycut Natural

I predict this will lead to mulitple lawsuits over the safety of the diet supplement for people who have possibly been injured as a result of using it.  These lawsuits will likely be filed as a class action or, perhaps, individual lawsuits will be combined in  a multidistrict litigation (MDL).  A second kind of lawsuit will likely be filed for those consumers that weren't physically injured but who purchased an unsafe product and will not use any remaining product because of the recall.  These consumer's are entitled to receive the purchase price returned becuase these sales likely violate various state's consumer protection laws.  These claims can be brought by individuals or, perhaps, by states' Attorneys General.

I predict that hundreds if not thousands of lawsuits will be brought by users of Hydroxycut against the Canadian company lovate Health Sciences USA Inc.

If you want more information on the recall or your rights, feel free to contact us.

hans

4/9/2009
Hans G. Poppe
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New York Times Exposes Hired Gun Doctors

Recently, the New York Times wrote this great article exposing what lawyers that represent injured people have known for a long time.  The so-called "Independent Medical Exam" doctors are really hired to keep injured people from getting the compensation the deserve for their injuries.
Here in Kentucky, I see the same doctors, hired by the insurance companies, over and over and over again.  There's a reason for that.  The insurance company knows that these doctors will say the injured person a) was never really injured, or b) they injury wasn't very severe and they should have recovered in 4-6 weeks.  This is especially true in car wreck cases.  So much so, that we have started calling them what they really are, Defense medical exams.  There is nothing "independent" about them.
hp
3/25/2009
Hans G. Poppe
Comments (1)

Jury Awards $24 Million in Truck Wreck Case

$24 million award in fatal truck crash

A Will County jury has awarded nearly $24 million to families of two people killed and another seriously injured when a truck crashed into a line of cars on Interstate Highway 55 near Plainfield in April 2004.

Jurors on Friday issued the judgment—the highest verdict amount in a civil case in Will County in at least 50 years—against C.H. Robinson Worldwide, a Minnesota freight broker that had contracted with the truck driver, De An Henry of Utah.
3/18/2009
Hans G. Poppe
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$65 Million Dollar Semi-Truck Wreck Verdict

BARTOW, FLORIDA – A Polk County jury awarded a 21-year-old woman $65 million in damages Wednesday in a personal injury lawsuit against a trucking company.

 

“Trucking companies should get the message that they need to follow safety regulations designed to protect the public,” said Tampa attorney Jim Freeman, of Wilkes & McHugh, P.A. “This accident was preventable if the driver only waited for a clear view before turning.”

 

On Aug. 21, 2007, Kendra Lymon was a normal 19-year-old woman whose life was shattered when an 18-wheeler, owned by Bynum Transport Inc., T-boned her little Dodge Neon at the intersection of State Road 17 and State Road 64.

 

Kendra had no pulse when emergency personnel arrived at the accident scene. The lack of oxygen to her brain caused parts of it to die, and she suffered brain damage. She was in a coma, and hospitalized at Tampa General Hospital for months.

 

Today, she can’t speak. She can’t eat without assistance. She can’t control her bladder. She has trouble walking and sometimes needs a wheelchair. She needs around-the-clock care and continued rehabilitation, including physical, occupational and speech therapy.

 

Kendra was a beautiful young woman who knew what she wanted and worked hard to get it. She was a good student in high school, who participated in drama club and helped care for her siblings while their mother worked. Kendra loved to read and could speak six languages.

 

After graduating a year early from Hardee High School, she enrolled in South Florida Community College. She wanted to be a psychologist and was the first person in her family to attend college. She was about to enter her second year there when the accident happened.

 

Now she requires care and supervision 24 hours a day, seven days a week – and will need that for the rest of her life. Her medical bills alone are estimated to be more than $24 million over the span of her life, according to experts.

 

“She has suffered these terrible injuries needlessly,” Freeman said. “Kendra Lymon is one of the most deserving clients I’ve had in 30 years of practice.”

 

The defendants, Bynum Transport Inc. and driver Robert Bohn, tried to blame the accident on Kendra. Bohn claimed he had a green arrow, but eyewitness Ralph King said Kendra had a green light and wasn’t speeding. King said she tried to turn to the right, but by the time the truck entered her lane, there was no time to avoid it.

 

Bohn was fresh off a 24-hour shift as a full-time battalion chief for Polk County Fire Services when he headed to Bynum Transport Inc. for his part-time gig. Just after 8:30 a.m., he picked up a red 1997 Freightliner tractor and 2004 trailer, which together weighed 28,000 to 30,000 pounds. The plan was to haul a load of juice to Georgia that day to make some extra money.

 

But Bohn didn’t have 10 hours of off-duty time before driving the Bynum truck that day. The Federal Motor Carrier Safety Rules require such a break because driver fatigue is biggest cause of truck accidents.

 

And Bynum Transport, where Bohn had worked part-time since 1993, didn’t have any system to crosscheck what the driver told them. They didn’t monitor Bohn’s hours of rest. The Driver’s Log he filled out the morning of the accident shows zero hours of work for each day in the week before the accident, despite the fact he had just finished a shift at the fire department. Federal regulations consider that or any other work the same as driving.

 

As Bohn approached the intersection of state roads 17 and 64, there was a tractor-trailer in the opposite turn lane, blocking Bohn’s view. Bohn turned left anyway, and he plowed into Kendra’s car on the driver’s side, crushing it and sending it spinning off the highway.

 

The Lymons, represented by Wilkes & McHugh, P.A. attorneys Jim Freeman and Bennie Lazzara, sued Bynum Transportation Inc. and the truck driver, Robert Bohn, for negligence.

The trial, which lasted over a week in the Tenth Judicial Circuit Court in Polk County, concluded Tuesday. The jury came back Wednesday with a unanimous decision: Jurors found the defendants were 100 percent at fault in the accident and awarded $65 million to the Lymons.

 

“With this verdict, the family – including her mother, uncle, aunt and siblings who have been caring for Kendra – can now afford to get her the professional help she needs,” said Tampa attorney Bennie Lazzara. “Doctors say with proper medical care, Kendra will have a normal life expectancy.”

Hans



3/16/2009
Hans G. Poppe
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Kentucky Supreme Court to End Inequity Dealing With Loss of a Spouse (Hopefully)

The following article appeared in yesterday's Lexington Herald Leader

Ending an inequity

court should right wrong brought to light by 5191 crash survivors


FRANKFORT - Kentucky statutes seem to say clearly that a surviving spouse may seek damages for loss of companionship (consortium, in legalese) in wrongful death cases. "Either a wife or husband may recover damages against a third person for loss of consortium, resulting from a negligent or wrongful act of such third person," KRS 411.145 says in part.

But Kentucky case law holds just the opposite. Prevailing case law allows a parent to sue for loss of consortium when a child dies because of an accident or negligence. It allows a child to seek damages for that reason when a parent is the victim.

Even a spouse can claim such damages if their mate survives the incident and remains injured. However, that same spouse cannot ask for post-death damages, Kentucky courts have ruled despite the fact that there are no such limitations in the language of KRS 411.145, enacted in 1970.

But the Kentucky Supreme Court now has an opportunity to correct what strikes me as a nonsensical inequity in our state's case law. The court heard oral arguments Wednesday in a case involving the death of an Ohio County woman in which post-death loss of consortium is a prominent issue.

Since justices and judges assume the role of devil's advocate during oral arguments, one should never jump too far toward any conclusion about how a case will be decided.

So I will limit my leap to saying some of the devil's advocacy going on in the courtroom Wednesday made a good argument for overturning Kentucky's case law.

Justice Will T. Scott, for instance, noted the "clear trend" in this country toward allowing post-death claims for loss of consortium. Surviving spouses can seek post-death damages in more than 40 states now.

Kentucky's case law adheres to English common law, which limited spousal claims for loss of companionship to the period of time between the injury and death. But KRS 411.145 contains no such limitation.

That prompted Justice Lisabeth Hughes Abramson to suggest that the state's courts have "grafted a common law restriction" on a statue that has no such restriction.

Justice Wil Schroder noted that an oft-cited 1969 court decision that adhered to the common law restriction on post-death claims may have been the impetus for lawmakers enacting the 1970 law that contained no such restrictions.

Justice Daniel T. Venters followed that same line by suggesting Kentucky courts just haven't paid attention to what the legislature did in 1970.

Venters also posited a scenario that, to me, most clearly demonstrates the utter absurdity of the current inequity in the law.

Under present case law, Venters noted, it would be in the financial interest of a spouse whose partner had been comatose for 20 years to keep that person alive as long as possible so the damages for loss of consortium continue.

To someone who desperately wants the plug pulled quickly if I ever go into a permanent vegetative state, the thought that Kentucky case law might encourage the husband or wife of a vegetative spouse to do otherwise to keep the money flowing is an abomination of reason.

Again, you can't judge a justice by his/her devil's advocate questions.

But the simple fact that the Supreme Court is hearing a case involving loss of consortium gives me hope that some extremely unjust case law may soon be overturned.

If that should happen, it would be at least a small, if belated, consolation for the surviving spouses of the Flight 5191 victims.

They came to Frankfort two years ago, asking lawmakers to tell the state's courts that KRS 411.145 means what it says. They had success in the House, which passed their proposed legislation 93-7. But they were met with insults in the Republican-controlled Senate, where they were accused of having a "lottery mind-set."

Senate Republicans, so often obsessed with marriage when it's about homosexual unions or adoptions by gay or lesbian couples, spat on marriage in 2007 with their insulting treatment of Flight 5191 widows and widowers.

Here's hoping the Kentucky Supreme Court rectifies that wrong with the case it heard Wednesday.

Reach Larry Dale Keeling at (859) 231-3249, 1-800-950-6397, Ext. 3249 or lkeeling@herald-leader.com.

2/10/2009
Hans G. Poppe
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The Myths of Arbitration

I hate mandatory arbitration agreements, especially in healthcare cases.  Nursing homes force residents, or their family members, to sign these agreements before admission to the facility.  They then injur the resident and hide behind the arbitration agreement to shield them from have a jury pass judgment on their care in an open courtroom that is subject to public scrutiny.  Many of these companies, and the legislators whose pockets they line with campaign contributions, point to all sort of supposed "benefits" to arbitration.  These benefits are mostly myths:

THE ARBITRATION FAIRNESS ACT
MYTHS AND FACTS

The Arbitration Fairness Act (AFA) would continue to allow voluntary arbitration while preserving the right to trial by jury.  The bill would prohibit a corporation from forcing a consumer into a rigged mandatory arbitration system where the corporation hand-picked the arbitrator and all of the rules of the process before a dispute even occurred. 

Myth: The AFA prohibits arbitration.
Fact: The AFA encourages voluntary arbitration; it only prohibits corporations from forcing mandatory clauses on consumers without them having a chance to negotiate the terms and often without them knowing about it. 

Example:
When admitting his father into a nursing home, Charles Miller Jr. signed a lengthy contract that, unbeknownst to him at the time, contained a binding mandatory arbitration clause.  His father was not seen by a physician until three weeks after his admission, during which time he lost 19 pounds and suffered from dehydration and pneumonia, all of which led to his death.  Charles Miller Jr. filed a claim against the nursing home corporation, but a court held that because he had signed this contract, he would be forced into arbitration for his claims against the nursing home, under the terms the nursing home corporation chose to put into the contract.  Because Charles Miller Jr. had unknowingly signed a contract that contained a mandatory arbitration clause before any dispute had arisen, he was bound by its terms, no matter how unjust.


Myth:
Most consumers favor binding mandatory arbitration. 
Fact: Consumers favor voluntary arbitration and being given the choice to arbitrate. Would an employee with a claim against Halliburton want Halliburton deciding how her claim should be handled?  Would a homeowner with a claim against his home contractor want the contractor deciding how his claim should be handled?

The Chamber of Commerce's recent study, which purported to show that voters did not support HR 3010, asked voters: "If you could choose the method by which any serious dispute would be settled between you and the company, which would you choose?" (Emphasis added.)  But what they didn't tell these voters is that binding mandatory arbitration takes away a consumer's choice. Under the current system, consumers are not allowed to choose which option is best for them.  They are not allowed to choose to file a claim in court nor are they allowed to choose who the arbitrator will be, or even what state they will have to arbitrate the claim in.  Instead, they are forced into an arbitration system that is set up to favor the corporation and trample on the rights of the consumer.  When consumers are given the choice to arbitrate after a dispute has arisen, they gain bargaining power and are better able to enter into an arbitration system that is fair. 


Myth:
Arbitrators are neutral, unbiased decision-makers.
Fact:  Binding arbitration favors corporations because only corporations are repeat users of arbitration companies. 
If an arbitration company wants to be used in a company's mass consumer or employment contracts, the arbitration company has a huge financial incentive to appear favorable to those businesses in arbitration proceedings.  Why would a company choose an arbitrator that rules against them? 


Myth:
Arbitration is cheap and more accessible to consumers. 
Fact: Arbitration is so expensive that most consumers will not be able to pursue their claim against a corporation because they can't afford the costs of the arbitrator. 

Under mandatory arbitration clauses, consumers must pay steep filing fees just to initiate a case-seldom less than $750 – and pay their share of the arbitrator's hourly charges, which are routinely $400 or more per hour.  All these fees must be deposited in advance and almost always amount to thousands of dollars.  In addition, arbitration clauses often allow the corporation to choose the location, regardless of how inconvenient or costly travel will be for the consumer.


Myth:
Arbitrators are like judges; they have to follow the law and publicly state the reasons they made their decision. 
Fact: Arbitrators are not bound by any laws.  They do not have to follow the law and they don't have make public or even provide to the consumer any explanation for ruling the way that they did. 

Most arbitration clauses require that proceedings be kept confidential, even if the case raises important public policy issues.  As a result, only the corporation can track past decisions and know which arbitrators have ruled for them.  In addition, arbitrators do not set or follow judicial precedent, something our judicial system requires to ensure consistency and fairness in legal proceedings. 

 
hans

2/7/2009
Hans G. Poppe
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Stripper Sues Employer Because She Got Too Drunk From Customer's Buying Her Drinks

An update from the News of the Weird.  A woman contends that her job as a stripper caused her to have a one-car wreck on her way home from work last year, according to a lawsuit filed in Jefferson County Circuit Court in Birmingham, Alabama.

Patsy Hamaker's suit says part of her job as a dancer at The Furnace club in Birmingham involved encouraging customers to buy her alcoholic drinks.

The suit alleges that managers at the strip club allowed her to leave work drunk one night last fall. She wrecked her car, resulting in serious injury, according to the suit.

Dancers receive a percentage of drink sales and make pretty good money doing so, according to the suit. On Oct. 17, Hamaker's sales were successful enough that she left work "in a highly intoxicated state," according to her suit.

"Defendants ... allowed a dangerous condition to exist by allowing said plaintiff to leave its establishment in such an intoxicated state while under said defendants' supervision and control," the suit says.

Management's negligence by allowing her to drive home drunk "was a proximate cause" of Hamaker's injuries, the suit says.

Hamaker seeks compensation for her injuries and additional money to punish the club. The case has been assigned to Judge Caryl Privett.

Hamaker's lawyer, Alan Smith, declined comment on where his client lives or whether she still works for the club.

"We won't talk about our client," Smith said. "We're not willing to talk about the case at this point."

As they say on one of my favorite Saturday Night Live Weekend Update segments...REALLY?!!!

 

Hans

 


2/7/2009
Hans G. Poppe
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Drunk Driver Kills Friend in 1993 and then Female UK Co-Ed in 2008

A Kentucky man was recently convicted following a hit and run truck wreck that took the life of University of Kentucky Co-ed Connie Blount; however, this was not Shannon Houser's first run in with the law, nor is it the first time he has had a car accident that has killed someone.

In 1993, Houser was arrested and charged with DUI manslaughter following a car wreck on Russell Cave Road in Lexington, Kentucky that killed his friend .  Houser received probation after his victim's parents wrote Judge Mary Noble asking for leniency. 

In 2008 Shannon Houser struck Connie Blount, 18, with his pickup in the early morning of April 13. Blount, who investigators have said crossed Broadway against the light, had knelt down in the street, according to testimony.  Houser then left the scene of the wreck.

Last Thursday, a Fayette County, Kentucky jury found Houser guilty of attempting to tamper with evidence, and not guilty of marijuana possession. Later Thursday, the jury unanimously recommended that Houser be sentenced to five years for the tampering charge and one year for leaving the scene of an accident. Judge James Ishmael set the sentencing hearing for March 6, 2008.  The jury recommended a six year sentence.

It's unlcear whether Blount's family filed a civil suit against Houser, but if they did Houser could he held liable for compensatory damages (pain and suffering and the loss of Connie's power to labor and earn money) as well as punitive damages for Houser's gross negligence.  As an interesting aside, in a civil case, it may not even be admissible that Hanover left the scene since it wouldn't be relevant to the question of whether Hanover was negligent in causing the wreck (according to testimony, Connie was kneeling down in the middle of the street when the wreck occured). 

Based on Houser's criminal record, I doubt he would be the type of responsible person that purchased enough insurance to compensate for such an enourmous loss.  This is a good example of why it's important to purchase Uninsured and Underinsured coverage of your own.  This type of insurance protects you if someone else causes an accident and doesn't have enough insurance.  Talk your agent about this after reading my Free Special Report; Secrets to Buying Car Insurance

hans

1/25/2009
Hans G. Poppe
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What is The Most Dangerous Day of the Year to Drive...

July 4, Independence Day, historically has been the most dangerous day of the year to drive, according to the IIHS. In 2007, 926 people were killed in auto accidents on July 4.

Tomorrow we reveal "The Ten Worst Winter Driving Mistakes."

Hans

 

 


1/25/2009
Hans G. Poppe
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What Event Precedes The Day Most Car Wreck Occur...

According to research from the University of California at Berkeley School of Public Health, the first snowy day of the year is substantially more dangerous for drivers than other snow days in terms of fatalities. Fatal accidents were 14% more likely on the first snowy day of the season compared with subsequent ones, according to research compiled from 1975 to 2000. Fatal accidents were 7% less likely on snowy days on the whole, when compared with good-weather days. The chances of having a fender-bender, on the other hand, increased.

Tomorrow we'll reveal the most dangerous driving day of the year.

Hans
1/25/2009
Hans G. Poppe
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Most Dangerous Month of The Year to Drive...

As we told you yesterday, there are certain times of day you are more likely to be involved in a fatal car accident thatn others, but is there one month that is more dangerous than the others?  According to the National Highway Transportation and Safety Administration, August had the most total deaths on the road in 2008, a 1.1% decline from 2007, according to NHTSA data. A total of 3,612 people died that month. NHTSA reports that when counted as fatalities per 100 million vehicles, August has a fatality rate of 1.42--an increase of 0.06 since 2007 and 0.10 points higher than September and June.

Tommorow we'll reveal what event  precedes the day that most fatal car wrecks occur.

Hans
1/25/2009
Hans G. Poppe
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The Most Dangerous Time of Day to Drive is ...

If you don't want to be killed in an automobile accident, there are certain times of day that you should avoid being on the road.  According to the International Institute for Highway Safety, an average 6.6 people are killed between the hours of 5 p.m. and 6 p.m., and another 6.6 between the hours of 6 p.m. and 7 p.m. Those rates are the overall highest of any time during the day. In 2007, 14,055 people were killed in the 5 p.m. hour. But the hours between midnight and 4 a.m. have the highest number of fatalities when calculated as a percentage of the amount of people on the road, according to AAA. During that time, statistically speaking, 5.87 per 100 million people on the road will be killed.

Tommorow we'll reveal the most dangerous month of the year to drive.


Hans
ps Download our Free Report- What The Insider's Don't Want You To Know About Semi-Truck Wrecks.
1/18/2009
Hans G. Poppe
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Progressive Launches "My Rate" in Kentucky...is it a Trick?

The Louisville Courier Journal recently revealed Progressive Insurance Company's latest insurance plan in Kentucky.  According to the article, Progressive is launching "My Rate" in Kentucky in order to allow drivers to hook up a device to their car to monitor their driving habits.  The device will monitor how many miles are driven, when the car is driven, acceleration and stopping distance.  Supposedly, "good drivers" will receive rate decreases.

My concern is that Progressive will use this "Big Brother" device to RAISE premiums.  I guess we'll just have to wait and see how this plays out.

hans
1/1/2009
Hans G. Poppe
Comments (1)

Article Reveals How to Reduce Teenage Wrecks by 16.5% in Just One Hour...

Teenagers have the highest rate of car wrecks of any age group.  Unfortunately, Kentucky is no exception.  In fact, I was listening to the radio yesterday and the lead story was that nine teenagers had died this year in car wrecks in Bell County.  Just think about that number, 9 teenagers from one small county in Kentucky in just one year.  According to the 2006 census, the population of Bell County, Kentucky is only 29,000 people, of which there are only 6500 under the age of 18.  The total population of Bell County High School is about 900, that means that 1% of the student body died in car wrecks in 2008.  Tragic. 

So, is there anything we can do to reduce the number of teenagers injured or killed in Kentucky in car wrecks and crashes?  Well, according to a recent study published in the journal Journal of Sleep Medicine, there just might be.  In the study, 10,000 Kentucky students from grades 6 through 12 where tracked on their sleep habits and daytime functioning, including auto mishaps. The surveys were completed twice -- first in 1998, when school started at 7:30 a.m., and then again in 1999, when the start time had been moved to 8:30 a.m.

According to the Louisville Courier-Journal story on the recent study  "Letting teens sleep a little more by starting the school day a bit later may lower their odds for car-crash injury or death, a new study finds. The researchers found a 16.5 percent drop in auto accident rates for teen drivers when local high schools moved the start of classes from 7:30 a.m. to 8:30 a.m."

The study indicated that sleep deprivation causes 100,000 wrecks per year and that half of those are drivers 16-25.  The study further found that "The average teenager probably needs at least eight hours and probably closer to nine hours of sleep, Danner said. And as little as an hour less sleep can have a cumulative effect. That means that by the end of the week, teens are as impaired as if they had stayed up for 24 hours straight, Danner explained" 

hans
p.s. One of the reasons that the death rate of teens in car wrecks is so high is because they usually travel in groups.   While the recent fatality in Bell County, Kentucky (Brooke Lambert a cheerleader at Middlesboro High School) was a single death,  four teens died earlier in December in a collision with a coal truck on U.S. 25 East as a result of slick roads and four other teens died in a fiery crash on Kentucky 92 in January. Police said their car hit a tree.
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