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Nevada Legal Guides Now Published

Thanks to all my readers who have waited a week or two while I stepped away from blogging to finish the four books that I've been working on for a number of years.

I have always felt that the highest purpose of legal blogs is to educate legal consumers. Therefore, I plan to utilize materials from my books in my blogs starting today with extended and in-depth information on the law of negligence in Nevada extracted from the Second Edition of my first legal book (originally published in 1999 and completely updated in 2006), Elements of Nevada Legal Theories.

I believe that this sort of in-depth tailored legal research is not available anywhere else on the Internet. Please do not hesitate to let me know if you find this type of information useful.

« Nevadans Sponser and Defeat Malpractice Legislation | Main | Nevada Legal Guides Now Published »

Court Clarifies Choice of Law in Nevada

You live in Arizona. You're driving in Nevada. You hit something in the road and your car flips. You're seriously injured and you sue the auto manufacturer (a Deleware company) and the car dealer (an Arizona company). Does Nevada law govern the case or Arizona law?

The Nevada Supreme Court clarifed this issue in General Motors Corp. v. Dist. Ct. 122 Nev. Adv. Op. No. 41(2006), a decision published a few weeks ago.

The Court overturned previous law and applied the Second Restatement of Conflict of Laws, section 145.

The Court stated that the Second Restatement's most significant relationship test begins with a general principle

that: the rights and liabilities of parties with respect to an issue in tort are governed by the local law of the state that, "with respect to that issue, has the most significant relationship to the occurrence and the parties under the principles stated in section 6." Section 6 identifies the following principles:

(1) A court, subject to constitutional restrictions, will follow a statutory directive of its own state on choice of law.

(2) When there is no such directive, the factors relevant to the choice of the applicable rule of law include

(a) the needs of the interstate and international systems,

(b) the relevant policies of the forum,

(c) the relevant policies of other interested states and the relative interests of those states in the determination of the particular issue,

(d) the protection of justified expectations,

(e) the basic policies underlying the particular field of law,

(f) certainty, predictability and uniformity of result, and

(g) ease in the determination and application of the law to be applied.

These principles are not intended to be exclusive and no one principle is weighed more heavily than another.]

Upon this basis, the Court held that in a scenario such as that presented above, Nevada law would apply against the manufacturer and Arizona law would apply against the seller.

« When Binding Arbitration in Nevada Is Not Binding | Main | Court Clarifies Choice of Law in Nevada »

Nevadans Sponser and Defeat Malpractice Legislation

Proposed Federal medical malpractice reforms are dead (again) and so I'll stop talking about them soon. Not just yet, though.

Interestingly, Nevadans played a major role in the rise and fall of the legislation. John Ensign, R-Nev., sponsered part of the legislation, while Harry Reid, D-Nev., opposed it.

Bloomberg News reported that Senate Democratic leader Harry Reid of Nevada called the attempt by Republicans to bring up the measures an election-year "political stunt" to curry favor with insurance companies. "There is a health-care crisis, but it has nothing to do with tort laws," Reid said. "The real problem is too much malpractice, not too much litigation."

The American Trial Lawyer's Association published some interesting statistics about the legislation from a variety of sources:


$250,000: Maximum value, under S. 23, of the life of a woman killed by cervical cancer her OB/GYN failed to diagnose.

Unlimited: Maximum value, under S. 23, of the life of a man killed by prostate cancer his urologist failed to diagnose.

1: Number of female sponsors of S. 23.

61.6 Million: Number of women of childbearing age whose rights would be denied and lives devalued by S. 23.

24.8%: Percent increase in number of OB/GYNs in United States since 1990.

« New Bill With an Old Story | Main | Nevadans Sponser and Defeat Malpractice Legislation »

When Binding Arbitration in Nevada Is Not Binding

A lot of litigants (and attorneys, too) might be surprised to find out that a private binding arbitration award can still be appealed. The Nevada Supreme Court discusses this issue in a new case, Clark Cty. Educ. Ass'n v. Clark Cty. Sch. Dist., 122 Nev. Adv. Op. No. 30 (2006).

There, the Court clarifies the common-law grounds available for a court to review a private arbitration award. The Court had previously recognized that a private arbitration award may be reviewed under two common-law grounds: (1) the award is arbitrary, capricious, or unsupported by the arbitration agreement; or (2) the arbitrator manifestly disregarded the law. Under the first ground, the Court clarifies that the reviewing court may only concern itself with the arbitrator's findings and whether they are supported by substantial evidence or whether the subject matter of the arbitration is within the arbitration agreement. Under the second ground, the Court concludes that the reviewing court may only concern itself with whether the arbitrator knew of the law and, if so, consciously disregarded it, not whether the private arbitrator's interpretation of the law was correct.

Binding arbitration is not always the final step that many think it is.

« So You Want to Sue Nevada? | Main | When Binding Arbitration in Nevada Is Not Binding »

New Bill With an Old Story

This from People Over Profits:

Once again, without any hearings and without following normal Senate procedure, the Senate Majority Leader plans to bring to the floor S. 22, the so-called "Medical Care Access Protection Act of 2006." S. 22 contains many of the same limits found in earlier bills, also brought to the floor with no hearings. It contains the same elimination of injured patients' rights to hold wrongdoers accountable, and the same big protections for hospitals and HMOs. Touted as a "new" proposal, proponents hope to trick Congress and the public into believing this bill is significantly better for patients than the bills the Senate voted on, but did not pass, three times in the last Congress. But nothing in this "new" proposal will provide health insurance to the uninsured, lower healthcare costs, increase the availability of affordable medical malpractice insurance, or make patients safer. Their proposal:

Still applies a cap of $250,000 on non-economic damages. Proponents claim this bill is different because it is theoretically possible for a patient to recover up to $750,000 dollars, but only if the patient has the extreme misfortune of being hurt by at least two different "healthcare institutions" as well as a health care provider." If a patient's harm is caused by the negligence of more than one provider however, the aggregate cap is still $250,000. Here is the truth about the "new" cap:

For health care providers: the bill still has a cap of $250,000 on what a patient can recover from all negligent "healthcare providers." So even if multiple providers are at fault, there is still a $250,000 aggregate cap on what a patient can recover. "Healthcare providers" include all physicians, nurses, dentists, pharmacists, optometrists, chiropractors, and podiatrists.

For health care institutions: patients can only recover $250,000 for each "health care institution," such as a hospital, nursing home, or assisted living facility that caused them harm, but only up to $500,000 total, regardless of how many negligent entities were involved. "Health care institution" is broadly defined as "any entity licensed under Federal or State law to provide health care services," and includes hospitals, nursing homes, hospices, assisted living facilities, and ambulatory centers.

What this means for patients: In most cases, a cap of $250,000 will still apply. Only those extremely unfortunate patients who have suffered harm from at least three different entities, two of which must be "healthcare institutions," would be eligible for the $750,000 cap. Limiting compensation for serious injuries-such as the loss of fertility, the loss of mobility, excruciating pain and permanent and severe disfigurement, or the loss of a child--is fundamentally unfair to injured patients and their families.

Still Preempts State Law. Despite its deliberately misleading language, this bill does not ensure "state flexibility" or the "protection of states' rights." In fact, it provides for a sweeping preemption of state law. While S.22 does not preempt state laws which cap damages, S.22 does preempt all other areas of state law covered in the bill, including state rules regarding joint and several liability, the availability of damages, collateral sources, standards for qualifying expert witnesses and periodic payments. These areas that S.22 explicitly preempts are safeguards designed to protect injured patients. Ironically, though, the bill does not preempt any state laws that favor doctors, hospitals, nursing homes, HMOs, and other health care defendants. Furthermore, S.22 would impose the caps on states that do not have limitations on damages, including even states whose limitations were struck down as unconstitutional by state supreme courts.

Still applies to nursing homes, assisted living facilities, and hospitals. Proponents claim their bill is about protecting doctors, but the provisions are broadly drafted to specifically sweep in all cases against nursing home corporations, assisted living facilities, hospitals, and many HMOs. If the proponents were truly focused on doctors, why does this bill cover civil actions against nursing homes, assisted living facilities, hospitals and many HMOs?

Reduced statute of limitations. The legislation reduces the amount of time an injured patient has to file a lawsuit to one year from the date the injury was discovered or should have been discovered, but not later than three years after the "manifestation" of injury. This statute of limitations, which is much more restrictive than a majority of state laws, would cut off meritorious claims involving diseases with long incubation periods. Thus, a mother or baby who contracted HIV through a negligent transfusion during the birth of the baby, but learned of the disease more than five years after the transfusion, would be barred from filing a claim.

Elimination of joint liability for economic and non-economic damages. The bill completely eliminates joint liability, thereby upending the law in many states. Under joint liability, injured patients are compensated fully for their loss. Joint liability enables an individual to bring one lawsuit against the entities responsible for practicing unsafe medicine or manufacturing a dangerous, defective product and have the defendants apportion fault among themselves, if the jury finds for the plaintiff. Our civil justice system has determined that it is the injured patient-not multiple negligent medical providers-who deserves the greatest measure of protection.

Allows evidence of collateral source benefits. The bill gives defendants in medical malpractice cases an absolute right to introduce evidence of "collateral source" benefits. While the plaintiff can then introduce evidence of amounts paid to secure that benefit, this rule allows the wrongdoer to profit from the plaintiff's prudent investment in insurance. If doctors want evidence of the injured patient's collateral sources admitted at trial, then the extent of the doctor's own liability insurance should also be admissible.

Severe restrictions on punitive damages. The bill provides that punitive damages may only be awarded if the plaintiff proves by an impossibly heightened standard of "clear and convincing" evidence that (1) the defendant acted with malicious intent to injure the plaintiff or (2) the defendant understood the plaintiff was substantially certain to suffer unnecessary injury, yet deliberately failed to avoid such injury. The bill does not create punitive damages in those states that don't recognize them. The bill further limits punitive damages to two times the amount of economic damages or $250,000, whichever is greater.

Heightened pleading standards for punitive damages. Punitive damages may not be sought by the plaintiff initially. At the court's discretion, a plaintiff may be allowed to file an amended pleading for punitive damages only after a finding by that court that there is a substantial probability that the plaintiff will prevail.

Periodic payments of all future damages. Allowing all future damages over $50,000 to be paid periodically punishes meritorious plaintiffs who were injured by malpractice and unsafe products and leaves them vulnerable and under-compensated. Meanwhile, large insurance companies reap the interest benefits of a plaintiff's jury award.

Mandatory federal procedures for state courts. The bill mandates that all federal and state courts apply the Federal Rule 11, which deals with attorney sanctions, to all cases covered by the Act. The bill also goes a step further and makes these sanctions mandatory rather than discretionary. First, most states already have already enacted their own version of Federal Rule 11, including sanctions, according to their individual state rules and procedures. These courts should not be forced to apply a mandatory federal sanction that distorts a mechanism they already have in place. Also, federal judges overwhelmingly agree that Federal Rule 11 operates more efficiently and fairly when the rule is discretionary rather than mandatory. Nonetheless, without following normal procedures, the bill would swoop down and simply reverse federal judicially-approved changes, returning Federal Rule 11 to the way it was from 1983 through 1993. For those 10 years that mandatory sanctions were in effect, litigation surrounding Federal Rule 11 significantly increased adding substantial time and cost to all litigation proceedings.

« When Is a Verdict Excessive? | Main | New Bill With an Old Story »

So You Want to Sue Nevada?

I've handled a lot of cases that involve Nevada and its political subdivisions. Many entailed serious injuries. Some, for instance, involved sexual assaults by health care professionals and teachers on patients and students. All had one thing in common: Nevada "immunity" caps.

There are special laws that govern lawsuits against Nevada and its political subdivisions. These laws, and the Nevada Supreme Court cases that have interpreted these laws, eliminate an injured party's ability to sue in certain cases and limit potential damage awards in those cases in which lawsuits are allowed.

Nevada law provides that parties that prevail against the state or one of its subdivisions may recover a maximum of $50,000.00 per claim. This law is complex, however, and many exceptions exist and continue to develop.

If you have an injury claim against Nevada or one of its poltical subdivisions, you should consult an attorney to evaluate how Nevada's immunity caps apply to your situation.



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