Lloyd's of London Gets a Dose of Loser Pays in Katrina Insurance Coverage Case

Earlier this year I wrote about a Plaintiff verdict in a Hurricane Katrina wind vs. water trial against Lloyd's of London here, here and here.

The plaintiff was allowed to recover attorney's fees in the case because the Court found that Lloyd's had no arguable basis to deny the claim. On December 21 Judge Sul Ozerden awarded the plaintiffs the following extra-contractual damages:

  • $1,922,487.25 in attorney's fees
  • $234,800.73 in expenses
  • $954,245.31 in pre-judgment interest.

The total extra-contractual damages were $3,111,533.29 (plus post-judgment interest).

Here is Judge Ozerden's 40–page opinion on the attorney's fee issue. The Court awarded a rate for Don Barrett of $375 per hour ($475 hr. requested) and David McMullan's of $300 per hour ($345 requested). From my knowledge of hourly rates in Mississippi, both the rates requested and the rates awarded were in the range of reasonableness when compared to premium rates charged by top litigation attorneys in the state.  

Lloyd's took an interesting approach in opposing the requested rates by identifying the rates of its trial attorneys: $285–hr. for Paul Fields from Atlanta and $200–hr. for Whit Johnson from Currie Johnson in Flowood. Lloyd's should be ashamed that it was paying Whit Johnson only $200–hr. Whit is one of the top defense lawyers in the state and could justify a rate double what Lloyd's was paying him.

Judge Ozerden also reduced the compensatory damages award to $1,832,602.20 based on the policy's coinsurance condition and windstorm or hail deductible. Here is that opinion

My Take:

Judge Ozerden's opinions were thorough and well-reasoned.

Don't look for Lloyd's to be lobbying for loser-pays legislation when the State Legislature convenes this week.   

Defense Verdict in Hinds County Med-Mal Trial and Other News from the Weekend

Hinds County Defense Verdict

There was a defense verdict returned on Friday in a Hinds County medical malpractice trial. I do not know the names of the parties or the facts of the case. The vote was 11-1.

Heber Simmons of Ridgeland represented the plaintiff. Mildred Morris of Watkins Eager in Jackson represented the defendant. Stuart Harmon of Jackson represented a defendant who was dismissed via a directed verdict. Judge William Gowan presided in the case.

Wall Street Journal Article on Dr. Adam Lewis

Saturday's Wall Street Journal had a long front-page article about Jackson neurosurgeon Dr. Adam Lewis. Anderson writes about the article here. The article focuses on the death of a 48 year old patient who died hours after back surgery in April.

The WSJ had the man's medical records reviewed by nationally preeminent surgeons, who said that the man was not a candidate for surgery.

Lewis has a high rate of surgeries on his patients and owns part of the company that sells the devices that he implants. Anderson states:

So many doctors cannot rest content making a good living from being doctors; they have to own their own MRI, or their own specialty clinic, or their own medical-device company.

The article (which is behind a pay wall) heavily quotes Lewis' attorney, Whit Johnson with Currie Johnson in Flowood. Dr. Lewis gets sued a lot and is a controversial figure in the Jackson medical community. I don't think that Jackson doctors are surprised by the allegation that Dr. Lewis operates on too many patients. I reported a verdict from earlier this year here.

Kingfish quotes much of the WSJ article here.

Sun-Herald Article on Former Miss. Supreme Court Justice Joel Blass

The Sun-Herald ran this article over the weekend on former Supreme Court Justice Joel Blass of Pass Christian. Blass bucked the racist norm in the Mississippi Legislature in the 1950's and was highly respected in the legal community. The article quotes current Supreme Court Justice Jess Dickinson:

Jess Dickinson, a presiding State Supreme Court Justice, practiced law with Blass in Gulfport in the early 1990s.

“The practice of law today really needs a dose of professionalism,” he said. “The lawyers have gotten so strident and aggressive. They do so in an attempt to represent their clients, but professionalism has seemed to drift away from this profession.

“Joel Blass exhibited the epitome of professionalism. He is a gentleman’s gentleman, a lawyer’s lawyer, a scholar, and a mentor to every lawyer, whether they were in his firm or not. You could always trust him.”

Justice Dickinson's comments are consistent with everything that I've heard about Blass.

$553,000 Jury Verdict in Hinds County Medical Malpractice Trial

The Clarion-Ledger reported last week on a $553,000 jury verdict in a Hinds County medical malpractice trial against Jackson neurosurgeon Dr. Adam Lewis. The article provided a good description of the plaintiff's allegations:

Joanne Hartwig's negligence lawsuit in Hinds County Circuit Court said Dr. Adam Lewis' surgery on Aug. 1, 2005, left a plate in her back in the wrong position and one of the screws to fuse the lumbar spine bones together floating, not attached to bone.

Hartwig said the problem was discovered after she sought a second opinion because her condition continued to worsen under Lewis' care.

On Nov. 28, 2005, Hartwig said she had to undergo another surgery via her abdomen for the removal of the hardware.

"Ms. Hartwig sustained painful, debilitating injuries of a permanent nature, as well as the pain and suffering associated with having to undergo multiple surgeries and procedures," her lawsuit has said.

The components of the jury's verdict were:

  • $178,000– economic damages
  • $375,000– non-economic damages.

The article states that Dr. Lewis will appeal.

Precious Martin of Jackson represented the plaintiff. Whit Johnson of Currie Johnson in Flowood represented Dr. Lewis. Judge Winston Kidd was the presiding judge.

Not Much New to Report on Latest Katrina Wind vs. Water Verdict

Two weeks ago I reported in this post on a $2 million verdict in a Katrina wind vs. water trial. I have not heard anything new about the case other than what I've read on Pacer.

Here is the original Complaint, filed in 2007 and signed by Sid Backstrom of the Scruggs Law Firm. The Complaint appears to be a product of the now infamous Scruggs Katrina Group. It looks like the Barrett law firm ended up trying the case. The Scruggs lawyers were—presumably—unavailable for trial.

The defense team appeared to involve a cast of thousands with lawyers from Atlanta and New Orleans. Whit Johnson from Currie Johnson in Flowood is also listed down in the ranks of defense lawyers. I don't know who did what at trial.  

The Pre-trial order is not available on Pacer. Judge Ozerden ordered the plaintiff to to file a motion for attorney fees before March 17, 2011. An award of attorney fees could substantially increase the defendant's exposure.   

$1.17 Million Verdict in Hancock County Katrina Bad-Faith Trial

On October 26, 2010 a Hancock County jury awarded $1,170,000 to Coastal Hardware Store in a bad faith case against Lloyds of London. Coastal Hardware was destroyed by Hurricane Katrina. Lloyds refused to pay the claim despite accepting premiums for the insurance. The verdict is one of the largest—if not the largest—in the history of Hancock County.

Coastal Hardware is located in “the” Kiln. An earlier trial in August resulted in a mistrial due to the acoustically challenged Hancock County courtroom. I am not sure if the retrial was moved to Gulfport or relocated to a different courtroom in Hancock County.

The case involved an interesting twist. Two days before Katrina, Lloyds mailed the policy to the Kiln post office. Being the U.S. Postal Service, the policy did not arrive before Katrina. The Kiln post office was destroyed in Katrina, so Coastal Hardware never received the policy.

Circuit Judge Lisa Dodson ruled that the governing contract consisted of quote sheets provided before Katrina.

Coastal Hardware thought that it had a strong punitive damages case, but the jury voted to not award punitives by a 9–3 margin. Hancock County is very conservative. My guess is that the jury thought that over a million in damages was enough.

Former U.S. Attorney Brad Pigott of Pigott Reeves & Johnson in Jackson represented Coastal Hardware. Whit Johnson of Currie Johnson in Flowood represented Lloyds.

 

Mistrial in Hancock County Wind vs. Water Trial Raises Serious Due Process Questions For Criminal Convictions in Hancock County Courthouse

On Thursday Hancock County Circuit Court Judge Lisa Dodson declared a mistrial in a Hurricane Katrina wind vs. water trial between Coastal Hardware and Lloyd's of London. The reason for the mistrial was that the jury could not hear the witnesses due to acoustic problems in the courtroom in the recently renovated Hancock County courthouse. I discussed the problems in this post last year.

It's my understanding that in the trial last week Judge Dodson questioned jurors after a juror complained of not being able to hear the witnesses. Several other jurors admitted to having trouble hearing the witnesses. One juror said that they could hear every few words. As a result, Judge Dodson ordered a mistrial.

Former Southern District U.S. Attorney Brad Pigott represents the plaintiff. Whit Johnson of Currie Johnson in Flowood and Atlanta lawyers represent Lloyd's.

The trial will be re-set in October with a Hancock County jury. But the trial will take place at the Harrison County Courthouse in Gulfport.

It is reported that of the four Circuit Judges who cover Hancock County, three already refused to hold trials in the courtroom because of the acoustic problems. But after this latest mistrial, I would be surprised if any of the judges will hold jury trials in the courtroom until the problems are fixed.

More importantly, this raises due process questions about prior trials in the courtroom—particularly prior criminal trials. I hear that there have been two criminal convictions in trials held in the courtroom.  There is nothing to suggest that the experience with the jury last week was unique. This means that juries in the previous criminal trials likely also had trouble hearing witnesses. How would you like to be sitting in Parchman based on a conviction where jurors could not hear due to acoustic issues? This could create some interesting issues for the Mississippi Supreme Court to grapple with.

Report: $1.1 Million Medical Malpractice Jury Verdict in Hinds County

I have a report of a $1.1 million jury verdict returned Wednesday in Hinds County Circuit Court in a case tried before Judge Winston Kidd.

The reported facts are that it was a wrongful death case. The decedent had stomach ulcer surgery and was released from the hospital. After discharge the ulcer hemorrhaged, causing the death. I assume that the plaintiff alleged that the surgery was not properly completed and the decedent should not have been released from the hospital.

Alton Peterson was the plaintiff's lawyer. Defense lawyers were Whit Johnson, Stephen Kruger and Marc Caraway. I do not yet know the identity of the parties.

I will post an update if I obtain more information.

Rumor: Mistrial in Madison County when Defendant Doctor Rushes to Aid Sick Juror

I've heard that in recent weeks there was a medical malpractice trial in Madison County Circuit Court with Judge Samac Richardson presiding. During the trial one of the jurors started having a seizure or some similar type of medical emergency.

At the time, Plaintiff's doctor expert was on the witness stand. The witness doctor froze. Meanwhile, the Defendant doctor rushed to the jury box to provide assistance to the sick juror.

Needless to say, Judge Richardson had to order a mistrial. I wonder who would have won after that episode?

I would love to get more information on this trial, so please contact me if you can verify this story or provide more details. I do not reveal the names of sources in posts if the source does not want me to.

Medical malpractice defense lawyers are more secretive than the CIA about their trials, most of which they win. What ever happened to self-promotion?

Update: John Christopher represented the plaintiff and Whit Johnson with Currie Johnson represented the defendant.