San Francisco Injury Lawyer Blog

Insurance Scammers Finally Go on Trial in Southern California

May 11, 2012 | Gregory J. Brod

As San Francisco and Oakland insurance attorneys we pay attention to all insurance-related headlines. For example, almost decade ago there was a big news story about a massive, and twisted, insurance fraud scheme that crossed state borders. Four key players in that horrendous scheme are finally going to trial this week in a southern California courtroom to be held accountable for their crimes, which border on gruesome.

The New Times in Phoenix broke the story, and has continued to report on it. The story starts with fake totally healthy “patients” being recruited in Phoenix. They were hired for $800 to travel to Los Angeles and undergo completely unnecessary, and potentially dangerous, medical procedures. Many were not told about the side effects of these procedures, including one man who was struggling with the loss of strength in his hands, making it difficult for him to work. These included sweat-gland and sinus surgeries, colonoscopies, endoscopies, and gynecological and testicular procedures. The clinics that performed these operations would then bill the insurance companies at extremely high rates, and in this case the insurance companies asked few questions of the submitting doctors and organizations and paying out tens of millions of dollars in this massive fraud scheme. California officials estimate that 2,481 healthy “patients” went to California to undergo treatment from just one of the fake groups, Unity Outpatient, that was recruiting them.

The plan was that the patients would receive these huge reimbursement checks from the insurance companies and would turn them over, as they had already been paid their $800 fee. But some greedy “patients” saw the checks and cashed them instead of handing them over. One of Unity’s lawyers, himself deeply wrapped up in this scheme, actually sued the employees to get the fraudulently collected checks back! The whole mess unraveled from there. Roy Dickerson, that attorney, even claimed that they were being defamed at one point. Mr. Dickerson is no longer allowed to practice law and is one of the four main players about to go on trial in California.

Proposed Gas Storage Field Raises Safety Concerns

May 9, 2012 | Gregory J. Brod

Safety is always foremost in the mind of our Sacramento natural gas accident attorney and our entire legal team. The Brod Law Firm is proud to support victims of utility accidents in Sacramento and to represent both individuals and class action groups in Sacramento toxic tort lawsuits. We also support efforts to ensure that utility companies operate in a safe manner that helps to prevent tragic accidents that can end or forever alter the lives of our fellow Californians.

Commissioner Florio of the California Public Utilities Commission (“PUC”) is working to block a local utility company from storing natural gas in a sandstone formation 3,800 feet below Avondale Glen Elder, a neighborhood in Sacramento. Florio is opposing the request by Sacramento National Gas Storage LLC to undertake the $70 million project and store 7.5 billion cubic feet of natural gas. The site is the former Florin Gas Field, a depleted natural gas reservoir, located underneath a 379 acre parcel of land containing more than 700 homes. If the PUC approves the request, the company would then need to seek a permit from the city for the project. Ultimately, the company would seek contracts with utility companies looking to store gas at the location. Company officials say they already have a commitment from the Sacramento Municipal Utility District that would use at least half of the field’s capacity.

In his statement opposing the project, Florio cited three significant impacts that, per the environmental impact report, could not meet the requirement of being mitigated to less than significant levels. The three areas are: 1) Potential hazard of a gas leak following gas field re-pressurization for storage; 2) Potential impact on the quality of groundwater due to operations and maintenance of the gas field; and 3) Temporary elevation of noise levels due to construction at the wellhead site. Florio notes that some of the potential for leaks is low but that the impact could be catastrophic and long-lasting.

Sacramento Bicycler Riders Advocate for Safety and Accessibility

May 7, 2012 | Gregory J. Brod

As the weather continues to journey from spring into summer, bicycling becomes popular as both a form of recreation and a mode of transportation. Bicycling can promote the health of both the individual, who benefits from the exercise, and the community at large, which benefits from the reduction in pollution caused by other transportation methods. Our Sacramento accident attorney urges both cyclists and drivers to always focus on safety. These efforts ensure that an enjoyable ride does not become a tragedy.

Sacramento bicycle riders are participating in an annual effort to make our region bicycle-friendly. Due to an increase in participation, the annual Million Mile May event has grown to become Two Million Mile May. Cyclists are registering at the event website and pledging the number of miles they expect to ride in May. As of this weekend, 5,200 Sacramento cyclists have pledged over a million miles. In 2011, participants logged 1.4 million miles in an effort to help remind drivers of the need to share the road and to advocate for steps to make our region safe and accessible for riders.

At the state level, the California Legislature is considering a law that would require drivers to leave a three foot safety cushion when passing a bicycle. The bill failed to pass last year but there is a notable difference in the details of this year’s version of the proposal. Last year, the bill would have required drivers to slow to a speed of 15 miles per hour when there wasn’t room to allow the three foot space. This provision raised safety concerns and the current bill instead requires the driver slow to a reasonable speed for the circumstances.

South Bay City of Los Altos Sues Property Owner in Personal Injury Case

May 4, 2012 | Gregory J. Brod

tree%20chaos.jpg Individuals pursuing a personal injury claim often sue cities and other public entities for causes of action such as “Dangerous Condition of Public Property”. The City of Los Altos has decided to turn that concept back on one of its residents, Mark Choo.

According to the Los Altos Town Crier, on November 22, 2010 Katharine Edgecombe was driving a Land Cruiser that rear ended another car at a crosswalk. That car, driven by Conny Marx, allegedly slammed forward into two women crossing the street. The two women are filed a complaint on November 1, 2011 against the City of Los Altos, Katharine Edgecombe, and Conny Marx to recover for damages resulting from the accident. Five months later the City of Los Altos sought to include property owner Mark Choo in the case by naming him in its cross-complaint. The city alleges that a tree near his duplex impeded visibility at the crosswalk and that Mr. Choo is liable for damages.

It is generally the plaintiff’s role to name defendants in a suit for damages. However, according to California Civil Procedure Section 428.70, a defendant may bring a cross-complaint against a previously unnamed party, known as a third party defendant, if the original defendant could recover all or part of the judgment he owes from that third party defendant. This convoluted definition becomes clearer when using the example of the above case. The City of Los Altos may be found liable for the dangerous condition of public property, which might include the view obscuring tree. In turn, the City of Los Altos has filed a cross-complaint against Mark Choo saying that he is fully or partially responsible for any damages that can be attributed to the overhanging tree. The suit will not determine whether Mark Choo is liable for any wrong-doing, but whether, as the homeowner closest to the tree, he is responsible for any damages it causes.

Each city has its own distinct municipal code, and many across the Bay Area make residents responsible for trees on sidewalks adjacent to their property. Los Altos Municipal Code 9.20.025 indeed makes residents responsible for the maintenance of trees, shrubs, and other growths adjacent to their property and specifically puts the liability on them for property damage or other claims arising from such plants. The code also requires that all trimming and perform in accordance with certain standards found in the municipal code and the American National Standards Institute.

One more complicating factor: Mark Choo claims that because the tree interferes with the power lines, PG&E instructed him not to trim the tree. According to him, PG&E comes out to trim the tree every 18 months. However, on its website PG&E provides a number to call if a resident thinks a tree near high voltage power lines poses a danger.

Whether the tree was a substantial contributor to the accident or not, the City of Los Altos is using the statutes and codes in place to shift its monetary liability from the city as a whole to an individual resident, illustrating the importance of investigating thoroughly in every case the possibility of non-apparent defendants.
Continue Reading ›

The Role of the Named Plaintiff in a Class Action Lawsuit

May 4, 2012 | Gregory J. Brod

When a single event results in harm to a group of individuals, The Brod Law Firm is proud to be able to assist the victims by filing a class action lawsuit in California state or federal courts. Cases amenable to class action treatment can include a wide-range of issues such as business fraud, employment discrimination, securities violations, or industrial accidents, such as an explosion at the Richmond oil refinery. Class actions allow a group of similarly impacted individuals to bring their case collectively, saving resources for the individual plaintiffs and also providing an efficient mode for courts to hear similar claims.

This blog entry will concentrate on the role of the lead plaintiff in class actions. Also known as the representative plaintiff or named party, the lead plaintiff’s lends his or her name to the caption of the case (i.e. Smith et. al. vs. Defendant Company). The lead plaintiff is a representative member of the class who stands in for the group and acts on behalf of the full class. In some cases, more than one class member can share the role.

Given the importance of choosing an appropriate lead plaintiff, court rules require that the court approve the selection. Often the person who gets the litigation moving will later be deemed the lead plaintiff. In order to qualify for the role, the court must find that the lead plaintiff’s claims be typical of the claims in the class and that the lead plaintiff be capable of adequately representing the interests of the group as a whole. Certain types of cases have more specific requirements, such as a preference in certain securities cases to have the person with the largest financial interest take the lead role. Many courts impose a time limit on applications for the lead plaintiff role.

California Doctors Charged with Medicare Fraud in Nationwide Anti-Fraud Effort

May 4, 2012 | Gregory J. Brod

Our San Francisco insurance attorneys know that for our older citizens, Medicare is an absolutely crucial health care program. That is why when Medicare insurance fraud occurs all seniors (and all taxpayers) are affected.

This week, authorities charged two Orange County doctors and six others in the Los Angeles area for participating in a $14 million fraud scheme against Medicare, according to news reports. US Attorney General Eric Holder and Health and Human Services (HHS) Secretary Kathleen Sebelius said that these arrests were part of a larger investigation nationwide against an alleged $452 million in false claims made against Medicare. Across the country, 107 individuals were arrested in seven cities, including, Los Angeles, Baton Rouge, Houston, Detroit, and Tampa. Mr. Holder said, “We are determined to bring to justice those who violate our laws and defraud the Medicare program for personal gain.”

The two Orange County doctors are Dr. Augustus Ohemeng of Buena Park and Dr. George Tarryk of Seal Beach. The two of them are charged with racking up nearly $5.7 million in false claims to Medicare. They allegedly wrote fraudulent prescriptions and also received kickbacks for referring the prescriptions to a medical supplies company. Two others arrested, George Samuel Laing and Emmanuel Chidueme, were arresting with them in this scheme. The four were arrested Wednesday morning and were to appear in court that afternoon.

Injury Attorney Comments on The Dangers of Meth Use

May 2, 2012 | Gregory J. Brod

It has been decades since the “Just Say No” campaign, but drug use continues to be a serious issue in our communities. Our San Francisco injury lawyer knows that drugs don’t only impact the user but can also create dangers for those who never take anything stronger than a Tylenol. The danger of harm to innocent bystanders is particularly strong in the case of methamphetamine (aka “meth”). Meth use can lead to impairment-related accidents and the volatile process of meth manufacture can lead to innocent San Francisco fire victims.

Methamphetamine is a synthetically manufactured drug that impacts a user’s central nervous system. Meth does have some limited medical uses, but most meth is manufactured for and consumed by recreational drug users. The drug can be consumed in many ways including orally, intravenously (i.e. by injection), by smoking, and by snorting. Even in small doses, meth acts as a stimulant and can lead to rapid or irregular heartbeat, increased blood pressure, and increased respiration rates. High doses of the drug can cause stroke, heart attack, convulsions, and even death. Meth also causes psychological changes which can include anxiety, euphoria, aggression, hallucination, delusions of power, a feeling of invincibility, paranoia, and obsessive behaviors. Long-term users may experience dangerous weight loss, heart disease, dental decay, memory loss, reduced mental functioning, violent tendencies, and symptoms akin to schizophrenia. Depression and suicide are also common among users. Withdrawal can be very difficult and can also cause significant physical and mental suffering.

The production of meth is dangerous in itself. “Shake and bake” style meth labs use a very volatile process that can result in an explosion if even a minor error in measurement or handling occurs. Meth labs have become a significant cause of fires that can destroy property and cause severe burns impacting not only those involved in the manufacture but also innocent victims who happened to be in close proximity to a meth lab, such as inhabitants of a neighboring apartment. Mobile meth labs can lead to vehicle explosions and traffic accidents.

Do Bike Helmets Prevent Concussions?

May 1, 2012 | Gregory J. Brod

The results are in, and the statistics show that bicycle helmets save lives. According to the National Highway and Traffic Safety Administration (NHTSA), nearly 70% of

Woodland Arrest Focuses Attention on the Danger of Elder Abuse

April 30, 2012 | Gregory J. Brod

Children and the elderly are perhaps the two most vulnerable segments of our society. While child abuse is the subject of wide-ranging awareness and prevention campaigns, elder abuse in Sacramento and elsewhere in Northern California is often a subject that remains taboo. As a Sacramento elder abuse law firm, the team at The Brod Law Firm believes that awareness is a vital step in preventing and reducing instances of elder abuse in our communities.

Police in Woodland are continuing to investigate a suspected case of elder abuse. On Friday April 27, officers arrived at the 200 block of Ablele Street in response to a domestic disturbance report. When they arrived at the scene, they found an elderly man, identified in some reports as Jerry Woodall standing in the front yard of a home. The man was suffering from multiple, non-life-threatening injuries and additional responders were called in to transport him to Woodland Memorial Hospital for treatment.

Officers quickly focused suspicions on the elderly man’s son, 42 year old James Woodall. By the time police arrived, the suspect had returned inside a residence and he refused to open the door when the officers knocked. Police contacted the younger Woodall by telephone but he refused to emerge. Eventually, a team of officers, aided by a police dog, forcibly entered the home. They found that Woodall had barricaded himself in a bedroom and that he had started a fire. Officers retreated out of concern for their own safety. A negotiation team was called in and the suspect eventually began communicating and exited the back bedroom. Police were then able to subdue the man and they apprehended him with the aid of the police canine. The younger Woodland was treated for minor injuries sustained during the apprehension. He was then booked at the Yolo County Jail. He has been charged with suspicion of battery causing significant injury and elder abuse. Additional charges of arson and battery on a police dog have also been filed as a result of the stand-off.

MetLife Settles with States for Almost $500 Million

April 27, 2012 | Gregory J. Brod

In another good news story, insurance giant MetLife, the largest life insurer in America, agreed to pay almost $500 million in a multi-state settlement deal after regulators reviewed whether companies were holding onto funds that should go to beneficiaries. This builds on a previous multi-state settlement with the US’s second biggest life insurer, Prudential, a few months ago (see blog post on that settlement here. Another settlement was reached with Toronto-based John Hancock.

With life insurance, the company is required to pay out the claim after receiving notification of the policyholder’s death and a valid death certificate. If there is no notification, then they are usually required to hold the funds until the policyholder would be 100 years old, plus an additional three to five years depending on the state, before turning the money over to the state as unclaimed property. The main allegation in these cases is that the insurance companies are not doing this, and are not taking the proper steps to track down beneficiaries, such as using Social Security databases to compare to their own records. MetLife maintains they pay more than 99 percent of life insurance claims and are working with regulators to ensure every claim gets paid.

An audit of MetLife launched in 2008 found that for two decades the company failed to pay benefits to beneficiaries or the state after a policyholder died. California Controller John Chiang said a joint investigative hearing with California Insurance Commissioner Dave Jones held last May revealed MetLife had information about the deaths of some of its life insurance policyholders but failed to pay what was owned. He went on to say, “These settlements make it clear that if the industry isn’t willing to make the payments legally required, we will take action, including lawsuits, to compel them to do right by their customers.”