Trial Lawyers Seek Bigger Payout, Push MD Legislators to Boost Auto Insurance Mandates
April 1, 2010
Baltimore Sun blogger Jay Hancock has an interesting item on the trial bar’s activities in Maryland. According to reports, the trial lawyers are promoting legislation that would force Maryland’s car owners to carry a higher amount of insurance in the case of accident. Why? Trial lawyers want “a pay raise,” Hancock argues.
“Lawyers typically take home 30 percent of a settlement, and auto cases are often settled to the limit of the insurance coverage. That would be an incentive to lobby for higher limits even if other factors stayed equal. But they haven’t. Thanks to the recession, campaigns against drunk driving and safer cars, auto injuries and deaths have plummeted…No wonder the trial bar wants a raise. So many lawyers, so few crashes. A basic business rule is that, when you have fixed overhead and your volume goes down, you try to raise prices.”
The bill enjoys the support of Democrat Governor Martin O’Malley, has already passed Maryland’s House of Delegates and is headed to the Senate.
Posted by Dan Pero in the categories: Lawsuit Abuse, Maryland, Tort Reform, Trial Lawyers
One Response to “Trial Lawyers Seek Bigger Payout, Push MD Legislators to Boost Auto Insurance Mandates”
Dan, in 1972, when Michigan adopted a No-Fault, the minimum liability policy limit require by the Act was $20,000. During the intervening 38 years, the coverage limit has never been raised.
Back in ‘72:
Year End Close Dow Jones Industrial Average 1020
Average Cost of new house $27,550.00
Average Income per year $11,800.00
Average Monthly Rent $165.00
Cost of a gallon of Gas 45 cents
Minimum Wage: $1.60
Under such circumstances, would you call an increase in the minimum protection limits in Michigan (hasn’t happened) an example of trial lawyer greed? Alternatively, should I call the failure to increase those limits over 38 years a successful example of insurance company greed?
All disagreements aside, Happy Easter to you and your family, Dan, and go MSU tomorrow and Monday!