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- <text id=89TT2014>
- <title>
- Aug. 07, 1989: Showdown In "Sue City"
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1989
- Aug. 07, 1989 Diane Sawyer:Is She Worth It?
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- LAW, Page 42
- Showdown in "Sue City"
- </hdr><body>
- <p>Lawyers race to file suits following the United DC-10 crash
- </p>
- <p> Philip Corboy doesn't need to chase ambulances. They seem
- to chase him. Just one day after the July 19 crash of United
- Airlines Flight 232 in Sioux City, Iowa, the white-thatched,
- patrician-looking Chicago attorney was asked for legal help by
- the family of one of the survivors. Within 24 hours, Corboy had
- filed the first lawsuit to come out of the disaster. Since then,
- he has received calls from twelve other people involved in the
- crash. His fee, if he wins: as much as one-third of the damages.
- </p>
- <p> Corboy's lawsuit was the first volley in what promises to
- be a high-stakes legal battle over the Iowa crash. Some
- attorneys have even taken to calling the tragedy "Sue City"
- because of the huge number of lawsuits that are expected to
- follow. While the 185 survivors and the next of kin of the 111
- who were killed are the ultimate beneficiaries, the struggle
- will take place between a small cadre of plaintiffs' lawyers and
- their counterparts, who represent airlines, aviation
- manufacturers and their insurance companies. That kind of
- tug-of-war has grown increasingly fierce over the past few
- decades.
- </p>
- <p> Iowa bar officials arrived at the scene of the Sioux City
- crash nearly as fast as the doctors did. They were determined
- to head off a well-known postcrash problem: unscrupulous lawyers
- soliciting clients on the scene in violation of ethics codes.
- Representatives of the state bar set up an office at the health
- center where many of the survivors had been taken for treatment.
- Bar officials also placed an ad in the Sioux City Journal asking
- people to call if they knew of any unethical contacts by
- attorneys. None were reported.
- </p>
- <p> Other crash scenes have been more ghoulish. After 137
- people died in the Aug. 2, 1985, crash of a Delta L-1011 at the
- Dallas-Fort Worth airport, legions of lawyers sought business
- amid the chaos, scurrying among emergency-relief workers and
- hospital aides. They even tramped through the halls of Parkland
- Memorial Hospital handing out name cards to the families of the
- deceased. Top lawyers in the field, who get their cases mainly
- through referrals, consider such tactics lowbrow. "I have utter
- contempt for those who choose to get cases this way. They
- deserve the bad reputation they have," says Lee Kreindler, a New
- York City lawyer who won a record $7.9 million judgment in the
- Delta case.
- </p>
- <p> Insurers show up just as quickly as the lawyers, seeking
- through a disputed process known as claim control to keep costs
- from spiraling. Associated Aviation Underwriters, one of the
- major airline-liability insurance companies, has already begun
- the process of talking with survivors and the families of
- victims of the Sioux City crash, trying to settle their claims
- quickly and dissuade them from going to court. Says Peter Magee,
- executive vice president of the company: "If you buy a ticket
- to get from Point A to Point B, and you don't make it there,
- then the legal burden is on me to explain why. Statistics show
- you're going to recover something. It isn't a question of Is
- compensation fair? It's a question of how much."
- </p>
- <p> The answer, say plaintiffs' lawyers, is usually "not
- enough" for those who sign up with the insurance companies.
- Friendly letters urging families and survivors to take the
- settlements initially offered to them -- and suggesting that
- they shouldn't consult a lawyer -- are anathema to the aviation
- bar. According to Gerald Sterns, a San Francisco lawyer who
- specializes in air-crash litigation, "These letters can be very
- dangerous for the victims if they decide later to file a
- lawsuit. The insurance company's concern is damage control. What
- they're doing is developing a rapport with the victims and
- duping them."
- </p>
- <p> Lawyers for plaintiffs also accuse the insurers of more
- dastardly deeds. Says Daniel Cathcart, a Los Angeles-based
- lawyer who specializes in air disasters: "Either directly after
- the accident or a little later, as soon as the insurance
- companies know who the survivors are, they will dispatch a team
- of investigators to find out your financial situation, whom
- you're sleeping with and the status of your married life. Then
- they'll use this evidence to try to intimidate and embarrass you
- in court." Following the 1985 crash in Dallas, Delta was
- criticized for prying into the lives of passengers during
- litigation. After investigators found that one victim was
- homosexual, insurance lawyers raised the issue of whether his
- life expectancy would have been cut short because of AIDS.
- </p>
- <p> Plaintiffs' lawyers have a strong financial incentive to
- keep people from settling without representation, since it is
- virtually certain in crash cases that damages will be paid. But
- a study last year by the Rand Corp. found that litigation often
- does not yield the jackpots that the public imagines. Rand found
- that airlines and other defendants paid victims' families less
- than half their average "economic loss," the value of what the
- deceased would have earned in a normal lifetime. Jury verdicts
- averaged $599,000 per victim. Still, the odds are good enough
- and the stakes high enough to ensure that lawyers will continue
- to litigate these cases avidly. As insurer Magee puts it, "This
- whole business has come to take on a lottery mentality. If
- someone gets hurt this week, then they rush to court to see what
- numbers come up."
- </p>
-
- </body></article>
- </text>
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