FOR IMMEDIATE RELEASE
October 26, 2006
Contact: Timothy H. Lee
(703) 535-5836
Bribery & Kickback Allegations Against West Virginia Law Firm Expose Litigation Feeding Frenzy that Threatens Hospital
With the Very Future of Health Care in Putnam County Jeopardized, Will the West Virginia State Bar Investigate Kickback Allegations against a Leading Plaintiffs' Law Firm, or Will It Instead "Protect Its Own?"
ALEXANDRIA, VA — With allegations mounting over possible party solicitations in Putnam County, the Center for Individual Freedom (CFIF) today posed the following question:
"Given the avalanche of predatory lawsuits stemming from the Putnam case, will the West Virginia State Bar investigate kickback allegations against a prominent law firm, or will it instead protect its own?"
CFIF raises this question after allegations surfaced that Curry & Tolliver, a prominent West Virginia plaintiffs firm, unethically -- and possibly illegally -- solicited potential plaintiffs to sue Putnam County General Hospital. The allegations were made during the September 13, 2006 sworn deposition of Dr. Rick Houdersheldt, in which he testified that several of his patients informed him of Curry & Tolliver's inappropriate activities. In fact, at least one patient stated that the law firm offered $10,000 to become a plaintiff in a lawsuit against the Hospital, according to Dr. Houdersheldt's testimony.
According to a news report, Arden Curry II of Curry & Tolliver provided the deposition transcript to the West Virginia State Bar because of the solicitation allegations.
"Opportunistic plaintiffs' lawyers across the country have all too often manipulated and abused our civil justice system in search of their next big payday," said Timothy Lee, CFIF's Director of Legal and Public Affairs. "In the case of Putnam County, the sworn allegations that a prominent law firm used monetary bribes to solicit at least one potential plaintiff are about as serious as it gets. The West Virginia State Bar has an obligation to fully investigate the matter and take all appropriate action."
In West Virginia and elsewhere, it is illegal for attorneys to offer kickbacks to potential plaintiffs. Rule 1.8(e) of the West Virginia Rules of Professional Conduct state that "a lawyer shall not provide financial assistance to a client in connection with pending or contemplated litigation..." Further, Rule 7.3(a) mandates that "a lawyer shall not ... solicit professional employment from a prospective client ... when a motive for the lawyer's doing so is the lawyer's pecuniary gain."
According to West Virginia's Committee on Legal Ethics, "the clear reason for this rule is to ensure that the lawyer's independent professional judgment remains unclouded by a personal financial interest in the case."
The lawsuit feeding frenzy stems from the six-month tenure of Dr. John King, whom the hospital terminated following concern about surgeries performed by King. Despite the hospital's quick action to terminate Dr. King, trial attorneys naturally smelled blood in the water and filed more than one hundred lawsuits, demanding literally billions of dollars in damages.
As a result of this avalanche of lawsuits, the hospital announced at one point that it must shut its doors because it simply could not operate under the economic loss that threatened. The small, rural community of Putnam County almost lost its only acute-care center while trial lawyers attempted to line their pockets. Putnam now remains open under the new ownership of CAMC.
"Truly injured parties deserve their day in court and appropriate awards for the harm done by Mr. King," said Lee. "But lawyers or law firms unethically gaming the system almost jeopardized health care for all 55,000 Putnam County residents. The allegations of greedy piling-on and questionable plaintiffs' lawyer tactics surrounding the avalanche of lawsuits aimed at Putnam Country General Hospital must not be ignored."
Thanks to overzealous trial lawyers, West Virginia has witnessed a statewide exodus of physicians in recent years because they are increasingly unable to pay exorbitant malpractice insurance premiums and fear being the subject of frivolous lawsuits. The result has been declining access to health care for West Virginians.
"West Virginia's plight results from precisely the type of lawsuit abuse illustrated by these kickback allegations," Lee said. "Accordingly, the Center for Individual Freedom implores the West Virginia State Bar to investigate and take all appropriate action."
The Center for Individual Freedom (www.cfif.org) is a constitutional and free-market advocacy organization that fights to protect individual freedom and rights in the legal, legislative and educational arenas. CFIF is a vocal advocate for legal reform at the state and federal levels.