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hot.coffee.2011.hdtv.xvid-fqm.avi

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0:15

you better finish your little

0:16

cafe latte there they'll never let you

0:17

in with it why not

0:19

because they don't allow outside drinks

0:21

into the movie well we'll just see if we

0:23

can't get around that

0:28

honey

0:41

and then there is this tonight in

0:43

albuquerque an 81 year old woman has

0:45

been awarded 2.9 million dollars

0:48

after she sued mcdonald's claiming their

0:50

coffee was too hot

0:52

it seems she was holding a cup between

0:54

her legs while driving

0:56

i spoke to a lawyer we're suing for

0:58

millions

1:00

suing what form the coffee was too hot

1:08

i've been thinking of quitting work here

1:10

and suing big companies for a living

1:12

instead

1:13

suing has become a popular american

1:15

pastime i'd like to get in on some of

1:17

that easy money

1:18

a college student sued his college

1:20

because his roommate partied too much

1:22

a florida man sued because he got a bad

1:25

haircut

1:26

of course many of these lawsuits fail

1:28

but you might win

1:31

stella libac did because of a cup of

1:38

coffee

1:41

every minute they waste on this

1:42

privileged lawsuit they're not able to

1:44

waste on other

1:45

frivolous lawsuits like oh my coffee was

1:48

too hot it's

1:49

coughing the woman she purchased the

1:51

coffee and she spelled it on herself

1:53

i mean it wasn't like the mcdonald's

1:55

employee took the coffee

1:56

threw it on her now that and it's up

1:58

then she would have a lawsuit

1:59

it's just people just are greedy and

2:01

want money and

2:02

they'll do anything to get it

2:07

i think many americans have a

2:09

fundamentally

2:10

wrong perception of the civil justice

2:13

system they think that the system is

2:15

flooded with frivolous lawsuits

2:17

jackpot justice predatory trial lawyers

2:20

at it again

2:21

junk lawsuits over frivolous injuries

2:23

lawsuit lottery and jackpot justice and

2:25

frivolous lawsuits these were

2:27

bumper sticker phrases that were easy to

2:29

market

2:30

and use to move public sentiment

2:33

away from a strong civil justice system

2:36

the whole

2:37

issue is the industry does not want

2:40

the public generally to have access to

2:42

the courts

2:43

so there's all of these devices and

2:45

methods

2:46

that business has used to keep consumers

2:49

out of the courtroom

3:05

my mother at 79 was very active

3:08

she drove she drove well

3:11

she very seldom dropped anything she

3:13

very seldom spilled anything

3:17

and so that uh

3:20

for her age at 79 years old i thought

3:23

she would she was remarkable

3:25

and she had been working full time just

3:27

about until about a week before this all

3:30

happened

3:43

my name is charles allen i'd like to

3:45

introduce my wife judy

3:47

and her mother stella liebeck the woman

3:49

who was burned by a cup of scalding hot

3:52

mcdonald's coffee three years ago

3:54

she cannot speak to do a confidentiality

3:57

agreement that she signed

3:58

but judy and i have no such agreement

4:02

i am just astounded at how many

4:05

people are aware of this case

4:09

and how many people have a distorted

4:11

view of the case

4:14

it doesn't matter where i am or who i

4:16

speak to oh yeah i know all about that

4:18

and well what do you know i got this

4:20

picture in my mind that she actually

4:22

pulled up

4:22

maybe took the coffee and dumped it

4:26

i think she went through the

4:27

drive-through she was driving the car

4:30

tried to drive and drink it at the same

4:31

time and then the lid might have popped

4:33

open and it spilled on her lap

4:34

added between her legs spilled in her

4:36

lap it was too hot

4:37

and then sued mcdonald's for millions of

4:39

dollars

4:41

and i'll say what would you say if i

4:44

told you she wasn't driving

4:46

oh no she was driving what would you say

4:49

if i told you

4:50

that's the wrong report and she was not

4:52

driving she was in the parking lot

4:55

she was in the passenger seat my nephew

4:57

was driving

5:00

so we had just dropped off my uncle at

5:02

the airport

5:03

and went to the nearest mcdonald's that

5:06

i knew of and

5:07

this was it so pulled up

5:11

she ordered coffee with her value meal

5:13

and i knew she liked cream and sugar in

5:15

it

5:16

there was no place in in my 1989 ford

5:20

probe

5:20

everything slope there were no cup

5:22

holders in that car

5:25

did i get cream and sugar it's in the

5:27

bag thank you

5:31

i pulled out of here knowing that we i

5:33

needed to get organized if i was going

5:35

to be eating and driving

5:36

and i knew she wanted to put her cream

5:38

and sugar in the coffee so pretty much

5:39

pulled right here

5:40

almost exactly this spot and

5:44

handed her a coffee or had already done

5:46

that and

5:47

so we just went about organizing

5:52

and short period after that she

5:55

started screaming i wanted to get the

5:57

top off to put cream and sugar in so i

5:59

put it

6:00

between my knees to steady it with this

6:02

hand

6:03

trying to get the top off and it just

6:05

went

6:06

hey you guys show me the burns yeah what

6:10

yeah would that change your mind at all

6:13

wow yes if i saw injuries like that i

6:16

would

6:17

definitely take a different view of it

6:19

from what i hear from the media

6:21

oh my gosh

6:27

excruciating pain

6:31

i was burned so severely that they

6:34

didn't think i would live

6:35

i'm a nurse and i was horrified at the

6:38

type of injuries that she had sustained

6:41

the skin grafts and the pieces that were

6:43

still ongoing

6:44

so it was kind of a shocker because it's

6:46

one thing to hear but it's another thing

6:48

to see

6:49

so it was kind of a oh my goodness

6:52

we could see the extent of this injury

6:55

so we started saying we need to ask

6:58

mcdonald's to pay for this

7:00

under no circumstances would she ever

7:02

sue or do anything like that

7:05

we thought that the company would take

7:07

care of medical and everything would be

7:09

done

7:09

and chuck and i wrote the letter to

7:12

mcdonald's

7:13

the very first thing we said is your

7:15

machine must be too hot so look at it

7:17

and fix it if it's

7:18

broken this must be an aberration it

7:20

must be an aberration but if it is your

7:22

sc

7:23

your policy we ask you to worry about

7:25

that policy because it's

7:26

uh you do not want to have this happen

7:28

to just one person

7:30

and then clearly it can't have happened

7:31

to just one person

7:33

we were extremely surprised when

7:35

mcdonald's

7:37

did not offer more than eight hundred

7:40

dollars on what was at that point a ten

7:42

thousand dollar medical problem

7:47

it's one of those things it's really

7:48

like if you ask people what the top ten

7:49

issues they care about you know the

7:51

economy health care

7:52

education the civil justice system never

7:55

even makes the top 20.

7:57

it's just not in in most people's radar

8:00

screen until something bad happens to

8:01

them and then

8:02

the first thing that most americans

8:03

think is that they should find a lawyer

8:06

when you are hurt by somebody harmed in

8:09

some way

8:10

and the person or the company that harms

8:12

you is negligent or

8:14

does this intentionally you have a right

8:17

to hold that wrongdoer accountable

8:19

and those are the civil courts that

8:21

handle those kinds of cases and that is

8:23

our civil justice system

8:25

it's a fundamental right that we have it

8:27

stems from the constitution from the

8:29

bill of rights

8:30

hey there kiddos the lesson today

8:34

is about our constitution and the

8:36

government's way

8:38

law making powers divided in three

8:41

legislative executive judiciary

8:45

forefathers

8:52

our judicial branch of government is one

8:54

of the very few places where an average

8:56

person

8:56

can actually go and confront a big

8:58

corporation on somewhat of a

9:00

level playing field you know the other

9:02

two branches of government are dominated

9:04

by money

9:05

and politics the judicial branch is not

9:08

because you can't whine and dine

9:10

juries but in the courts it's you

9:13

versus general motors but you versus you

9:16

know bank of america

9:18

and if you can present your information

9:20

and your complaint in an effective way

9:22

you have just as much likelihood of

9:24

winning as the general motors does

9:26

there's no other part of the government

9:28

where that's true

9:31

i got involved in the liebeck case by

9:34

way of invitation from reid morgan

9:36

who was lead counsel and once i met

9:40

reed and met stella liebeck and looked

9:42

at the evidence

9:44

you know they had my full attention

9:46

because the coffee

9:48

in question was brewed at temperatures

9:51

that would approximate

9:52

the temperature in your radiator after

9:55

you drive

9:55

from you know from your office to home

9:58

in

9:59

discovery we learned that in the

10:01

franchise

10:02

directives and manuals that the

10:04

franchisee was required to follow

10:07

that they had to have their their waters

10:09

at certain temperatures

10:11

and then they said that the holding

10:12

temperature should be 180

10:15

fahrenheit to 190 fahrenheit

10:18

hot liquid whether it's coffee or water

10:20

or any liquid like that

10:22

if it's in the range of 180 degrees or

10:25

hotter

10:26

if it is in contact with your skin for

10:28

more than just a few seconds it will

10:31

produce very serious burns if you're

10:33

lucky it'll produce a second degree burn

10:34

if you're

10:35

not as lucky you will get third degree

10:38

or full thickness burns requiring skin

10:40

grafting and surgery

10:49

if you add up the uh byron history

10:52

mcdonald's since january

10:54

of 1983 until march of 92

11:00

it's over 700 burn cases and that

11:02

doesn't surprise you does it

11:04

i can't say that i'm surprised or not

11:06

surprised i'm i'm glad the number's not

11:08

higher

11:09

all right i'm really pleased that it's

11:11

not more than that

11:12

i thought that was that was terrible

11:15

that he was so indifferent about it you

11:16

know

11:17

uh even if it was just one person that's

11:19

enough to pay attention to

11:21

i mean one person that spoke up

11:24

i'm sure there's more than that that was

11:26

damaged by hot coffee

11:28

but it was it's so easy to burn at that

11:32

temperature

11:33

and they were so indifferent about it

11:36

if you were to take a sip of that coffee

11:38

enough to where you could feel it go

11:40

down your throat

11:41

you can't do that 180 to 190 degrees can

11:44

you because you'll be burned you better

11:45

not do that you will get burned

11:54

we talked about different percentages of

11:57

how much was her fault

11:59

versus you know how much was mcdonald's

12:02

and we finally came to assign

12:05

twenty percent fault to mrs liebeck

12:08

because she had initially spilled the

12:09

coffee

12:10

and we assigned 80 of

12:13

the blame to mcdonald's because they had

12:17

a very long history of people being

12:20

injured

12:21

and they were so adamant that it was

12:25

such a trivial thing that they weren't

12:27

going to bother

12:28

to do anything other than just continue

12:31

to rake in the money

12:33

on their coffee sales and the fact that

12:36

it was their own records

12:37

really damned mcdonald's as far as i was

12:40

concerned because it was very obvious

12:42

that they knew there was a problem and

12:44

they were ignoring it completely

12:47

just totally disregarding the consumer

12:50

safety

12:57

we looked at the coffee sales on a daily

13:00

basis

13:01

and we figured about two days worth of

13:05

coffee sales we thought that that was

13:08

you know a fair amount and punitive

13:10

damages we

13:12

assessed at 2.7 million punitive damages

13:15

are very rare and they

13:18

have a specific purpose which is to

13:21

essentially change the behavior of the

13:23

wrongdoer

13:24

only way you can get the attention of a

13:27

big company

13:28

would be to make punitive damages

13:32

against them and this was a very small

13:34

punitive damage we thought

13:48

even though the amount was reduced later

13:52

i think the initial award certainly got

13:55

everybody's attention not necessarily in

13:58

a favorable

14:01

because i spilled a way in my lap and

14:03

bare it was cold

14:05

i'm going to sue guess i'm going to sue

14:09

the media in corporate america turned

14:12

a disadvantage into an advantage an

14:14

extreme advantage

14:16

as to how they dealt with this case and

14:18

its aftermath

14:19

i mean mrs liebeck became a joke

14:22

the jury function became a joke

14:25

notwithstanding the fact that we had 12

14:27

good hard-working new mexico citizens on

14:29

that jury

14:30

and it was a unanimous verdict but they

14:33

did a masterful job of taking this

14:35

this simple verdict and turning it

14:37

upside down as though

14:39

people like mrs liebeck are trying to

14:40

take economic advantage of the whole

14:43

legal system the tour reform groups they

14:46

love the mcdonald's coffee case

14:48

this was a perfect case for them because

14:50

it looked like it was frivolous

14:52

i had heard the word tort reform before

14:55

my mother was injured but i

14:56

i had never really understood what that

15:00

meant

15:04

a tort is a pastry

15:08

as far as i know it's also some type of

15:11

funding that the federal government has

15:12

done

15:13

uh for bailout money i believe oh i

15:16

thought that was tarp

15:17

no i think it's tort i have no idea what

15:19

a door it is

15:20

a tort is a piece of

15:24

it's a i think a tort is a piece of

15:26

bread that

15:28

looks like a hoagie roll but isn't

15:31

a hoagie roll so a tort is a harm it's

15:34

it's a

15:35

when someone uh commits a tort they have

15:38

harmed you

15:38

in some way i've heard the statement

15:40

toward reform do you know what it means

15:43

no tort reform would mean trying to

15:45

clean up

15:46

the the logistics of suing people or or

15:50

trying to make it easier or harder i'm

15:52

not quite sure which way tort reform

15:53

tends to work

15:55

well tour reform is a term drummed up by

15:57

some of the advertising people for the

15:59

business sector which is to limit

16:02

the likelihood that you can bring a

16:04

lawsuit it is

16:06

essentially laws that restrict people's

16:09

rights to go to court i don't think that

16:11

the term i'm not going to say it i i

16:13

just i won't say the word tort reform

16:15

the frame

16:15

that phrase because um i don't think

16:18

that

16:19

it is an accurate representation of

16:22

what's really going on

16:23

ralph nader calls it toward deform so i

16:25

guess reform is in the eyes of the

16:27

beholder

16:28

but if you want to change a system which

16:31

had become

16:32

in the late 1970s very very pro

16:35

plaintiff in the view of some

16:37

if you want to change it usually the

16:39

word reform is used

16:42

this big push to publicize the

16:44

mcdonald's case

16:45

came in the midst of an attempt to pass

16:47

federal legislation

16:48

that was going to limit the consumer's

16:50

right to go to court

16:52

it meant that there were going to be

16:53

caps on damages that there were going to

16:55

be all sorts of changes

16:56

in the rules of what you could do in

16:59

order to bring a case into court

17:01

and so there was this humongous campaign

17:03

by industry

17:04

attempting to affect juries but also

17:05

attempting to affect senators

17:07

and the mcdonald's case became the

17:09

poster child

17:10

for what's wrong with people going to

17:12

court and suing we looked at the

17:14

congressional hearings

17:15

about the tort reform bill and we found

17:18

that the most

17:19

common reference to justified tort

17:22

reform was a mcdonald's coffee case

17:23

there were not many statistical studies

17:25

the primary evidence was

17:26

everybody knows a mcdonald's coffee case

17:28

therefore we need tort reform

17:30

the lady goes through a fast food

17:31

restaurant puts coffee in her lap

17:33

burns her her legs ensues and gets a big

17:36

settlement

17:37

that in another of itself is enough to

17:39

tell you why we need to have tort reform

17:41

and in fact what happened was it did

17:43

pass the senate

17:44

and president bill clinton did veto it

17:47

this legislation is

17:48

arcane complex it has a lot of legalisms

17:52

and loopholes in it

17:54

but the real fact is it could have a

17:56

devastating impact

17:58

on innocent americans and so what

18:00

happened was corporate america sort of

18:02

went to a plan b

18:03

so they went to a lot of state

18:05

legislatures and asked the state

18:07

legislatures to pass laws that would

18:09

limit the rights and remedies

18:11

of individuals in various ways and they

18:13

were constantly on the attack because

18:14

they had so many

18:15

pr firms that they had hired to go out

18:17

and do their work in the different

18:19

states

18:20

a woman was awarded 2.9 million dollars

18:22

in a lawsuit against mcdonald

18:24

she spilled hot coffee on her lap while

18:26

sitting in her car and claimed it was

18:27

too hot

18:28

every day we hear about another

18:30

outrageous lawsuit

18:31

who pays you do tell the legislature we

18:34

can't afford another million dollar cup

18:36

of coffee

18:37

one of the most significant pr efforts

18:40

was spearheaded by the american tort

18:42

reform association atra

18:45

the american tort reform association is

18:47

a group of

18:48

several hundreds businesses and also

18:52

colleges and universities

18:54

and i'm their general counsel and they

18:56

are dedicated to try to see that there's

18:58

a fair and balanced legal system in the

19:00

united states

19:01

the american tort reform association was

19:04

formed in 1986

19:06

by about 300 major corporations

19:10

insurance companies chemical companies

19:12

oil and gas pharmaceutical companies

19:14

they're going to start advocating for

19:16

laws all around the country

19:18

to limit the liability of all their

19:20

members and so they hired a pr

19:23

firm and they came up with these groups

19:25

called citizens against lawsuit abuse

19:28

they were to give the impression that

19:30

these were just citizen groups that had

19:32

sprung up spontaneously

19:34

astroturf groups so they looked like

19:37

they were grassroots

19:38

groups but they really had no people in

19:39

them they were all run through the pr

19:41

firm that's what citizens against

19:42

lawsuit abuse was the tobacco industry

19:45

was actually funding a lot of this

19:47

that they would funnel money through a

19:49

washington dc

19:51

law firm called covington in burling

19:53

that would then distribute tobacco money

19:56

to some of these

19:57

citizens against lawsuit abuse groups

20:00

was there any distortions by people in

20:03

the media

20:03

by politicians by people who wanted tort

20:06

reform

20:07

sometimes stories were repeated and

20:09

repeated over and over again it happens

20:10

all the time

20:11

that were not true or they were

20:13

unfounded

20:14

i don't think it was intentional listen

20:16

to just a few cases

20:18

i hope i won't be repeating some that

20:19

maybe have already been told to you

20:22

in california man was using a public

20:24

telephone booth to place a call

20:26

an alleged drunk driver careened down

20:28

the street

20:29

lost control of her car and crashed into

20:31

the phone booth

20:33

now it's no surprise that the injured

20:34

man sued but you might be startled to

20:37

hear whom he sued the telephone company

20:41

and associated firms that's right

20:44

there's a telephone booth on the corner

20:46

of a very busy intersection in in los

20:48

angeles and this guy was standing inside

20:51

and he saw this car coming right at him

20:53

and he tried to get out of the

20:54

phone booth and the door stuck and the

20:56

reason that this was the fault of the

20:58

telephone company is that they've been

20:59

lots of other cases where this telephone

21:01

booth had been hit

21:02

by cars because it was in a very

21:03

dangerous position

21:05

and it hadn't been properly repaired so

21:07

the guy couldn't get out

21:09

and so he was hit inside the phone booth

21:11

he lost his leg he was extremely ill

21:13

you know it was not the source of real

21:15

humor the way reagan had portrayed it

21:16

and

21:17

so there are a lot of stories like that

21:18

for me you know not being a lawyer i'm a

21:20

journalist and i felt like

21:22

journalists had just really not done a

21:24

good job of covering and that they had

21:26

fallen for lots of

21:28

public relations ruses that they should

21:30

know better about

21:31

there was even a story of somebody

21:34

taking a lawn mower to trim a hedge

21:36

and there was a lawsuit and actually it

21:38

never occurred

21:39

so there was some scare tactics that

21:42

really didn't have basis in fact

21:43

i didn't take this job to sit around and

21:45

worry about getting sued if we don't

21:47

stop

21:47

lawsuit abuse i might not be able to do

21:49

my job and my job

21:51

just might be to save your life join the

21:54

jury

21:54

against lawsuit abuse was supposedly

21:58

just a group of business people

22:00

and community leaders who were acting on

22:02

their own when in fact

22:04

it was a carefully orchestrated campaign

22:07

orchestrated out of washington dc with

22:09

the help of people like karl rove

22:12

who had their own business and financial

22:14

interest

22:15

in pushing the agenda of tort reform and

22:18

making it look like it was a totally

22:20

spontaneous event

22:21

texas must end the junk lawsuits that

22:23

clog our courts and threaten our

22:26

producers

22:29

in texas in the mid 90s you had karl

22:32

rove and then candidate

22:33

bush come along and see that there was a

22:36

real political advantage

22:37

to talking about so-called torque reform

22:40

karl rove was

22:41

in the early 1990s a consultant for phil

22:43

morris for the tobacco industry he was

22:45

working for philip morris

22:46

and bush at the same time he was on the

22:49

phil mars payroll so he had a lot of

22:50

ties to these folks

22:51

rove saw that if he used tort reform and

22:54

if his

22:54

candidates ran on tort reform it would

22:57

make it that much easier for him

22:59

to open the pockets of the business

23:01

community and then once governor bush

23:03

was elected it was katy bar the door

23:05

they implemented

23:06

all of the things that interests like

23:08

insurance companies and the healthcare

23:10

industry and others

23:12

wanted in texas and so it's with great

23:14

pleasure

23:15

that i sign a cap on punitive damages

23:18

that will add certainty to the business

23:21

climate

23:24

and a lot of the people who had been his

23:26

biggest financial backers in texas

23:28

they followed him right to the white

23:29

house so he kept going

23:32

no one has ever been healed by a

23:35

frivolous lawsuit i urge the congress to

23:37

pass

23:38

medical liability reform our economy is

23:41

held back

23:42

by irresponsible class actions and

23:45

frivolous asbestos claims

23:47

and i urge congress to pass legal

23:49

reforms this year

23:52

because lawsuits are driving many good

23:54

doctors out of practice

23:56

leaving women in nearly 1500 american

23:59

counties without a single obgyn

24:02

i ask the congress to pass medical

24:04

liability reform this year

24:07

he was short reformer in chief he really

24:09

brought that issue to the center stage

24:11

in a way nobody else had ever done

24:13

too many good docs are getting out of

24:14

business too many ob

24:17

gyns aren't able to practice their their

24:19

love with women all across this country

24:22

we're a litigious society everybody's

24:24

suing it seems like

24:25

there are too many lawsuits in america

24:28

if you have the right words that evoke

24:31

your

24:32

whole system of thought and your way of

24:34

understanding an issue

24:35

and when that language is repeated over

24:37

and over the brain

24:38

changes the circuitry gets stronger

24:41

and can become permanent in my line of

24:44

work you got to keep repeating things

24:45

over

24:46

and over and over again for the truth to

24:48

sink in

24:50

to kind of catapult the propaganda

24:53

so they would get their message out

24:55

there and then

24:57

the public would pressure their local

25:00

legislators

25:01

to enact capstone damages and other

25:03

kinds of liability limits

25:05

so there was a direct link between the

25:07

pr that was done

25:09

and ultimately the passage of laws

25:26

everybody yeah all right

25:33

we got 16 candles we have to put in here

25:35

because you're 16 years old so pick up

25:37

one this has to be the top

25:41

to turn it around so that you have a

25:43

hold of this part

25:45

and then you're going to put it in up

25:46

there any place you want

25:50

you know put it there

25:53

all right okay now let me show you what

25:55

you need to do you need to take them

25:56

don't laugh

25:57

they're not gonna they're not gonna

25:58

laugh take off here i'll help you

26:01

i had no idea what tort reform was i had

26:04

no idea that there were caps on damages

26:06

here in nebraska

26:08

um prior to colin's case caps on damages

26:11

i think

26:12

is something that exists when they're

26:15

when there is misuse in the system so i

26:18

i would trust

26:19

just as someone has the right to access

26:22

the courts

26:22

uh there should be a body overseeing it

26:25

and regulating it and

26:27

and that's what a cap is a cap is

26:31

is public oversight on abuse it's a

26:34

limit for how much money you can get

26:36

from like the tobacco company that

26:38

killed your wife because of lung cancer

26:41

or

26:42

i don't know you can only sue your

26:43

doctor for so much right isn't it

26:45

because there's abuse and so you have to

26:47

set a limit

26:48

one of the most common so-called tort

26:51

reforms

26:52

is what's called caps on damages or

26:54

limits on the amount of money

26:56

that a jury or a judge can award to

26:58

somebody after they've been hurt

27:00

and won their case their opportunity to

27:03

get compensation is strictly limited

27:05

i i want to be honest with you i'm not

27:07

advocating uh caps on malpractice awards

27:14

which i believe uh i personally believe

27:16

can be unfair to people who've

27:18

been wrongfully harmed

27:23

wow you're a big helper i know that

27:28

i was 36 weeks along

27:33

pregnant with identical twin boys

27:36

and i noticed the night before

27:39

my regularly scheduled doctor's

27:42

appointment

27:43

that the movement would normally when

27:45

i'd go to bed

27:46

the babies would be really moving around

27:48

a lot and i noticed that

27:49

they weren't moving around very much and

27:51

i just kind of felt like you know

27:53

this is kind of weird and i i'm going to

27:56

the doctor in the morning i'll talk to

27:58

her about it

27:58

and i went in and i told her and she's

28:02

like well let's listen to the heartbeats

28:03

and she listened to the heartbeats

28:05

and um she said you know the heartbeats

28:07

are normal every you know it sounds

28:09

you know everything looks good and so i

28:12

was

28:14

reassured

28:24

it's really important to determine how

28:26

many placentas

28:28

when you're pregnant with twins that if

28:30

there's only one placenta then

28:32

it's a high-risk pregnancy so when i

28:34

went in

28:35

with my concern on monday it should have

28:38

been immediately followed up

28:39

with an ultrasound and you know stress

28:42

tests and had they done that they would

28:44

have seen what was happening was the

28:45

twin to twin transfusion syndrome

28:47

where one baby starts getting everything

28:50

and the other baby's getting nothing

28:54

the next day the movement was less and

28:57

then

28:58

the the next day the movement was even

29:00

less

29:01

and i became i started to become really

29:03

concerned

29:04

and i called the doctor's office and um

29:07

we're going to see dr

29:08

nola's partner he said come on let's go

29:10

do an ultrasound and he showed the

29:12

heartbeat

29:13

of one of the babies and it was so slow

29:16

it was

29:17

like almost gonna stop and he said you

29:19

know we there's not a lot of fluid

29:20

around

29:21

one of the babies and we need to deliver

29:23

the babies right away

29:42

colin suffered uh severe brain damage

29:46

to all areas of the brain they just said

29:48

it must have been from a lack of oxygen

29:50

or whatever but they didn't really say

29:52

how it happened or why it happened or

29:55

give us any further background and

29:58

i guess that that kind of led us to keep

30:00

asking questions and keep

30:02

looking for answers well i've got one

30:05

son that's perfectly normal he's a

30:07

you know a normal child i've got one son

30:09

who has severe brain damage and they

30:10

were

30:11

born at the same time you know what

30:13

happened here the girlies also never

30:15

knew that before they went to see dr

30:16

nola

30:17

she'd been in court before sued two

30:20

other times

30:21

both for malpractice according to court

30:23

records in 1987 and 1989

30:26

dr nola was accused of botching two

30:28

pelvic operations

30:29

it appears both cases were settled

30:30

secretly but legally out of court

30:35

at trial it came out that the injury was

30:38

caused by

30:38

a lack of blood flow from the placenta

30:41

through the cord

30:43

and oxygen depletion of the brain for

30:46

five to eight minutes

30:47

is what caused the damage so not knowing

30:50

i mean looking back

30:53

all that time was so critical you know

30:56

it was i mean had they just you know

30:59

delivered them right away

31:01

and the nurses testified that the doctor

31:04

had called over

31:05

to the hospital and they had the or

31:08

prepared and ready

31:09

but the doctors weren't there you know

31:11

you just start thinking

31:12

all these things and why didn't they do

31:15

an ultrasound on that

31:16

monday you know and then you know i went

31:19

through

31:20

for about three years of why didn't i

31:23

just ask you know i kind of blamed

31:27

myself for a while um

31:32

you know but you you just want to change

31:37

what happened and

31:40

knowing that it was preventable

31:44

the economist at the time said that he

31:47

would need six million dollars

31:50

at the time of the trial for him to have

31:52

enough money

31:53

to take care of him for the rest of his

31:59

all right here we life

32:21

in most instances when you have a

32:23

lawsuit where a cap statute is involved

32:26

the jury doesn't know that there's a cap

32:28

statute

32:30

so if the jury renders an award which is

32:33

higher than

32:34

the cap statute the trial judge after

32:36

the trial

32:37

then reduces the verdict to the amount

32:40

of the cap

32:41

and so it actually it takes away the

32:44

power of the

32:45

jury to make a determination as to what

32:48

a fair and reasonable amount should be

32:49

for damages that's in the bill of rights

32:53

that juries not legislators

32:56

get to determine questions of fact in

32:58

the courtroom

32:59

and one of the most important issues of

33:01

fact decided in a civil jury trial

33:04

is what the appropriate damages are to

33:06

compensate someone who has been

33:08

injured due to the fault of another you

33:10

would agree with that

33:11

i don't disagree with that so so why

33:14

does the u.s

33:15

chamber spend so much money trying to

33:18

convince

33:19

us that we know more

33:22

about the value of someone's injury or

33:25

death

33:26

than the people who elected us to

33:28

congress who go into jury boxes

33:30

all over this country under the seventh

33:32

amendment to the

33:33

bill of rights the judge ruled that the

33:36

cap

33:37

here in nebraska was unconstitutional

33:40

that it violated your rights to a jury

33:43

trial

33:44

and then the doctors and the insurance

33:46

company appealed

33:47

the case to the nebraska supreme court

33:50

and the nebraska supreme court came back

33:52

and found the cap constitutional

33:56

i've been involved in the tort reform

33:57

issues in nebraska for a long time but

33:59

most recently as a member of the

34:01

professional liability committee of the

34:02

nebraska medical association

34:04

and sub and subsequent to that the

34:06

colorado physicians insurance company

34:09

which is the major malpractice carrier

34:10

for this region in nebraska

34:12

we have a total cap that includes all

34:15

damages whether it be economic or

34:16

non-economic damages

34:18

so caps on damages can be three kinds

34:20

there can be caps on punitive damages

34:22

in some states there's caps on

34:24

non-economic damages in many states and

34:27

in a very

34:27

very few states there can be caps on the

34:29

entire amount that a plaintiff can get

34:32

economic damages you can think about

34:34

those as your out-of-pocket costs

34:35

they're your health care expenses

34:37

your lost wages and non-economic damages

34:40

are for pain suffering the loss of

34:43

enjoyment of life

34:44

the harm that's been done to them that

34:46

is difficult to measure

34:48

in money but there needs to be some

34:50

reason when it comes to non-economic

34:51

damages in the system

34:53

and that's why i proposed a hard cap of

34:56

250 000

34:57

on non-economic damages

35:02

i think a cap on on economic damages of

35:05

250

35:06

000 makes some sense for most of the

35:08

states in the united states

35:10

because there's such a soft and squishy

35:12

type of of damages and difficult to

35:14

determine

35:15

i think that makes some sense it's an

35:17

arbitrary number

35:18

that bears no relationship to the harm

35:22

that the planet have suffered

35:24

and also it has a disproportionate

35:26

impact

35:27

on people in certain situations if

35:29

you've been blinded

35:30

permanently disabled disfigured in some

35:33

way

35:34

or your woman in your reproductive

35:36

system has been harmed in some way

35:38

those injuries are non-economic in

35:41

nature

35:41

and someone deserves to be compensated

35:44

for that

35:52

they're identical twins but there's

35:53

nothing really very identical about them

35:55

i mean conor's a

35:57

pretty much a normal boy i mean he grew

35:59

up

36:00

and played baseball and soccer and

36:03

you know just did what boys normally do

36:06

and

36:06

colin on the other hand he grew up first

36:09

surgery i think was when he was one

36:12

one he had he had to have eye surgery

36:14

there was optical nerve damage

36:17

in the brain injury part of the brain

36:18

injury so he doesn't see real well

36:21

and then he started having to go to

36:24

therapy when it's about two i think we

36:25

started taking

36:26

therapy and that was pretty intense and

36:30

they finally got him to where he could

36:31

hold his head up and then where he could

36:33

sit up

36:34

and then as he he grew older he's

36:36

obviously

36:37

mentally delayed he's he he didn't even

36:40

know the days of the week

36:45

the jury heard the evidence and they

36:46

said okay well

36:48

we're 5.6 million i think is probably

36:51

what the

36:51

what he needs and that was close close

36:53

we could have made that work i mean

36:55

that would be enough money that he'd

36:56

have people to take care of him if we're

36:58

gone or whatever

36:59

he had been okay for the rest of his

37:01

life and then the cap comes in and says

37:03

no

37:03

no no no that's not right

37:07

you get this amount of money and then

37:08

you know pay your lawyers out of that

37:10

and pay your

37:11

some medical bills and so colin ends up

37:14

with a few hundred thousand dollars and

37:15

so what happens is then he goes on the

37:19

medicaid

37:20

and the taxpayers have to pay pick up

37:22

the bill for his care

37:24

dad dad what it's far in the park

37:28

it is is getting your hand all dirty no

37:32

oh it didn't broke look at that it's not

37:36

just an economic need there are moral

37:38

issues involved here

37:39

and what a cap does is it relieves the

37:42

wrongdoer often a company

37:44

or a health care provider of the

37:47

responsibility they have

37:48

for the damage that they caused medical

37:52

groups like the nebraska medical

37:53

association applauded the nebraska

37:55

supreme court's decision friday

37:57

they say it will keep malpractice

37:58

insurance costs down for doctors

38:00

and that in turn will keep down medical

38:02

costs when states enact caps

38:04

on damages doctors insurance premiums

38:07

typically do not go down

38:10

and it's interesting that when these

38:12

various limitations

38:13

are enacted in various states

38:17

there's never a requirement that the

38:19

insurance companies pass any savings

38:21

along

38:22

to the policy holder the insurance

38:24

companies are charging still a lot i

38:26

think a lot of money to doctors in

38:27

nebraska

38:28

and they're not having to pay out very

38:29

much money in nebraska so what are they

38:31

they're making

38:32

it's their little pot of gold the

38:34

insurance industry

38:36

says well don't look at us it's not our

38:38

fault that rates are going up it's all

38:40

those juries and judges and lawyers and

38:42

and victims that are suing us it's all

38:44

their fault

38:46

those excessive jury awards cost us all

38:49

money

38:50

and it's part of rye rising why there's

38:53

rising costs

38:54

uh in the health care health care system

38:57

if it was

38:57

true that medical malpractice litigation

39:00

actually drove up health care costs

39:02

then we would expect that since 2003

39:04

when basically nobody no patient was

39:06

allowed to hold a doctor or hospital

39:07

accountable anymore

39:08

in texas we would expect that health

39:10

care costs health care spending would go

39:12

down

39:13

well in fact the opposite is true health

39:15

care spending has been going up

39:16

in texas at a rate higher than the

39:18

national average since we

39:20

restricted patients rights to access the

39:21

courthouse so

39:23

the myth just doesn't jive with reality

39:27

over these years there's a whole lot of

39:29

things that

39:30

i want to say about caps and and

39:33

to say just how they've affected us

39:36

doesn't really

39:37

um i don't know it doesn't really hit

39:39

the nail on the head so much

39:41

i mean they've affected us obviously i

39:43

mean we have a we have a

39:45

son who will never be able to grow up

39:48

and

39:49

earn his own living never go off to

39:50

college never have his own family

39:53

he'll require care for the rest of his

39:55

life and so

39:56

how does the cap affect you it it it

39:59

makes his future

40:02

unknown i mean you have this person that

40:06

you're

40:06

responsible for and that you love that

40:10

you don't know if you're gone what's

40:12

going to happen to them

40:16

i mean if it's your child take your

40:18

child

40:19

and say you're gone and give them to the

40:21

state and let the state do whatever they

40:22

want with them and

40:23

is that what you want for your child

40:26

that's not what i want for my child

40:29

especially when your child can't ever

40:30

grow up and take care of themselves

40:32

they're relying on

40:33

people to take care of them so that's

40:37

how their cap affects you

40:39

i know that no

40:43

in many respects these laws violate

40:45

state constitutional provisions that

40:47

protect people's rights

40:49

and in order to protect those new laws

40:52

against challenge in the courts the

40:54

business community decided that it was

40:56

important to them

40:57

to stack the deck in their favor

41:01

with the supreme courts of various

41:03

states they wanted their own set of

41:04

judges who would be deciding whether

41:06

these

41:07

restrictions on people's rights would be

41:18

upheld

41:27

watch out snake watch out snickers

41:34

grisham books some of them anyway

41:39

this was written two years ago john uh

41:41

decided to write the appeal

41:43

he'd talk to me about it because he

41:45

wanted me to help him get the get the

41:47

details right in the book he likes

41:49

the books to be accurate it's about it's

41:51

interesting because it's about uh

41:53

it sort of tracks what i went through um

41:55

it's about a mississippi supreme court

41:57

justice running for reelection

41:58

and being um attacked by these

42:02

out-of-state

42:03

big business interest groups that are

42:04

coming in trying to defeat the incumbent

42:06

supreme court justice

42:08

so that they can get their corporate

42:09

interests on the um

42:11

you know on the court so yeah

42:16

as the legislature would try to affect

42:19

tort reform

42:20

if they did get into law then it came

42:22

down to the courts

42:23

to decide whether that law was

42:25

constitutional and

42:26

there started to be decisions around the

42:28

country that said that these laws were

42:29

not constitutional they went too far

42:32

so then the businesses said well we

42:34

can't

42:35

pass those laws what we can do is to try

42:38

and have judges who decide these cases

42:40

be really conservative business oriented

42:42

judges

42:43

karl rove developed this plan and worked

42:45

with the chamber of commerce

42:46

to influence the outcome of key judicial

42:50

races around the country

42:51

they put in place a pretty aggressive

42:52

campaign ranking which states are most

42:55

important for them to be in

42:56

and putting tens of millions of dollars

42:57

a year into these elections that often

42:59

had

43:00

tiny amounts of money i started getting

43:02

calls from carl

43:04

in the middle to late 1980s as he began

43:07

his work representing at the beginning

43:10

state supreme court candidates in texas

43:13

rove was able to put together a

43:15

franchise basically

43:16

to elect republicans who he was

43:19

representing

43:20

with a guarantee that they would have

43:22

well financed races

43:24

and business interests got supreme court

43:26

judges who were going to rule

43:28

their way on business cases and on tort

43:31

cases

43:32

by the time you reached the 1990s this

43:35

corps of conservative republican

43:38

tort minded judges were ruling

43:40

overwhelmingly

43:41

for some of the largest corporate

43:43

interests in texas

43:50

it's a model that they used and they

43:52

exported to other states

43:53

it's a good payoff it's a good payoff

43:56

you put money in the judicial race

43:57

uh you spend a hundred thousand dollars

43:59

to help uh challenge a

44:01

judicial candidate it can have literally

44:03

a million dollar impact on your company

44:05

and it seems that that's happening more

44:07

and more throughout the country that

44:10

our state supreme courts are reversing

44:13

civil juries in this country at an

44:15

unprecedented

44:16

level after seeing the gifts of millions

44:19

of dollars

44:21

last week the supreme court reversed a

44:22

century of law

44:24

that i believe will open the floodgates

44:26

for special interests

44:28

including foreign corporations to spend

44:31

without limit in our elections

44:45

if you get five people in our state we

44:48

have nine so the majority is five

44:50

you get five judges that have that

44:52

persuasion

44:53

to be always with the doctors or be

44:56

always with

44:57

corporations you have court reform

45:00

and that is more deadly than tort reform

45:03

ever thought about being

45:05

that's what this karl rove chamber is

45:08

about

45:08

and they came into these southern states

45:11

and mississippi was a good state

45:13

to take on because it's a small state

45:15

not much money

45:16

and the u.s chamber putting candidates

45:19

that were friendly towards them and they

45:22

were able to elect

45:23

all of them except for one and that was

45:25

oliver diaz's

45:27

election the appeal was a book i

45:31

published it's a novel it's completely

45:33

fiction

45:34

and it's completely true uh it's a story

45:37

of the

45:37

uh purchasing of a supreme court seat in

45:40

mississippi

45:42

i felt like i kind of lived through it

45:44

with oliver

45:46

you know no one because he was my friend

45:47

nobody had gone through

45:57

i was born and raised in biloxi

45:58

mississippi

46:00

lived there all of my life and then went

46:03

to law school

46:04

and after law school came back home and

46:06

started practicing law there

46:08

and in 1987 i was elected to the

46:11

mississippi house of representatives

46:13

and and started a career in politics at

46:15

that point i was his campaign manager

46:27

he had these interest groups that were

46:29

interested in electing judges that they

46:32

deemed to be pro-business i was not

46:35

deemed to be pro-business and the u.s

46:38

chamber

46:38

mounted a very very large and expensive

46:41

campaign against

46:42

me in two thousand diaz even voted to

46:44

overturn a cocaine conviction because

46:46

evidence of a prior cocaine sale was

46:49

allowed

46:49

oliver diaz very bad judgment

46:53

the negative ads are still running and

46:55

that that part has not

46:56

changed the the ads are still on the

46:58

television it's it's a terrible

46:59

situation

47:00

it is demeaning to the office it is

47:02

improper that should not have happened

47:04

i've told judge

47:05

diaz that i've done all i can do to get

47:07

those stopped

47:08

i don't like it my opponent who was

47:10

supported by the u.s chamber of commerce

47:13

he had probably a million dollars spent

47:15

on his behalf which was not even

47:18

it was more than a million dollars spent

47:20

on his behalf but it wasn't in his name

47:22

and he didn't report that on his

47:24

campaign finance reports you know people

47:26

think oh the u.s

47:27

chamber of commerce they think of it

47:30

representing

47:30

small chambers on a national scale that

47:33

really isn't what the u.s chamber of

47:36

the us chamber commerce is um i'm not

47:39

really sure

47:40

so i'm dealing with the government it

47:43

was

47:44

my understanding that it was a

47:46

government agency but i'm not sure of

47:48

that

47:49

probably they are getting engaged in

47:52

managing uh something

47:56

trade do they engage in managing trade

47:59

throughout the united states

48:00

i'd go with that

48:24

the u.s chamber of commerce became a

48:26

very very

48:27

important player in the tour reform

48:29

movement and they have now

48:31

been shown to be funneling money into

48:34

judicial campaigns

48:35

here's here's the way the campaigns

48:36

happen okay you have

48:39

your doctors hospitals manufacturers

48:42

insurance companies you got all those

48:44

folks kind of quarterbacked by the

48:45

chamber of commerce that's where the

48:46

money is

48:47

there's nobody on the other side except

48:49

for trial lawyers

48:50

because the trial lawyers know the law

48:52

and they know what's going to happen

48:54

if these judges are elected we were

48:56

playing by a certain set of rules there

48:58

were campaign finance

48:59

laws that you had to know where the

49:02

money was coming from

49:04

and there were limits on some of the

49:05

amounts of money baifu gave it

49:07

the trial lawyers are limited as to how

49:09

much money they can put in

49:11

if you give more than five thousand

49:13

dollars a judge can't sit on your case

49:16

whereas if the money comes from the

49:18

chamber all that money was packaged into

49:20

a large group

49:20

and there's no way that you can see who

49:22

were the contributors

49:24

the chamber puts in millions of dollars

49:26

into state races through some kind of a

49:28

front group

49:28

you know citizens for strong ohio or

49:30

partnership for

49:32

ohio groups that sound like they're

49:34

citizens groups

49:35

but in fact are really business groups

49:37

hiding behind a false veneer

49:39

we're doing much much better in the

49:40

courts and in the election of judges to

49:44

the state

49:45

supreme courts we're in those races

49:47

we'll spend 19 million dollars

49:49

in the election of those judges and

49:51

state attorneys general in this next

49:56

election

50:01

they spent so much money against us they

50:03

would run almost every 15 to 20 minutes

50:05

on tv on our local station so we got to

50:08

where we just didn't have the tvs on and

50:10

all of a sudden one morning

50:11

we didn't want the kids to see these

50:13

horrible ads some of the ads actually

50:15

had big money bags being thrown up on a

50:17

bench that he was bought and paid for

50:19

his generous friends diaz's campaign

50:22

took over one hundred thousand dollars

50:24

from personal injury lawyers

50:25

and so one morning we hear you know just

50:27

woohoo and

50:28

our daughter is just like cheering

50:30

downstairs when we come down and

50:31

um she's like we're rich or rich and

50:34

she'd seen the ad with the big bags of

50:36

money you know on the bench and

50:38

her daddy's name the game plan was to

50:41

pick out a justice try to make that

50:44

justice look soft on crime

50:46

take snippets from decisions that the

50:49

justice had made

50:50

manipulate those decisions to make them

50:52

seem absolutely outrageous and

50:54

ridiculous

50:56

and spend a lot of money to get that

50:59

message out to the voters

51:00

the amount of money that's spent on

51:02

television in a

51:04

political campaign has an enormous

51:06

effect on the outcome and in fact in

51:08

2000 the statistics showed that the

51:11

side that spent the most money won about

51:14

90 percent of the time

51:22

we had two weeks until um we had to run

51:24

again for a runoff

51:26

and we find out that the us chamber

51:29

had literally almost purchased all of

51:31

the available

51:32

air time that there was available from

51:34

jackson to biloxi mississippi

51:36

what we had to do at the time was

51:37

actually take out loans to finance the

51:39

campaign

51:40

and if you're familiar with banking at

51:43

all

51:44

they generally don't like to loan money

51:47

to

51:47

folks who may lose an election so you

51:49

have to have somebody

51:50

with money that co-signs on your behalf

51:53

and

51:53

my very good friend paul miner was

51:55

willing to step up

51:56

and sign a loan at the bank to allow

51:59

us to compete with the u.s chambers ads

52:02

that we're running at the time

52:03

keith starrett's special interest group

52:04

from washington d.c recently started

52:06

attacking me and distorting my record

52:08

i refuse to be negative but i must

52:10

defend my record

52:12

i still don't know how we did it to this

52:13

very day but we actually won that

52:15

election

52:17

i really honestly thought when we won

52:20

and celebrated that election

52:21

we had thought that was a good day and

52:23

it turned out to be probably

52:25

one of the worst days of our life the

52:27

election was

52:31

federal prosecutors decided to

52:33

investigate

52:34

me and used uh the loans that paul minor

52:37

had co-signed at the bank

52:39

and called that a bribe and and said

52:41

that he bribed me as a judge

52:43

but what's really interesting about that

52:45

is

52:46

i never voted for a single case

52:49

in which paul minor or his law firm or

52:51

anybody he was

52:53

associated with had brought before the

52:54

supreme court because of our friendship

52:57

and then that summer oliver was indicted

53:01

and it just kind of started spiraling

53:03

downhill from there

53:04

um i almost kind of didn't believe

53:07

oliver

53:08

i said there has to be something here

53:10

you're not telling me the truth

53:12

they wouldn't bring these charges

53:13

against us and do this

53:15

all of these counts are facing a hundred

53:17

and some years in

53:18

the federal penitentiary we have

53:20

millions of dollars millions of dollars

53:22

in fines we have two small children

53:25

oliver diaz says the charges against him

53:27

are groundless because he withdrew from

53:29

all cases

53:30

involving paul minor diaz is on leave

53:32

from the supreme court

53:33

until the case is resolved the decision

53:36

to prosecute justice diaz

53:38

may have been motivated by tort reform

53:41

politics

53:42

it may have been motivated by an effort

53:45

to

53:46

remove justice diaz from the supreme

53:48

court where he

53:49

often voted for ordinary citizens and

53:51

against corporations

53:53

but it certainly was not a prosecution

53:56

that was based on the evidence because

53:58

the evidence did not support it

54:01

do you think that oliver was prosecuted

54:03

for political reasons

54:05

sure i don't think there's any doubt

54:08

about that

54:09

we thought we were just targeted and

54:10

this was just us and this political

54:12

prosecution was just

54:13

us we have later found out that this

54:15

happened all over the country

54:17

and those other judges were that won or

54:19

were successful

54:20

were also targeted

54:24

after a three-month trial i was

54:26

completely acquitted

54:27

of all charges a jury returned not

54:30

guilty verdicts on everything

54:32

but three days after my trial

54:35

i was reindicted on tax evasion charges

54:39

so i had to go through another federal

54:41

trial after that first three-month trial

54:44

and had a week-long trial this time on

54:46

tax charges

54:47

and after a 15-minute deliberation time

54:50

by the jury i was fully acquitted a

54:52

second time

54:54

and i was finally cleared to return to

54:55

the bench but not after

54:57

i had been removed from the bench for

54:59

almost three years

55:02

so what they weren't able to do through

55:04

an election

55:05

they were able to do with a federal

55:07

prosecution federal investigation

55:10

to keep me off the bench to ruin my

55:13

reputation to make it

55:15

that i probably wouldn't be able to

55:18

be elected again to the mississippi

55:20

supreme court

55:21

some other people were elected who were

55:23

considered to be much more business

55:24

friendly

55:26

justices than had served on the court in

55:28

the years past and it really really did

55:30

alter things in mississippi after the

55:33

court swung

55:35

he went like two years without upholding

55:37

a plaintiff verdict

55:38

you know you might be able to win with

55:40

the jury but you have no hope of

55:42

having that that verdict sustained by

55:44

the courts

55:57

i think sort of the taint of these

56:00

charges

56:00

and sort of the residue of all of that

56:03

and the fact that some people in the

56:04

public simply assumed he was guilty

56:06

because he was charged of it

56:08

causing him to be defeated for

56:09

reelection also

56:11

i was not able to to raise the funds to

56:14

compete

56:15

i raised about a quarter of the amount

56:17

that i'd raised in my first election

56:19

if two or three million dollars is being

56:21

spent or 10 million dollars is being

56:23

spent

56:24

this way it's going now in 10 years from

56:26

now they'll be spending 100 million

56:27

dollars on judicial elections and

56:30

it's not really a good way to have

56:33

the system work and there's many people

56:37

in the business community who don't

56:38

agree with me on that

57:05

can you tell us why you're here today at

57:07

this reform summit we're here to receive

57:10

the leadership achievement award oh for

57:13

what

57:13

we're passing a 208-page civil justice

57:16

reform law in oklahoma

57:18

that is going to take the bullseye off

57:21

the back of business in our state

57:22

what does that mean exactly it means

57:24

that we're protecting our businesses

57:25

from frivolous lawsuits

57:26

and do you think there are a lot of

57:27

frivolous lawsuits there are and we

57:29

think that there's a

57:30

definite cost to the medical profession

57:32

and the cost of doing business

57:34

where we have to protect that companies

57:37

that are now doing business in our

57:38

country from

57:39

that kind of invasiveness and so who

57:41

brings these frivolous lawsuits all

57:43

kinds of people people that are jackpot

57:45

justice oriented

57:46

do you think tort reform is a good thing

57:47

for the american public without a doubt

57:49

why

57:50

why is that there's an incredible amount

57:53

of

57:54

frivolous lawsuits it directly impacts

57:57

everything from healthcare to

58:02

you know prices in stores to

58:05

small businesses it's extremely

58:08

important and where do you work or what

58:09

do you do

58:10

i am uh i'm a lawyer okay and with a law

58:13

firm or

58:14

in-house counseling for what kind of

58:16

company or advisor

58:18

i think we've just gone to for her we

58:20

have too much limitation

58:21

and so who who benefits from having less

58:24

litigation

58:25

everybody except except the trial

58:27

lawyers and

58:28

how do you do you want to like eliminate

58:29

people's rights to go to the court

58:31

system

58:31

i want to give people my own preference

58:33

would be to give people rights to sign

58:35

contracts

58:36

when they buy products and so forth so

58:38

the contracts would determine

58:40

what rights they had are these things

58:41

like the arbitration clauses that are in

58:43

contracts like the mandatory arbitration

58:45

yeah those are those are useful useful

58:47

causes

58:48

sometimes um litigation is harmful to

58:51

all of us

58:52

and they're better means to resolve

58:54

disputes than through the courts

58:56

you mentioned a few of them already

58:57

arbitration is a very good one

58:59

and there are lots of others but i hope

59:01

you'll excuse me no problem thank you so

59:03

much i appreciate it

59:19

did she get any on her head yes

59:22

that doesn't go on your head baby girl

59:25

thank you silly you thirsty

59:29

you want drink honey oh yeah

59:38

off coke for breakfast

59:48

i had never heard of a mandatory

59:50

arbitration clause

59:51

before i had signed my employment

59:54

contract with halliburton

59:56

i worked for halliburton in houston and

60:01

i wanted to help operation iraqi freedom

60:03

my mom was very sick at home so i needed

60:05

to help support her

60:07

they say it's more likely that you get

60:09

in a car wreck than something happening

60:11

to you in iraq

60:13

so as a 19 year old girl you believe

60:16

your

60:17

elders and you think that that's

60:19

probably true

60:20

so four years ago at the age of 19

60:24

ms jamie lee jones signed a contract to

60:28

become

60:28

an employee of kbr then a halliburton

60:31

subsidiary

60:33

that contract contained a clause which

60:35

required her to arbitrate any future

60:38

dispute against her employer

60:41

this means it forced her to give up her

60:44

right to seek redress

60:46

in court if she was wronged mandatory

60:49

arbitration is uh somebody has to be

60:53

involved

60:53

in the case isn't it or something

60:55

because arbitration is

60:57

how the case is now it has something to

60:59

do with case files

61:00

have you heard no i've heard the two

61:02

words used separately

61:04

that's right businesses use a number of

61:06

devices to keep the public out of the

61:08

courts

61:08

but one of the devices they've used is

61:10

they've written clauses into contracts

61:12

that say that you cannot go to court you

61:15

can only go to arbitration

61:16

what we started to see was again and

61:19

again

61:20

our clients had been forced to sign

61:23

in fine print of contracts these

61:25

mandatory arbitration or forced

61:27

arbitration clauses

61:28

and none of our clients knew that those

61:30

provisions were there and then it was

61:32

only after we got hold of their

61:33

documents

61:34

that we would say to them hey did you

61:36

know you supposedly

61:37

agreed that you are not allowed to sue

61:39

the company

61:40

do you know that you agreed that instead

61:42

of going to a jury that you have to go

61:44

to

61:44

a private arbitrator who's with the

61:46

company that's picked

61:47

by the company who cheated you and when

61:50

you ask people

61:51

about binding arbitration and would you

61:53

knowingly sign away

61:55

your rights they say well of course not

61:57

and then you ask them well do you have a

61:58

cell phone

61:59

do you have a gem membership do you did

62:01

you know do you have a credit card do

62:03

you know whether you've ever

62:04

agreed to mandatory arbitration in any

62:06

of your contracts

62:08

um i don't believe i ever have no do you

62:11

own a credit could you have a credit

62:12

card well maybe i have

62:14

when you first sign a contract with a

62:16

cell phone company or a credit card

62:18

company or whatnot

62:19

there won't be any reference or any

62:20

mention of the arbitration clause

62:22

but then at some point the company

62:23

decides to add it so what they do is

62:25

they send out

62:26

an incredibly tiny print a little

62:29

booklet that they stick in with the bill

62:31

and what almost everybody does is you

62:34

look at the bill

62:35

and you throw everything else away but

62:37

that's where they send in

62:38

the arbitration clause and then what

62:40

they say is if you ever use your phone

62:42

again

62:42

or you ever use your credit card again

62:44

that you've supposedly agreed

62:46

to mandatory arbitration what's happened

62:49

in america

62:50

is that entire industries have all

62:52

adopted mandatory arbitration clauses

62:54

you'll see them in credit card

62:56

agreements checking account agreements

62:58

lending agreements cell phone contracts

63:00

virtually anything that's bought over

63:01

the internet

63:02

computers books records virtually all

63:05

nursing homes nearly every contract to

63:07

buy a new car

63:08

health clubs tanning salons i have a

63:10

friend who took

63:11

her cat in to be boarded while she went

63:13

on vacation

63:14

and the kennel made her sign a mandatory

63:16

arbitration clause that they killed her

63:18

cat or did something horrible to it that

63:19

she couldn't go to court

63:21

you have no bargaining power you as a

63:23

consumer or a worker are forced

63:25

into these things and you really never

63:27

had a choice in the matter

63:29

mandatory arbitration is fast becoming

63:31

the rule rather than the exception

63:34

the practice of forcing employees to use

63:36

arbitration

63:37

has been on the rise there are several

63:39

surveys that show that more than a third

63:41

of the working people in america

63:42

are bound to forced arbitration clauses

63:46

in fact far more american workers are

63:49

governed by

63:50

mandatory forced arbitration clauses

63:52

than are members of unions

63:54

in in modern america today

63:58

i worked for halliburton in houston for

64:01

a little bit over

64:01

a year before i decided to go to iraq

64:05

when i was in iraq halliburton and kbr

64:07

were the same

64:08

company those that go over to iraq

64:13

get promoted when they come home also i

64:15

mean my goal is to just work

64:17

there forever i was content there until

64:21

everything happened i was told that i

64:25

would be housed

64:26

in a little trailer house with one

64:29

female

64:30

on one side another on one side and then

64:32

a bathroom shared in the middle

64:34

and when i got there i was perplexed

64:37

because i was put in a predominantly

64:39

all-male barrack

64:40

i didn't see any females there i emailed

64:43

some of the

64:44

managers that i knew from houston and i

64:46

told them i was concerned

64:48

that i wanted you know to be moved into

64:50

the living quarters that i was promised

64:53

and one guy emailed me back and just

64:56

said oh you'll get over it men had their

64:58

doors open

64:59

and some were in boxers and their cat

65:06

calling

65:09

when i woke up i was severely beaten

65:13

my chest was disfigured i was bleeding

65:15

between my legs i was naked

65:17

i washed my hands and then i saw the

65:19

bruises on my wrist and i'm starting to

65:21

put together

65:22

that something major happened to my body

65:24

and then i go back up the stairs down

65:26

the hall

65:27

and i looked in my room and there was a

65:29

man in the bottom bunk

65:31

and i don't remember if he was clothed

65:34

or anything

65:34

i was so like shocked that part bits and

65:38

pieces of it are

65:39

gone from me it was just

65:42

it was the worst moment in my entire

65:44

life to actually

65:46

see a man brazen enough to still be

65:48

there in the room after

65:50

raping me and it was really

65:53

hard and i know now that the reason why

65:56

he was still in the room

65:57

was because he would be able to get away

66:00

with it

66:02

i want to seek medical help and

66:05

at the army doctor she said that i had

66:08

been

66:09

um penetrated both vaginally and

66:12

anally and that the

66:16

tears down there were significant

66:28

you've heard a lot about halliburton

66:30

lately criticism

66:32

is okay we can take it criticism is

66:35

not failure our employees are doing a

66:37

great job

66:38

we're feeding the soldiers we're

66:40

rebuilding iraq

66:41

will things go wrong sure they will it's

66:44

a war zone

66:45

but when they do we'll fix it we always

66:48

have

66:49

so then two kpr security officers took

66:52

me to

66:53

a it's been called a lot of things

66:55

shipping container

66:56

trailer essentially i was in prison

66:59

there was two

67:00

armed guards outside of my door i

67:04

was begging and pleading through the

67:05

door to you know let me get out of there

67:08

and finally one of the

67:09

guards out of sympathy let me use this

67:11

phone i called my father who contacted

67:13

congressman ted poe

67:15

well it was almost unbelievable here she

67:17

is a young

67:19

19 year old female

67:23

and according to her dad she had

67:26

she was locked up in one of these

67:28

shipping crates so

67:30

the first thing that i thought should

67:32

happen is get her out of that situation

67:34

you know send the troops over to rescue

67:37

her so to speak and

67:38

the state department i thought did a

67:40

pretty good job after i was rescued

67:42

by federal agents they formed a meeting

67:46

with

67:46

kbr management and management told me

67:49

that i had two options one i could

67:51

continue working there

67:53

or two i could go home and be terminated

67:56

i tried to pursue my criminal case and

67:59

it didn't work

68:00

and then i tried to file a civil suit

68:04

and that didn't work out because of the

68:05

arbitration clause of my

68:07

employment contract

68:17

no one would conceive that this would

68:19

happen to them first of all

68:21

and secondly no one would conceive that

68:23

this would be oh well then

68:25

the company that sent you over there and

68:27

put you in this position

68:29

where you were raped is also you're just

68:33

going to have to arbitrate with us

68:34

secretly

68:35

i mean i don't think anyone could

68:37

possibly conceive that that would happen

68:39

whenever you take a case out of the

68:41

court system you're immediately put into

68:43

a biased

68:44

type of forum arbitration happens to be

68:46

extremely biased

68:48

most arbitrations take place in secret

68:51

if you have a private

68:52

judge so if you have a credit card

68:54

agreement the credit card company

68:56

picks who the arbitration company is

68:58

going to be and then the arbitration

68:59

company

69:00

picks an individual arbitrator to hear

69:02

your case the arbitrator

69:04

wants repeat business and they only deal

69:06

with you once

69:07

but they deal with the bank of america

69:09

or general motors or whoever it is the

69:12

businesses

69:13

they deal with them day in and day out

69:15

and so they're going to tilt their

69:16

decisions

69:17

toward the businesses there have been a

69:20

bunch of examples

69:21

where if the arbitrator ruled in favor

69:23

of a consumer

69:24

or ruled in favor of somebody who was an

69:26

employee

69:27

that they were blackballed and they

69:29

never got to work again

69:30

as an arbitrator so they set up systems

69:33

that are essentially

69:34

rigged against the consumers many

69:37

studies show that consumers come out

69:39

winning these cases maybe less than 10

69:42

of the time

69:43

they're almost always won by the bank or

69:45

the credit card company

69:46

it's impossible to find out what the

69:48

reason is for an arbitrator

69:50

ruling for one side or another they just

69:52

say this side wins

69:54

this side loses and that's it and

69:56

there's no right to appeal

69:57

so i have to take the final judgment of

69:59

one guy who's been picked by my credit

70:01

card company

70:02

to tell me that i'm gonna end up having

70:04

to pay

70:05

i'm not okay with that yeah i'm not okay

70:07

with that no huh that's

70:08

actually upsetting transparency is a

70:11

must in the judicial process so

70:14

if there's no oversight in that regard

70:15

i'd be pretty i'd be pretty worried

70:18

attilan unless congress takes action

70:20

with regard to

70:21

restricting the use of these binding

70:23

arbitration clauses we're all going to

70:24

be stuck

70:25

with these clauses senator al franken

70:27

proposing the pentagon

70:29

shouldn't hire contractors that make

70:31

their employees agree in advance

70:33

not to sue if they're raped by coworkers

70:37

i just started the jamie lee foundation

70:39

and i've been trying to

70:41

bring awareness to the situation to help

70:43

others through my foundation so behind

70:45

the scenes up to this point you've been

70:46

trying to pursue

70:48

every legal avenue oh yeah

70:51

i went public because i wanted to bring

70:54

awareness to situations that there was a

70:55

loophole in our justice system

70:58

that needed to be fixed very quickly

71:01

if i could just you know get this out

71:03

there what happened to me

71:05

that maybe you know people would change

71:08

the law

71:09

somehow the laws would change

71:16

all right i think he's oh

71:19

thanks thank you for your courage that's

71:22

just amazing

71:26

very nice to meet you nice to meet you

71:29

you have an incredibly

71:30

courageous daughter and also with a

71:34

tremendous amount of persistence

71:37

yeah so way to go thank you

71:51

and you're testifying tomorrow yes sir

71:53

uh-huh

71:54

carl i've specified in front of congress

71:57

a few times

71:58

is it judiciary committee tomorrow uh

72:01

judiciary

72:02

yeah that's me it's you

72:08

i turned to the civil court system for

72:10

justice when the criminal justice

72:12

system was slow to respond when my

72:14

lawyers filed the suit

72:17

they were met with halliburton's

72:18

response that all of my claims

72:20

were to be decided in arbitration

72:22

because i had signed away

72:23

my right to a trial by jury at such an

72:26

early age

72:27

i had no choice to sign this contract

72:29

because i needed this job

72:31

i had no idea that the clause was part

72:32

of the contract what the cause actually

72:34

meant or that i'd eventually end up in

72:36

this horrible situation

72:39

the problem of forcing claims like mine

72:41

into secret system a binding arbitration

72:43

goes well beyond me

72:46

even when victims pursue their claims in

72:48

arbitration the information is sealed

72:50

and kept confidential

72:52

the system of arbitration keeps this

72:53

evidence from ever coming to public

72:55

light

72:56

and allows companies like halliburton to

72:58

continue to allow the abuse

73:00

of their employees without repercussion

73:02

or public scrutiny seminal question is

73:04

should employers and employees be able

73:06

to engage in mediation

73:08

and mandatory binding arbitration of

73:09

employment disputes as alternatives to

73:12

litigation

73:13

the seminal answer is absolutely

73:16

adr and employment programs are

73:18

flourishing when implemented

73:20

appropriately they're decisively an

73:21

employee's best interest

73:23

it is a popular concept for those

73:25

employers who've adopted and adopted it

73:27

appropriately

73:28

it provides for more effective

73:30

communication in your comments

73:32

sure do you also tell how arbitration

73:36

would be helpful to somebody like miss

73:37

jones when the

73:39

when they uh her employer halliburton

73:42

been affected the

73:44

rape and sexual assault has just been

73:46

considered part of the job

73:50

what we have in this situation i'm not

73:51

here representing

73:53

anyone involved in that case i'm not

73:55

involved in that case

73:57

you know miss jones has had her day in

74:00

court and maybe more than she'd want

74:02

it goes on and on and on and i

74:03

understand that what we're talking about

74:05

is the concept

74:07

of adr and dispute resolution programs

74:09

overall

74:10

senator franken thank you mr chairman

74:13

and thank you for calling

74:15

uh this hearing uh mr dibernardo

74:19

you said that the net result of the use

74:22

of arbit

74:23

of arbitration is a better workplaces

74:28

correct better workplaces

74:32

correct she was housed with 400 men

74:37

she told kbr

74:41

twice that she was being sexually

74:42

harassed

74:45

she was drugged by men

74:50

that the kbr employment people knew did

74:52

this kind of thing

74:54

she was raped gang raped she had to have

74:57

reconstructive surgery sir

75:02

they had this this arbitration

75:08

now if that created a better workplace

75:12

and then she was locked in a shipping

75:15

container

75:16

with an armed guard now my question to

75:19

you is

75:20

if that's a better workplace

75:24

what was the workplace like before

75:28

that's a rhetorical question i'm not

75:30

really asking that question

75:33

they had binding arbitration at kbr

75:37

and because of that and they asserted it

75:41

on cases like this and ms jones

75:45

in your foundation you've heard from

75:47

other women

75:48

who are raped is that not true yes sir i

75:50

have and

75:52

uh and women who under arbitration

75:57

yes sir we're told to keep silent is

76:00

that right

76:00

exactly and because of that silence

76:04

you didn't know about anything like this

76:05

did you exactly i didn't know

76:08

it was not public knowledge

76:13

and when mr dubinario said that you had

76:15

your day in court

76:16

what was your reaction i was livid

76:20

sir

76:23

four years to fight to get in court is

76:25

not a day in court

76:29

um i was livid too

76:35

this is a result of your binding

76:40

mandatory arbitration

76:46

mr dibernardo

76:49

thank you mr chairman

77:01

as i talk to people who have been harmed

77:04

look most of them are not interested

77:06

in a big payday most of these people are

77:08

interested in accountability

77:10

and the and the way our system is

77:11

structured the only way we have some

77:13

holds

77:13

we have to hold somebody accountable is

77:15

through the courthouse

77:16

i can't tell you why people support tort

77:18

reform i can tell you that if they have

77:20

supported tort reform

77:22

and that they subsequently get hurt

77:26

they're really sorry that they did

77:30

there's a story of a gentleman in waco

77:32

he was harmed

77:33

and he sought to hold the doctor who

77:36

harmed him accountable

77:37

and he came to find out that he couldn't

77:39

do that and

77:40

he had voted for the state

77:42

constitutional amendment that allowed

77:44

the legislature to limit the rights of

77:46

patients and when

77:48

he was told well you know proposition 12

77:51

is what made this happen made it so that

77:54

you couldn't access the courthouse

77:56

he said well i voted for that and they

77:59

said well you know a lot of people did

78:01

and that's why it's the law of the land

78:02

now he said but that doesn't

78:04

that that's not my case that's those

78:06

people who file frivolous lawsuits

78:08

those are those people who are trying to

78:09

take advantage of the system that's

78:11

those people who are

78:12

trying to cash in on some lawsuit

78:14

lottery that's not what i'm trying to do

78:16

i was harmed and all i'm trying to do is

78:18

hold the person who harmed me

78:19

accountable

78:20

and he realized at that moment

78:25

what i've been told all of these years

78:28

they think that's me we don't need tort

78:30

reform

78:31

uh we need to taught respect where the

78:35

the tort law is what makes this country

78:38

strong it is

78:40

tort law and the bringing of tort

78:42

lawsuits

78:43

and the rendering of civil damages

78:46

that's what keeps our toys safe

78:48

it's what keeps our cars from horribly

78:51

injuring people

78:52

it's what keeps people from lying

78:55

cheating and stealing

78:56

if we can't hold perpetrators of

78:58

wrongdoing accountable

78:59

none of us are safe from their actions

79:01

that's the role that the civil justice

79:03

system plays

79:04

the one entity that can hold businesses

79:07

bad doctors

79:08

accountable as the civil jury and that's

79:10

what they're most afraid of

79:12

why is it that you support an effort to

79:15

limit the ability of

79:16

juries to make a decision when you're

79:18

suing businesses

79:20

but you support the idea that juries

79:23

should be allowed to decide in death

79:25

penalty cases

79:27

where the issue is whether or not some

79:29

person should die

79:31

ultimately it comes down to whether you

79:32

trust jurors certainly it's the best

79:34

system anybody's come up

79:36

with in the history of the world to

79:38

resolve disputes

79:39

involving ordinary people then the

79:41

question becomes what's the alternative

79:43

so should we let the businesses decide

79:44

should we let arbitrators decide

79:46

if we give up the civil jury as a tool

79:49

for holding

79:50

wrongdoers and the business community

79:53

accountable

79:54

what's the alternative who's going to

79:56

police them and the answer is no one

79:58

they're going to police themselves and

79:59

that's exactly what they want

80:10

it really opened my eyes to

80:13

how the system works and

80:17

the things that i thought were in place

80:20

to protect you

80:21

have been have been taken away and i

80:24

didn't realize

80:25

there were caps here and i didn't

80:27

realize that

80:28

the doctor wouldn't have to pay for this

80:30

that the taxpayers were going to pay

80:32

for collins damages

80:52

this is a campaign that's occurring all

80:54

across the united states it's not only

80:56

in mississippi

80:59

they don't want a level playing field

81:01

and they'll

81:02

spend millions of dollars to get these

81:04

people in place

81:05

to be sure that the judges will rule the

81:08

way that they want them to

81:23

i still have flashbacks i still get

81:26

jumpy if someone comes up behind me

81:28

have nightmares i wish

81:31

that i could confront the men that did

81:33

this to my body

81:35

i think that it would be instrumental to

81:36

my healing

81:38

the only way i could do that is if i'm

81:40

able to face them

81:41

in a court of law and

81:45

i hope to do that one day

82:02

i mean i've heard so many ridiculous

82:04

stories about she was asking for 30

82:06

million dollars or

82:07

you know something equally ridiculous

82:09

basically stella told them

82:11

i want you to cover what medicare

82:13

doesn't cover and i want you to get a

82:15

better lid on that coffee because i

82:16

don't want this to happen to another

82:17

person

82:18

and that was basically what she was

82:20

asking for

82:21

when somebody goes to court they're

82:24

doing something extraordinary that is

82:26

hidden

82:28

to go to court and to sue is not a

82:31

simple procedure

82:32

you have to go through a lot of trouble

82:34

to do it it affects your life

82:36

you're going to be attacked in all kinds

82:38

of ways going to court

82:40

to gain justice is heroic

82:44

that idea has to be out there

82:47

that is when you quote win a case

82:51

you win it for other people as well as

82:54

gaining justice for yourself

84:14

so

85:08

you

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