So I’ll admit to being jaundiced. But when Bear Stearns is at risk, the government works over the weekend(!) to craft a bail out that will “save” the embattled Wall Street firm. Where Wall Street gets lifeboats, consumers get tossed into the sea, with a “Good luck with that,” kind of  castoff .

There are obvious differences, of course. Consumers signed up for complex mortgages on wings and prayers. To the extent that they understood what they were getting, they were betting on rosy economic futures to cover the spread.  Wall Street firms merely took the rosy deal-based transactions, lumped them together for that all-important multiplier effect and then invested in, loaned on and traded around a series of unregulated securities that were rotten to the core. And then it all went to hell.
I’m not really tickled to learn that I am helping to guarantee the failures of unregulated greed. We all pay because taxpayers get to fund the Bear Stearns bailout.  I’m waiting for the advocates of the free market to explain why Wall Street gets bailed out and why consumers are left to drown in debt. If we’re going to enter an era of socialized banking, shouldn’t the borrowers also get bailed out.

David F. Sugerman

Hi Friends:

Just because I run a full-time law practice, does’nt mean I should forget a [free] special event that all of you may be interested in seeing this weekend. The Better Living Show link is taking place at the Expo Center starting right now at noon today (3/28) and going through sunday (3/30) at the Expo Center. The reason this comes to mind is that this exposition will include green transportation, food, fashion, kid events, government efforts on sustainability and more. I like green. So here I go, off to staff a booth.

The Oregon Center for Environmental Health link2, of which I am a founding board member, will be there. We will be introducing our kewel new latex-free rubber ducks!

So, if your plans for organic gardening are taking a spring break until the snow stops, come on by and we can hook you up with a non-toxic rubber ducky. That sounds like a little light fun and some very interesting information on sustainable and healthy living, right here in river city…or is that snowy city? or rainy city?

Regards and see you at the expo center this weekend. Take MAX!

David Paul

Interesting piece in Willamette Week covering the Oregon Attorney General race. I have met both candidates. Both are skilled, ethical, and professional. Both have the chops to serve as Attorney General. As my friend and colleague, Oregon trial attorney Mike Williams noted in the article, Greg Macpherson would no doubt be a good attorney general. But John Kroger has the potential to be a great one.

Interesting race because both candidates have great strengths.

This matters to average Oregonians because the Attorney General sets the agenda for the Oregon Department of Justice. Who is at the helm determines the Department’s priorities. I have a definite preference here. But it’s not as clear cut as many races–strong arguments can be made in support of either candidate.

Seems to me that this is one of those races that Oregonians can decide based on the merits. I imagine that the candidates’ voters pamphlet statements and supporters’ statements will be important in how this one comes out. But make no mistake. It matters.

David Sugerman

Katherine Edson is a hero. She was one of the sedated patients who was molested by Dr. Burleson. Despite his knowledge of the abuse, Dr. Jay Malmquist apparently refused to disclose to the DA Ms. Edson’s identity. So she was kept in the dark for years.

Today’s news brings Ms. Edson’s story into focus. Ms. Edson filed a lawsuit recently and vowed to work for legislation that requires disclosure when a physician knows about sexual abuse of a patient.

For those who might criticize Ms. Edson, it shouldn’t have come to this. Dr. Burleson starts it by molesting anesthetized patients. And of course that is its own set of problems. But it appears that Dr. Malmquist hid the facts. He may have done so to protect either himself or Dr. Burleson. It’s not fair to draw firm conclusions about what happened from claims in pleadings or newspaper stories. Even so, I have no doubt that Ms. Edson is a hero for standing against secrecy.

Regardless of why Dr. Malmquist hid the information, hiding nurtures abuse. The thing about sex abuse is that it lives and breathes and grows through the medium of secrecy. This is especially true when the abuser is a physician. Kudos to this young woman for standing against secrecy.

David Sugerman

By all accounts, it was a horrendous crash caused by a speeding driver. Yesterday’s fatal in rural Yamhill County involved a single Toyota Camry carrying seven passengers. That’s a five seater, so there was no way for all occupants to have seatbelts.

Only two survived the impact with a large tree. Probably no coincidence that one survivor–a toddler–was properly belted in a car seat. That’s another reminder that seat belts save lives. Some will say that seat belts are irrelevant here because the driver was out of control. True about the driver, but the thing is that passengers don’t control drivers, especially when the passengers are children. And no one controls other vehicles.

So it’s a simple sobering reminder. Buckle it.

David Sugerman

This sounds familiar. In today’s news, a laptop stolen from the National Institute of Health contained unencrypted medical records on 2,500 patients. By way of full disclosure, I represent Portland-area patients in a case against the Providence medical system for a similar data loss.

I can’t help but be amazed that any medical information is stored without encryption. How can that not be the standard of care?

Adding insult to injury, the institution delayed reporting to patients, giving two very different reasons for the delay. First, the NIH spokesman explained that they didn’t want to cause undue patient alarm. And second, the agency concluded patients weren’t “at immediate risk.”

Okay, I’m totally jaundiced here. But doesn’t that statement–the lack of “immediate risk”–really mean, “They weren’t my medical records.”

After the Providence case, it should really be this simple: encrypt the records.

David Sugerman

In its current session, U.S. Supreme Court issued a number of pro-business rulings including this one about federal preemption. “Federal preemption” is a legal term that means that federal law trumps or displaces state laws and claims based on the laws of the state.

The theory behind federal preemption is that when the federal government regulates in a uniform way, allowing state law rules or even state law claims would undermine the ability to enforce federal standards. Sounds reasonable in theory, I suppose. But in practice it’s a killer.

Here’s a good example. The FDA faces serious questions about its failure to inspect tainted Heparin. Patient deaths have resulted from import of tainted Heparin from China. Lax FDA enforcement is the best argument against preemption. If we can’t count on our federal agencies to protect us from unsafe products, consumers must have access to the courts. Otherwise, we’re all at the mercy of a market place that puts profits first.

The fact of the matter is that product safety lawsuits protect consumers. If the government won’t take oversight seriously, the Court must stand aside.

David F. Sugerman

Friends:

The headlines the last two days contained two seemingly unconnected stories. Today’s front page (Oregonian) was saturated with insights about Mr. Obama and his speech last night seeking to unify our country on issues of race relations. There was tremendous support for the message, and the messenger as well.

Seemingly unconnected, the paper also reported on “bike boxes” link to help with traffic flow on Portland’s streets where bicycles and motorists meet. The two seem related. We have two communities, black and white, motorhead and bicyclists. Why can’t we just get along?

There is deep seated distrust in the two (four?) camps. Mr. Obama’s premise and the premise of the bike boxes is simple and similar. We just need to get along. There is no need to conflict or hassle. What matters is mutual respect and tolerance. Why don’t we just give that a try for a while and see if we can get along?

I have represented dozens of cyclists injured in traffic accidents in the local area, including Multnomah, Washington and Clackamas counties. I understand the insurance issues and the social issues involved in these cases. There may be some rights that surprise you. Contact me for a no-cost initial consultation. I would like to help.

And….. let’s just try to get along. At work, at school and on the way home tonight as well!

Sincerely,

David Paul

PAUL & SUGERMAN, PC.

503.224.6602

Very articulate 60-Minutes interview of actor Dennis Quaid regarding his first-hand experience with preventable medical errors. The video is a bit long, but it is a compelling piece.

Quaid’s twin infant children both received the wrong dose of Heparin, a blood thinner, while hospitalized at Cedar Sinai Hospital in Los Angeles. There were actually two separate overdose incidents for each baby. In each instance, hospital staff gave the drug in doses a thousand times stronger that what is appropriate for an infant.

The description is graphic. Every parent’s worst nightmare. Mr. Quaid explains what those of us who handle these cases have known for a long time. Preventable medical errors commonly kill patients.

The problem is worse because patients are at the mercy of providers. When you’re driving your car, you can drive defensively. But when your child is hospitalized, all you can do is hope and pray that everyone is being attentive.

David F. Sugerman

The news reports over the weekend of the Bear Stearns bail out tell the remarkable story of federal intervention to avert a complete melt down. The Wall Street investment bank was about to go down the tubes when the feds intervened and helped JP Morgan purchase Bear Stearns for a price reported to be two dollars per share.
Apparently, when Bear Stearns is circling the drain, the feds get really concerned and even work over the weekend. This is a remarkable thing. Of course, when consumers go into crisis over bad mortgage loans, the fed doesn’t do so much.

Interestingly, when consumers sought relief from Congress, the problem wasn’t urgent. Many opposed consumer relief, including this master of one-sided rhetoric. When it finally came, consumer relief was thin, to be charitable.

We are told that regulation is bad and free market is good. When consumers get into trouble with predatory loans, we are told that this is a market problem, and some go so far as to blame consumers for agreeing to bad deals. I get that. But I haven’t heard any squawking about the free market when it comes to Bear Stearns’ bail out. Maybe it’s early.
David F. Sugerman