As ‘Lawsuit Mecca,’ Mississippi Illustrates Possible Impact of Patients’ Rights Measure

If Congress approves a patients' rights bill that would "make it easier" for HMO beneficiaries to sue their insurers in state courts, insurers likely will be concerned about having litigation brought against them in Mississippi, the New York Times reports. The state has a "national reputation as a place where consumers fare well in court," and according to Beverly Pettigrew Kraft, a Mississippi court system spokesperson, "All the elements of the national debate are crystallized here." Since 1995, juries in Mississippi have returned at least 19 verdicts of $9 million or more against large national companies such as drug makers. Five of those verdicts exceeded $100 million each. The Times reports that Mississippi does not limit damages plaintiffs can recover. Patients' rights legislation (HR 2653) approved by the House would limit damages plaintiffs could receive from an HMO to $1.5 million for pain and suffering and $1.5 million in punitive damages (Pear, New York Times, 8/21). The Senate-approved bill (S 283) would limit damages in federal court to $5 million, but would allow for unlimited damages in state courts ( Kaiser Daily Health Policy Report, 8/17). Plaintiff's lawyers say that Mississippi is "one place where poor people can hold big corporations accountable for reckless behavior that puts a higher value on profits than on health and safety." But according to Senate Minority Leader Trent Lott (R-Miss.), "Mississippi has become a mecca for frivolous lawsuits, with unlimited damages." One of the state's "most successful" plaintiffs' lawyers, Richard Scruggs, Lott's brother-in-law, is leading a national class-action lawsuit against HMOs in the federal courts.

A 'Saturated' County
Litigation in Mississippi's Jefferson County is particularly "big business," the Times reports. Although the county only has 9,740 residents, more than 21,000 people were plaintiffs in Jefferson County between 1995 and 2000. Richard Dale, the state's insurance commissioner, said that plaintiffs' lawyers seek out places like Jefferson County because of its demographics. He added, "In some venues in our state ... plaintiffs are prospering off the lack of education of the juries." In a trial set for next month, 155 plaintiffs, 117 of whom reside in Jefferson, are suing Johnson & Johnson because of heart problems allegedly associated with the heartburn medication Propulsid. Johnson & Johnson recently told the state Supreme Court that it would be unable to obtain a fair trial in Jefferson County because "the litigation industry has saturated the community with bias." The Times also reports that local businesses are affected by frequent litigation. To keep a case in Mississippi, plaintiffs must name at least one Mississippi resident or company as a defendant. Jefferson County's only pharmacy, Bankston Drug Store, is frequently named as a defendant in suits against drug companies. Although it has never been found liable, the store has "incurred sizeable legal expenses." One of the store's owners, Hilda Bankston, said, "It's crazy. Our only role is that my husband filled prescriptions correctly. But we've been bombarded with lawsuits by everybody and their cousin" (New York Times, 8/20).