Three Strikes Foolishness

Tung Yin notes the following story:

Florida voters . . . approved a three-strikes law unlike any other state’s � a measure aimed not at killers and thieves but at doctors who foul up.
The newly approved amendment to the Florida Constitution would automatically revoke the medical license of any doctor hit with three malpractice judgments. The law is backed by doctors’ foremost antagonists � lawyers � and the ramifications could be huge.


This amendment has nothing to do with patient safety and everything to do with giving additional leverage to plaintiffs’ lawyers to coerce settlement of med mal lawsuits. How can I be so sure? As Prof. Yin notes, “the amendment speaks of three judgments, not three lawsuits”. I’d bet the plaintiffs’ bar would scream bloody murder if a settlement counted as a strike, and especially if a settlement above a specified dollar amount counted as a strike, which it would if the idea was actually to punish malpractice rather than create a hammer for settlements. After all, a doctor who repeatedly commits malpractice but never goes to trial would never have a judgment against him, just a bunch of settlements. Whereas if you counted settlements against the doctors, they would have more incentive to fight claims rather than pay off the plaintiffs and their lawyers.
You can compare this to the way the NASD, which regulates stockbrokers, operates. NASD rules now make it very difficult for a broker who settles a claim to get it expunged from his record; even with the consent of the other party, you still need a specific order from an arbitration panel and court approval of that order. While this procedure is controversial and of debatable effectiveness, there’s no question that its intention is to prevent crooked brokers from settling quietly with anyone who complains. If the Florida statute had a similar rule, there would at least be the possibility that it was intended to crack down on bad doctors, rather than on doctors who insist on defending themselves before a jury. (Of course, even a three-settlements rule might work as a hammer for plaintiffs’ attorneys if it allowed you to avoid the rule by settling before a case is filed, but it would be closer to the expressed purpose of the statute).