Lawless in CA: Judges Cave, Justice Crumbles

Attorney Client Privilege gets pierced

LOS ANGELES, CALIF. [February 2024] – In a startling turn of events, a Los Angeles County Superior Court Judge made a controversial decision last week, disregarding the sanctity of attorney-client privilege. The judge required an attorney to disclose privileged and confidential emails exchanged with their
investigator, laying bare sensitive strategies and evidence. The implications of this move signal a seismic shift in the U.S. justice system. “The legal landscape is changing at 150 miles an hour, and not for the better,” says Investigator Ken Childs.
Childs, Lead Investigator for Paramount Investigative Services, who worked on the case, says the move signals new era of justice—or injustice—where one party’s aggression sets the tone, and as a result, the line between negotiation and capitulation becomes blurred. Childs reveals the lightning-fast dismantling of legal norms and precedent, which is rapidly impacting the ability of our legal system to deliver just verdicts to the average citizen.

This case is only one of many Childs has seen recently which shine a light on this and other disturbing trends plaguing our justice system. He says the plaintiff’s relentless pursuit of advantage; their exploitation of legal loopholes and blatant disregard for ethical boundaries within the justice system is become increasingly normalized. The opposition’s move to subpoena investigators marked a brazen breach of confidentiality. And most shockingly, their demands were met after relentless pressure, a stark deviation from established norms within the legal framework. Childs points to this as evidence of the recent erosion of legal standards, where the mere act of upholding privilege is now seen as groundbreaking. The erosion of privilege not only undermines the trust between clients and their legal advisors but also sets a dangerous precedent for future cases. In an era where “literally everything is on fire,” as Childs puts it, the legal landscape is undergoing seismic shifts. “When privileged information is no longer safeguarded, it’s the ordinary citizen who suffers the most,” Childs emphasizes. “The erosion of this fundamental legal principle threatens the very
foundation of justice itself.”

Unscrupulous Lawyers and Doctors Tag-Team the System

The tactic observed by Childs, strategically applying pressure to specific points in an attempt to undermine the justice system, is indicative of a broader trend that has been placing strain on the legal system in recent years. A troubling phenomenon gaining traction is the emergence of ‘micro nuclear verdicts,’ a term coined for verdicts ranging from $100,000 to $10 million, which are becoming increasingly common in California courtrooms. Unlike their larger counterparts known as ‘nuclear verdicts,’ these awards far surpass what might be considered reasonable restitution for claims, often exceeding by multiples what would typically be expected.

The root of the issue lies in both the sheer volume of these verdicts and the manner in which they exploit legal loopholes to circumvent policy limits, frequently involving exaggerated medical assessments. These verdicts are not only burdensome for insurance companies but also indicative of a systematic problem within the legal landscape, where personal injury lawyers inflate claims, coerce settlements beyond policy thresholds, and ultimately place undue strain on the justice system. The personal injury industry, valued at over $53 billion annually according to IBISWorld, exemplifies this issue. While the average citizen receives around $100,000 from their personal injury case, the majority of this industry’s revenue enriches wealthy firms and doctors striving to exploit the justice system for their own gain.

Economic Fallout: Household Budgets Driven to the Brink in California

The ramifications of justice strains like micro nuclear verdicts extend far beyond the courtroom, impacting the broader economy. In California, the surge in personal injury cases exceeding policy limits has propelled Los Angeles car insurance inflation to a 47-year high, as reported by the Bureau of Labor Statistics.

Moreover, as insurance companies grapple with mounting losses, consumers bear the brunt. According to the Bureau of Labor Statistics, the cost of auto insurance surged by 19.2 percent over the year as of August, marking the highest increase since 1976. This sharp rise in premiums represents a significant blow to household budgets, particularly when combined with other essential expenses. For example, while the average homeowner’s policy costs $1,754 annually, drivers aged 30-45 paid an average of $1,638 in 2023, as per Policygenius data. With double-digit percentage increases, hundreds more are added to the financial burden, further straining already stretched finances.

Unintended Consequences: How Micro Nuclear Verdicts Fuel National Inflation and Consumer Price Increases

The economic repercussions of micro nuclear verdicts are not limited to the insurance industry. As premiums soar and insurance becomes increasingly unaffordable, a growing number of households are opting to forgo insurance coverage altogether. In the second quarter, 5.7 percent of households with at least one vehicle reported not having insurance, up from 5.3 percent in the second half of 2022, according to J.D. Power researchers. This trend not only exposes individuals to financial risk but also contributes to the broader national inflationary trend.

Ripples of this crisis extend beyond the insurance sector, influencing consumer prices in unexpected ways. Despite a general easing of U.S. inflation, auto insurance emerges as a force preventing consumer prices from falling further, contributing to an overall increase of 3.4% in December, surpassing economists’ expectations and up from 3.1% in November. The justice system grapples with the multifaceted challenges posed by micro nuclear verdicts and the systematic tactics used by lawyers, echoing concerns voiced by industry experts.

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Author: Ken Childs, Paramount Investigative Services