Allstate Insurance and
"Tort Reform":
What's Going On?
Reprinted from Austin Monthly March 1998
In at least one case down in
Corpus Christi, a local "tort reform" group has refused to release its
membership and financial contributors. The case is currently before the Texas
Supreme Court. At least one candidate for the Supreme Court, David Van Os, is
concerned that the current court is taking away Texas citizens right to a jury
trial. Its an issue that has been of critical importance in contemporary
democracy. "Tort Reform" has been a big issue in Texas lately, but it
remains to see who benefits and who is paying for it. The biggest "tort
reform" group, Texans for Lawsuit Reform, gave over a million dollars to
state legislative campaigns before the last legislative session. These
"reform" groups have been active in placing billboards around the
state – and as we all well know – around Austin. That such activities have
had a tangible effect upon legislation is undeniable. But less explored is the
effect that such activities have had upon potential jurors – the people who
decide in trials whether and the degree to which our rights have been violated.
That such activities benefit the powers that be, benefits that strike at the heart of our notions of democracy and fair play, can be seen in a wide range of reports that are beginning to surface. As our Senator Gonzalo Barrientos said during the last legislative session about one "Tort Reform" legislative bill: "This bill is here for one simple reason. This bill is here on behalf of asbestos manufacturers. Owens-Corning and other manufacturers.... They don't have justice or equity on their sides." Barrientos looked at some schoolchildren in the Senate gallery and told them, "Its about money!"
An argument has been used to equate "tort reform" for lower insurance rates; it hasn't happened. It is a sad state of affairs that corporations have been using such arguments as a mask for what is their primary responsibility: maximum return to shareholders. Not maximum returns to their customers, not maximum return to Texans who have claims against the people they insure, just maximum return for the people who own the corporation. And of the people who "own" the corporation, the shareholders, it is a comparatively few who control it and receive most of its benefits.
Tne automobile insurance company, Allstate, has evidently been taking the stance that lawyers are not necessary for the settlement of automobile claims, even where Allstate's interests are adverse to those who are seeking damages from individuals insured by Allstate. A number of lawsuits recently filed in Travis County and in Chicago claim that Allstate has misled people who made claims against the insurance giant (the largest publicly held insurer of homes and autos in the nation) by urging them not to use lawyers. The Illinois lawsuit is seeking class-action status.
As part of the same process, Allstate has evidently been using a "Customer Service Pledge". The "Customer Service Pledge" states that "because you have been involved in an accident with an Allstate policyholder, we consider you our customer, and will provide you with quality customer service."
Then the insurance company agents, according to the lawsuits, force such individuals, unrepresented by an attorney, to settle their claims just before the statute of limitations expire. A statute of limitation is the period of time after an incident for which a potential defendant has liability that the person injured, or potential plaintiff, must file a lawsuit, or forever lose their right to enforce their rights in the court system. For traffic accidents and most typical "tort" actions, that period of time is two years. However, by the actions of Allstate and its agents' representations, such individuals may have a defacto contract with Allstate. Contractual statute of limitations are four years instead of two.
Such activities raise a
number of serious concerns, including the degree to which the insurance giant
and its agents may be practicing law without a license.
*Tim Mahoney is an Austin-based attorney, a former political
journalist, who has won national awards for stories relating to Texas banking
and covered such issues as property taxation and state and local government. He
currently practices law, working in such areas as employment, family, personal
injury, criminal defense, malpractice and general litigation. He can be
contacted at 326-4270.
Truth and Justice will prevail! Promote it for all you are worth, or your worth will be nothing!
PR CRAP!Please don't believe "You're in Good Hands", or that "A Good Neighbor" will deliver "A Piece Of The Rock", if you buy their Insurance!
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