Method and apparatus for deterring frivolous professional liability claims

• US 20040107121A1
• Filed: 12/03/2002
• Published: 06/03/2004
• Est. Priority Date: 12/03/2002
• Status: Active Grant

• Current Assignee: Medical Justice Corporation
• Original Assignee: Medical Justice Corporation
• Inventors: Segal, Jeffrey J.
• Granted Patent: US 7,930,194 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

A plan of countersuit insurance provided to professionals, possibly as part of or along with their professional liability insurance, deters frivolous professional malpractice claims. The plan of insurance pays legal costs of countersuits for improper prosecution when a frivolous claim has been made and, preferably, tried to a judgment for the accused professional, and an objective review concludes that the claim was frivolous. The objective review may include initiating a disciplinary proceeding against any expert witness before a professional society to which the witness belongs, for violation of the code of conduct imposed by the society on its members. Ordinarily, such a proceeding would not be initiated unless an initial review indicated at least a possibility of frivolousness, and therefore of success in the proceeding. The outcome of the proceeding could be treated as conclusive proof of frivolousness, or could be treated as just another factor in a frivolousness determination.

Claims

1. A method of deterring prosecution of frivolous professional liability claims against professionals by recipients of professional services, said method comprising:

issuing to a professional a plan of insurance for paying legal costs of prosecuting an improper prosecution claim against a proponent of a frivolous professional liability claim;

accepting a report, from a covered professional, of a professional liability claim, including data regarding said professional liability claim and disposition thereof; and

for each report received of a professional liability claim from a covered professional, reviewing said report for making a determination of whether said reported professional liability claim is frivolous;

wherein;

when prosecution of said professional liability claim included testimony by a expert witness belonging to a professional society having a code of conduct for expert testimony;

said reviewing comprises initiating a disciplinary proceeding before said professional society against said expert witness for violation of said code of conduct; and

imposition of discipline against said expert witness by said professional society is considered an indication of frivolousness.

2. The method of claim 1 further comprising, on completion of said reviewing, when said determination is that said reported professional liability claim is frivolous, authorizing filing of a lawsuit by or on behalf of said covered professional for improper prosecution against a proponent of said frivolous professional liability claim

3. The method of claim 1 wherein said reviewing further comprises an initial review, prior to initiating said disciplinary proceeding, based on said data regarding said professional liability claim and disposition thereof.

4. The method of claim 1 wherein said issuing comprises requiring said professional to enter an agreement with each new recipient of services from said professional, said agreement specifying that said recipient, when necessary, will engage only an expert witness who belongs to such a professional society and will honor said code of conduct.

5. The method of claim 1 wherein said issuing comprises requiring said professional to enter an agreement with each new recipient of services from said professional, said agreement specifying that said recipient will not bring any frivolous professional liability claim against said professional.

6. The method of claim 1 further comprising advising others of said issuing.

7. The method of claim 6 wherein said advising comprises, upon initiation of a professional liability claim against said professional, sending a communication to a proponent of said professional liability claim advising said proponent that said professional is covered by said plan of insurance.

8. The method of claim 6 wherein said advising comprises:

maintaining a database of professionals covered under said plan of insurance;

linking said database to a publicly-accessible data communications interface for viewing by any member of the public; and

publicizing existence of said database.

9. The method of claim 8 wherein said linking comprises linking said database to a public data network.

10. The method of claim 1 further comprising, for each professional accepted for coverage under said plan of insurance, printing a certificate evidencing said coverage.

11. The method of claim 1 further comprising disbursing funds to pay costs of said lawsuit.

12. The method of claim 11 further comprising disbursing funds to pay costs of said disciplinary proceeding.

13. The method of claim 1 further comprising disbursing funds to pay costs of said disciplinary proceeding.

14. Apparatus for deterring prosecution of frivolous professional liability claims against professionals by customers, said method comprising:

an issuing unit adapted to issue to a professional a plan of insurance for paying legal costs of prosecuting an improper prosecution claim against a proponent of a frivolous professional liability claim;

a claims unit adapted to accept a report, from a covered professional, of a professional liability claim, including data regarding said professional liability claim and disposition thereof;

a claims review unit comprising an output and an input device, wherein;

for each report received of a professional liability claim from a covered professional;

said output device flags said report for review for making a determination of whether said reported professional liability claim is frivolous, and

on completion of said review, said determination is entered into said input device, said claims review unit further cmprising;

a discipline authorization unit adapted to authorize as part of said review, when prosecution of said professional liability claim included testimony by a expert witness belonging to a professional society having a code of conduct for expert testimony, the initiating of a disciplinary proceeding before said professional society against said expert witness for violation of said code of conduct;

wherein;

imposition of discipline against said expert witness by said professional society is considered an indication of frivolousness.

15. The apparatus of claim 14 further comprising a lawsuit authorization unit adapted to, when said determination is that said reported professional liability claim is frivolous, authorize filing of a lawsuit by or on behalf of said covered professional for improper prosecution against a proponent of said frivolous professional liability claim.

16. The apparatus of claim 14 wherein said claims review unit further comprises a claim evaluation unit adapted to:

receive from said output device said flagged report, including said data regarding said claim and disposition thereof;

evaluate said data to make said determination; and

transmit said determination to said input device.

17. The apparatus of claim 14 wherein said issuing unit issues a plan requiring said professional to enter an agreement with each new recipient of services from said professional, said agreement specifying that said recipient, when necessary, will engage only an expert witness who belongs to such a professional society and will honor said code of conduct.

18. The apparatus of claim 14 wherein said issuing unit issues a plan requiring said professional to enter an agreement with each new recipient of services from said professional, said agreement specifying that said recipient will not bring any frivolous professional liability claim against said professional.

19. The apparatus of claim 14 further comprising a advising unit adapted to advise others of issuance of said plan of insurance to said professional by said issuing unit.

20. The apparatus of claim 19 wherein said advising unit is adapted to, upon initiation of a professional liability claim against said professional, send a communication to a proponent of said professional liability claim advising said proponent that said professional is covered by said plan of insurance.

21. The apparatus of claim 19 further comprising:

storage linked to said issuing unit and adapted to maintain a database of professionals covered under said plan of insurance;

wherein;

said advising unit comprises a communications unit adapted to link said database to a publicly-accessible data communications interface for viewing by any member of the public, existence of said database being publicized.

22. The apparatus of claim 21 wherein said communications unit links said database to a public data network.

23. The apparatus of claim 14 further comprising a printer adapted to print a certificate evidencing coverage for each professional accepted for coverage under said plan of insurance.

24. The apparatus of claim 14 further comprising a disbursement unit adapted to disburse funds to pay costs of said lawsuit.

25. The apparatus of claim 24 wherein said disbursement unit is further adapted to disburse funds to pay costs of said disciplinary proceeding.

26. The apparatus of claim 14 further comprising a disbursement unit adapted to disburse funds to pay costs of said disciplinary proceeding.

27. A system of deterring prosecution of frivolous professional liability claims against professionals by customers, said system comprising:

means for issuing to a professional a plan of insurance for paying legal costs of prosecuting an improper prosecution claim against a proponent of a frivolous professional liability claim;

means for accepting a report, from a covered professional, of a professional liability claim, including data regarding said professional liability claim and disposition thereof;

means for, for each report received of a professional liability claim from a covered professional, reviewing said report for making a determination of whether said reported professional liability claim is frivolous, including, when prosecution of said professional liability claim included testimony by a expert witness belonging to a professional society having a code of conduct for expert testimony, initiating, as part of said reviewing, a disciplinary proceeding before said professional society against said expert witness for violation of said code of conduct, wherein imposition of discipline against said expert witness by said professional society is considered an indication of frivolousness.

28. The system of claim 27 further comprising means for, on completion of said review, when said determination is that said reported professional liability claim is frivolous, authorizing filing of a lawsuit by or on behalf of said covered professional for improper prosecution against a proponent of said frivolous professional liability claim.

29. The system of claim 27 wherein said means for reviewing further comprises means for making an initial review based on said data regarding said professional liability claim and disposition thereof.

30. The system of claim 27 wherein said means for issuing issues a plan of insurance requiring said professional to enter an agreement with each new recipient of services from said professional, said agreement specifying that said recipient, when necessary, will engage only an expert witness who belongs to such a professional society and will honor said code of conduct.

31. The system of claim 27 wherein said means for issuing issues a plan of insurance requiring said professional to enter an agreement with each new recipient of services from said professional, said agreement specifying that said recipient will not bring any frivolous professional liability claim against said professional.

32. The system of claim 27 further comprising means for advising others of issuance of said plan of insurance to said professional by said means for issuing.

33. The system of claim 32 wherein said means for advising sends, upon initiation of a professional liability claim against said professional, a communication to a proponent of said professional liability claim advising said proponent that said professional is covered by said plan of insurance.

34. The system of claim 32 further comprising:

means for maintaining a database of professionals covered under said plan of insurance;

wherein;

said means for advising comprises means for linking said database to a publicly-accessible data communications interface for viewing by any member of the public, existence of said database being publicized.

35. The system of claim 34 wherein said linking means links said database to a public data network.

36. The system of claim 27 further comprising means for printing a certificate evidencing coverage for each professional accepted for coverage under said plan of insurance.

37. The system of claim 27 further comprising means for disbursing funds to pay costs of said lawsuit.

38. The system of claim 37 wherein said means for disbursing further disburses funds to pay costs of said disciplinary proceeding.

39. The system of claim 27 further comprising means for disbursing funds to pay costs of said disciplinary proceeding.