Thursday, August 20, 2009

Let's Talk About Linden

While working with the Mayor of Linden on different economic issues (i.e. getting stimulus money from Washington to help the city of Linden), one issue in particular came across my plate that I would like the blog community, as well as, other elected officials to weigh in on. I'd ask that we put all politics aside for a moment, as I'd like to know how my opponents feel about this issue as well. The issue is detailed below in a written letter sent to me from the Mayor of Linden. (I have included the official letter as well).

All comments are welcomed.

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Dear Assemblyman Green,

The Insurance Commission of the City of Linden periodically is subject to suits of different varieties such as fall down, automobile, and others. The frequency of the different variety of suits that we defend varies from time to time. Recently however, we have seen an increase in a type of suit we consider to be of great danger to our city and cities throughout the state and nation who are no doubt recipients of the same type of claims.

These claims come under the heading of law against discrimination (LAD). These cases seem to have attracted the attention of attorneys and clients who sue a municipality for discriminatory practices on the job. When a city is sued in a normal situation by a person claimed to be injured for example, in an automobile accident or a fall case or a construction accident, etc., the plaintiff if successful, will be entitled to compensatory damages and on occasion, punitive damages depending upon the circumstances. In the cases under the law against discrimination, a prevailing plaintiff will similarly be entitled to compensatory and/or punitive damages. Another ingredient of damages, however, is being included in these suits. This is the requirement that the municipality be responsible for attorney's fees that attorneys who take the opportunity to bring these actions creates a great danger to the defendants for reasons that are unjustified.

In our current economic state, municipalities more and more are feeling the crunch of the downturn. The suits described herein based on our observation, seem to be demanding enormous amounts, and it appears that those pursuing the cases are overstepping the bounds of reasonable discovery in an attempt to increase the legal fees that may eventually be assessed against a community. We are currently defending some of these suits and feel that despite the fact that we have competent counsel and the suits may be unsuccessful, nevertheless, the escalating costs of the legal work are becoming onerous. Of course, in the event a claimant is successful, this would be multiply compounded.

This letter is not written to criticize lawyers or claimants for taking advantage of properly passed legislation. However, it is becoming more clear that now that this opportunity is known, it is either being taken advantage of or being abused, and we suspect the latter. For this reason I am writing to you to eliminate this ill conceived practice from our judicial system before it wreaks even greater economic havoc upon communities than the downturn in our economy.

Another reason the commission believes this legislation should be amended or repealed is that a lawyer who represents a person severely injured in an automobile accident does not have the same opportunity to pursue excess litigation, nor cause excess fees and costs to the public entity involved. Therefore, I request on behalf of Linden's Insurance Commission that you consider remedying this injustice to our taxpayers by modifying the plaintiffs' attorney fees in LAD lawsuits to reflect the same compensation as in any other successful lawsuit.

Very truly yours,

Richard J. Gerbounka
Mayor


(see actual letter below)

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