Small Law Firms Fight Back as More Personal Injury Cases Move to Federal Court
Government data showed that personal injury cases filed in federal court had dramatically increased by nearly 30% in the last full calendar year.
July 09, 2020 at 03:43 PM
4 minute read
Before the devastation brought by the coronavirus that shutdown trials throughout the country, government data showed that personal injury cases filed in federal court had dramatically increased by nearly 30% in the last full calendar year.
That's bad news for small plaintiff firms, who often lack the resources to do battle in federal court. But that might soon change as firms adapt.
According to the latest available Judicial Business report published by the Administrative Office of the U.S. Courts, nationwide throughout all U.S. district courts, 81,530 cases were filed in 2019, which is almost 18,000 more cases than the previous year, and nearly 28,000 more cases than 2017.
Charles Baumberger, a partner at Rossman, Baumberger, Reboso & Spier in Miami, points to one reason his recent maritime law case landed outside of state court.
A client who sustained injuries after falling aboard a cruise ship sailing in Alaska had a forum-selection clause mandating that any lawsuit be filed in federal court in the Southern District of Florida.
"If you're dealing with admiralty cases down here in the Southern District of Florida, passengers have what they call a contracted passage that they have to sign," Baumberger said. "In that contract, you have a one-year statute of limitations in which you have to file suit in federal courts."
Baumberger also identified the sharp differences in the workload from state courts to federal courts. Plus, the motions in federal court are more detailed, as they must include a memorandum of law, which can create a burden on smaller firms.
Miami attorney Philip D. Parrish said small plaintiffs firms often do not have the time or the resources to devote to a case pending in federal court, for instance, while they are out taking depositions and engaging in other discovery. Parrish also observed that summary judgment is often easier to obtain in federal court than it is in state court.
"Chains such as Walmart and Target, and insurance companies are moving cases to federal court because the defendants want to try and take advantage of what they consider to be a more friendly summary judgment standard in federal court," Parrish said. "They also believe that not many plaintiffs and personal injury attorneys are as comfortable litigating in federal court."
Parrish is an example of a plaintiffs attorney who has been able to capitalize on this trend by defense counsel choosing to litigate personal injury cases in federal court. Parrish partners with plaintiffs attorneys during the trial portion of their federal court cases to provide research and writing assistance to beleaguered personal injury lawyers who are used to litigating in state court.
The remaining question is whether this trend of personal injury cases filed in federal court will continue its upward trajectory.
Richard P. Cole, a partner at Cole Scott & Kissane in Miami that handles personal injury defense matters, implied that this trend may come to a halt in 2020 because of the coronavirus and the corresponding delay in federal court proceedings resulting from the pandemic.
But it is likely the trend will resume after the year 2020. According to Baumberger, the economics of trying a personal injury case in federal court has made it more lucrative for defense lawyers, given the pleading requirements in that venue.
"I know defense lawyers like it," Baumberger said. "They bill by the hour."
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