The Gazette 1991

a p r i l 1991

g a z e t t e

lawyers are employed for cases in actual litigation. Only 45 per cent of claims go into litigation, and the plaintiff wins a verdict in only 7 per cent. More than 55 per cent of claim files are closed without any payment or indemnity. Of the 5,200 lawyers in private practice in the State of Oregon approximately half carry additional malpractice coverage above the $300,000 limits. Starting this year (1991) the Oregon Professional Liability Fund will offer excess coverage to firms on an optional underwritten basis. Firms will be able to obtain aggre- gate coverage up to $5 million at rates significantly lower than those charged by commercial carriers. The programme will be reinsured through Lloyds of London and other reinsurers, and will be financially separate from the mandatory primary fund. •

Mandatory Liability Fund - An American Experience

Operation of America's only man- datory liability fund for attorneys has been detailed by Kirk R. Hall, Chief Executive Officer of the Oregon Professional Liability Fund, in a paper of which the following is a summary. Founded in 1978, the Oregon Pro- fessional Liability Fund is a man- datory body covering all attorneys in private practice in the State of Oregon, approximately 5,200, and provides malpractice coverage up to an aggregate of $300,000 a year. Coverage is provided on an individual, not on a firm basis. The cost of coverage in the current year (1991) is $1,800 per attorney, dropping to $1,700 next year. New attorneys pay half the regular assessment in the first year, stepping up to full rate over four years. Attorneys with prior claims are charged an additional amount for their coverage in future years. There is no surcharge for claims which are defended or settled for $10,000 or less, which is the great majority of claims. For larger claims the surcharge is equal to two per cent of the total of defence and indemnity costs in excess of $10,000. The surcharge is paid each year for five years. Attorneys must obtain extended coverage when they leave the private practice of law. This cover- age applies to claims first made against the attorney after retire- ment arising from actions occurring before retirement. Because Oregon has a mandat- ory programme and the limits of coverage are relatively low ($300,000 per claim) the Fund is able to operate safely without reinsurance. Loss prevention is regarded as a major achievement and $70 per lawyer per year is spent on loss prevention activities which em- brace education by way of written materials and workshops; in-office assistance with law office systems; alcohol and chemical dependency

counselling and i n t e r ven t i on; stress, burnout, and career change counselling and intervention. Audio cassette programmes are supplied to lawyers free on request. Hand- books on malpractice are mailed free to all members. Three staff members travel around the State working with lawyers on a con- fidential basis on matters related to loss prevention. This programme is independent of the Bar and does not report information to the Bar discipline staff. When claims are made they are handled primarily by staff attorneys with several years' experience in private practice. Independent

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miBWCIN ui* During 1990 the Irish Kidney Association's Donor Awareness Programme helped 200 people suffering Kidney, Heart and Liver failure to receive a second chance for life. The Irish Kidney Association could not carry this life- saving work without the help of informed caring members of the community - such as the legal profession. Finance received through bequests/donations has enabled not only educational and research programmes but also the purchase of life-saving equipment for hospitals nationwide. The Irish Kidney Association is proud of its record of treating people from all walks pf life and from all parts of the country as equal beneficiaries of its services.

IRISH KIDNEY ASSOCIATION Donor House, Ballsbridge, Dublin 4. Ph: 01-689788/9 Fax:01-683820 Registered in Ireland, No: 66109 Chy No: 6327

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