Another Reason Massachusetts Medical Malpractice Cases Can Take a Long Time to Resolve
Civil litigation in Massachusetts moves slowly. So slowly in fact that clients routinely voice frustration to their personal injury attorneys over how long their cases take to resolve. This is particularly true in the area of medical malpractice litigation, where the life of an average case, from intake through trial, can easily take upwards of three or more years to complete. These days, medical malpractice cases seem to be taking even longer to resolve.
One reason for the snail's pace of medical malpractice litigation may have something to do with a "bone" the Massachusetts legislature threw to the medical malpractice insurers a few years back. I'll call it "the free ride" bone.
In almost any other category of claim for personal injury, for example,. auto-related injury or product liability, commenced in Massachusetts State court, the plaintiff is legally entitled to receive - on top of the amount ultimately awarded by the jury or judge - "pre-judgment interest" at the rate of 12% per year, calculated from the date of the filing of the civil complaint with the court (not the date of injury) through the date the court enters final judgment. So, by way of example, if a person is injured as a result of a car accident and files a law suit against the negligent driver on January 2, 2010, and the jury returns a verdict in favor of the plaintiff on January 2, 2013 in the amount of one million dollars, the plaintiff would be entitled to receive a total award of $1,360,000.00 (one million dollars plus $360,000 in pre-judgment interest).
The reasoning behind pre-judgment interest is to disincentive defendants (insurance companies for the most part) from dragging their feet and denying funds to which the plaintiff is legally entitled. The system works quite well. Insurance companies hate paying pre-judgment interest, and, in fact, have worked quite hard to convince Massachusetts law makers that the rate of 12% is excessive - particularly in today's low-interest rate environment.
Fortunately for plaintiffs, the Massachusetts legislature understands that pre-judgment interest has something more than an economic benefit in mind; it was designed to prevent insurance companies from sitting on their hands and doing nothing (something insurers would otherwise love to do in every case).
Enter the Massachusetts Medical Malpractice Insurance Lobby. In what should be regarded as nothing short of a coup, the insurance companies that insure doctors in Massachusetts successfully convinced the Massachusetts legislature to lower the pre-judgment interest rate in medical malpractice cases only, from the standard 12% annual rate, to a rate that is tied to United States Treasury rates - in short - just about 0% these days. The net effect of this coup was to provide the medical malpractice insurance companies with every reason in the world to work slooooowly. So slowly in fact that medical malpractice cases currently take longer than just about any category of injury-related litigation.
In a perfect world, members of the Massachusetts legislature would actually take notice of the monster they've created by virtually eliminating pre-judgment interest and the intended goal of the pre-judgment statute. But Massachusetts remains a long, long way from the perfect world, so don't count a change in the law any time soon.