By JAMES FINK
Business First

Dan Kohane has never been busier. Neither has John Visco.

Kohane and Visco, both Buffalo attorneys, said their caseloads have increased as more people file lawsuits and make claims, looking for financial settlements in tough fiscal times.

Kohane, a partner in Hurwitz & Fine PC, represents insurance companies, while Visco, founding partner in Ricotta & Visco, specializes in representing doctors in medical malpractice suits. Both attribute the increased number of cases to the economy.

"It's not necessarily that people are more fraudulent today than they were a year ago," Visco said. "It's just that they are beginning lawsuits today when they might not have in the past."

The increase in lawsuits is not surprising.

"When times are difficult, people look to be compensated more so than if the economy was better," Kohane said.

A study conducted earlier this year by the American Society of Industrial Security found that corporate executives are seeing more lawsuits. About 78 percent of the executives surveyed said the economy is impacting workplace conditions such as as false injury claims and questionable lawsuits.

Kohane said economic conditions have not changed case preparation for lawyers.

"We handle all the claims in the same manner," Kohane said. "We put people to the proof test."

Only a small percentage of claims actually make it to trial. Most are negotiated or settled long before a civil jury is assembled.

Kohane said insurance companies are feeling the brunt of the increased caseload.

"When people lose something, they want it replaced, and the most likely place they turn to is their insurance company," Kohane said.

Patrica Hensley, chief operating officer for Peter M. Vito & Associates Inc., a Buffalo private-investigation company, said her firm is seeing an increased workload.

"Traditionally, our business has natural fluctuations because of the seasons or the economy," Hensley said. "There are always, and there will always be, people who try to abuse the system. It's just that we are seeing more blatant abuses than ever before. I guess you can blame that on the economy."

Irving Botwinick, president of the Society of Private Investigators, a New York-based trade group, said members are not reaping windfalls with heavier caseloads.

"Are there people out there looking to short cuts?" Botwinick said. "Yes, I suppose it falls under the category of desperate times call for desperate measures."

Erie County Attorney Cheryl Green agrees, but says the number of new lawsuits and claims being made has not increased since last fall's economic downfall began.

"I think in certain areas, like worker's comp, the verdict may still be out, and it is probably too early to make any assessment," Green said.

Still, Green is preparing for a possible increase in claims.

"It will be interesting to see what types of claims do come in, when or if they come in," Green said.

Firm sees demand for PIs increasing

Business is good for Patricia Hensley.

As chief operating officer for Peter M. Vito & Associates Inc., a Buffalo private-investigation firm, Hensley is looking for a few good investigators. With business peaking because of an increase in the need for investigations and vetting services, Hensley said she hopes to add staff in the coming months.

The growth of her firm makes for a good case study and snapshot of how the current economy is proving to be a boon for some businesses.

The firm, which was started by Hensley's father, Peter Vito, has five full-time employees and 10 part-time workers - mainly investigators. All company employees have some form of law-enforcement background. Peter Vito is Erie County's commissioner of Central Police Services, and has turned over the company's operations to his daughter.

So where does Hensley expect to find the new investigators?

"Word of mouth," she said. "All of our people know somebody, and they know what we are looking for."

- James Fink