Another Round of Tort Reform In South Carolina
February 4, 2009
South Carolina State Senator Larry Martin introduced legislation last Thursday that would discourage meritless litigation and improve the investment climate in the state. Among other reforms, the legislation would:
- Create reasonable guidelines for punitive and non-economic damages;
- Bring accountability to the state’s hiring of trial lawyers to sue industry;
- Limit the amount of bond that a business must post when appealing a large verdict;
- Reform state class action laws.
As the Wall Street Journal reported a few days ago, in the midst of today’s economy slump, states are racing to offer tax breaks and other financial incentives for businesses that create jobs. New Jersey Governor Jon Corzine has promised to give small businesses $3,000 for each new hire, while Colorado Governor Bill Ritter lured 500 Charles Schwab jobs to his state with $1 million in financial incentives.
But in today’s legal environment, defending against a single lawsuit can cost small businesses $100,000 or more and a single settlement with a financial services firm can easily exceed $1 million. That’s why smart political leaders like South Carolina’s Governor Mark Sanford understand that a state’s legal climate is every bit as important – in many cases, more important – to luring business investment as tax breaks.