Making Michigan A “Very Dangerous Place” To Do Business
April 1, 2009
Will more lawsuits turn Michigan’s economy around? The Democrat-controlled Michigan House of Representatives seems to think so, after approving legislation last week making it easier for trial lawyers to file abusive lawsuits against pharmaceutical and bioscience firms. These companies support around 12,000 jobs and drawing $355 million in R&D investment into Michigan, according to a Manhattan Institute study. That makes them the one bright spot in Michigan’s otherwise dismal economy – and a juicy target for fee-grubbing personal injury lawyers.
Why have pharmaceutical/bioscience companies invested in Michigan? Back in 1996, Michigan adopted a “drug shield” law that protects them from litigation against products that have been approved after rigorous testing by the U.S. Food & Drug Administration (FDA). That law made Michigan a model for states competing to attract high-paying bio-tech jobs.
As the Detroit News recently editorialized, repealing the law “would tell all prospective investors that Michigan is a very dangerous place in which to do business.” That’s exactly the message the Michigan House is now sending at exactly the wrong moment.
The Michigan Senate can put a stop to this madness. They should tell the trial lawyer lobby to take their abusive litigation elsewhere. Michigan needs more jobs, not more job-killing lawsuits.