Legal Reform Boosts Growth More Than Gov’t Stimulus
August 12, 2009
This week, an op-ed in the The Columbian (a daily in Washington state), pointed out how legal reform in Texas has contributed to its relative success during our nation’s economic downturn.
Legal reform advocates, particularly medical malpractice reformers, have long pointed to Texas as a model of what works to get doctors–and other businesses–to set up shop and stay in the Lone Star State.
Here is a taste:
“[N]ew businesses and doctors have flooded into the state in the wake of the lawsuit abuse reform legislation, which capped non-economic damages at $250,000. According to the Dallas Morning News, the average award prior to tort reform was $1.21 million; now it is $880,000.”
“Lawsuit reform has had a major impact on the state’s economy. In addition to the influx of new businesses, more than 7,000 doctors have moved to Texas in the past three years. According to the Texas Medical Association, malpractice insurance premiums for Texas doctors have dropped more than 30 percent since 2003 and 15 new insurance companies have entered the Texas market. Regrettably, the federal health care reforms moving through Congress include nothing about lawsuit reform.”
Despite this good news and Texas’s improved reputation, the state’s battle over reform has not stopped. During the last legislative session, we saw trial lawyers and their lawsuit happy cronies make a full assault against the very reforms that have helped created jobs in Texas.
Fortunately, legal reform allies like the Texas Civil Justice League and Texans For Lawsuit Reform successfully thwarted these efforts. We also owe a huge Texas thank you to Governor Rick Perry who wasn’t afraid to wield his veto pen. Because of their vision and courage, Texas will continue to be a model for the nation.