Elections Have Consequences: Taking Back our Courts from Trial Lawyers Inc.
December 8, 2010
Newly elected governors in Pennsylvania and Florida are counting on strong Republican majorities in their legislatures to quickly push through meaningful tort reform early next year.
In Pennsylvania, Governor-elect Tom Corbett has called on the GOP majority in both houses to deliver a bill within six months. One key reform: reinstating Pennsylvania’s Fair Share Act, which modified abusive liability rules that allowed plaintiffs’ lawyers to hold a defendant liable for 100 percent of any damage award even if that defendant was only responsible for 1 percent of an injury. Corbett has also called for an end to venue shopping, which allowed trial lawyers to file claims in tort-friendly jurisdictions. Business groups such as the NFIB and Pennsylvania Manufacturers Association are rallying behind the plan.
In Florida, William Large of the Florida Justice Reform Institute says the election of a Republican supermajority has created a “tremendous opportunity” to pass legislation bottled up for years by the state’s trial bar and its former allies in the legislature. One bill likely on the fast track is a common sense measure that would allow a jury to apportion fault among all responsible parties, not just corporate defendants. As Jose Gonzalez of Associated Industries of Florida told one reporter:
“It’s a fairness issue. Right now, a jury [in an auto liability case] only heard about a faulty seat belt or bad roof. They don’t hear that the driver was on 10 different kinds of drugs and ran off the road.”
Elections have consequences – and it seems one message voters sent this November is that it’s time to take back our courts from Trial Lawyers Inc.
Trial Bar Shifts Focus from Congress to Obama Admin
December 6, 2010
The trial bar has lost its tort-friendly majority in Congress, so Tiger Joyce, head of the invaluable American Tort Reform Association, expects the personal injury lobby to shift its focus to the Obama Administration.
First on the agenda: getting the Obama Treasury Department to create a new loophole in the tax code to encourage speculative lawsuits. Under a scheme being pushed by the national trial bar lobby, U.S. taxpayers would actually underwrite lawsuits by giving contingency fee lawyers the ability to write off the costs of investing in new cases. Cost: $1.6 billion.
DC Residents Socked with Huge Litigation Tab
October 11, 2010
Front page story in today’s Washington Post: “DC’s Other Thriving Industry: Lawsuits…City Paid $50 million from 2007 to 2009 to settle range of complaints out of court.” Full article here.
Trial Lawyers, Inc. Targeting the Environment
August 26, 2010
Manhattan Institute’s indespensible series, “Trial Lawyers, Inc,” has done a tremendous job of exposing the business model and structure of the trial bar and quantifying the damage lawsuit abuse does to our nation.
A new installment has just been released in the series, this one on the environment. The report examines how trial lawyers are going green ($$$) by ginning up mass class action environmental lawsuits. According to the report, the trial bar is charging contingency fees that eat up a third of class proceeds and doing an end-run around legislator and regulators by using the courts to enact their policy aims.
Manhattan Institute’s Jim Copeland is the author of this latest report. Jim was published in yesterday’s Investor’s Business Daily with an op-ed on climate change lawsuits, based in part on the arguments laid out in this latest report.
Tort Reform in California: Do it for the Kids
August 19, 2010
California is facing a $19 billion budget hole this year and the possibility of (once again) issuing IOUs instead of paychecks to state workers. Furloughs may soon be back en vogue, and the state’s debt rating is flirting with junk status. No sacred cows are being spared with proposals to slash spending on everything from schools to health care services.
But there are some California workers who are doing very well, thank you. You guessed it: trial lawyers.
Our friends at California Citizens Against Lawsuit Abuse are out with a new study that examines the staggering amount of money that California public school districts are spending each year on litigation. The study, “Lessons in Lawsuits: The Impact of Litigation on California’s Schools,” examines three years’ worth of legal costs at 12 California public school districts - including verdicts, settlements and lawyer fees.
The result? Litigation cost those 12 districts nearly $100 million over three years. Tom Scott, CALA’s executive director, said that this money could have “paid the salaries of more than 1,530 teachers, purchased nearly 600 new school buses, bought more than 1.1 million school desks or purchased 246,762 desktop computer packages.”
Of course all these whopping legal costs have a dire impact on the education of California’s children. Here’s an excerpt from the report:
“In June, the state Department of Education identified a record 174 of California’s school districts that were financially troubled, up 38 percent from January. Across the state, tens of thousands of teachers were pink-slipped this year, told the funding for their positions – to educate the next generation of Californians – was unavailable. In Los Angeles, the L.A. Unified School District (LAUSD) has cut disabled children’s programs, including shutting down 200 classrooms and an entire campus dedicated to serving the disabled and reducing busing for these students. The Kern High School District (HSD) was forced to auction off and recycle items like buses and student desks to raise money for its general fund. Travel for athletic teams and field trips also have been eliminated.”
Those students in Kern County, CA might be interested to know that while they were seeing their desks auctioned off, the district was spending $2.3 million defending against lawsuits.
Sounds like a healthy dose of legal reform would be a good first step toward closing the yawning budget gap in the Golden State.
Important New Study from RAND
August 9, 2010
The RAND Institute for Civil Justice is out with an important new study on the asbestos litigation morass, specifically:
- 54 asbestos bankruptcy trusts have been established through June 2010, “with an considerable acceleration in the number of trusts established in the second half of the 2000s.”
- 9 more trusts are in the pipeline, “with undoubtedly more to come.”
- In 2008, approximately 575,000 claims were paid at a cost of $3.3 billion. Read more
The Importance of Getting the Right Judges
June 30, 2010
In a recent address, Patrick Hanlon of the University of California-Berkley School of Law noted that “critical tort reform” has helped reduce frivolous litigation, but – perhaps unintentionally – pointed out the importance of getting the right judges on the bench.
According to Hanlon:
“ … plaintiffs and their lawyers are still able to pick the best forum for favorable judges and juries sympathetic to their cases and more inclined to side with them in their tort actions. ‘Surprisingly, overall, judges seem to have had a much greater impact than the juries have in creating anti-business litigation environments,’ he pointed out.”
Could there possibly be a better argument for why businesses and their advocates should fight schemes like “merit” selection, which typically give legal special interests such as trial lawyers enhanced power to decide who will control our courts?
Litigation Costs Hurting New Jersey Schools
June 29, 2010
Think tort reform is a “business” concern? Read this article which reports on the toll litigation costs take on school district budgets.
“The average New Jersey school district allocates approximately $26,000 each school year for litigation expense. in seven districts, this figure was higher than $500,000 for the 2009-2010 school year.”
In one district - School District of the Chathams - legal expenses are budgeted to be $1.26 million for 2010-2011. This is the kind of money that could be spent on “textbooks and teachers and field trips and fund things for kids,” says the district’s business administrator.
Instead, it will go to lawyers.
$$$ for Trial Lawyers, “Owners Manual Update” for Class Members
May 27, 2010
From Overlawyered.com: My lawyer got $35.1 million…and all I got was this lousy piece of paper.
More On Michigan Case: “Who Knew Carbon Monoxide Kills”?
May 26, 2010
Walter Olson at Overlawyered links to a great piece by Daniel Fisher of Forbes. (I blogged on this earlier this week).
Fisher’s piece, “Who Knew That Carbon Monoxide Kills?”, concerns the lawsuit over the death of a Michigan man by carbon monoxide poisoning. The man, an experienced mechanic, died while repairing his car inside his closed garage while the engine idled. His family charges the muffler repair kit manufacturer with failing to warn about the dangers of repairing mufflers indoors.
The trial judge dismissed the case for reasons, Fisher notes, “that should be obvious to anyone born in the 20th Century.” Namely, running an engine inside a closed garage is dangerous! Read more