By Randall Bloomquist
Faced with the federal government’s inability to address the economic impact of out-of-control product liability judgments, a growing number of states are taking steps to overhaul their civil justice systems to curb excessive lawsuits, stabilize insurance costs, and create a more predictable legal climate for employers and consumers alike.…
“The word ‘reform’ is a complete misnomer,” says Joanne Doroshow, Executive Director of the Center for Justice and Democracy, a non-profit advocacy group that seeks to protect consumers’ rights in the court system.
“These laws take away people’s rights to access the courts and be properly compensated, and they undermine the constitutional right to a jury trial… Most tort restrictions are passed at the state level because liability laws are primarily state laws, and because it is easier for corporate lobbyists to grease state lawmakers with lobbying and campaign money.”
Not all states are in reform mode. California, New York, South Carolina and Louisiana are among the states cited in recent legal reform reports as retaining less restrictive liability systems. California has the highest “tort tax” in the country, averaging more than $2,400 per resident annually, which critics say contributes to significant economic losses and reduced job growth.
As a result of the states’ differing approaches, businesses operate under a growing patchwork of civil justice systems across the country. But that may change. Rising litigation costs and increased economic competition among states may prompt lawmakers in more states to explore changes to civil liability laws.
It’s an effort supported by the U.S. Chamber of Commerce.
“What started as just a few states recognizing this nightmare has become a nationwide movement,” said Stephen Waguespack, president of the US Chamber of Commerce Institute for Legal Reform.
“Lawmakers and engaged citizens have realized just how much trial attorneys are driving up the cost of everything. Momentum is building, and we have more reforms on the horizon. At the U.S. Chamber of Commerce, we’re working alongside state and federal policymakers to stop these frivolous lawsuits and ultimately lower costs.”
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