Legal Reform
Legal reform today in America is critical, and critical for economic reform. Our free market economy cannot be sustained without ensuring full guarantees of private property and transparent predictability for entrepreneurship. Legal reform should be an integral part of any state government reform agenda.
In 2009, American’s legal system cost $248.1 billion, or roughly $808 per person. This statistic makes America’s civil justice system the most expensive in the industrialized world. Forecasts also expect higher levels of tort cost growth for 2011, given that growth in legal costs also generally increases with inflation and are directly tied to government spending as well.
The tactics used by aggressive personal injury lawyers cause many companies to settle questionable lawsuits just to stay out of court. They use the media to sensationalize these issues and often plaintiffs can be awarded multi-million dollar punitive damage awards, another reason companies often settle out of court. Lawsuits like this are bad for business and bad for society as one can easily see from the rising cost of our legal system.
Reform must take place on multiple fronts in order to address this serious legal issue. Health care liability reform, class action reform, and punitive damage limitations are among the issues the SGLF believes need to be addressed. Regulation through litigation must be addressed as well. It is crucial that state leaders step up and reform the system at the state level.
A reformed tort system will also ensure that the United States remains competitive on a global scale. Businesses must do what is in their best interests, and the high costs of the U.S. judicial system do not bode well for them. A reformed, efficient legal system will also greatly benefit the residents of the United States, as it will not only encourage creativity and innovation, but will lower product costs, insurance premiums and taxes and increase employment across multiple sectors.
News & Articles
Florida Lawmakers Approve Medical Malpractice Reform
In a victory for medical
malpractice insurers and physicians, Florida lawmakers have approved a series
of tort reforms that among other things will require expert witnesses
testifying against physicians in a malpractice suit to be engaged in the same
specialty.
The Florida House of
Representatives by a 77-38 margin approved the legislation (SB 1792), which
originated in the Senate Judiciary Committee. A priority of the Florida Medical
Association, the Florida Chamber Coalition for Legal Reform and the Florida
Justice Reform Institute, the bill addresses several areas of the law that
proponents said expose physicians to legal action and contribute to higher
medical malpractice costs.
FMA General Counsel Jeff Scott said changes are needed so physicians can be assured they are granted adequate legal rights as they practice medicine. “It is important that we promote the highest standard of medical care our state has to offer by holding bad actors responsible for their actions,” he said in a statement. The Florida Chamber praised lawmakers and the FMA on the bill’s passage. “We congratulate the FMA on this victory,” said David Hart, executive vice president of the Florida Chamber. “This bill aims to make Florida’s legal environment more friendly for physicians.”
FMA General Counsel Jeff Scott said changes are needed so physicians can be assured they are granted adequate legal rights as they practice medicine. “It is important that we promote the highest standard of medical care our state has to offer by holding bad actors responsible for their actions,” he said in a statement. The Florida Chamber praised lawmakers and the FMA on the bill’s passage. “We congratulate the FMA on this victory,” said David Hart, executive vice president of the Florida Chamber. “This bill aims to make Florida’s legal environment more friendly for physicians.”
Lawmakers struggle with tort reform
LITTLE ROCK — The failure of tort reform measures to gain much traction among lawmakers this session will leave unresolved a legislative response to a state Supreme Court ruling that struck down part of a 2003 law meant to limit civil lawsuits and damage awards. Now some advocates for action to address the decree say they may have to depend on the high court itself for change.
In 2012, the the state Supreme Court struck down a provision of the 2003 tort reform law that limited who could testify as an expert witness in medical malpractice cases. The decision came on the heals of a 2011 ruling in which the court had stricken provisions in the law that capped punitive damage awards in civil cases. This year, champions of tort reform entered the regular session with the idea of putting in the state constitution parts of the state law that the high court said did not meet constitutional muster. But last week, a joint legislative committee considering proposed constitutional amendments to recommend for referral to the 2014 general election ballot passed over a pair of tort reform proposals.
Senate Joint Resolution 2 by Sen. Jeremy Hutchinson, R-Little Rock, would have required that a person who files a lawsuit deemed to be frivolous pay the other party’s attorney fees; that an expert witness in a medical malpractice lawsuit be trained in the same or similar discipline as the person on trial or have similar education and experience; and that an attorney who files a medical malpractice suit file a “certificate of good faith” stating that a medical expert is ready to testify that medical malpractice occurred.
In 2012, the the state Supreme Court struck down a provision of the 2003 tort reform law that limited who could testify as an expert witness in medical malpractice cases. The decision came on the heals of a 2011 ruling in which the court had stricken provisions in the law that capped punitive damage awards in civil cases. This year, champions of tort reform entered the regular session with the idea of putting in the state constitution parts of the state law that the high court said did not meet constitutional muster. But last week, a joint legislative committee considering proposed constitutional amendments to recommend for referral to the 2014 general election ballot passed over a pair of tort reform proposals.
Senate Joint Resolution 2 by Sen. Jeremy Hutchinson, R-Little Rock, would have required that a person who files a lawsuit deemed to be frivolous pay the other party’s attorney fees; that an expert witness in a medical malpractice lawsuit be trained in the same or similar discipline as the person on trial or have similar education and experience; and that an attorney who files a medical malpractice suit file a “certificate of good faith” stating that a medical expert is ready to testify that medical malpractice occurred.
Florida physicians closer to medical malpractice reform
The state’s leading physician association is one step closer to passing a medical malpractice bill after it was approved by the Senate Rules Committee on Tuesday. However, the victory came with a stinging rebuke from state Sen. David Simmons, who said the Florida Medical Association should be focusing on other issues more important to Florida doctors, including their future as independent businesses in an ever-changing health care delivery system.
Simmons said doctors in his district email him concerned that corporations are buying their practices. Instead of owning the physician practice, Simmons said, doctors will become employees. “The entire profession is at risk. It’s at risk of no longer being a profession,” said Simmons, who ultimately voted for the bill (SB-1792). “That’s what physicians ought to be dealing with their own future. They are drowning. They are literally drowning and getting ready to be destroyed as a profession within a few years and what we are doing is we are dealing with this; a side issue.”
Simmons said doctors in his district email him concerned that corporations are buying their practices. Instead of owning the physician practice, Simmons said, doctors will become employees. “The entire profession is at risk. It’s at risk of no longer being a profession,” said Simmons, who ultimately voted for the bill (SB-1792). “That’s what physicians ought to be dealing with their own future. They are drowning. They are literally drowning and getting ready to be destroyed as a profession within a few years and what we are doing is we are dealing with this; a side issue.”
The risk of enforcing hospital staffing levels
As drafted, D.C. Council Chairman Phil Mendelson’s well-intentioned “Patient Protection Act,” which would set specific nurse-to-patient ratios for hospitals operating in the city [“District to weigh boosting nurse staffs,” Metro, Feb. 5], invites presumably unintended consequences that could significantly increase health-care costs and decrease access to care.
Under the bill, hospitals in violation of staffing requirements will face civil penalties of up to $25,000 a day, regardless of whether any patient suffers a resulting injury. But it doesn’t limit civil enforcement to the D.C. attorney general. As a result, entrepreneurial personal-injury lawyers could file costly lawsuits, as they did in California three years ago. There, personal-injury lawyers won a jaw-dropping $677 million class-action verdict against an operator of 22 assisted-care facilities across the state, not to compensate any injured persons but simply because records showed occasional dips below mandated nurse-to-patient ratios.
Under the bill, hospitals in violation of staffing requirements will face civil penalties of up to $25,000 a day, regardless of whether any patient suffers a resulting injury. But it doesn’t limit civil enforcement to the D.C. attorney general. As a result, entrepreneurial personal-injury lawyers could file costly lawsuits, as they did in California three years ago. There, personal-injury lawyers won a jaw-dropping $677 million class-action verdict against an operator of 22 assisted-care facilities across the state, not to compensate any injured persons but simply because records showed occasional dips below mandated nurse-to-patient ratios.
Arizona lawmaker works to cut down on medical malpractice suits
A state legislator wants to impose some new requirements on judges and attorneys in his bid to cut down on medical malpractice lawsuits. The proposal by Rep. Bob Thorpe, R-Flagstaff, would bar lawyers from filing a medical malpractice lawsuit unless they were certified by the state Supreme Court as a "medical malpractice attorney.'' Thorpe's bill does not define what it would take to be certified, leaving the details up to the state's high court.
"The idea is to try to weed out the difference between good, legitimate attorneys that are practicing in the area of medical malpractice ... from the ambulance chasers,'' he said. Thorpe said he envisions the certification process as establishing minimum standards. But HB 2465 does not stop there. It also would allow these cases to be heard only by judges who also have been through special training on medical malpractice cases. Thorpe said the reasoning is the same. "Let's ensure that even a judge assigned to the case has a baseline understanding of the issue.''
Tort reform package advances
As anticipated, the tort reform package was reported out of the House Courts of Justice full committee on Jan. 28, without further substantive discussion. Del. Dave Albo, R-Springfield, exercised the prerogative of the chair to reflect on the process that brought the bills this far.
The tort reform bills have been a “darn nightmare,” he said. “I’ve been here for 20 years, with everybody getting along, then all of a sudden,” people are finding things they don’t like, and starting to pick the system apart. The reform effort gained momentum this year, despite trial lawyers’ protests that Virginia’s highly regarded civil justice system is not hostile to business.
The tort reform bills have been a “darn nightmare,” he said. “I’ve been here for 20 years, with everybody getting along, then all of a sudden,” people are finding things they don’t like, and starting to pick the system apart. The reform effort gained momentum this year, despite trial lawyers’ protests that Virginia’s highly regarded civil justice system is not hostile to business.
Medical Malpractice Tort Reform Signed into Law in Michigan
Tort reform advocates in Michigan, including medical malpractice insurer, The Doctors Company, lauded the recent signing of reform legislation in Michigan.
The Michigan State Medical Society, with significant support from The Doctors Company and its trade organization, the Michigan Insurance Coalition, initiated the legislation known as the “Patients First Reform Package.”
The Michigan State Medical Society, with significant support from The Doctors Company and its trade organization, the Michigan Insurance Coalition, initiated the legislation known as the “Patients First Reform Package.”
Pence seeks tort reform in first year
Gov.-elect Mike Pence will include tort reform in a first-year legislative agenda that is slowly taking shape.
Pence has declined to release the details of his legislative agenda before he is sworn in Monday. But Sen. Mike Delph, R-Carmel, told The Associated Press on Thursday that he filed Pence's proposal to make losers in lawsuits pay all the legal fees.
Pence has declined to release the details of his legislative agenda before he is sworn in Monday. But Sen. Mike Delph, R-Carmel, told The Associated Press on Thursday that he filed Pence's proposal to make losers in lawsuits pay all the legal fees.
MO GOP To Bring Back Tort Reform In 2013
Missouri lawmakers have their eyes on reinstating liability limits for medical malpractice cases after the state Supreme Court struck down an existing cap on damages last summer.
Republicans claim a supermajority when the Legislature meets Wednesday to start the 2013 session, and GOP leaders say restoring the liability limits invalidated by the high court is needed to control health care costs and help keep doctors in Missouri.
Republicans claim a supermajority when the Legislature meets Wednesday to start the 2013 session, and GOP leaders say restoring the liability limits invalidated by the high court is needed to control health care costs and help keep doctors in Missouri.
Tort reform battle ahead for Assembly
The Virginia Chamber of Commerce is out with its legislative wish list for the 2013 General Assembly and tort reform measures loom large on the Chamber agenda.
The Chamber will continue efforts to change Virginia’s 40-year practice of barring depositions from summary judgment motions, an issue already aired in a July 18 hearing.
The chamber hopes to limit the ability of a plaintiff to take a nonsuit in the late stages of a lawsuit and expand the ability of the defense to collect attorneys’ fees and expenses when plaintiffs take such a voluntary dismissal of right. Current law “effectively allows plaintiffs to take a ‘do-over’ after the defendant has expended significant resources preparing for trial,” the Chamber’s statement says.
The chamber hopes to limit the ability of a plaintiff to take a nonsuit in the late stages of a lawsuit and expand the ability of the defense to collect attorneys’ fees and expenses when plaintiffs take such a voluntary dismissal of right. Current law “effectively allows plaintiffs to take a ‘do-over’ after the defendant has expended significant resources preparing for trial,” the Chamber’s statement says.
Legal battle brews in TN over malpractice caps
How much patients in Tennessee can recover for their pain and suffering could be significantly affected in the coming months if the state’s Supreme Court hears a challenge of a new law that limits medical malpractice awards.
The issue has taken on urgency as fungal meningitis victims start to craft medical malpractice lawsuits and attorneys weigh whether the suits will be filed in Tennessee or in Massachusetts, where injured patients can sue medical facilities for unlimited amounts of money for pain and suffering.
The issue has taken on urgency as fungal meningitis victims start to craft medical malpractice lawsuits and attorneys weigh whether the suits will be filed in Tennessee or in Massachusetts, where injured patients can sue medical facilities for unlimited amounts of money for pain and suffering.
Guest opinion: Legal reform needed for job creation, economic growth
I’ve got good news and bad news. First, the good news - in 2010, the U.S. Chamber of Commerce ranked Montana as the number one state for entrepreneurship in the country. Our hard-working, educated workforce, good quality of life, and can-do attitude make Montana a great place to set up a new business.
Now for the bad news. Just last month, the U.S. Chamber also ranked our state in the bottom ten for a good legal climate for small business. It’s a part of their 50-state study called “Lawsuit Climate 2012: Ranking the States.” What does it mean to be in the bottom ten? We may be a good place to start a business, but chances are that business is more likely to face frivolous lawsuits, costly legal bills and unpredictable court decisions.
Now for the bad news. Just last month, the U.S. Chamber also ranked our state in the bottom ten for a good legal climate for small business. It’s a part of their 50-state study called “Lawsuit Climate 2012: Ranking the States.” What does it mean to be in the bottom ten? We may be a good place to start a business, but chances are that business is more likely to face frivolous lawsuits, costly legal bills and unpredictable court decisions.
2 States Try to Tackle Medical Malpractice Reform
Medical malpractice is, it seems, a lot like the weather: You can complain about it, but you can’t do anything about it. Malpractice reform has vexed state legislative, health-care and legal communities for decades. But at least two states may actually be making some progress.
Massachusetts’ new health-care cost containment law -- signed by Gov. Deval Patrick in August -- includes malpractice guidelines, known as the "disclosure, apology and offer" approach. The law requires a 182-day cooling-off period between an adverse medical event and the formal filing of a lawsuit. The hope is that, during that time, patients, doctors and insurers -- and their attorneys, of course -- can settle a case before it goes to trial.
Massachusetts’ new health-care cost containment law -- signed by Gov. Deval Patrick in August -- includes malpractice guidelines, known as the "disclosure, apology and offer" approach. The law requires a 182-day cooling-off period between an adverse medical event and the formal filing of a lawsuit. The hope is that, during that time, patients, doctors and insurers -- and their attorneys, of course -- can settle a case before it goes to trial.
Lawsuit Reform Group's New Poll Reveals Even Democrats Are Sick Of Lawsuits
Nearly 90 percent of voters say lawsuit abuse is a problem, the Wall Street Journal is reporting, citing a poll set to be released today.
The American Tort Reform Association and a group that calls itself "Sick of Lawsuits" polled 1,013 registered voters and found 89 percent believe lawsuit abuse is a problem and 78 percent think there are just too many lawsuits.
More Lawsuits, Less Growth
A majority of voters say that lawsuit abuse hurts economic growth and job prospects, according to a poll being released today by the American Tort Reform Association and a group called "Sick of Lawsuits."
The survey of 1,013 registered voters found that 60% think lawsuits against businesses have damaged the economy and slowed the recovery, and 88% support measures that would help protect proprietors from the kinds of lawsuits that could put them out of business. Overall, 89% of voters say lawsuit abuse is a problem and 78% think there are too many lawsuits—an opinion that draws large majorities from both sides of the political aisle, including 86% of Democrats.
The survey of 1,013 registered voters found that 60% think lawsuits against businesses have damaged the economy and slowed the recovery, and 88% support measures that would help protect proprietors from the kinds of lawsuits that could put them out of business. Overall, 89% of voters say lawsuit abuse is a problem and 78% think there are too many lawsuits—an opinion that draws large majorities from both sides of the political aisle, including 86% of Democrats.
Maloney says tort reform is vital to state
Cleaning up West Virginia's court system is vital to improving the state, according to Republican gubernatorial candidate Bill Maloney.
"The court system is the number one thing we have to fix in this state," Maloney said Wednesday during a town hall meeting at the Putnam County Courthouse. "The court system affects every aspect of our lives."
"The court system is the number one thing we have to fix in this state," Maloney said Wednesday during a town hall meeting at the Putnam County Courthouse. "The court system affects every aspect of our lives."
Op-Ed: Tort reform has had just the impact we desired
In 2003, Texas was facing a real crisis, one that we met with a specific solution.
The crisis involved a dramatic drop in the number of doctors practicing medicine in our state, as we fell all the way to 44th in a national ranking of physicians per capita. Even more concerning, the greatest loss occurred among doctors practicing in high-risk specialties. Patients in dire need were discovering the only local doctors who could help them had either left the state or ceased treating their types of ailments.
The crisis' prime culprit was skyrocketing malpractice insurance rates that reflected Texas' status at the time as a lawsuit haven. To remedy this, we took the bold step of instituting tort reforms to limit lawsuit abuse and bring malpractice insurance rates down to a manageable level. And it was an overwhelming success.
The crisis' prime culprit was skyrocketing malpractice insurance rates that reflected Texas' status at the time as a lawsuit haven. To remedy this, we took the bold step of instituting tort reforms to limit lawsuit abuse and bring malpractice insurance rates down to a manageable level. And it was an overwhelming success.
Federal Tort Reform Ideas Lost in Obamacare Decision
In the Obamacare decision on Thursday, the five conservative Supreme Court Justices rejected the unlimited scope of the Commerce Clause and the Necessary & Proper Clause envisioned by proponents of federal tort reform bills (especially caps on damages in medical malpractice lawsuits). Justice Roberts was especially deferential to federalism, employing the terms "state sovereignty" and "enumerated powers" often in his decision. Proponents of federal tort reform are among the big losers in the Obamacare decision.
Christie: Scutari won't consider tort reform
When it comes to creating jobs and enacting any significant tort reform, Gov. Chris Christie blames the Democrats for the lack of progress. With regards to tort reform, Christie said during a town hall here that it would be a good thing to reduce the number of lawsuits.
Georgia Attorney General Sam Olens Adopts Standards Governing the Hiring of Private Counsel
Attorney General Sam Olens announced today that in order to increase transparency and accountability, he has issued an Administrative Order establishing rules for the consideration and retention of outside counsel on a contingency fee basis. The new policy seeks to ensure that taxpayer dollars are employed in the most efficient and economical manner when compensating private counsel.
Ga. AG issues guidelines for hiring private attorneys
A week after Mississippi added some transparency to contingency fee agreements between its attorney general and private lawyers, Georgia has done the same.
Georgia Attorney General Sam Olens announced Tuesday that he has signed an order that establishes rules for the retention of contingency fee counsel, if the need ever arises. Currently, outside counsel hired by the State is compensated with a contingency fee only in routine collection matters.
Georgia Attorney General Sam Olens announced Tuesday that he has signed an order that establishes rules for the retention of contingency fee counsel, if the need ever arises. Currently, outside counsel hired by the State is compensated with a contingency fee only in routine collection matters.
Another Golden State Disincentive
In his May 2 letter, California state Senate President pro tempore Darrell Steinberg contends that "the general belief that smart growth policies are driving California's people and businesses to other states is just plain wrong." And he's right. In addition to high taxes and massively unfunded government liabilities, the flight of businesses and job seekers is at least as attributable to the state's unwillingness to check its runaway personal-injury bar.
Dome: Insurance company credits ‘tort reform’ with lower premiums for doctors
A medical malpractice insurer has lowered its premiums and is crediting what is often called tort reform in this and other states.
Mag Mutual Insurance Co., the second-largest such firm in the state, credits the new laws with almost half of its recent 7.4 percent average cut in insurance premiums for doctors. The legislature last year overrode Gov. Bev Perdue’s veto of a bill capping “noneconomic” damages at $500,000.
Mag Mutual Insurance Co., the second-largest such firm in the state, credits the new laws with almost half of its recent 7.4 percent average cut in insurance premiums for doctors. The legislature last year overrode Gov. Bev Perdue’s veto of a bill capping “noneconomic” damages at $500,000.
Justices Limit State Liability Under Medical Leave Act
The U.S. Supreme Court ruled Tuesday that states cannot be sued for money damages for failing to give an employee time off under the Family and Medical Leave Act to recover from an illness. The vote was 5 to 4 with no legal theory commanding a clear majority.
The ruling came in the case of Daniel Coleman, who sued the state of Maryland for damages, contending he was fired after he asked for 10 days' sick leave to deal with a documented illness. He sued under the 1993 Family and Medical Leave Act, a federal law that requires all employers to provide 12 weeks of unpaid leave to workers for the care of a newborn, other family members who are sick, or for the employee's own serious health condition.
The ruling came in the case of Daniel Coleman, who sued the state of Maryland for damages, contending he was fired after he asked for 10 days' sick leave to deal with a documented illness. He sued under the 1993 Family and Medical Leave Act, a federal law that requires all employers to provide 12 weeks of unpaid leave to workers for the care of a newborn, other family members who are sick, or for the employee's own serious health condition.
Restoring Sanity To the U.S. Tort System
American businesses face an onslaught of obstacles. With Japan set to lower its corporate tax rate next month, the United States will have the highest corporate tax rate in the developed world – at 39.2 percent. Even worse, U.S. businesses confront a byzantine regulatory environment that adds hundreds of millions of dollars in compliance costs.
The 2010 Dodd-Frank financial reform law added 400 new rules – yet only 93 have been finalized. If you’re going to drown American businesses in regulation, at least let them know what they’re facing. The exponential increase in regulatory requirements enacted by the Obama administration means it’s only going to get worse.
The 2010 Dodd-Frank financial reform law added 400 new rules – yet only 93 have been finalized. If you’re going to drown American businesses in regulation, at least let them know what they’re facing. The exponential increase in regulatory requirements enacted by the Obama administration means it’s only going to get worse.