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
Arizona tort-reform measure advances
Senate Bill 1336 exempts a manufacturer from lawsuits for punitive damages if the manufacturer followed all federal, state or agency standards for creating a product. There are exceptions for manufacturers that, for example, sold a product after its effective date or paid off a government official to get product approval.
Such a law could have, for example, protected Subaru from the lawsuit Phoenix resident Ashleigh Justice filed after the roof of her 1992 Legacy caved in during a rollover. She was paralyzed.
Dayton's veto of four 'tort reform' bills comes with stinging GOP criticism
"These were laughably characterized as jobs bills," Dayton said. "Calling a crow a swan doesn’t make it one."
The changes, Dayton said, would not create a single job, would not help Minnesotans and would only "pad the bottom lines of mostly out-of-state insurance companies."
Liability problems make the medical profession not very appealing
Talking Business with the U.S. Chamber Institute for Legal Reform
As an affiliate of the U.S. Chamber of Commerce, ILR advocates for the business community on a broad range of issues related to legal reform. The organization is faced with a myriad of high-stakes—and very public—issues with far-reaching ramifications for the business community and the national political conversation.
N.J. bail reform proposal to reflect federal law makes sense
Under federal law, a judge can order him held without bail until his trial takes place. And that is how it works in federal courts.
But New Jersey law is different. The state constitution gives all defendants the right to release on bail, except for those charged with a capital offense "when the proof is evident or the presumption great."
Haley calls for lower taxes, tort reform
But she also used the platform to critique the labor unions in South Carolina, attacking them as unwelcome in this right-to-work state.”
“I love that we are one of the least unionized states in the country. It is an economic development tool unlike any other,” the Republican governor said. “Our companies in South Carolina understand that they are only as good as those who work for them, and they take care of their employees. We don’t have unions in South Carolina because we don’t need unions in South Carolina.”
Under new N.J. bill, personal injury lawyers would have to wait 30 days before contacting accident victims
The measure (A4430) was approved 6-0 by the Assembly Judiciary Committee today and is expected to be taken up by the full Senate and Assembly on Monday.
Lawmakers Discuss Tort Reform in Legislative Look Ahead
House Minority Leader Tim Armstead, R-Kanawha, said although a number of measures have been put in place to help the state's judicial climate, more needs to be done.
"There needs to be an opportunity that if you disagree with a decision in circuit court, there needs to be assurance that at least you will have a day in court," Armstead said. "It's not just an intermediate court of appeal, but there needs to be an absolute right to have an initial review of a lawsuit."
Med Mal Insurance to Evolve to a More Institutional Healthcare System, Says Moody's
The shift from single or small groups of physicians practice to multi-specialty and multi-state physician networks and hospitals will likely drive a change in the medical professional liability (MPL) insurance sector, says a report from Moody’s Investor Service.
Alan Murray, vice president at Moody’s and author of the report, says there will be a “shift in market share toward MPL (also known as medical malpractice) insurers with multi-specialty and multi-state underwriting and claim-servicing capabilities for both individual medical practitioners and institutional healthcare organizations over time.”
Community Commentary: Trial lawyers have made O.C. a 'Judicial Hellhole'
At this time most people are aware that Orange County is one of the most litigious counties not only in California, but the entire nation.
Chemerinsky's health-care reform position flawed
Erwin Chemerinsky, dean of University of California, Irvine’s law school, states that the Supreme Court decision on President Obama’s Affordable Care Act, under current constitutional law, “should be an easy case to predict — the law is clearly constitutional.” Not so fast Erwin. When was the last time the Supreme Court said Congress has the power to force ordinary citizens not engaged in interstate commerce to enter into a contract with another party?
A Third Strike for Tort Reform
The court’s decision in the case Lebron v. Gottlieb Memorial Hospital spoke definitively on the issue of compensatory damage caps, declaring that the legislature had infringed on the judiciary’s power. But the topic of tort reform continues to provoke heated debate throughout Illinois.
Creating Conditions for Economic Growth: The role of the legal environment
It is widely recognized that the cost of the U.S. tort system is excessive relative to other countries. It is also excessive when examined in absolute terms based on its high transaction costs as well as some of its unique features, such as punitive damages and civil jury trials that can lead to excessive outcomes.
