Tag: civil justice reform

To Create a Pro-Jobs Business Climate, Include Tort Reform

Lawrence McQuillan, who with Hovannes Abramyan  researched and wrote the Pacific Research Institute’s recent report, “U.S. Tort Liability Index: 2010 Report,” has been writing localized op-eds promoting tort reform as a jobs creator.

Even California? Yes, even California.  From “How Lawsuit Reform Could Help California Recover“:

Asbestos awards in California’s more plaintiff-friendly counties such as Alameda and San Francisco average $3 million more than in other counties, according to an article in the American Bar Association Journal. Every business day, on average, personal injury lawyers also file nearly five class-action lawsuits in the Golden State. That destroys jobs in California.

 Entrepreneurs prefer to start, expand, or relocate businesses in states with balanced tort systems that discourage excessive litigation. These decisions matter a great deal. In 2006, job growth was 57 percent greater in the 10 states with the best tort climates than in the 10 worst states.

Business leaders remain leery of California because of its sky-high tort costs and skewed courtrooms, where business defendants lose at trial 65 percent of the time. The fear of lawsuits also causes companies to withdraw or withhold beneficial products.

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Lawsuit Reform — An Economy Booster for Mich., N.Y., N.J.

Lawrence McQuillan of the Pacific Research Institute has been following up PRI’s latest “U.S. Tort Liability Index” report with state-specific commentaries about the value of tort reform in improving state business climates. The states he has picked so far — Michigan, New Jersey, New York, Connecticut — could sure use the help.

Detroit Free Press, “Lawsuit reform could boost state economy“:

Michigan fell 15 places from 28th in the previous 2008 edition, so it is heading in the wrong direction. Michigan has the fourth-highest monetary tort losses out of the 50 states. It also ranks 30th in tort litigation risks.

It has the ninth-largest number of lawyers per dollar of state output. Despite the drop in Michigan’s level of economic activity in recent years, the state’s tort costs and number of lawyers filing tort lawsuits stay remarkably high, signaling that Michigan’s courtrooms are still ripe for lawsuit abuse compared to other states, especially in the categories of product liability and auto liability.

New York Post, “‘Tort Threat’ is a Tri-State Jobs Killer“:

New York’s tort laws are among the worst in the nation when it comes to limits on who can sue, how much they can sue for and similar rules that can contain tort costs and risks. (Among 29 such limits tracked in the Tort Liability Index, the Empire State ranks dead last in 19.) Connecticut is nearly as bad, joining New York in the Index’s “sinner” category. New Jersey, with more serious limits, makes it into the “salvageable” category.

It’s important to realize that everyone pays for the “tort threat.” Making businesses easy targets for personal-injury lawyers is a serious jobs-killer.

When deciding where to start a business, expand operations or relocate, entrepreneurs prefer states with tort systems that discourage abusive lawsuits. In 2006, job growth was 57 percent greater in the 10 states with the best “tort climates” than in the 10 worst states.

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New Jersey’s Next Governor on Civil Justice Reform

As a former U.S. prosecutor, New Jersey Governor-elect Chris Christie talked much about the law and corruption during his successful campaign against Gov. Jon Corzine, but we didn’t see much about liability reform from either side. So it’s encouraging to see the issues included in the Christie campaign’s “88 Ways Chris Christie Will Fix New Jersey,” under the category, “Getting New Jersey Working Again”:

  • Forty Seven: I will restore fairness and common-sense to our state’s legal liability policies by making it more difficult for out-of-state plaintiffs to sue in New Jersey courts.
  • Forty Eight: I will end the abuse and manipulation of New Jersey’s civil justice system by preventing the admission of flimsy and dubious testimony offered by expert witnesses.
  • Forty Nine: I will make our state more affordable for consumers and businesses by making it more difficult to file class action lawsuits for frivolous reasons.
  • Lots of good bullet pointed policies on easing unnecessary regulation, too.

    New Jersey election results here.

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