MESSAGE FROM OUR CHAIRMAN - ARCHIVES
PUNITIVE DAMAGE AWARDS AND PUBLIC SAFETY
One of the most fundamental flaws with punitive damage awards is that excessive punitive damage awards to individuals do not reconcile threats to public health and safety.
While legitimate victims absolutely deserve fair compensation for their injuries or loss, it is unfortunate that the principle of punitive damages has been over-manipulated to the point that it now benefits only a certain segment of the trial bar, while jeopardizing the welfare of the many.
What brings all these problems to light isn't the principle of punitive damages, but how that principle is applied. Jurors are typically given no information, other than encouragement by the plaintiffs' lawyer to "send a message," that would help them determine what is fair. The result is that punitive damage awards are completely arbitrary and unpredictable.
The application of common sense to punitive damages would go a long way, but reforms providing clear guidelines for judges and juries is only way to really curb the abuses.
AG ACTIVISM HURTING CALIFORNIA...AGAIN
Attorney General Bill Lockyer recent decision to sue automakers is another example of how activist attorneys general abuse our legal system and impose a system of 'government by lawsuit' to gain publicity and further their own political agenda. Unfortunately, they do so at the expense of the people they are paid to represent. Inevitably and undoubtedly, the costs of litigation in cases like this will be passed on to consumers in the form of higher prices.
In fact, as our associate from Californians Against Lawsuit Abuse John Merchant points out the AG could go after even greater lawsuit profits since "the AG's complaint overlooks 36 million other sources of greenhouse gas emissions -- the human beings of California who ought to be sued for negligent breathing. Since Californians each emit about 2.5 pounds of carbon dioxide (CO2 - a greenhouse gas) every day just by breathing, if you multiply 2.5 pounds of CO2 per day by 36
million Californians by 365 days, that's more than 16 million tons of CO2 just from breathing. Talk about a public nuisance ... and don't even get me started on the methane people produce." We must work together to alert our fellow citizens of the cost of AG activism and to ensure our elected officials have our best interests at heart and not just those of their current campaign.
David Houston, chairman of Los Angeles Citizens Against Lawsuit Abuse (CALA) issued the following statement in reaction to the Association of Trial Lawyers of America (ATLA) changing its name to the American Association for Justice:
A Trial Lawyer By Any Other Name
Los Angeles, CA - "ATLA's name change is merely an attempt to hide the fact that its interests are solely those that make themselves rich. As William Shakespeare might have written, 'What's in a name? That which we call a trial lawyer by any other name would smell as fishy.'
"No matter what they choose to call themselves, the fact of the matter is, they're still going to be a small, special interest group of very wealthy lawyers who's continued failure to police their own ranks has made a mockery of our justice system, raised prices on everything we buy, and jeopardized health care and jobs for countless Americans.
"Maybe instead of investing a lot of money in a PR spin campaign, they can invest in weeding out the bad lawyers within their ranks who abuse our legal system for greed instead of justice and give all personal injury lawyers a bad name."
MESSAGE FROM DAVID HOUSTON
Tort reform legislation package backed by Senate Majority Leader Bill Frist failed recently when it could not muster the 60 votes necessary for passage. Sixty votes were needed because many Democrats threatened a filibuster. Considering a recent Harvard study, the legislation should be revived.
The Harvard study showed about 40 percent of the medical malpractice cases filed in the United States are groundless. Many of the lawsuits analyzed contained no evidence that a medical error was committed or that the patient suffered any injury. Even worse, the frivolous lawsuits accounted for 15 percent of the money paid out in settlements or verdicts.
Who pays for those settlements and verdicts? You and I: the patients.
It is worth noting that patients are paying for that 15 percent in judicial expense with higher bills. That 15 percent adds greatly to the cost of medical care because doctors are forced to use needless tests and procedures as a shield against frivolous lawsuits. Psychologically, who knows how damaging this type of legal silliness is.
So instead of making care of patients the greatest priority, the uppermost thought in the minds of doctors and nurses is "Will I get sued?"
Sen. Frist should revive his legislation capping pain-and-suffering awards in malpractice cases. Trial lawyers are objecting to the bill but - not to be excessively cynical - their objections are based on greed, not altruism.
David Houston
Chairman
David Houston can be reached at losangelescala@yahoo.com
MESSAGE FROM OUR CHAIRMAN
JOIN LA CALA IN SUPPORT OF BILL 1429
Los Angeles Citizens for Lawsuit Abuse (CALA), is pleased to Support Senate Bill 1429, which would allow consumers to be compensated for damages, while protecting manufacturers, distributors and sellers from punitive damage claims when they are in compliance with existing laws, regulations or government standards.
Los Angeles CALA is a strong advocate for common sense reforms to our out of control legal system. Currently, the law allows courts to award punitive damages in addition to actual damages incurred by the plaintiff.
Our legal system exists for justice and not greed. SB 1429 is common sense reform that provides protections against lawsuit abuse without affecting the ability of a physically injured person or someone suffering property damage to be fully compensated for medical costs, lost wages, and other economic damages, plus pain and suffering.
It is vital that California take steps to curtail abuses to the current system. SB 1429 balances consumer rights with much needed lawsuit abuse protections.
For these reasons, Los Angeles CALA strongly supports SB 1429.
David Houston
Chairman
MESSAGE FROM OUR CHAIRMAN
TILLINGHAST STUDY FEATURES THE GOOD NEWS AND THE BAD
What would you do with an extra $886? I could use the money and I bet you could too.
Unfortunately, our out of control legal system just set another record for excess and greed over justice so getting that money back soon is unlikely. In fact, we all should be prepared to pay more next year.
The bad news is the recently released Tillinghast/Towers Perrin study found US tort costs reached a record $260 billion in 2004. That surpasses the previous record set in 2003 by $16 billion and equals $886 per person. That’s nearly a thousand dollars out of the pocket of every citizen in our country.
The good news is Citizens Against Lawsuit Abuse is making progress in our grassroots fight against lawsuit abuse. In 2004 US tort costs grew at a rate less than the overall US economic growth as measured by GDP, a good sign considering since 1950 the growth in tort costs has exceeded GDP growth by an average of 2% to 3%. Also, according to the study, some moderation of the growth of medical malpractice tort costs may be attributable to various state tort reforms enacted during the past decade. (Let’s not fool ourselves though, since the study also shows medical malpractice tort costs continue to cripple us, totaling $28.7 billion in 2004, up from $26.5 billion in 2003. In fact, since 1975, medical malpractice costs have increased at an annual rate of 11.7% versus 9% for all other tort costs, according to Tillinghast.)
So there is reason for hope and CALA is the reason. Please help us continue our work with a donation of time or money to LA CALA by clicking here.
We must stop putting that $886 into the pockets of greedy attorneys and back into our pockets where it belongs.
David Houston
Chairman
MESSAGE FROM OUR CHAIRMAN
A GOOD INITIATIVE
The initiative proposed for the November ballot to bar state courts from
assessing punitive damages if a company's product and warning labels have
been approved by state or federal regulators is good for California. It
is a clear indication of the power of the trial attorneys in our state when
we have to go to all this trouble to get such common sense solutions to
the problems of our legal system. Passage of this initiative will keep
intact injured party's rights to sue while serving the citizens of our state
by limiting opportunities for frivolous lawsuits.
David Houston
Chairman
LOOK OUT CALIFORNIA--MORE ASBESTOS LITIGATION IS ON THE WAY
Michael Hiltzik’s recent column in The Los Angeles Times on asbestos litigation underscores both the severity of the crisis facing our courts and the non-partisan nature of this important issue. The damage is far-reaching, the human and economic costs to all of us are staggering, and the impact is as yet fully untold.
Mr. Hiltzik’s description of the problem is facile but incomplete since it only hints at one of the major sources of the crisis: real victims deserving of justice are stymied by a huge number of frivolous claims supported by greed and junk science that clog the courts, divert restitution for valid claims and damage our economy.
After all, as he puts it, that bill could render many worthy claims “too costly to interest lawyers, leaving victims out in the cold.” In other words, too bad for those who are suffering, since it looks like lawyers just can’t make enough money off of you to help; they’ll just find another profit center if you aren’t generating enough revenue.
And they say justice is blind?
David Houston
Chairman
LOS ANGELES NAMED LEAST FAIR AND REASONABLE LITIGATION ENVIRONMENT IN NATION
The U.S. Chamber Institute for Legal Reform recently released its 2006 Harris State Liability Systems Ranking Study. For the fifth year in a row, California is among the dregs, ranking 44th in the nation. In addition, Los Angeles was named the least fair and reasonable litigation environment in the entire country.
While California has moved up one spot since last year, our legal system remains at the bottom of the barrel in terms of fairness. According to the study, California is among the five worst states in the country in terms of punitive and non-economic damages, treatment of class action lawsuits, and juries' predictability.
When asked which cities or counties have the least fair and reasonable liability systems, 40 percent of survey respondents referred to jurisdictions within California. Los Angeles itself was mentioned by 20 percent of respondents, making it the worst legal environment in the country. Biased judgment, personal experience, and incompetent juries or judges were cited as the top issues creating an unfair litigation environment.
Adding punch to these dismal rankings is the fact that 70 percent of employers report that a state's litigation environment is likely to impact business decisions, such as where to locate or do business. Nevada and Arizona both ranked higher than California, putting us at jeopardy of losing more businesses and jobs to these neighboring states.
How many more years will California have to bring up the rear before lawmakers stop bowing to the will of the states personal injury lawyer lobby? It's this special interest of just a couple thousand lawyers that is killing all the common sense proposals to make our legal system more balanced and fair. Elected leaders should represent the best interest of all Californians, not just the special interests of personal injury lawyers.
In the last two elections, California voters voiced loudly and clearly their disgust for lawsuit abuse. Legislators who have been serving as tools for the personal injury bar need to wake up, the people of California are tired of doing the job lawmakers won't.
The complete report from the U.S. Chamber is available at www.instituteforlegalreform.com.
David Houston
Chairman
