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The Facts!!!
Economic Impact of the U.S. Tort System
The U.S. tort system costs Americans $205 billion in 2001,
or $721 per U.S. citizen (equal to a five percent tax on wages).
(U.S. Tort Costs: 2002 Update; Trends and Findings on the Costs
of the U.S. Tort System. Tillinghast – Towers Perrin, 1.)
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The cost of the U.S. tort system grew by over fourteen
percent in 2001, the highest single-year percentage increase
since 1986. (U.S. Tort Costs: 2002 Update; Trends and Findings
on the Costs of the U.S. Tort System. Tillinghast – Towers
Perrin, 1.)
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Unless our civil justice system is significantly changed,
the "lawsuit tax" on Americans will increase by between
seven and eleven percent per year, approaching $1000 by 2005.
(U.S. Tort Costs: 2002 Update; Trends and Findings on the Costs
of the U.S. Tort System. Tillinghast – Towers Perrin,
3.)
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The current US tort system returns less than 50 cents
on the dollar to compensate injured parties and less than a
quarter on the dollar to compensate for actual economic loss.
(U.S. Tort Costs: 2002 Update; Trends and Findings on the Costs
of the U.S. Tort System. Tillinghast – Towers Perrin,
1.)
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Civil lawsuit costs grew by over fourteen percent
in 2001, while the economy grew by less than three percent during
the same period. This represents the highest percentage increase
in tort costs since 1986. (U.S. Tort Costs: 2002 Update; Trends
and Findings on the Costs of the U.S. Tort System. Tillinghast
– Towers Perrin, 2.)
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The ratio of tort costs to Gross Domenstic Product
is expected to increase from 2.04% in 2001 to 2.21% by 2003.
(U.S. Tort Costs: 2002 Update; Trends and Findings on the Costs
of the U.S. Tort System. Tillinghast – Towers Perrin,
7.)
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Over the last 50 years, the cost of our civil justice
system has increased by over 100-fold, from less than $2 billion
in 1950 to $205 billion in 2001. By comparison, U.S. economic
growth as measured by Gross Domestic Product increased by a
factor of only 34 during that period. (U.S. Tort Costs: 2002
Update; Trends and Findings on the Costs of the U.S. Tort System.
Tillinghast – Towers Perrin, 9.)
The entire study may be found at: http://www.tillinghast.com/tillinghast/publications/reports/2002_Tort_Costs_Update/Tort_Costs_2002_Update_rev.pdf
Class Action Facts
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Eighty percent of the electorate feels that personal injury
lawyers take too much of the money they win on behalf of the
plaintiffs. (Survey Finds Tort Reform Enjoys Bipartisan Support;
Personal Injury Lawyers Viewed as Problem. American Tort Reform
Association, February 27, 2003)
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Two-thirds of Americans see lawyers benefiting the most from
the current class action lawsuit system, while sixty-one percent
see consumers and class members benefiting least from the current
system. (U.S. Chamber of Commerce, Institute for Legal Reform;
Polling on the Class Action System, National Results. Penn,
Schoen & Berland Associates, 1.)
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An overwhelming number of Americans have been personally affected
by class action lawsuits. More than half of those who received
a notice in the mail about a class action and took steps to
participate in the lawsuit report they did not receive anything
of meaningful value. (U.S. Chamber of Commerce, Institute for
Legal Reform; Polling on the Class Action System, National Results.
Penn, Schoen & Berland Associates, 1.)
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Nearly sixty percent of registered voters believe that lawsuits
are hurting the economy and preventing the creation of new jobs.
(Survey Finds Tort Reform Enjoys Bipartisan Support; Personal
Injury Lawyers Viewed as Problem. American Tort Reform Association,
February 27, 2003)
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Seventy-six percent of Americans feel that excessive medical
liability lawsuits threaten access to quality healthcare. (Survey
Finds Tort Reform Enjoys Bipartisan Support; Personal Injury
Lawyers Viewed as Problem. American Tort Reform Association,
February 27, 2003)
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Eighty-nine percent of Americans believe the legal system
is in need of reform. (U.S. Chamber of Commerce, Institute for
Legal Reform; Polling on the Class Action System, National Results.
Penn, Schoen & Berland Associates, 1.)
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Sixty-four percent of registered voters are less likely to
support a candidate for Congress if that candidate accepted
contributions from personal injury lawyers and then voted against
placing caps on the amount of money lawyers can charge their
clients. (Survey Finds Tort Reform Enjoys Bipartisan Support;
Personal Injury Lawyers Viewed as Problem. American Tort Reform
Association, February 27, 2003)
The entire studies may be found at: www.litigationfairness.org/pdf/poll_national_030303.pdf
www.atra.org
CALIFORNIA PUBLIC EDUCATION
& GRASSROOTS ADVOCACY PROGRAM ON THE COSTS AND IMPACTS OF LAWSUIT
ABUSE
Six independent groups throughout
California with over 35,000 supporters are working to highlight
problems within California's legal system. Citizens Against Lawsuit
Abuse (CALA) has had a significant impact on public perceptions
and attitudes about the effects of clogged courts and frivolous
lawsuits. And, the momentum is building...
These grassroots legal reform
advocacy coalitions attract important audiences from the public
to elected officials, the media to the business community - in an
effort to influence public opinion about the extraordinary costs
of lawsuit abuse.
Along the way, the CALA's
also attract the ire of a well-funded trial lawyer opposition and
their allies in "consumer" organizations. With this indignation
also comes recognition of the groups' formidability. The true nature
of the coalitions and the viability of their message make it difficult
for this opposition to poke holes in their armor.
In a recent survey, Citizens
Against Lawsuit Abuse ranked second only to Mothers Against Drunk
Driving in credibility.
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