Civil Justice Reform
California CALA Groups

LAWSUIT TAX INCREASED TO $886 PER PERSON IN 2004
Lawsuits raise California's cost of healthcare and living expenses, costing a family of four around $3,544 a year

FOR IMMEDIATE RELEASE:
CONTACT: PETER BYLSMA
PHONE: 310-795-8532
April 4, 2006

(Los Angeles, CA) – Reacting to a recent report showing the cost of lawsuits amounts to a "lawsuit tax" burden of $886 for every man, woman and child in America, Los Angeles Citizens Against Lawsuit Abuse (CALA) called on legislators to reform California's legal system because of the harmful effect lawsuit abuse is having on the health and well-being of everyday Californians.

 

"As we all hurry to settle up with Uncle Sam on Tax Day, it adds insult to injury to know the lawsuit tax is taking money out of our pockets, food off our tables, gasoline out of our cars and pushing our healthcare needs further out of reach, just to make personal injury lawyers richer," said David Houston, chairman of Los Angeles CALA.

 

According to the study, completed by Tillinghast-Towers Perrin, each U.S. citizen pays $886 annually in his/her share of lawsuit costs, an almost 5% increase over the 2003 and equal to $3,544 for a family of four.

 

"Just think of how a family could spend this money," said Houston.

 

To answer that question, Los Angeles CALA calculated what a family of four's $3,544 lawsuit tax could be spent on:

  • 177 prescriptions for brand name medications at $20/co-pay1 = $3,540

  • 177 doctor visits at $20/co-pay2 = $3,540

  • 236 flu vaccinations at $15/vaccine3 = $3,540

  • 1,434 gallons of gas at $2.47/gallon4 = $3,541

  • 1,185 gallons of Safeway Lucerne Whole Milk at $2.99/gallon5 = $3,543

  • 935 dozen of Egglands Best Grade AA Large Eggs at $3.79/dozen5 = $3.543

  • 1,618 loaves of Safeway SELECT Enriched White Country Bread at $2.19/loaf5 = $3,543

"Higher prices on medicines because of lawsuits are the last thing people need," said Houston. "That can put healthcare out of reach for some, showing yet again how lawsuits make us sick. In addition to financial costs, lawsuit abuse clogs courts, delays justice for legitimate victims and threatens jobs. Rather than pandering to this special interest, legislators ought to act in the best interest of all Californians."

 

 

CALA is a nonprofit, nonpartisan, grass roots public education organization dedicated to serving as a watchdog over the legal system and those who would seek to abuse it for undeserved gain. Los Angeles CALA strives to educate the public on the costs and consequences of lawsuit abuse. More information is available at www.losangelescala.org.

 

1Based on statistic found at www.rxsolutions.com
2Based on statistic found at www.chcf.org
3Based on average price found at www.cdc.gov/flu/
4Based on the average price listed on www.gaspricewatch.com
5Based on prices found at www.safeway.com