Sick of Lawsuits Update
April-May 2007

"Where do trial lawyers think these costs go? It's simple. These costs have to be added to the prices for goods and services. We all pay for these crazy lawsuits…"

Hobson Cox, a Montgomery, Alabama small business owner commenting on trial lawyer
assertions that a 'tort tax' does not exist, Montgomery Advertiser, May 3, 2007.

In the News

At risk: Vaccines

"No single medical advance has had a greater impact on human health than vaccines. Before vaccines, Americans could expect that every year measles would infect four million children and kill 3,000; diphtheria would kill 15,000 people, mostly teenagers; rubella (German measles) would cause 20,000 babies to be born blind, deaf, or mentally retarded; pertussis would kill 8,000 children, most of whom were less than one year old; and polio would paralyze 15,000 children and kill 1,000. Now, massive litigation could force companies to leave the vaccine business, threatening the future of one of medicine's greatest achievements. On June 11, in an unprecedented action before a federal claims court, lawyers for 4,800 autistic children will argue that vaccines caused autism. If successful, these claims could exhaust the pool of money currently set aside to compensate children who have been hurt by vaccines. Further, lawyers will likely take their claims that vaccines cause autism to civil court, where awards could be enormous." Boston Globe, June 3, 2007. READ MORE»

Legal Actions Add Up Against Small Biz

"The U.S. tort system is costing small businesses billions of dollars and altering the way owners make decisions, according to a pair of studies by the U.S. Chamber of Commerce. One study found that small businesses, those with $10 million or less in annual revenue, paid $98 billion in tort-related costs in 2005, the latest year for which data is available. About $20 billion of that was paid from the assets of the businesses rather than through insurance. A second study indicated that owners and managers of small businesses say the fear of lawsuits makes them feel more constrained in making business decisions generally, and just over half say lawsuits or the threat of lawsuits forced them to make decisions they otherwise would not have made." Business First of Buffalo, May 21, 2007. READ MORE»

Plaintiffs' Paradise; No injury? No problem. Creative Lawyers Will Find a Way to Sue Anyway.

"Fall 2003: As evidence mounted that Vioxx could cause fatal heart attacks, Local 68 of the International Union of Operating Engineers sprang into action. The New Jersey union didn't tell its members to stop taking Vioxx. No, instead it sued the drug's maker, Merck--for consumer fraud. The claim: The union's health plan wouldn't have paid for the drug had it known the side effects. "The marketing was, if you pay 800% more for the drug, you'll pay less for stomach bleeds, which was false," says Local 68's lawyer, Christopher Seeger. A New Jersey judge certified the case as a class action on behalf of virtually every private health plan in the country, seeking some $20 billion in damages. The New Jersey Supreme Court heard arguments on Merck's appeal in March. The case is the latest and maybe biggest manifestation of what defense lawyers dub the "harm-less" tort. Yes, thousands of individuals may have legitimate claims that Vioxx injured them. But that's not what this suit is about--nor are many others. Most rely on broadly written consumer-protection laws that don't require plaintiffs to prove they were injured, or, in some states, even misled by the company they're suing. It's a lot easier than having to find physical damages." Forbes, May 21, 2007. READ MORE»

Fewer Radiologists Reading Mammograms

"Searching for a snowman in a blizzard. Spotting a star on a cloudy night. That's how radiologists describe looking for cancer on a mammogram. It's white on white — white tumors on white breast tissue — and it can be very difficult to see, even for the most experienced eye. Mammography is arguably the most difficult thing radiologists do, but it is also one of radiology's most common and most important practices. "This saves more lives than anything else we do," said Dr. Joseph Dillard, a radiologist with Eastern Radiological Associates in Billings. Even so, Dillard and hundreds of other radiologists across the country have begun refusing to read mammograms, a trend some say could eventually limit women's access to the cancer screening tests." The Billings Gazette, April 10, 2007. READ MORE»

Recent Sick of Lawsuits Activities

An op-ed written by Lance Trover, executive director of Illinois Lawsuit Abuse Watch, appeared in the Chicago Daily Southtown. Trover commented on Illinois' rank of fifth worst legal system in the nation, according to a Harris Interactive survey. Trover states, "In a study of local jurisdictions, Cook County ranked second-worst in the country…Lawsuit abuse is a serious problem in Cook County. Not only is it a black eye but it is one which costs us jobs, increases prices on everything we buy and limits access to important health care services." READ MORE»

A letter to the editor written by Steve Cohen, executive director of West Virginia Citizens Against Lawsuit Abuse was printed in the Herald-Dispatch. Cohen commented on an Associated Press report that labeled West Virginia as a ‘testing ground' for civil justice reform. Cohen states, "The real issue here is that West Virginia not be a dumping ground for out-of-state plaintiffs. Also, that Attorney General Darrell McGraw be held accountable for his questionable hiring practices…" READ MORE»

An op-ed written by Daniel Neil, board member of Citizens Against Lawsuit Abuse of Central Texas was published in the San Antonio Express-News and The Oklahoman, which discussed the Oklahoma governor's recent veto of civil justice reform legislation that would have greatly improved the states legal climate. The op-ed contrasted the situation in Oklahoma to Texas, where citizens are enjoying increased access to medical care and to physicians and specialists as a result of meaningful civil justice reform. READ MORE»

Legislative Update

Legislation introduced in the Florida legislature by Representative Needleman (HB733) and Senator Ring (SB 1558), calling for the "Fabre Fix," that would effectively undo last year's hard fought repeal of joint and several liability was defeated with the close of the 2007 legislative session. Although the Senate Judiciary Committee passed out the bill 6-5, the Fabre legislation did not reached the Senate Floor and the House version died in Committee. Additionally, Florida lawmakers couldn't agree on the best way to reform the state's controversial no-fault auto insurance law during the legislative session. So the law, which requires all drivers to buy $10,000 of personal injury protection, or PIP, will expire Oct. 1. However, GOP Gov. Charlie Crist said he was disappointed that the law would end and that it was likely no-fault would be taken up at a special legislative session on property tax reform that starts June 12, 2007.

Legislation (HB 1602) that closes legal loopholes in Texas law that allow maritime workers to file lawsuits in the counties in which they reside was passed by the Texas legislature and signed by Governor Rick Perry on May 24. These loopholes are perpetuating large numbers of lawsuits in just four southern Texas counties. The bill aligns state law with current Federal venue rules that require the lawsuit to be filed in the county where the offense took place.

Take Action

Stop dangerous and irresponsible personal injury lawyer advertising!

Sick of Lawsuits needs your help. Send a letter TODAY urging the Federal Trade Commission to pursue stricter guidelines on personal injury lawyer advertising that uses misleading, inflammatory and baseless claims to scare consumers. Tell them you're not going to stand for personal injury lawyers' scare tactics.

The Stats

$98 billion: The amount of tort-related costs paid by small businesses in 2005. About $20 billion of that was paid out-of-pocket rather than through insurance. "Tort Liability Costs for Small Business" Institute for Legal Reform, May 2007.

62%: Percentage of small business owners who say they could grow their business if they were protected from lawsuit abuse. "Small Businesses: How the Threat of Lawsuits Impacts Their Operations" Harris Interactive, May 10, 2007.

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