Issues

It's when personal injury lawyers use weak excuses to sue so they can get some money, try to gain more money than what is fair for the circumstances, or sue a person or company that had little involvement, but might have money.

All of these are unfair and add significant costs to the products and services we buy every day. Here's just one example: the average retail cost of a football helmet is $200. But the true cost is $100, meaning that the extra cost brought about by civil lawsuits is $100, doubling its price for consumers.

In fact, according to the most recent study, it is estimated that lawsuit abuse in the United States cost $260.8 billion or $3,520 for every family of four.*

The threat of unfair liability lawsuits often stifles research and development of new products - a helpful new medication, for example - and bringing those products to market.

Competitive states are way ahead

Some states have taken important steps to limit the ability of people to abuse the system. This makes those states more attractive to businesses-and the jobs they bring-by providing a fairer, more predictable legal environment.

Pennsylvania places 32nd in the overall ranking of state liability systems, punitive damages and juries' fairness.** Even worse, some of our neighboring states which compete for business rank considerably better (Delaware ranks No. 1). A number of states, like Mississippi, Texas and West Virginia have taken steps to enact meaningful lawsuit abuse reform.

Here's one example from Pennsylvania

Lawsuits are regularly filed against PennDOT. A typical case involves an uninsured or minimally insured driver who causes an accident through a combination of alcohol or drug impairment, speed and reckless driving, passing without clearance or hitting an object. That driver is sued by passengers and occupants of other vehicles, who may have been injured or killed in the accident. Since the driver at fault cannot begin to pay for the damages, PennDOT is sued as the "deep pockets." The case goes to a county court jury. The fact that PennDOT met its own road construction standards does not mean that it cannot be found negligent by the jury. And under "joint and several liability" if others involved cannot pay, PennDOT will be forced to pay the entire amount of damages.

Motor License Fund money is used for both lawsuit payouts and road repairs. More payouts means fewer repairs. Eleven lawsuits are filed against the Commonwealth each week.

Because of this unpredictable and unfair legal system, most businesses also find it easier and better financially to simply settle rather than try to defend themselves again unfair lawsuits. This ultimately raises the cost of doing business, puts financial pressure on companies, and hurts the ability to hire workers.

Lawsuit abuse also means limited access to doctors and hospitals

The current system (and the fears of unfair lawsuits) has also spurred Pennsylvania health-care providers to "err on the side of caution" and provide unnecessary services, translating into higher health-care costs for everyone. The higher costs associated with the practice of "defensive medicine" mean fewer patients can afford care, and fewer businesses can afford to offer health-are benefits to employees. And without access to quality medical facilities, physicians, and other health- care providers, communities will have even greater difficulty attracting businesses and recruiting talented employees for existing businesses.

We must end lawsuit abuse to create and attract jobs

In states with weak or outdated laws to curb or stop personal injury lawyers from abusing the legitimate use of lawsuits, manufacturers, retailers and service businesses feel the pressure of unfair liability.

According to a national survey of 500 CEOs, product liability suits caused 36 percent of their companies to discontinue products; 15 percent to lay off workers, and 8 percent to close plants.

When states do address lawsuit abuse, studies have shown large increases in productivity and employment associated with liability reforms. Adopting these reforms in Pennsylvania would produce gains in employment, productivity, and total output. In fact, the direct cost savings to Pennsylvanians may exceed $2 billion.

Economic models suggest that unemployment in Pennsylvania might drop by 39,000 if meaningful lawsuit abuse reform is enacted, and could produce an additional 34,000 jobs in our state.

Pennsylvania needs meaningful changes to our civil justice system to end the unfair costs of doing business, encourage expansion of existing businesses, and make our state more attractive to new business and the jobs they bring.

*Source: 2006 report by Towers Perin
**Source: Harris Interactive's Study