Tag Archives: Trial Lawyer

How much do lawsuits against businesses cost consumers?

Consider this article from the Pacific Research Institute.

Excerpt:

When deciding where to start a business, expand operations, or relocate, entrepreneurs prefer states with balanced tort systems that discourage abusive lawsuits. In 2006, job growth was 57% greater in the 10 states with the best tort climates than in the 10 worst states. Business leaders are leery of Michigan because of its sky-high tort costs and skewed courtrooms.

Fear of lawsuits also causes companies to withdraw or withhold beneficial products. Volkswagen planned to sell a 46 m.p.g. three-wheel vehicle. This “green machine” would have cost only $17,000, but VW decided not to market it in the United States because of lawsuit fears.

Total direct tort costs were $255 billion in 2008. Abusive lawsuits cost every American a hidden “tort tax” of about $2,000 a year in higher prices and insurance premiums, fewer jobs and new products, lower wages and benefits for working people, reduced access to health care, and higher taxes to pay for court costs. And the current system is very inefficient at its intended purpose – less than 15 cents of every tort-cost dollar goes to compensate plaintiffs.

Here’s a video about the Tort Liability Index, which tracks which states have the best environment for business based on tort costs.

This is one reason why states like North Dakota have low unemployment while anti-business states like New York have high unemployment. And North Dakota has massive budget surpluses whereas New York is running massive deficits.

Are liberal lawyers and law professors in favor of open debate?

Here’s a great post over at Stuart Schneiderman’s blog.

The topic of the post is a high-profile meeting  of lawyers and law professors at NYU Law School to discuss the recent Supreme Court decision that allow businesses to make political donations to candidates in the same way that trial lawyer organizations and teacher unions and abortion providers do. The meeting was supposed to be an open and honest debate on the issues. Was it?

Excerpt:

The most disturbing aspect of the meeting was that everyone took for granted that the the decision had been wrongly decided. There was no free trade in ideas about the correctness or incorrectness of the decision; only a discussion about how to overturn the decision.

In their modus operandi the assembled lawyers were ignoring the marketplace of ideas in favor of their own dogmatic beliefs. These defenders of the marketplace of ideas were constitutionally incapable of finding any merit whatever in an opposing viewpoint.

If you refuse to allow an idea (whether a policy or a belief) to be tested against reality, then the question becomes who has the strongest faith. True believers are willing to fight and die to prove that their strength is strongest, thus, most true.

[…]Why were the assembled liberal lawyers so lathered up about the Citizens United decision. Simply, because they believed, dogmatically and unthinkingly, that corporate money was fundamentally corrupt and corrupting. Corporations were sinners; they had acquired their money by less than idealist means; they had no right to try to influence the democratic political process.

Again, dogmatic belief leads to a fighting faith. Why? Perhaps they wanted to maintain their own monopoly control of correct opinion. The greatest enemy of free trade in ideas today is the monopoly on dogmatic belief that is maintained by the educational and media establishments.

Surely, opposing views are aired, through conservative talk radio and through Fox News. But these engines of the free market in ideas are often subject to attack. Those who prefer a more mercantilist, monopoly control over the marketplace in ideas, want to invoke the fairness doctrine to shut down much of conservative talk radio. They often try to discredit Fox News for trafficking in hate speech.

As several of the commenters on the Times site pointed out, none of these great legal minds seem to have the least problem with the influence that labor unions exert on elections through their political advertising. At a time when the political power of labor unions has brought states, cities, and counties to the brink of bankruptcy… lawyers are about to go to war to stop corporations from spending money on political advertising.

This post highlights a change in my own views. I once wanted to be a lawyer, you see. And my judicial philosophy was one of idealism and judicial activism. But after reading Thomas Sowell’s “A Conflict of Visions” three times, I am now a strict constructionist, while respecting rights guaranteed by the Constitution. Legislating from the bench now seems to me to be the wrong point of view. Injustices need to be fixed by legislators elected by the people, not by an appointed oligarchy of out-of-touch judges. So don’t ever say that I don’t change my mind when confronted with the evidence! It happens all the time. Well, sometimes.

OB-GYN doctor quits medicine over $160,000 malpractice insurance premiums

Story at the NY Post. (H/T Stop the ACLU via ECM)

Warner Todd Huston comments on the story:

Doctor Jacquelline Perlman has had it. After a 12-year career as an OB-GYN doctor she his quitting her practice.

[…]Last spring her insurer dropped her and several of her fellow doctors because of the high risk of covering OB-GYNs. Dr. Perlman’s new insurer was to charge $160,000 a year for coverage and that proved too much for Perlman to take.

Perlman noted that over the last five years, as her insurance costs multiplied, her actual income dropped by 20 percent.

So, another good doctor — one that has never had a malpractice case stick to her — leaves the profession. Now, before some of you out there assume the insurance companies is the villain here, let us pinpoint the real villain: trial lawyers.

It is the nuisance lawsuits, those filed merely to harass doctors in order to get a quick settlement, and lawyers that game the system with nonsense lawsuits as well as clients looking for a lottery-like payout that will make them instant millionaires that cause this problem.

Click here to read the rest. Remember, the Democrats are heavily supported by the trial lawyer lobby, and therefore tort reform was not included in the health care reform bill.