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Oklahoma City, OK April 25, 2005—
National
Association of Manufacturers (NAM)
President
and former Governor of Michigan
John Engler,
and American Justice Partnership (AJP) Chairman
Steve
Hantler, told state leaders today at the Capitol the
time has come for legal reform in Oklahoma for businesses and
consumers.
“The Lieutenant Governor should be
commended for her efforts,” said Engler. “For everyone who has a
payroll and cashes a payroll check, it is essential that we
accomplish legal reform at the state level to create a
predictable business environment that will enable us to compete
successfully at home and against our competitors around the
globe.”
“Oklahoma is at a crossroads and the economic well-being of the
Oklahoma families, communities and businesses hang in the
balance,” said Hantler. “Their well-being depends on state
leaders making a commitment to the goal of restoring fairness
and predictability to the legal system.”
The AJP,
is a coalition of
state and national groups dedicated to winning legal reform in
the states.
The
Lieutenant Governor rallied
The State
Chamber, local business groups, national partners,
lawmakers and small business owners across the state at the
Capitol today for the seventh annual Small Business Day.
The event, focused on legal reform, was designed to urge
lawmakers to pass much needed reform to attract new business to
the state, protect jobs and compete with neighboring states that
already have adopted reform, such as Texas.
“Small business is at the heart of our economic growth engine,”
said Oklahoma Lieutenant Governor Mary Fallin. “More than half
of all Oklahomans work for companies with fewer than 500
people. Unfortunately, small businesses are burdened by the
legal system, and many have left the state taking countless jobs
and resources with them. Without legal reform everyone—business,
families, schools, employees, and consumers—is penalized.
“Other states, as well as the federal government are proceeding
with lawsuit reform, leaving Oklahoma in the dust,” continued
Lt. Gov. Fallin. “Every day we go without addressing this
issue, Oklahoma will continue to lose businesses to states that
have already adopted reform.”
The unfair legal environment in Oklahoma courts is particularly
challenging for small businesses, many of which do not have the
resources to defend against litigation. According to NERA
Economics, small businesses with less than $5 million in sales
pay almost $76 billion in lawsuit and liability insurance. And
what’s worse – 44% of that burden is paid directly by the
companies and is not covered by insurance. According to the
National Federation of Independent Business’ 2002 National
Small Business Poll, more than one in five small business
owners have to spend more time on liability problems and
protecting themselves from liability rather than improving
business operations.
“Oklahoma needs to pass lawsuit
reform to compete in the global marketplace,” said
Richard P.
Rush, President and CEO of The State Chamber.
“Our businesses cannot compete if they have bulls-eyes painted
on their backs by aggressive trial lawyers. Other states have
already passed significant reforms and are attracting businesses
and jobs. Oklahoma must do the same.”
Pro-reformers
are pushing for a bill that will restore fairness to the system
for everyone and end the perverse incentives for trial lawyers
who strike it rich at everyone’s expense. Common sense changes
include eliminating joint and several liability, where
defendants found liable pay only their fair share; changing the
class action laws to a system where plaintiffs must “opt in”
versus the current “opt out” system. Trial lawyers routinely
use class actions to intimidate companies into settlements,
often with unknowing plaintiffs in the class. The trial lawyers
reap millions in fees while plaintiffs receive worthless
coupons; and reformers want to dismantle the machine that funds
the trial lawyer industry -- contingency fees. The overhaul
allows more money to go the injured person through a sliding
scale system; the higher the award, the lower the contingency
fee.
“The U.S. tort system costs more than $246 billion per year,
which translates to $3,380 per family of four,” noted Engler.
“These costs translate into higher insurance prices, higher
local taxes and higher prices for every consumer product. There
is no doubt that everyone will benefit when legal reform is
passed in Oklahoma.”
The coalition of local small businesses, consumers, industry
groups and national partners are committed to restoring fairness
and balance to the legal system in Oklahoma, no matter how long
it takes.
The American Justice Partnership, an affiliate of the
National Association of Manufacturers, is a coalition of state
and national legal reform organizations dedicated to winning
legal reform in the states. For more information, visit AJP’s
website at
www.americanjusticepartnership.org. |
