Washington, DC,
March 8, 2005—A ranking of state liability systems reveals
states rated low in 2005 are also home to Judicial Hellholes,
according to the
American
Tort Reform Association (ATRA).
“We’re not surprised to see that states ranking low in this
year’s liability ranking report are also home to Judicial
Hellholes,” said ATRA President
Sherman Joyce.
“However, states that have enacted meaningful civil justice
reform are showing signs of improvement with business returning
to those states and medical liability premiums going down or
stabilizing.”
ATRA released the
2004 Judicial Hellholes
report December 15, 2004. According to the report, the abusive
and unfair practices endemic to Madison County, Illinois, have
infected neighboring St. Clair County, where the number of class
action lawsuits filed in the past two years has increased by an
astounding 1100%. This is the first year that St. Clair County
has been named a Judicial Hellhole. It is now #2 on the report’s
list.
“Judicial
Hellholes are courtrooms throughout the United States where the
law is not applied evenhandedly to all litigants,” said ATRA
General Counsel
Victor Schwartz.
“Litigation tourists, guided by their personal injury lawyer
travel agents file lawsuits in Judicial Hellholes because they
know they will receive a large reward, a favorable precedent, or
both. Defendants declare good reason to fear when sued in
Judicial Hellholes.”
“Judicial Hellholes contribute to a state’s overall business
climate. Mississippi and Texas, on the other hand, are showing
signs of hope, despite both states’ low rankings this year,”
Joyce said.
Since Texas enacted comprehensive civil justice reforms in
2003:
• 15 companies have entered the market or will soon.
• The state’s largest medical liability insurer reduced rates by
nearly 17 percent.
• Other medical liability insurers are lowering rates.
• State’s largest liability carrier for hospitals reduced rates
by 15 percent last year.
• It is easier to recruit physicians since reforms passed.
Since Mississippi enacted comprehensive civil justice reforms
in 2004:
• The state’s largest insurer will not raise medical liability
rates in 2005.
• St. Paul Travelers told the state insurance commissioner they
are returning to Mississippi because of the tort reform enacted
in 2004.
• World Insurance Company and Equitable Life Insurance Company
have already returned to the state.
• Mass Mutual Life Insurance Company has announced plans to
return to the state.
• New businesses have been recruited to the state since the 2004
reforms were enacted.
Other states are working to pass similar reforms. The
Georgia
Governor recently signed a comprehensive bill into law.
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